Wellness sector eyed as alternative market

As the strong demand from the domestic market continues to keep the furniture sector afloat, the Confederation of Philippine Exporters Inc. (PhilExport-Cebu) is encouraging players to produce pieces that are now in demand locally, such as furniture pieces for the wellness sector.

PhilExport-Cebu president Jay Yuvallos said that there is a good demand for furniture, furnishing pieces in the wellness industry in Cebu, as the province is positioning itself to become the hub for beauty, health and wellness in Asia.

'We will be encouraging furniture companies and those from the gifts, toys, and houseware to come up with furniture and furnishing items that are inspired by the spa and wellness industry," said Yuvallos.

Yuvallos said Philexport-Cebu joins the Cebu Chamber of Commerce and Industry (CCCI) in recognizing the contribution of the wellness sector in providing world-class services, which has upgraded itself from the traditional massages.

"It has evolved into a holistic service from beauty, fitness and a healthy lifestyle," he said, adding that export players are now seeing the wellness industry as a new market for their products.

Yuvallos noted several of the high-end spas in Cebu and Mactan are in fact commissioning some Cebu furniture and furnishing companies to produce "spa-inspired" items from tables, chairs, and other decorative items.

Given that Philexport-Cebu and CCCI has recently announced a collaborative effort to promoting tourism and business in Cebu, he is optimistic that both the wellness and export industries are to benefit from this synergy.

Earlier, the Cebu Furniture Industries Foundation Inc., (CFIF) revealed that the robust demand for world-class furniture products from the domestic market have sustained the business of the furniture exporters, while facing declining orders from abroad, especially from the United States.

“The domestic market is now an attractive market for us [exporters]. We noticed increasing institutional orders from hotels, resorts, restaurants, and even residential clients,” said Cebu Furniture Industries Foundation Inc., (CFIF) president Eric Casas.

Although furniture exporters have tried penetrating the other markets other than America, which used to hold 60 percent of the total export volumes for furniture, Casas said players have to redirect their focus and now actively accept orders from the local market.

Aside from hotels, high-end residential markets, Yuvallos said the fast developing Spa industry in Cebu is a good market to tap.

Currently, about 25 percent of the furniture production of the industry goes to the domestic market. This could grow if active partnership between the furniture makers and Spa and wellness operators will be aggressively pursued.

Casas said despite the worldwide economic slowdown as the effect of the US weakening economy, the Philippines’ real estate market, and hotel/resort investments have continued to be dynamic and that this has sustained the furniture industry sector.