ASEAN furniture groups initiate joint-ad campaign

CEBU, Philippines - Slapped by the dwindling global demand from the furniture market, some members of the ASEAN have joined hands to fight the weak consumer demand, by implementing a joint-advertising campaign to save cost in promotion.

Cebu Furniture Industries Foundation Inc. (CFIF) managing director Ruby Salutan announced that the organization will join furniture associations in Malaysia, Indonesia, Singapore, Thailand, and Myanmar for a joint-advertising move and promote their respective furniture products in 12 renowned magazines in the world.

The program is organized by the ASEAN Furniture Industries Council, to help ASEAN member countries cope with the weakening demand for furniture products around the world, especially the United States.

According to Salutan, each participating organization, in each country will contribute 20 percent of the total cost of the advertising budget, and CFIF is ready to shell out promotional money to save the struggling furniture makers here.

Salutan said details of this program will be finalized soon, but what clear is these countries have recognized the spirit of unity, amid the very difficult time.

The Philippines, is closely competing with the ASEAN countries, in terms getting bigger chunk of furniture market in the world. This time, Salutan said the industry players have put off the competitive spirits, as the difficult time is calling for unity.

She said it would be a good exposure of the upcoming CebuX 2009, as the five-day show, slated on March 5-9 (2009) is expected to draw lesser foreign buyers, because of the crisis, unlike in the past shows.

However, Salutan is optimistic that because of the active promotion, and other country-buyers interest to be updated in the design trends of furniture, there is a good chance that significant number of buyers will come to the show, although exhibitor participation have shrunk this year.

Despite the low participation rate, furniture makers, especially the organizing committee of Cebu X, still holds hope that buyers will flock to Cebu, just to keep themselves updated of the new trends in furniture, preparing for the rebound which is seen to take off in 2010.

Basing its experience during the CebuX 2008, which record showed that there was a five percent increase in buyers' attendance, amid the onset of housing slump in the US, CebuX this year hopes to generate increased number of buyers' attendance.

Charles Estreegan, CFIF vice president for external affairs said that although there is an expected further market contraction of 30 percent in the next few months, industry players are hopeful that recovery will start towards third of fourth quarter this year, or early 2010.

   The recovery is will clearly be seen if the excess inventory will be wiped out, and consumer confidence in the world bounced back, and credit will be easily available again.

"Everybody [now] is holding back, just like automotive, furniture is the last thing people with invest in," Streegan said.—Ehda M. Dagooc