Trade Resources Policy & Opinion The Philippine Furniture Industry Will Focus on Producing High-End Furniture

The Philippine Furniture Industry Will Focus on Producing High-End Furniture

Manila,Philippines:The Philippine furniture industry will focus on producing high-end furniture for export to markets outside of Asia until at least 2020.This is a result of Philippines losing its competitive edge to regional competitors in the low-price furniture segment.

Speaking at a forum hosted by the All-Asian Centre for Enterprise Development(ASCEND),Executive Director of the Chamber of Furniture Industries of the Philippines,Salvio Valenzuela Jr,said the global economic crisis and the increased cost of production inputs in the Philippines have made the industry's low-cost furniture less competitive than products from Malaysia and China.

According to Mr Valenzuela,this phenomenon"has created dynamic changes in the distribution market."He added:"Buyers started to cut down the cost and compromise on the quality of the production of low-cost products.We know for a fact that this was what brought China on top of everybody else but we cannot blame these buyers because they just wanted to offer functional products to their consumers at the lowest possible price."

Mr Valenzuela also said that in order for the Philippine furniture industry to thrive,it must now aggressively tap the BRICS markets–namely Brazil,Russia,India,China and South Africa.He also mentioned the cosmopolitan areas of Hong Kong,Bangkok,Ho Chi Minh City,Shanghai,Singapore and Jakarta as possible target markets,where the demand for high-end furniture is strong.

Source: http://www.furnitureandfurnishing.com/html/news/industry/090512.html
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Philippines to Focus on High-End Market
Topics: Furniture