Furniture makers bullish on local market strength

CEBU, Philippines - Now that the Philippines is seen to be one of the biggest markets for local furniture makers, industry players are confident of market strength, despite the availability of “affordable” imported home furnishing products.

“We can’t go on price war with the imported products like from Malaysia and China. We are much leveraging in the aesthetics and quality,” said Cebu Furniture Industries Foundation Inc. (CFIF) president Angela F. Paulin.

The local furniture makers, she said, are now hitting the big-ticket furniture clients, such as hotels, condominiums and other institutional customers, adding that the industry is currently taking advantage of the increasing demand for custom-made furniture products.

“We are now more sensitive to what the demands are,” she said,  expressing confidence that shift of market focus among the furniture companies in the Philippines, specifically Cebu, is seen to sustain the industry if not in the medium term, then in long term.

Paulin admitted that the weakening of the global furniture market is not only brought about by the financial crunch experienced by the giant economies, the United States and Europe, but other factors like natural calamities, disasters and political issues also affected the furniture export.

“Furniture is the last thing people will buy, when they are facing a ‘hiccup’ in the economy, as well as other problems,” she said.

“We want to show the local market that we have the capacity to supply the demand locally,” Paulin said.

While the local market is now taking the spotlight as the “savior” market for the local furniture makers, it is also facing a challenge in embracing the production change, such as producing the smaller-scale volume.

Philippine Constructors Association (PCA) president Augusto Manalo said despite the aggressive campaign of furniture exporters announcing their shift to local market, the Philippine market, both for retail and institutional consumers, are still inclined to buy imported furniture or home furnishing products.

About 80 percent of the Philippine furniture and home furnishing demand is still coming from abroad.

In fact, importation of home furnishing and accents in the Philippines grew by 67 percent as of October 2012.

“Yes, we have the capability, good design, and quality, but the problem now is how to translate this capability that would be appreciated by the public in general,” said Manalo.

If local players will not put their hands together and corner the profitable market for Philippine home furnishings both residential and institutional sectors, “we will be continuously eaten by our competitors.”

Largely, the retail consumers are still buying imported home furnishing products, and even some new hotels and resorts and restaurants have imported their requirements for home furnishing in other countries.

This irony should be addressed by the local furniture makers while doubling their efforts in enticing the local consumers to buy locally produced products.

“The local market has always been there, but for some reasons it had been neglected [by exporters] for years,” said Murillo in an interview with The FREEMAN.

Murillo Furniture brand, is now one of the in-demand custom-made furniture makers in the Philippines, although it has maintained its market-based abroad.

Murillo said the market is challenging; what helps him to thrive under the pressured environment is its company’s establishment of strong branding and diversifying its strategy to position in the custom-made furniture making. /JMD (FREEMAN)