Cebu furniture makers looking beyond US market

CEBU CITY — Although the market is expected to contract because of the continuing recession in the US, increasing production costs and the appreciation of the peso, Cebu’s furniture exporters are looking forward to their annual fair to generate much-needed opportunities. Even before Cebu Xcite 2008, the annual furniture show here, could open, the Cebu Furniture Industries Foundation, Inc. (CFIF) reported that the number of pre-registered buyers has doubled, compared to the 2006 show. "We equate this to a possible high attendance and in return, more export sales and jobs. We are confident that the visiting buyers are not here just to look around and waste their time, but they are here for a very good reason and that’s to buy," said CFIF President Eric Vincent Casas. Cebu Xcite 2008 opens Wednesday and will run until March 9 at the Waterfront Cebu City Hotel and Convention Center. Last year’s show grossed $15 million, 26% less than the 2006 sales. It attracted 800 pre-registered buyers and 1,325 walk-in buyers. Middle East buyers led the pack of top buyers for furniture and furnishings last year. North America and Europe had a total share of 22% and 18%, respectively. Asia ranked fourth followed by Africa, South America and Oceania. Mr. Casas said they have learned not to rely too much on the US market, especially as a recession looms that could last till next year. "There are evolving markets in non-traditional export countries. The industry can open up and further exploit Eastern Europe, Russia, Southeast Asia and even China," Mr. Casas said. "The industry should consider a focus differentiation strategy for the global market. This means that we will concentrate export marketing efforts and resources towards specific target, or niche, markets. The strategy will also attempt to differentiate Philippine furniture from the rest of the competition through aggressive product design and development, productivity breakthroughs" Mr. Casas said they will continue to focus on middle to high-end buyers, who are more discerning in terms of design and craftsmanship. Cebu furniture makers have also developed a flexibility to deliver low to moderate quantity orders. Buyers have considerably warehousing costs and want goods delivered in small quantities. — Ghea R.M. Tenchavez, BusinessWorld