Keen to expand upon its longstanding forte in folding chairs, Chitose has in recent years carried out a concerted diversification into value added products such as furniture designed for the hospitality sector. Demonstrative of its thorough understanding of the market and an adept ability to anticipate new trends, this move has seen Chitose record CAGR growth in revenue of 9% over the last four years; predominantly attributed to the success of its high margin furniture amid growing purchasing power in Indonesia.
Chitose’s entry into the hospitality furniture sector can be traced back to the 1980s following the launch of the Caesar banquet chair model. This strategy was reinvigorated in 2007, when the company launched the Taro, Hanako, Jiro, and Lotus models (See Chitose Hospitality Chair Products & Specs). Undertaking the manufacture of chairs for hotels, banquet halls, food courts and restaurants comes as a natural transition for Chitose, in that the hospitality product line is designed in accordance with the company’s trademark durability and strength but with greater emphasis on refined elegance to suit the needs of the sector.
Complementing a portfolio of 18 unique chair models is Chitose’s assortment of tables that serve as the industy-standard for food courts and restaurants (See Chitose Hospitality Table Products & Specs). Made from high quality plate, particle board and steel, these tables are subject to a host of post-production quality assurance tests to guarantee sturdiness and product integrity over the course of an extended product life span. For maximum convenience, several of Chitose’s tables such as the FTC series are collapsible and together with stackable banquet chairs facilitate greater storage efficiency.
In addition to chairs and tables designed for use in dining rooms, Chitose also makes available a complete range of lobby space furniture including plush synthetic leather sofas well-suited for hotel lobbies and check-in areas. Easily folded and stacked, these products are particularly appropriate for lobby spaces that are subject to frequent changes in interior design, furniture arrangement and décor.
The hotel, banquet and restaurant furniture segment has experienced strong growth in recent years, with revenue growth surpassing 20% between 2012 and 2013. Chitose has been quick to take advantage of this trend, having asserted itself as the industry leader with 27% market share (Markplus, 2014). In light of room for further growth in the hospitality sector in Indonesia’s secondary cities as well as in other emerging ASEAN markets, lucrative opportunities are to be had as the frontrunner in this niche industry - as evidenced by a 39.72% growth in sales for Chitose hospitality products between 2012 and 2013.
