Furniture-makers eye new markets, boost design capabilities

By Danielle Venz

PHILEXPORT News and Features

Furniture exporters are aggressively improving their design capabilities to penetrate new markets in bid to achieve over five to 10-percent growth this year.

"The outlook (for the industry) is positive. We are hoping that at least we get five to 10 percent. But of course if the government can support us in some of our initiatives, it would be better," said Salvio Valenzuela Jr., executive director of the Chamber of Furniture Industries of the Philippines (CFIP).

Valenzuela said industry players are implementing three programs aimed to improve product designs. These are the design development incubator program, the green furniture program and the material manipulation program.

"Basically, we focus on design. All these programs are geared towards improving the image of the country and live up to the term that is coined for us which is the 'Milan of Asia'," he said.

Apart from undertaking these programs, Valenzuela said furniture exporters are improving their marketing capabilities, as they aim to tap new markets.

"We are gearing out with traditional marketing campaign so we modify the approach based on our research and how other competitors are doing it. So basically, we are benchmarking from the practices of other countries," he stressed.

Valenzuela said they are looking at opportunities in other markets particularly neighboring Association of Southeast Asian Nations (ASEAN), Qatar in the Middle East and BRICS (Brazil, Russia, India, China and South Africa).

He said the sector's biggest market remained the United States cornering about 50 percent of their revenues, followed by Japan, United Kingdom, European countries and Indonesia.

Furniture export revenues reached $231 million in January to November 2013 from $145 million during the same period the previous year.

But despite the significant surge, the Philippine furniture export sales were relatively low compared to five other ASEAN Furniture Industries Council (AFIC) member countries.

Statistics indicated that the country's revenues only reached $120.17 million in January to September in 2013, while that of Vietnam amounted to $3.87 billion; Malaysia, $1.69 billion; Indonesia, $1.28 billion; Thailand, $879.4 million; and Singapore, $153.09 million.

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