Nature's Legacy taps emerging markets to sustain business

CEBU, Philippines - Although the growth of emerging markets for home furnishing exports like China and India is hard to predict, Nature’s Legacy is counting on these countries to sustain its business, while United States and Europe’s recovery is still at large.

Nature’s Legacy president Pete Delantar said that his company is now focusing on the emerging Asian market, specifically China and India, while these countries are showing improvement in terms of demand.

“We are slowly gaining popularity in the Asian market, specifically China and India,” said Delantar whose company is known as one of the pioneers who introduced green furniture and home furnishing products for exports.

The consumers for residential products, like home furnishing and furniture in China and India is moving up, although he said that the sustainability of its growth is still unpredictable. What is important, he said, is the company has seen an improving demand.

The slack demand from giant economies and Philippine exports’ traditional markets --- US and Europe --- may have affected the exports sector, however, there are still a lot of countries that are waiting to be tapped, just like those in Asia, Delantar said.

He said Philippine made furniture, houseware, and gift items are gaining popularity in China, thus there is a need for furniture exporters to look into the huge Chinese market.

Nature’s Legacy uses local raw materials in making world-class home accents, and occassional furniture pieces, using abaca, limestone, and recycled paper as its based materials.

According to Delantar although the US market has shown improvement in terms of demand compared in the last few years, the preference of the consumers however has changed.

He said buyers in the US now are a bit more careful, ordering only minimal volumes, unlike in the past.

What is sustaining though is the fast sales turn-over of small home furnishing items, which have small prize values, like baskets, home decors, and other home accessories.

He said China and India are one of the most promising markets for Philippine furniture exports, however, exporters have to go out of their way in promoting Philippine-made products in these potential markets.

In fact, Delantar joined an exposition in China early this month to broaden his company’s brand penetration in the Chinese consumer base.

“There is still hope for the furniture exports,” he said adding that while Cebu-made furniture has gained popularity in the world, US and Europe are not the only bread-and-butter for the sector.

Based on India’s Economic Advisory Council, India is poised to become the world’s third largest economy this year, posting an economic growth of 8.2 percent.

In fact, the International Monetary Fund has projected that India’s economy will experience growth to US$3.1 trillion in real terms in the next ten years.

In China, records showed that total consumer purchase of furniture, home decor housewares in 2010 in China reached to US$10.87 billion, a big jump from US$6.58 billion recorded in 2009.

The total import amount of furniture-home decor houseware in 2010 posted at US$3.25 billion from only US$1.94 billion in 2009.  (FREEMAN)