Friday, May 18, 2007 Cebu X 2007 fails to make $25M
THE sales generated during the Cebu International Furniture and Furnishings Exhibition 2007 (Cebu X) was $5 million short of its target, an official of the Cebu Furniture Industries Foundation Inc. (CFIF) said.
Michael Basubas, CFIF president, said the total sales for this year’s Cebu X was only $20 million, lower than the projected sales of $25 million.
In an interview, he said the $20 million worth of orders decreased by 34 percent from the 2006 sales of $26 million.
Although saddened by the results, Basubas said the decrease in demand for furniture in the international market is a worldwide phenomenon.
“It’s not only happening in the Philippines but also in Singapore and Milan. We’re even lucky because we got so much compared to other shows in the country,” he told reporters.
The country’s furniture manufacturing and exporting industries have already forecasted a slump in international furniture sales this year due to the decrease in housing sales and a slower US economy.
This, apart from the rigid competition, decrease in the demand for high-end furniture and the strengthening of the peso against the dollar—factors which have also hurt furniture exporters.
The continued increase of the peso’s value has hurt the export industry in terms of profitability and the ability of exporters to reinvest its surplus products and upgrade facilities, Basubas said.
Furniture Today, an international research institution, reported that US consumer spending on furniture and bedding, which is the broadest measure of industry activity, is expected to grow by only 1.5 percent to 2.2 percent next year.
Cebu X 2007 chairman Eric Mendoza earlier said the US market remains the country’s top export market, followed by Japan, United Kingdom, France, Australia, Italy and Spain.
But despite the decrease in revenues and demand for more of Cebu’s products abroad, Basubas refuses to believe that the country’s furniture industry has become a “sunset” market.
“We continue to look at emerging markets,” he said, citing Eastern Europe and the Middle East as the new target markets.
In order to cope with the challenges, CFIF will continue its efforts in promoting the design and product development program aimed at assisting small and medium manufacturers and exporters.
“It elevated the look and variety of the Cebu X 2007,” he said, referring to the program.
Basubas added that the group will enhance partnerships with its funding agencies, like the Canadian International Development Agency through its Private Enterprise Accelerated Resource Linkages or Pearl.
To increase buyer attendance for the Cebu X 2008, he said CFIF will be actively campaigning for more exhibitors.
Anticipating an increase in participants next year, CFIF is considering the Cebu International Convention Center as a prospective venue, in addition to the Waterfront Cebu City Hotel and Casino (WCCHC).
Cebu X is an annual event organized by CFIF. Despite the need for more space, the organization has been holding the event at the WCCHC which has a large ballroom.
About 100 furniture exhibitors participated during the Cebu X 2007 held last Feb. 26 to March 1 at the WCCHC. It targeted high-end furniture buyers as clientele.
Cebu X, according to the organizers, is considered the most cost-effective and viable marketing tool for most small and medium enterprises today, having an employment base of over a million. (MMM)
