The Philippines is touted as the“Milan of Asia”, producing exquisite and intricate furniture that is both unique and innovative. Aside from design, the wide range of materials used has attracted buyers looking for one-of-a-kind furniture. Exported models are showcased as accent pieces in homes, hotels, resorts and offices worldwide.
From its rattan and wicker origin,the Philippine furniture industry has diversified into bamboo, stone, wood, metal, plastic, leather and other indigenous materials such as abaca, arurog, palm wood and coconut husk. It has also grown to become one of the country’s top export revenue generating sector. In the first eight months of 2008, export value of woodcrafts and furniture reached $767 million, an increase of 14.5 percent over the same period in 2007.
Despite strong buyer interest, however, furniture makers in the Philippines are facing a series of problems that have made the business environment challenging.
The strong performance of the Philippine peso in early 2008, combined with the current downturn of housing and real estate projects worldwide, have brought weaker export sales.
This has forced many suppliersto streamline production and reduce their workforce. Some companies, on the other hand, have expanded their product lines, or have begun to cater to the domestic market.
The following are some of the keytrends we see in the Philippines’ indoor and outdoor furniture industry:
• Exports in the line are expected to see slight growth in the next 12months, with suppliers feeling the effects of the housing slowdown.
• Makers will either maintain current prices or increase quotes slightly in the coming months. The intensifying competition from furniture makers in other countries in Asia has made Philippine companies cautious of raising product quotes.
• Many suppliers will continue to concentrate their R&D efforts on material innovation in coming months. Companies will maintain their focus on locally available materials as a response to the fluctuating costs of imported materials.
• The majority of Philippine-madefurniture is currently shipped to the US. This market concentration, however, may change as a growing number of suppliers target emerging markets such as Russia, India and other countries in Asia.
The above is extracted from the Executive Summary of China Sourcing Report: Philippines - Indoor & Outdorr Furniture
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/philippines-indoor-outdoor-furniture
More Useful Links:
Global Sources Online: Verified suppliers for quality buyers.
Download Global Sources e-Magazines (free): For industry-specific news, product information & verified suppliers contact details.