To maximize design edge: Furniture makers urged to expand market niche

CEBU, Philippines - While the furniture exporters and makers in the Philippines have started to shift their focus on seizing the growing domestic and regional demand for furniture, manufacturers are told to start implementing larger-scale production models in order to maximize the designing capability of Filipinos.

Philippine Contractors Association (PCA) president Augusto “Tito” Manalo urged local furniture makers to extend their market reach not only to the large institutional markets but also to the mainstream consumer base, which is now largely penetrated by the imported furniture products coming from other countries like Malaysia and China.

“The challenge now for the furniture manufacturers is how to translate our [good] designs to something that will be appreciated by the public in general,” he said, hoping to minimize the Philippines’ importation of furniture and home furnishing products from other countries.

Instead of Malaysia, China and other furniture-producing countries taking advantage of the growing office, commercial and residential furnishing demands in the country, manufacturers should look at all market arenas, not only on the institutional sector, but also in the retail segment.

Based on latest record from the Bureau of Export Trade Promotion of the Department of Trade and Industry (DTI), the country’s furnishing importation grew by 67 percent as of October 2012 to US$148.9 million from US$136.7 million in the same period in 2011.

However, furniture importation in the Philippines plunged by 4.39 percent from January to October of last year from US$111.2 million in 2011 to US$105.6 million.

The Philippines, he said, should not be worried by the continuous weakening of global market in the furnishing and furniture products while the other countries are looking at Asia or the Philippines as their target market for similar products.

Although local furniture manufacturers have already recognized the potential of the local market to sustain the industry amid global demand slack, it has to work harder in expanding its market base, to include the huge and fast growing retail trade in furniture and furnishings.

DTI Cebu provincial director Nelia F. Navarro said that while China is known for its cheaper office furniture, local manufacturers can leverage on  quality and design in this particular market.

At present, some furniture makers are enjoying good demand requirement from the institutional markets such as large and posh resorts, hotels, restaurants, condominiums and high-end residential projects.

However, Manalo said it is also good for the local furniture and furnishing makers to start implementing larger-scale production volume to tap the mainstream market.

Business Monitor International and National Statistics Office (NSO) records showed that the value of private sector construction projects in the first quarter of 2011 jumped by 11.6 percent year-on-year to P52.8 billion.

Construction is expected to grow to US$20.6 billion by the end of 2015.

Housing and Land Use Regulatory Board (HLURB), on the other hand, recorded an increase of 17.4 percent year-over-year from 2009-2010 for high-rise residential units that were licensed to be sold by the agency. —/JMD (FREEMAN)