CEBU, Philippines - The real estate boom in the Philippines, specifically in Cebu wherein thousands of condominium units are anticipated, is seen to hike up the demand for furniture pieces and eventually resuscitate the battered furniture industry.
Furniture maker Charles Estreegan said that the initial 47,000 units of condominium being constructed in Cebu can help the furniture makers continue their operations, while the international market is still slowly recovering.
Estreegan, who sits as the trustee for Cebu Furniture Industries Foundation Inc. (CFIF) said that aside from condominiums and high-end subdivisions, the furniture makers can also tap the newly built resorts, and hotels not only in Cebu, but across the country.
He said the demand in the domestic market is increasing significantly, and it serves as temporary savior to the still “weak” global market.
In a separate interview earlier with Chamber of Furniture Industry in the Philippines (CFIP) official Eduardo Zuluaga, he said that while waiting for the factual rebound of the global furniture market, local manufactures should take advantage of the strong interest of the local market brought about by the dynamic real estate sector.
Zuluaga said there is actually a promising local market for furniture makers here, and that Cebu can leverage on this, considering its prestige in the furniture making in the world.
“There’s a market niche that has not been tapped in the Philippines. There are a lot of new hotels, resorts and condominiums being built, especially in Cebu. The market is here,” Zuluaga said.
In Metro Manila for instance, there are sizeable marke that doesn’t mind to pay “crazy” amount of money, just to have a good “designed” furniture piece on their homes.
Zuluaga further suggested that Cebuano furniture makers have to actively penetrate the Metro Manila market, saying “rich people in Manila that ‘hate’ their money are willing to spend and buy good and uniquely designed furniture and home furnishings.”
In the furniture industry, Zuluaga said players are also holding their future on their hands. Now, that the traditional export market is still at large, the booming local market will take the center-stage and will keep the companies’ plants alive.
“We can create a fad or a movement to stay alive,” Zuluaga said reiterating that the market is right “in our own backyard.”
Zuluaga suggested that Cebuano furniture makers have to make aggressive marketing penetration in Metro Manila and not only limit their scope in Cebu and neighboring provinces to get sizeable orders from institutional clients.
On the other hand, although the furniture industry in Cebu acknowledged that the active domestic market have been able to serve as “industry savior” during the difficult global market situation, industry players said local demand is not enough to sustain the life of the business.
“We really have to go out there and look for more markets abroad. Domestic market is only a ‘band-aid’ solution especially thatlocal sales come from institutional clients and demand is not constant,” said CFIF Cebu president Angela Paulin.
Paulin however, admitted that the shift of other furniture companies to entertain local clients had made the industry survived, but focusing on local market alone, cannot sustain the industry’s life-long survival. — (FREEMAN)