Chitose Internasional Tbk is one of Indonesia’s foremost manufacturers of furniture products, most notably acclaimed for its market-leading range of folding chairs as well as its role as an industry pioneer and trendsetter. With over 35 years of experience, the company has successfully carved out a dominant position in Indonesia demonstrated by a level of brand recognition (87%, Markplus 2014) that far exceeds its nearest competitor (61%) and a majority market share across multiple chair product segments. Advanced manufacturing capabilities overseen by a skilled team of engineers and a production capacity of 1.45 million units per annum has also seen Chitose establish itself as a leading supplier of furniture for office space, schools, restaurants and hospitals.
Spurring Chitose’s sustained growth are several key strengths including an unparalleled distribution network spread throughout the archipelago; dedication to innovation through R & D and the latest manufacturing technology; and an unyielding commitment to delivering quality. Such advantages make Chitose a trustworthy supplier serving export markets around the world as well as the ideal local manufacturing partner for foreign companies looking to Indonesia as a strategic manufacturing base.
Having taken the next step in its corporate evolution following an Initial Public Offering in 2014, Chitose stands to expand upon its expertise in folding chairs through a diversification strategy that has already seen the company introduce value added furniture catering to the education and healthcare sectors. Given renewed government focus on the development of these fields, Chitose presents highly promising investment opportunities to investors looking to tap into niche sectors of the furniture industry with immense growth potential.
Year of Establishment: 1979
Type: Publicly Listed
IDX Stock Code: CINT
Number of Employees: 600
Annual Production Capacity: 1.45 million steel chairs, 10,000 hospital beds
Manufacturing Facilities 17,000 m2 factory in Cimahi
Quality Standard: JIS, SNI, ISO 9001:2008
The strength of the Chitose brand has seen it build upon its market leading position in Indonesia to enter more than 34 export markets around the world. Supported by its brand heritage and connections to Japan, the company has enjoyed particular success in tapping into opportunities in the Asia Pacific region, though its current international network also encompasses markets in the Middle East, West Africa, Europe and North America. Going forward, Chitose Internasional Tbk is poised to continue its worldwide expansion and is looking towards India as a market of considerable potential, in addition to Cambodia and Vietnam as emerging markets of growing interest to the company. Chitose is also looking overseas for new opportunities to learn and gain insights into advanced technology from experienced foreign partners.
A population of more than 240 million people with rising purchasing power makes Indonesia a market of huge potential for furniture. Reaching out to this consumer base in its entirety remains a challenge to many furniture manufacturers, but is an area in which Chitose excels through a widespread distribution network. Based out of a 17,000 m2 factory in Cimahi, West Java, Chitose works with 22 distributors and 850 retailers across the archipelago to meet demand not only in commercially-developed cities but also in emerging and underserved provinces such as those in eastern Indonesia. The company’s distribution strategy entails cooperation with traditional and modern retailers, as well as direct relationships with businesses, schools and the government.
