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E‐Commerce and Export Markets: Small Furniture Producers in South Africa

E-commerce technologies are becoming increasingly important for South African small wood furniture producers, whose export potential is constrained by their small size, lack of resources, and limited ability to work with new international customers.The policy challenge is to create an enabling and nurturing environment aimed at promoting and accelerating the diffusion of e-commerce technologies and strategies among these furniture producers. The policy debate may be better understood in light of an exploratory survey of small wood furniture producers engaged in exporting. Conducted between January and March 2001, the survey asked 100 firms to complete a short questionnaire.Sixty-four firms responded and face-to-face interviews were conducted with 19 furniture industry experts. Results indicate that small wood furniture producers are not well prepared for e-commerce: only 17 percent of companies were attempting to generate sales through the Internet, and only 39 percent had a corporate website.Roughly 5 percent of the firms had e-commerce systems in place. The study suggests that government must develop training courses and workshops on e-commerce for these furniture producers.Also, various public-private and multipartnerships must work to develop e-commerce solutions and systems specifically for small wood furniture producers, to develop human capacities and skills, and to educate firms about e-commerce.The aim of these interventions is to enable small firms to benefit from internet-driven networking and from completing the e-commerce shift early.(SAA)