GTH-Cebu braces for ASEAN integration

CEBU, Philippines - The Cebu Gifts, Toys and Housewares, Foundation Inc. (GTH-Cebu) is now preparing to face the ASEAN integration come 2015 to well compete with the neighboring countries in taking the large share of 600 million market in the ASEAN.

GTH-Cebu President Pete Delantar said that exporters now are working hard in establishing stronger foundation in exploiting the local market to start off strong in penetrating the huge ASEAN customer base.

Exporters are no longer expecting that the demand from the US will bounce back, same as in 2007.

The gifts, toys and houseware exporters, including the home furnishing sector, are now looking at the ASEAN market instead, although the ASEAN integration has given the sector challenges and opportunities.

Delantar, who owns home furnishing exporting plant called Nature’s Legacy, said that exporters are now preparing themselves to enter the ASEAN market and strengthen the core of design and creativity in the next two years.

At present, the Philippines’ threat in terms of home furnishing, gifts, toys and houseware products is Vietnam, Delantar said. Manufacturers are now strengthening their hold in the local market so that those products imported from Vietnam or other countries will lose their share in the Philippine market first.

Currently, the Philippines is still consuming or buying imported home furnishing products from other countries, including China. Delantar said home furnishing manufacturers are now adjusting their marketing thrusts, as well as manufacturing styles, like the size of products, among others in order to attract the ASEAN market.

“We have to make the Philippines our market first, and then we will be able to penetrate the ASEAN in the short term,” said Delantar.

As of October 2012, the Philippines’ importation of furniture dipped by 4.39 percent, an indication that the local market has started to patronize Philippine-made furniture pieces.

On the other hand, despite the popularity of the Philippines in producing high-end and world-class accents or furnishings, the country’s importation of furnishing products grew by 67 percent, based on the Bureau of Export Trade Promotion record.

The local home furnishing market alone, including furniture, is estimated at US$647 million.

Delantar said although most exporters are not dumping their western clients, the world is now looking at ASEAN as the next profitable market to tap. Filipino exporters are now preparing themselves to face this challenge of dominating the market in its homeground.

A few members of the GTH-Cebu are showcasing their products at the “Tindahang Pinoy”. This is part of their efforts to penetrate the local market as well as the visiting tourists.

Delantar added that aside from partnering with retail chains, such as Rustan’s where Delantar’s products are also available, home furnishing, home accents manufacturers are also doing projects with institutional clients such as hotels, restaurants, condominiums, among others. /JMD (FREEMAN)