DTI wants IKEA to source more local raw materials

MANILA, Philippines — The Department of Trade and Industry (DTI) is looking into supplying materials or products for Swedish furniture giant IKEA.

DTI Export Marketing Bureau director Senen Perlada said the agency is trying to convince IKEA to consider the Philippines as among its sources of materials or product supply.

While the designs of products being sold at IKEA’s stores are from Sweden, he said the Philippines has an opportunity in terms of supplying some materials or products.

In particular, the Philippines can provide fabric for pillow cases, as well as kitchen items made of wood, bamboo and coconut.

He said IKEA has mentioned to the DTI that in selecting sources of supply for its stores, there are four important considerations such as availability, functionality, cost, and sustainability.

“We are working on it. We understand the difficulty because once they adopt the product, it has to be available system-wide,” he said.

As supplying would entail providing for all IKEA’s stores, he said he has suggested that the Philippines be allowed to provide at least, initially, for stores only within the Southeast Asian region.

“I said perhaps we can go with regional first. At least if regional, we have ASEAN (Association of Southeast Asian Nations) FTA (Free Trade Area). It would be easier to enter the markets. Even if the products are made in the Philippines, the products can enter Malaysia, Thailand,” he said.