Local demand for world-class furniture pieces on the rise

CEBU, Philippines - Although recovery is now slowly being felt in the world’s furniture market, domestic demand for world-class furniture pieces continues to grow.

“For some companies the domestic market is becoming a big consumer base for their businesses, although exporting is still their priority,” said furniture exporter Michael Basubas.

Basubas said the robust growth of tourism related investments like hotels, resorts, restaurants and condominiums, health and wellness facilities in Cebu has provided a window of opportunity for some furniture companies to thrive, as developers and architects prefer to order furnishing materials from local furniture makers, rather than rely on imported products.

Basubas downplayed impressions that once the global market will recover, the interest of domestic consumers for furniture products will be bumped off. He said most companies are now considering the local market as growth drivers.

Although, he said in general, the domestic market is still small compared to the global market, still players are anticipating the growth of domestic demand.

At the onset of the global crisis up to this time, Basubas said the local market for world-class furniture products is growing at a good rate. Now, it contributes about 20 percent of the total furniture business.

Specialized or customized furniture pieces are the most in-demand designs for the local market, he said.

Domestic market’s access to sought-after furniture products made in Cebu will continue, even though strong demand in the world market will fully recover, he reiterated.

In the last few years, furniture export industry had been strengthening their penetration in the local market. In fact, players considered local consumers as “industry savior.”

Cebu exporters are still resorting to selling locally. The problem of Cebu furniture markers is that, they are no match to their Luzon competitors due to the high cost of shipping to Manila,” said PhilExport-Cebu furniture sector trustee Alan Suarez.

Currently, Suarez said 70 percent of the domestic furniture market is in Metro Manila,” he said.

Latest government figures show that the furniture export industry suffered the steepest decline in revenues of US $51.21 million last April although it managed to keep its rank as the country’s fifth largest export.

On the other hand, manufactures continue to lament on the tedious processes imposed by the Bureau of Customs on selling to the domestic market, which discourage exporters to sell to the local market, especially for the big furniture plants.

Cebu Furniture Industries Foundation (CFIF) former president Eric Casas earlier said that the domestic market is considered as one of the industry’s saviors, while the global market demand slackened.— Ehda M. Dagooc