Export industry banks on domestic demand

CEBU, Philippines - No matter how discouraging the outlook and the previous performance of the export industry, the sector still clings on hope with the domestic market as its savior.

European Chamber of Commerce in the Philippines (ECCP) executive vice president Henry Schumacher said that the export sector, particularly the furniture and the home furnishing makers should boost their presence and marketability in its “home-ground” while the domestic market is showing more interest to their products, compared to imported goods.

Although, the domestic market and that of Asia have been the ‘savior’ for the furniture and other home-furnishing exporters, and even the fashion accessories’ exporters in the last few years, this year exporters are told to double their efforts in enticing the huge and growing Filipino market, who can now afford to buy export-quality home furnishing, and are appreciating Filipino-made products, said Schumacher.

Schumacher believes that despite the gloomy market projection in top export markets like the United States and Europe, the furniture, and other export sector here has the local market to turn to, especially at this time that the real estate and the construction sectors are at their peak.

In a separate interview with exporter Pete Delantar, president of world-renowned Nature’s Legacy, maker of green furniture and home furnishing products, he said that although orders from US is a bit improving while Europe continues to weaken, the company’s strategy in tapping the Asian, and domestic markets brought about a sustained business.

For this reason, the company created a dedicated brand for the domestic market, the Naturescast to accommodate the strong demand for home furniture accent, such as decors, garden accessories, wall art, among others.

The company’s domestic brand “Naturescast” is now available in major retail outlets like SM’s Kultura, Rustan’s houseware section in Manila, Echo Stores, Tindahang Pinoy outlet in Cebu, and others.

He said despite the continued demand slack from the traditional markets, some exporters are able to sustain their operations, by employing innovative marketing strategies, and penetrating the active domestic market, and emerging countries in Asia like China, and India saved the company from facing market demand difficulties.

In China, for instance, he said the Philippine made furniture, housewares  and gift items are gaining popularity, thus there is a need for furniture exporters to tap the huge Chinese market.

Delantar’s company, which is known as one of the pioneering furniture maker to highlight the green and eco-friendly products which gained attention from Hollywood, is now temporarily focusing its marketing blitz in domestic and Asian countries.

Nature’s Legacy is using 90 percent local for its raw material requirement, making world-class home accents, and occasional furniture pieces, using abaca, limestone, recycled paper as its based materials.

The strong tourism sector, he said also help the company get busier amid the export demand plunged, while demand for baskets, and other souvenir items is improving. It’s brand’s presence in the prominent retail outlets, including the Tindahang Pinoy, has made Naturescast products popular to tourists, and domestic consumers alike.

Aside from tapping the local wholesalers for Naturescast products, the company is also getting orders for institutional clients, like shopping malls, hotels, and residential condominium units, Delantar said.

He added that China, and India is one of the most promising markets for Philippine furniture exports, however, exporters have to go out of their way in promoting Philippine-made products in this potential markets. (FREEMAN)