HTL International: Manufacturing for Design By Wee Beng Geok, Ivy Buche & Seow Jia Min

Abstract

This case traces the evolution of a Singapore based leather sofa manufacturer, HTL International Holdings Ltd, from an Original Equipment Manufacturer (OEM) for global furniture wholesalers and retailers to become one of the largest Original Design Manufacturer (ODM) in Asia.The company's concept of "Manufacture for Design" was the central attribute of their B2B business model. Design featured strongly in terms of the strategic choices made by the company with regard to: the alliances formed with international players, their value chain model integrating leather tanning and sofa manufacture, the key markets they served and building core competence within the company. In 2005, the key challenge facing YT Phua, the co-founder and Group managing Director, was to find a niche between low cost manufacturers and the high end design furniture players. Going forward YT Phua also had to decide whether and how the company should move towards building a unique HTL identity in leather sofa design. The case also examines HTL's recent acquisition of a German up-market furnishings solutions franchisor in terms of strategic fit and the way to grow in future.

This case was commissioned by the DesignSingapore Council at the Ministry of Information, Communications and the Arts.
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Issues: Risk Management, Corporate Governance

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