Moving up

Creativity and craftsmanship have held up the Philippine furniture industry even during tough times.

"They call us the ‘Milan of Asia’ because we set the trends in the industry. We are able to blend the East and West because of our Spanish and American backgrounds," said Roberto Locsin, vice-chairman of the Chamber of Furniture Industries of the Philippines.

The industry is, however, hampered by the lenient interpretation of patent laws (where slight changes in patented designs are considered totally different designs) and by the ability of other countries to quickly mass produce such designs.

"We try to work as fast as we can, sell as much as we can on that design until other countries copy it. Then, we create another trend," Locsin said, adding that the final copied product is not as distinctive as the original piece.

Markets

Philippine furniture is exported to Japan, the United States and European countries like France, Italy and Germany. Recently, exporters have also found a growing market in the Middle East, particularly Saudi Arabia and the United Arab Emirates.

Each country has its own distinctive taste. Americans are more contemporary while Europeans are more customized or personalized in their approach to designs. The Japanese are very European and follow whatever is trendy in Italy and Paris.

Over the past eight years, the industry has averaged a 5% to 10% growth annually. In part, the growth could be traced to aggressive marketing, particularly in international trade fairs, here and abroad.

The next major furniture trade fair will be held on Feb. 28 to March 3 at the World Trade Center in Manila. Put together by CFIP, the fair is targeting total sales of $45 million from 2,500 visitors.

Among the big foreign companies which are coming to the trade fair are the Ibermaison Home Designs of Spain, House of Fraser of the United Kingdom, KOK Diffusion of France and Fong Brothers of the United States.

Looking inward

The trade fair will also be open for the first time to local buyers and homeowners. "In view of the global recession, we have to look for other markets," said CFIP chairman Emmanuel Padiernos. "In the last four years, we’ve seen an increase in domestic demand, particularly from the middle and upper class markets."

Many of the furniture designs that will be showcased in the coming trade fair combine indigenous materials such as sea grass and metals to create a distinctive look.

Increasingly, wood are also being incorporated in furniture designs as fast-growing trees that were planted 15 to 20 years are now ready for harvest. Fast growing trees like gemelina and mahogany were planted in Mindanao as part of a World Bank-funded reforestation program.

Right now, Malaysia’s rubber wood furniture is one of the top selling items in the world. The cost for rubber wood furniture is very low because of the abundance of rubber trees in Malaysia and the use of mass production.

China is also one of the world’s major furniture makers.

Local furniture makers are, however, confident that they can compete in the world market, particularly the AB market which puts a premium on both artistry and craftsmanship.