CEBU, Philippines - This year’s election, which is seen to provide artificial GDP (gross domestic product) growth for the country in the first semester, will also give a “relief†for the struggling export sector, specifically the gift and holiday decor manufacturers.
A report from PhilExport indicated that the gift and holiday decor makers are expecting a whopping 100 percent revenue increase in the domestic market this year while higher demand related to the May elections is apparent.
PhilExport trustee for the holiday decor and giftwares sector, said in a PhilExport report that the expected high revenues from the local market can help make up for the expected flat growth in exports.
She said poll-related spending will boost the sector adding that the booming property market could also buoy growth this year for the sector, such as the condominiums need for furnishing like candles, hanging lampshades and chimes.
Players now, she said are more active in participating trade fairs around the country to intensify its hold in the domestic market, amid the proliferation of cheaper similar imported products.
Last year’s export revenue was estimated at only US$72 million. The low demand in financial crisis-hit markets like US and Europe continues to hit the local manufacturers.
US and Europe account for about 80 percent of the sector’s export sale. Other markets include Australia, Japan, and Saudi Arabia.
In a separate interview with Cebuano home furnishing exporter, Pete Delantar he said that although growth of emerging markets like China and India is showing, most exporters now are actively tapping the domestic market.
In fact, Delantar who owns the Nature’s Legacy, one of the largest home furnishing exporters known for its green products in Cebu, has purposely created an affiliate company to serve the growing domestic market.
The company’s domestic brand “Naturescast†is now available in major retail outlets like SM’s Kultura, Rustan’s houseware section in Manila, Echo Stores, Tindahang Pinoy outlet in Cebu, and others.
He said despite the continued slack in demand from the traditional markets, some exporters are able to sustain their operations, by employing innovative marketing strategies, and penetrating the active domestic market, and emerging countries in Asia like China, and India saved the company from facing market demand difficulties.
In China, for instance, he said the Philippine made furniture, housewares and gift items are gaining popularity, thus there is a need for furniture exporters to tap the huge Chinese market
Delantar’s company which is one of the pioneering furniture maker to highlight the green and eco-friendly products which gained attention from Hollywood, is now temporarily focusing its marketing blitz in domestic and Asian countries.
Nature’s Legacy is using 90 percent local for its raw material requirement, making world-class home accents, and occasional furniture pieces, using abaca, limestone, recycled paper as its based materials.
The strong tourism sector, he said also help the company get busier amid the export demand plunged, while demand for baskets, and other souvenir items is improving.
It’s brand’s presence in the prominent retail outlets, including the Tindahang Pinoy, has made Naturescast’ products popular to tourists, and domestic consumers alike. (FREEMAN)