Exporters to survive competition by exploring adjacent industries

CEBU, Philippines - Furniture exporters as well as fashion accessory manufacturers can survive the tough global market if they consider going beyond the boundaries of their usual markets, or venturing into adjacent potential industries.

Marketing expert Tommy B. Lopez Jr., director of ACE Center for Entrepreneurship encouraged the furniture, as well as fashion accessories’ exporters to discover other profitable ventures adjacent to their core of expertise.

He said the furniture, as well as fashion accessory market may be “drying up” and “everybody is still barking on the wrong tree.”

Basing on the Blue Ocean Strategy in marketing, Lopez said exporters should start considering other innovations and other uses of their products that are not in the market yet.

This may save the industry, which is now perceived as “sunset industry” by observers.

The challenge now, he said is to conquer the boundaries in terms of target market, and value added.

“If the market dries up, there is surely an opportunity that will open,” he said.

However, he said exporters need to sit down, and work with marketing experts to give life to the suffering industry.

Meanwhile, while furniture exporters admitted that the industry is going through the hardest times ever, and it may fall into the “sunset industry” category, furniture industry leader Charles Estreegan insisted that being in the sunset industry is only a temporary state.

“In the long term there are a lot of good things going towards us. Yes, the business is difficult right now, but this is temporary,” said Estreegan, who is a member of the Cebu Furniture Industries Foundation Inc. (CFIF) trustees.

According to Estreegan Cebu furniture exporters have been to different challenges, and worst crises, and there is no reason why it can’t survive in the longer term.

The survivors in the battered furniture export industry are now taking their strength to compete further, amid the unresolved problems of high cost of doing business in the Philippines, he said.

“We just have to believe in what we are doing. The environment is very challenging, but there are also opportunities,” Estreegan said.

He said furniture exporters in Cebu in particular have recognized its strength and weaknesses, and now ready to fight even for a more challenging world market.

Cebu has further emphasized its strength in design and creativity that no competitor can take over this edge.

Moreover, the strengthening market in Asia, including the demand from the domestic consumers for high-end, export-quality pieces of furniture, and furnishings have helped serious players to survive, while its traditional major market the United States still has to recover.

Clearly, Estreegan said the furniture export industry in the Philippines, especially in Cebu is “here to stay”. —(FREEMAN)