THE READINESS OF THE MALAYSIAN FURNITURE FIRMS TO VENTURE INTO DESIGN-BRAND-INNOVATION (original) (raw)
The globalization of the economy has created great competitiveness in the furniture market. This industry gives out an impressive growth for the past nine years as it contributes from 2.6 billion in 1997 to 6.3 billion in 2009 (MIFF, 2010). However in 2012, Malaysia still has to endure the fierce competition with low cost producers of China and Vietnam. The decline of raw materials and the rise of costs have forced companies to venture into branding and design. Not to be left behind, more companies have transformed from OEM (Original Equipment Manufacturing) to ODM (Original Design Manufacturing). Malaysia is in fact between China and the Italian in terms of quality of products. Such a phenomenon has created a concern of whether the current manufacturers have been equipped with the right innovation and originality to reach world-class producers. Little attention has been given to examine their readiness of design innovation in the context of the furniture industry besides looking at the effectiveness of brand strategy and positioning. This study attempts to address this gap in the literature. There have been a few academic literatures on design innovation in the context of brand strategy and positioning and therefore this study aims to provide ample perspectives on both variables of brand strategy and positioning which considered being jointly in contrast to in isolation in the recent studies. Thus, this study will investigate whether the relationships between those variables are correlated and whether they contribute to adverse effects in aspects of brand performance. Micro-sized companies are not included in this survey but rather on small, medium and large-sized companies. Thus, it would benefit the government by really allocating the proper fund to the right channels where needs arise and to keep track other issues to prevent derailing. In reality, design innovation and branding need to be concentrated as competency towards achieving Original Brand Manufacturing (OBM) or Original Design Manufacturing (ODM).
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