KUALA LUMPUR: Spring Art Holdings Bhd expects the surge in online shopping for products including ready-to-assemble (RTA) furniture to boost its financial performance and it expects this global trend to continue.
Spring Art, which is an RTA furniture products designer and manufacturer, said on Monday the movement control order saw an increase in online shopping.
Its RTA furniture are packed in a flat pack format, easy to transport and assembled by the customers, comprising distributors, furniture showroom retailers, home furnishing chain stores and also e-commerce companies.
In a statement issued after its second AGM which was held online, Spring Art managing director Jack Lim Kok Eng said he was upbeat on the demand, especially for small office home office furniture in online shopping amid the coronavirus pandemic.
The pandemic and ensuing movement curbs had seen companies directing employees to work from home, in an effort to maintain business continuity.
Spending habits changed after the lockdown was implemented. More people are spending more time shopping online and are keen to purchase items. It presents new opportunities for e-commerce.
“The outbreak of Covid-19 might have brought the negative impact in short term but it brings positive impact in long term to the company. Our customers include ecommerce companies in foreign markets who resell our RTA furniture products to consumers through their respective platforms, ” he added.
Lim said Spring Art will continue to expand its product range and market coverage by expanding in North America and Europe where there is growing demand for Malaysian furniture due to US-China trade war.
It aims to expand its product range by releasing four new collections annually, with a focus on living room furniture and bedroom furniture every year, to appeal to changing consumer preferences.
“With our design and development capabilities, we believe that our variety of choice in products will contribute to increased sales for Spring Art, ” he added.
For the first quarter ended March 31, Spring Art reported a net profit of RM2.03mil on the revenue of RM16.20mil.
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