CEBU, Philippines - The dynamic sales performance of home furnishing business in the Philippines, which is primarily fueled by the fast growing real estate sector has encouraged foam and furniture maker Mandaue Foam to open at least three more branches next year.
The Cebu-based home furnishing retailer and manufacturer, will focus on expanding its business in Luzon, as well as promising areas in the Visayas like Bohol, said the company’s marketing and assistant operation manager, Jonathan Ho.
Currently, there are a total of 17 Mandaue Foam branches all over the country, three of which are located in Cebu.
According to Ho, the company will open its 18th branch in Metro Manila, followed by the opening of its 19th branch in Lipa, Batangas also next year.
In Visayas, the company will put its focus on the investment of penetrating the booming Bohol economy, by opening a branch in 2013.
Ho said the economic growth of Bohol specifically in the tourism, and real estate sectors is something that can’t be ignored.
The growing number of foreigners (married to Boholanas), and the flow of OFW remittances that pushed the purchasing power of Boholanos have strengthened the confidence of Mandaue Foam for a good business opportunity in Bohol.
Mandaue Foam will invest a minimum of P5 million to P10 million, only for inventories of a new showroom. This investment excludes the expenses that will be incurred in acquiring or leasing, if not renting a property and constructing a building for a new facility.
In an earlier interview with Mandaue Foam managing director Ryan Uy, he said that despite the bottleneck competition against the imported and cheaper furniture products that entered the Philippine market, Filipino manufacturers, like Mandaue Foam is confident that they will be able to fight the competition in terms of quality, design, and workmanship.
In fact, Mandaue Foam is geared towards expanding its market reach in the Philippines by opening more branches in the provinces, such as Samar, Leyte, Manila and some parts of Southern Luzon.
In the long term though, the company is planning to make overseas presence in emerging markets like Vietnam.
At present, Mandaue Foam is cornering over 20 percent of the country’s foam and furniture markets, despite the flooding supply of foam and furniture products from China.
Uy said cheaper and imported furniture and foam products have not threatened the brand’s growth in the domestic market, although he admitted that imported products’ presence have slightly affected their market share.
He said the country’s home furnishing market is still strong, as Filipinos are starting to appreciate the quality and trusted brand, versus price.
In 2010, the company generated an average sales revenue P200 million to P300 million per branch, an indication that the Philippines is providing profitable environment for home furnishing business, despite the fragile economy. (FREEMAN)