Furniture manufacturers told to level up for unified market

CEBU, Philippines - Local furniture manufacturers are encouraged to innovate and re-engineer their products to be at par with other global players in preparation for the much anticipated ASEAN economic integration in 2015.

Philippines International Furniture Show (PIFS) 2014 overall chairperson Christina Gaston said that Filipino furniture makers have to come up with new offerings specifically designed and modified for the ASEAN market.

“We have to learn what the market needs and produce new products,” she said.

While the ASEAN market serves as a significant source of raw materials and other imported goods in the country, it remains to be the second export destination for the Philippines. In May 2013, it accounted for a share of 22 percent in the total merchandise exports at $1.2 billion.

The ASEAN economic community is aimed to create a single market and production base that will allow the free flow of goods, investments, services, capital and labor in the region.

Gaston said that while some are already starting to prep up for the unified market, companies are encouraged to incorporate branding in their strategies to be able to compete with other manufacturers in the region.

She added that the furniture sector needs to collaborate its efforts with government agencies especially on getting in touch with small-scale companies.

Cebu Furniture Industries Foundation consultant Ruby Salutan said that some industry players may either see it as a threat to their survival or an opportunity to stand out in the competition.

“By next year, we will be fully flooded with a border of opportunities. We will have a more open market but competition has become fiercer. Our competitors will come to our doorstep while we are given the opportunity to capture other markets, too,” she said.

She, however, raised the issue of the lack of awareness among furniture makers, thus the need of conducting series of information drive to educate member companies of taking the ASEAN economic integration as an advantage.

Salutan also reminded local furniture manufacturers to constantly innovate and not copy from other players to stay ahead of the competition.

“Keep on innovating and not stop,” she said.

She cited that it is good to note that the issue on design piracy has toned down as people have started to recognize the value of respecting the intellectual property of others. 

She added that they have partnered with the Department of Trade and Industry to promote their advocacy towards intellectual property rights.

“We don’t see as much as copying of designs now although it is there and even the foreign market also copies our design. We have been more open to competition and imitation,” Salutan said.

CFIF vice president for external affairs Cristina Lo said that the industry has realized that they cannot eliminate design piracy especially now with the advent of technology.

“We cannot safeguard everything,” she said.

She cited that in CFIF, member companies respect each other and are actively against imitation.

Lo added that it is also important to educate other players like interior designers and architects in their role of specifying items for their manufacturers.

She said that now that the AEC is at its offing, companies are opening up more shops especially in major cities in the country to increase their visibility in preparation for the “bigger” market.

The Association of Southeast Asian Nations includes the Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam and the Philippines. In 2007, these countries agreed to establish the AEC wherein a free trade market will fully take place by 2015.

Three members such as Cambodia, Laos, Myanmar and Vietnam shall however participate in 2018. /JOB (FREEMAN)