Furniture makers undergo eCommerce mentoring

CEBU, Philippines - In its bid to help keep the industry afloat, the Department of Trade and Industry (DTI-7) is now helping furniture manufacturers to capitalize on the largely untapped potential of eCommerce.

DTI-7 regional director Asteria Caberte said in an interview that furniture manufacturers are now being coached by eCommerce experts on how to maximize this new way of doing business with new set of consumer-base.

According to Caberte, furniture makers who have been in the industry for decades, should apply the modern way of marketing with the full use of technology, and let go of traditional ways of doing business.

"We are teaching them to be outward looking, ahead of the competition and invest more on technology," said Caberte.

 Caberte noted that despite massive existence of technology and obvious benefits it offers to this generation, significantly businesses, there are still furniture manufacturing companies that are having difficulties to adapt major change in their respective operations.

Aside from various help and programs implemented by the agency to save this long-battered sector, eCommerce, she said is the number one booster for companies to stay in the business.

Amid the threatening competition, Caberte said furniture making in the Philippines, especially Cebu cannot be overtaken by the newbies from other countries, because of the inherent skill of craftsmanship, artistry and design capabilities that Cebu is known for.

With the aid of good eCommerce tools, Caberte said the industry is seen to rise up again, only in the new environment of market, operational system, and even volumes.

Because the design capability, Cebu is seen to reap its lead in the high-end, customized or personalized home furnishing making in the world. This means, that Cebu is no longer competing with mass production furniture making capitals, but it will settle successfully in premium, exclusive and luxury designer items.

Recently, management consulting firm Bain & Company, in conjunction with Google, warned companies in South East Asia, including the Philippines to catch up with its growth in eCommerce platform.

Online retail represents a US$6B market in Southeast Asia, but with online sales is only below four percent of total retail.

"The region still lags well behind developed markets and even other developing markets," revealed the study.

According to the joint Bain-Google report, which includes a survey of more than 6,000 Southeast Asian consumers across the Philippines and five other markets (Singapore, Malaysia, Thailand, Indonesia, Vietnam,) digital influences just 20 percent of consumer purchases, particularly mobile phones, clothing and laptops.

Overall, Bain anticipates online retail sales across Southeast Asia could hit US$70 billion by 2020.  While this does not yet match the pace of China (now a more than $500 billion market) – multinational retailers are finding it harder to ignore the region’s emerging influence.

Digital media connectivity in Southeast Asia on the other hand, now rivals that of China, as more than 150 million consumers in the region are digitally active, with high levels of product search and engagement.

However, while 250 million consumers are now connected via smartphone and 100 million engage in online transactions, eCommerce related activities are still moving a slow pace. (FREEMAN)