Furniture Industry Presentation for Philippine Economic Briefing

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This presentation was made by Nicolaas De Lange, Vice President and Corporate Secretary of Chamber of Furniture Industries in the Philippines and presented in March 2012 at the BSP's Year-End Philippine Economic Briefing.

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Furniture Industry Presentation for Philippine Economic Briefing

  1. 1. Chamber of Furniture Industries of the Philippines Nicolaas K. De Lange Vice President and Corporate Secretary
  2. 2. As one of the countries’ Creative Industries, how is the Philippine Furniture Industry performing?
  3. 3. 15- Year Furniture Exports Performance15- 1995 to 2010 (FOB In USD)
  4. 4. 15-15 - Year Furniture Imports Performance 1995 to 2010 (FOB in Million USD)
  5. 5. 2010 FURNITURE EXPORTSCOUNTRIES EXPORTS IN MILLION USDCHINA 33,723INDONESIA 1,963JAPAN 1,470KOREA 665MALAYSIA 2,471PHILIPPINES 170SINGAPORE 202TAIWAN 1,220THAILAND 1,172TURKEY 1,414VIETNAM 3,436Source: Council of Asia Pacific Furniture Associations
  6. 6. Kenneth Cobonpue
  7. 7. How do we translate the Philippine Creative Brilliance into products that are not price sensitive?• Marketing/Branding• Quality materials• Craftsmanship + Technology
  8. 8. Homestyle products Strategies and Programs of the government:Integrate promotional efforts of the gov’t:• YES! Support our INTERNATIONAL SHOW which we have integrated with CITEM’s show• Support efforts by the industry to market directly to countries we have identified.BRANDING IS NOT CHEAP, WE CAN’T DO IT ALONE
  9. 9. Homestyle products Strategies and Programs of the government:Build brands based on green approach – YES! But lets work on our raw material situation• Sustainable raw materials not in place + moratorium on logging (EO 23)• Red tape in importing materials (DAO 99-46) + dutiesIf we want to save our forests, then why regulate imports?
  10. 10. Homestyle products Strategies and Programs of the government:Maximize benefits from free trade agreements:• Yes! We should sell more to our neighbours rather than our traditional markets that are down (US and Europe)• But we should also look into Tariffs because we allow our competitors to come into the Philippines duty free when the local industries have to pay duties on raw materials.
  11. 11. Homestyle products Strategies and Programs of the government:Link up furniture and furnishings/decor industries with the tourism industry• YES! Include furniture in BOI Incentive package to Hotel and Resort Investors to encourage them to buy local and not to import.
  12. 12. Other suggestions• Get DOST to help add technology to the industry to complement the craftsmanship• Bring in more Foreign Direct Investors into our industry• Review Labor laws to address issues of Productivity and costs• Address Inter-Island Shipping Rates• Get us involved in effort to stop smuggling to level the playing field in the domestic market.
  13. 13. • We support the Presidents thrust to hone and mobilize our people’s skills and energies as well as the responsible harnessing of our natural resources• Please keep us in the loop, hear our voice, we stand ready to do our part.
  14. 14. Chamber of Furniture Industries of the Philippines Nicolaas K. De Lange Vice President and Corporate Secretary

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