China seen as top prospect for furniture exports

MANILA, Philippines - Filipino exporters should focus on China as one of the top destinations for furniture exports, a leading international exhibitor said.

Fairs & More Inc. (FMI) vice president for international trade fairs Wilbert Novero said China is now the fourth biggest importer of furniture after Europe, the US and Japan.

 “China imports $11 billion of furniture yearly. Its proximity makes it a very ideal destination for the country’s furniture exports. Philippine-made furniture have been recognized for excellence in product design and craftsmanship. We just have to establish our presence there,” Novero said.

He said they recently sent a Philippine delegation to the 17th China International Furniture Expo composed of seven furniture manufacturers from around the country.

The annual expo is one of the three biggest gatherings of furniture manufacturers in the world and showcases famous brands from Australia, Belgium, Czech Republic, Denmark, Germany, Hong Kong, India, Ireland, Italy, Netherlands, Portugal, Singapore, Spain, South Korea, Taiwan, Thailand, United Kingdom, the US and Vietnam.

 “We want furniture exports to China to double in the next three years. China should never be viewed as a competitor but rather as an important trading partner,” Novero said.

Currently, the US and Japan combine for 60 percent of the Philippines’ total furniture exports. Furniture exports to China stand at only five percent.

Still, the Philippines is competing with China in the $64-billion US furniture market. China now has 51 percent of furniture exports to North America while the Philippines only has a miniscule 0.50 percent share.

Novero said there is reason to be optimistic on the Philippine furniture industry as it has sustained its rebound that started last year.

 “There are strong indications the industry is on its way to recovery. FMI will continue to do its part in establishing market niches for local companies in the international market,” Novero said.

Government data showed that woodcrafts and furniture exports for the first eight months of the year reached P1.18 billion, up 68.34 percent as compared to the same period last year.

Furniture exports from the Philippines peaked in 1999 with more than $381 million before slowly declining due to world financial crisis and stiffer international competition.

Novero said that finding new markets for local furniture manufacturers assures a steady flow of new designs and employment.

The Philippines, considered as the Milan of Asia, has roughly 15,000 furniture firms that employs more than 800,000 individuals mostly concentrated in Cebu, Metro Manila and Pampanga.