Thursday, June 21, 2007 Gov’t support ‘insufficient’
WHILE there is a big potential for Cebu’s furniture exports to compete with those of Italy, but an export industry official cited government’s lack of support as a hindrance.
Cebu Furniture Industries Foundation (CFIF) president Michael Basubas said Cebu can become the next branded maker of furniture but the lack of government support has hindered players to pursue high-end marketing campaigns abroad.
“We can play with the good players in the global market but we need everybody to work with us, especially the government,” he said.
Still, Basubas urged Cebu furniture exporters to compete with their Italian counterparts if they want to stay afloat despite stiff competition.
“If you want to improve, you play with the best player,” he said. “We can be the next Milan of Asia.” Global competitiveness
He said Cebu’s furniture and fashion industries have proven their global competitiveness by coming up with unique and quality products and good marketing strategies, among others.
Basubas said high-end marketing campaigns like conducting international roadshows are “very costly,” and are endeavors only companies with strong financial backbone can afford.
Unlike China, Malaysia and other Asian countries whose governments are strongly supporting their export sector, the Philippine Government “assistance is lacking,” he said.
Earlier, Cebuano designer Kenneth Cobonpue said there is a huge probability for exporters to successfully venture into the high-end European market provided creativity, consistency and innovation are always present.
However, Cobonpue advised furniture manufacturers and exporters to market their products individually since a single Philippine brand “won’t work.”
“It does not seem appealing even to the local market,” he said.
Meanwhile, Sabine Schacknat of the Center for International Migration, Germany said Philippine exporters can take advantage of customer service and satisfaction as their niche.
Competition
Basubas said while wood furniture products used to be the country’s niche, China and Vietnam’s strong participation in furniture making and exporting has eroded the chances of the country to maintain its lead.
“We used to be strong in this but now it is an area where it’s difficult to compete with China because they are now more highly mechanized and their raw materials are cheaper,” he told a press interview.
Apart from tough competition, the industry’s also face the adverse effect of the strengthening of the peso against the dollar, which make the country’s products more expensive abroad, said Basubas.
This has prompted exporters to change their marketing strategies targeting the high-end consumers and venturing into new markets like Europe, Africa and the Middle East.
Although the National Government plans to establish a $1-billion hedging facility to cushion the export industry, exporters deem it only as a “temporary solution” to the problem. (MMM)
