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By Mary Lim
THIS is the fourth year that Star Furniture has made it to the Enterprise 50 list. For the company, which has registered an average year-on-year growth of 12 per cent for the past five years, it is an especially significant achievement because of the challenges related to the global economic downturn.
Founded in 1981, Star Furniture manufactures, retails and exports furniture. It has four brands: Star Furniture offers value-for-money pieces; Mondi Lifestyle appeals with sleek and trendy designs; Zen Tradition fuses Oriental-Western style, while Lucano comprises luxurious Italian-inspired collections.
Star Furniture exports to over 45 countries in Europe, Latin America and the Middle East, among others.
It also has 38 retail outlets and showrooms throughout Singapore, Taiwan, Malaysia and China.
Its managing director, Mr Kenny Koh, says the company implemented a string of measures to rise above the unfavourable market circumstances.
For example, operational costs had to be reduced without affecting the process and quality of its products.
Pay cuts of between 5 per cent for junior staff and 30 per cent for senior management were also implemented.
Another reason why Star Furniture could successfully deal with the challenges was its effective business model.
'Our business model is based on full vertical integration from production to retail/export and comprehensive market segmentation.
So we could adapt quickly to changing economic conditions while keeping focus on long-term strategy and growth,' says Mr Koh.
'Numbers alone cannot be the reason for a company's resilience. We also must maintain and sharpen our competitive edge, with innovative marketing strategies, expansion into new export markets and establishing ourselves in emerging markets such as China, Brazil, Russia and India.'
His plans for overseas expansion explain why Mr Koh, whose company has over 520 employees in Singapore, Malaysia and China, is pleased that Star Furniture is among this year's Enterprise 50.
He says: 'To be recognised as among the top 50 entrepreneurs in Singapore lends credibility and trust to the company. Our vision is to continue to grow the company locally and internationally and be among the leading furniture firms in Asia and the world.
'This accolade raises our corporate image and reputation and helps position us in better light when we venture overseas. More importantly, it also enhances our standing with banks and suppliers, and helps attract better quality staff and talent to the company. All this will go a long way in advancing our growth tremendously, especially as we ready ourselves for the upturn in the economy.'
This article was first published in The Straits Times.
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