1. home and garden
2. home furnishings

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Furniture
Essential sourcing intelligence
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December 2013
US$150
Philippines supplier
profiles
Detailed profiles of 20
suppliers with verified
manufacturing and export
credentials
Pampanga
LA Bulacan
MANILA
Cavite
vite
Product gallery
Specifications and full-color
olor
lor
elling
images of 163 top-selling
export productss ranging
ging
o beach
ach chairs
cha
from beds to
Cebu
Negros
Occidental
Industry
ndustry trends
Coverage of current
cur
issues,
plus insight
insights into supply
centers, pro
centers
products and pricing
Global Sources is offering this series of Developing Country Sourcing
Reports as part of its corporate social responsibility undertakings
in partnership with the Hinrich Foundation, a philanthropic
development organization whose mission is promoting
sustainable global trade.
The aim is to give international buyers new sourcing opportunities
from experienced exporters, generating orders and creating lasting
jobs in developing economies.
www.ChinaSourcingReports.com
Executive Summary
Supplier capability in the Philippines
FURNITURE
The furniture industry in the Philippines
anticipates favorable prospects in the
coming year as the recovery of the
US economy results in burgeoning
demand. In addition to this key
destination, growing revenue from
alternative markets such as the Middle
East and South America is a major
factor driving the sector.
Key findings
1. A crucial challenge facing the
industry is the government’s
adoption of stringent policies on the
sourcing of locally harvested wood.
Several enterprises are compelled
to import lumber because of this
directive, pushing up raw material
costs by as much as 20 percent. The
lack of a certification system that
complies with EU requirements also
presents a considerable difficulty to
makers with clients in the bloc.
The industry emphasizes the
midrange and upscale segments
to sustain development and avoid
intense competition in the low end
with neighboring sourcing centers,
particularly China. Because of the
popularity of such models in emerging
markets, many manufacturers are able
to maintain their profit margins.
A number of advantages benefit the
sector. The most important of these is
the steady availability of plant-based
ed
inputs such as bamboo and Manila
anila
hemp. Strong OEM capability
lity is another
strength possessed byy the industry.
ndustry.
2. Due to obstacles in timber
procurement, product design
esign
focuses on the utilization
tion of natural
materials such as bamboo, rattan and
Manila hemp.
mp. Releases also feature
elements
ts that enhance vvisual appeal,
including complex carvings and
woven patterns.
p
m
3. Overseas
Overse revenue in the coming
year is
i expected to generally climb,
with more than two-thirds of
featured companies projecting an
improvement in shipments. Most
will continue to concentrate on the
US or the EU, although a gr
growing
number are expanding
xpanding their reach
in alternative markets.
arkets
4. The majority
ority of manufacturers
featured
expect to
tured in this report expec
keep
stable over the next six
eep prices stab
months to maintain competitiveness
and
retain buyers. A considerable
d retai
minority will raise quotes to counter
escalating production expenses.
The rate of increase is generally
seen to be within 10 percent.
5. Metro Manila and the provinces of
Cebu and Pampanga are the key
supply hubs in the country. Makers
in these areas specialize in pieces
made of plant-based inputs and
metal and marble.
Objective,
e, methodology
ethodology & scope
This Philippines Sourcing Report
Re
is part
pa of
a series
buyers with
eries designed to provide
prov buy
information
formation
ormation on new p
products
produc from export
manufacturers
ufacturers
facturers in
i supply markets that
specialize
handmade merchandise.
ize in handm
h
The Developing Country Sourcing
Report series is part of Global Sources’
corporate social responsibility initiatives.
It is offered in conjunction with the
Hinrich Foundation, whose mission is
promoting sustainable global trade.
One of its objectives is to help create
jobs in developing Asia through export
promotion.
To produce this report, large, midsize
and emerging manufacturers, all with
substantial export experience, were
surveyed. The selection of suppliers is
designed to reflect the composition of
the industry in the Philippines in terms of
geographic location, materials used and
range of products offered.
For in-depth profiles, our researchers
visited the facilities of each company
and interviewed senior executives who
discussed their recent performance and
provided forecasts for the next 12 months.
All other makers in this report were either
visited or contacted by phone.
In each case, companies were required
to answer specific questions designed
to verify their manufacturing and export
credentials, including a breakdown of
exports by product type and market.
Suppliers also participated in a survey
designed to provide insight into the
industry.
This report covers different types of
furniture available in the Philippines,
including living room, dining and kitchen,
bedroom, bar and bistro, and outdoor
pieces. Each product category has its own
price guide that describes features of the
low end, midrange and high end.
In this report
• 18 in-depth company profiles
• 163 top-selling export products
• Supplier demographics
• Supplier survey
• Industry statistics and charts
The Industry Overview section discusses
key issues affecting export manufacturers.
It provides insight on the composition
of the industry and elaborates on the
important supply centers within the
Philippines.
The Products & Prices section details the
features and price ranges of furniture.
It also examines the design and
manufacturing processes, main materials
used, and sourcing centers where
components are procured.
www.ChinaSourcingReports.com 3
Contents
CONTENTS
EXECUTIVE SUMMARY
Key findings
Objective, methodology & scope
3
INDUSTRY OVERVIEW
Exports
11
Products & prices
Production & export statistics
Typical parts & components
Price guides
13
Supplier survey
Export prices
Export sales
Export markets
Major challenges
R&D focus
20
SUPPLIER PROFILES
Supplier matrix: Comparison
ison off supplier location
location,
sales revenue & export
port capability
bility
Profiles of 18 verifi
rified suppliers
23
PRODUCT
CT GALLERY
Living
ing
ng room furnitu
furniture
Dining
ng & kitchen fu
furniture
Bedroom furniture
Bar & bistro fu
furniture
Outdoor furnitu
furniture
67
CONTA
CONTACT DETAILS
97
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Copyright 2013 TTrade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium
without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.
Published by Publishers Representatives Limited (on behalf of Trade Media Limited)
4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islands
c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong
ISBN 978-988-8245-00-0
Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is
obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report
(and the publisher’s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation
to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the
accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever
for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof ).
All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or
logos are not intended for sale. Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affiliates, and our
affiliates’ respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any
part thereof ) which infringe on any intellectual property or other rights of a third party.
4 Philippines Sourcing Reports
Industry Overview
Industry Overview
Furniture suppliers in the Philippines
maintain an optimistic outlook on
exports despite a slight drop in
outbound shipments last year.
Companies have been receiving more
orders for customized pieces from
hotels, resorts and department stores.
Local customers are usually based in
Metro Manila, and the provinces of
Cebu, Bohol and Palawan, where resorts
frequented by tourists are mostly
located.
competitiveness against their foreign
counterparts.
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Although foreign revenue shrunk
roughly 1 percent to $160 million in
2012, domestic makers are confident
of registering higher turnover in 2013
because of robust sales in emerging
destinations. Estimates point to growth
reaching 5 percent amid strong
demand from the Asia-Pacific region,
particularly Southeast Asia. Shipments
to Indonesia jumped from $7.7 million
to $13.2 million, making it the industry’s
second-biggest market last year.
Earnings from deliveries to Thailand
expanded from $1.3 million to $2.8
million. Income from Singapore soared
40 percent to $2.2 million.
The US remains the line’s largest
importer, with deliveries accelerating
elerating
g
8 percent to $77.3 million
n last year.
ear.
After Indonesia, Japan
an rounds
nds out the
top three, contributing
ibuting
g $12 million to
foreign sales.
es.
s. Other key destinations
are the UK, Germany and the UA
UAE.
Exports to
o China and Austral
Australia each
went down
n to $2.6 millio
million in 2012,
a decline of 78 and 228 percent,
l to South Korea
respectively. Sales
dipped 73 percent to $1.1 million.
The drop was blamed on intensifying
price competition in the region,
particularly from suppliers in Vietnam
and Indonesia. Makers in both sourcing
hubs are able to reduce quotes
because of lower production costs.
Competitive advantages
One of the industry’s strengths is the
ready availability of natural materials
emp
such as bamboo, rattan, Manila hemp
panies
and water hyacinth. As such, companies
rt these
no longer need to import
ng them
em to produce
components, allowing
petitive prices.
rices.
models at competitive
es show that there are 52,000
52
Estimates
ctares of land planted w
with bam
hectares
bamboo
across the archipelago. Re
Rece
Recently, the
government has comm
commi
committed to add up
to 166,000 hec
hectares of bamboo farms
by 2015 to mee
meet the growing demand
for tthis plan
plant.
An
Another edge enjoyed by makers is
the presence of a large pool of workers
proficient in various manufacturing
steps such as weaving and carving.
Because of this, suppliers can easily
subcontract some of the production
processes that require their expertise.
Craftsmen are also hired to highlight
traditional themes in new models,
thereby strengthening local enterprises’
To cope, domestic makers are shifting
their focus on midrange and highend versions, which are popular in
developed economies in the Middle
East. Companies are also boosting
fabrication of models that adopt
indigenous materials such as Manila
hemp, bamboo, buri fiber and capiz
shell. Demand for these items is rising,
especially in the US and the EU.
Another roadblock facing the sector
is the implementation of stricter
timber sourcing policies. Because of an
existing logging ban, some enterprises
are forced to use imported wood,
which is typically 10 to 20 percent more
Value
Value by month
$ million
$ thousand
2012
2013
35
$160
30
25
$151
20
15
10
5
2010
Stable domestic demand is also
fuelling the outlook of manufacturers.
Challenges
ges
Price competition is con
considered as the
most crucial difficult
difficulty affecting the
industry. Supplie
indust
Suppliers are losing orders to
their fforeign rivals because they find
it hard tto match quotes offered by
m
ma
makers in China, Vietnam, Myanmar
and Indonesia.
Exports
$161
With these developments, domestic
enterprises are expanding their
clientele in emerging markets such as
South America and the Middle East to
make growth conducive. Saudi Arabia,
the UAE, Brazil and Panama are cited as
the top targets for the year ahead.
Acceptance of small orders is ano
another
dus
advantage possessed by the indust
industry.
Some manufacturers allow MOQs
tems such as
of one piece for large items
d five pieces for stools,
gazebos, and
nd tables.
s.
chairs and
2011
2012
Source: Bureau of Export Trade Promotion
J
F
M
A
M
J
J
A
S
O
N
D
Source: International Trade Centre
www.ChinaSourcingReports.com 11
Supplier Profiles
SUPPLIER MATRIX
Company
Year
established
Head office
location
Factory
location(s)
Ownership
Full-time
employees
Part-time
employees
Avanti
2012
Mandaue
(Cebu)
Mandaue
(Cebu)
Locally
owned
15
Carved Marble
1999
Angeles
(Pampanga)
Angeles
(Pampanga)
Locally
owned
15
Cebu Fil
1986
Lapu-Lapu City
(Cebu)
Lapu-Lapu City
(Cebu)
Foreigninvested
80
20
✗
Country Accents
1994
Bacolor
(Pampanga)
Bacolor
(Pampanga)
ly
Locally
wned
owned
8
50
✗
Cymru
2004
Mandaue
(Cebu)
Mandaue
(Cebu)
Locally
cally
owned
35
Diamond Cane
1986
Mandaue
(Cebu)
Mandaue
ue
(Cebu)
bu)
Locally
owned
100
100
✗
Ezra
2006
Makati
(Metro Manila)
Las Piñas
(Metro Ma
Manila)
Lo
Locally
owned
5
50
✗
Golden Fortune
2008
Quezon City
Metro Manila)
(Metro
Quezo City
Cit
Quezon
ro Manila)
(Metro
Locally
owned
12
30
✗
John Joven Handicraft
011
2011
Paete
(Laguna)
(Laguna
Santa Maria
(Laguna)
Locally
owned
5
20
✗
Kahoyan
2007
200
Calum
Calumpit
(B
(Bulacan)
Calumpit
(Bulacan)
Locally
owned
60
10
✗
n
Lakan
2008
20
Marikina
(Metro Manila)
Marikina
(Metro Manila)
Locally
owned
15
30
✗
kline
ne
Markline
2008
Muntinlupa
(Metro Manila)
Muntinlupa
(Metro Manila)
Locally
owned
40
ton
Maturan Stone
2007
Liloan
(Cebu)
Liloan
(Cebu)
Locally
owned
10
50
✗
Peter’s
1980
San Fernando
(Pampanga)
San Fernando
(Pampanga)
Locally
owned
48
4
✗
Ronnie Handicraft
2009
Angeles
(Pampanga)
Angeles
(Pampanga)
Locally
owned
11
20
✗
Silahis
1967
Parañaque
(Metro Manila)
Parañaque
(Metro Manila)
Locally
owned
30
10
✗
Tumandok
1988
Bacolod
(Negros Occidental)
Bago
(Negros Occidental)
Locally
owned
46
Winners
1993
Bacoor
(Cavite)
Bacoor
(Cavite)
Locally
owned
9
40
ISO
certified
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24 Philippines Sourcing Reports
✗
✗
✗
✗
30
✓
Supplier Profiles
Supplier
Profile
Avanti Philippine Furniture Inc.
INQUIRE NOW
Established in 2012, Avanti specializes in
synthetic rattan furniture. It generates
$600,000 in total annual revenue.
About two-thirds of output is sent
abroad. France takes up 70 percent of
shipments. The Middle East absorbs
one-fifth of exports, with Bahrain,
the UAE and Saudi Arabia as the key
markets. The rest goes to Australia.
All manufacturing steps are performed
in a 1,100sqm factory in Mandaue city
of Cebu province. The plant is equipped
with locally purchased welding and
sewing machines.
Avanti employs 10 full-time and 40
temporary staff members. They can
turn out 500 pieces every month.
The peak season is from August to
December.
Outdoor models contribute 50 percent
to foreign sales. The best-sellers in the
line are chaise lounges and garden
dining sets.
Ten inspectors make up the QC team.
Visual checks focus on the quality of
assembly and weaving.
Products for all price segments are
available. Basic dining chairs are offered
for at least $60. Living room sets start at
$900 and reach $2,500.
ally
Bubble wrap and cartons are normally
um order
used as packaging. The minimum
requirement is one set per model.
ays.
Delivery is within 30 days.
The company buys teak, synthetic
rattan and aluminum from Indonesia.
ember of the
The supplier iss a member
rs Confederation and
an
Philippinee Exporters
ure Industries Foundation.
Foundatio
Cebu Furniture
Itt plans to further expand its ma
market
presence
esence in the EU in 2014.
Two designers release up to five models
every year.
Company facts
p
m
Year established
stablished
hed
Head
ead officee location
Factory location(s)
Ownership
Full-time employee
employees
em
Part-time employees
Part-t
emp
Total annu
Tota
annual sales (all products)
Capability
Materials used
Mahogany
Teak
Bamboo
Rattan
Water hyacinth
Other wood types
ct
Exports by product
urniture
Living room furniture
hen furniture
Dining & kitchen
oom furniture
ture
Bedroom
Bar & bistro
istro furniture
Outdoor
oor furniture
25%
25%
–
–
50%
Exports by m
market
North America
A
EU
Europ
Europe (non-EU)
A
Asia-Pacific
Middle East
Other
–
70%
–
10%
20%
–
n
o
e
Contact details
2012
2
Mandaue (Cebu)
Mandaue (Cebu)
Locally owned
15
40
$600,000
Business contact
BORDEN Sherimae
Phone
(63-32) 420-4481
Fax
(63-32) 414-0010
E-mail
info@avantiphilippine.com
URL
www.avantiphilippine.com
Sales & output: Furniture
Annual sales
Share of total sales
Annual export sales
Total monthly capacity
Average monthly output
Capacity utilized
Average monthly exports
Export ratio
Major export customers
28 Philippines Sourcing Reports
$600,000
100%
$360,000
500 pieces
300 pieces
60%
200 pieces
67%
Hazel Furniture (Bahrain),
Stylish Outdoors (Australia),
Sicomex N.C. (New Caledonia)
✗
✓
✗
✓
✗
✗
Address
S.E. Jaime Street, Paknaan,
Mandaue, Cebu, Philippines
Supplier Profiles
Executive
SumSupplier
Profile
Popular export models
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Model:
MOQ:
Packaging:
Delivery:
Price:
Description:
Breeza
1 set
Bubble wrap, carton
30 days
$986
Outdoor furniture set;
synthetic rattan body and
aluminum frame; powdercoated; 82x82x72cm sectional
sofa, 82x82x30cm ottoman
and 60x120x30cm table
Model:
MOQ:
Packaging:
Delivery:
Price:
Description:
Cassandra
1 set
Bubble wrap, carton
on
30 days
$2,575
Outdoor
door furniture
ure set;
synthetic
tic rattan body and
aluminum
num frame; powdercoated; two 107x96x72cm
97x96x72cm
sofas, two 97x96x72c
97x
armcha
armchairs and 90x90x31cm
90
coffee table
coffe
Model:
odel:
MOQ:
OQ:
Packaging:
ckaging:
Delivery:
Price:
Description:
Des
Pal
Palau
1 set
Bubble wrap, carton
Bub
30 days
$3,625
Outdoor furniture set;
synthetic rattan body and
aluminum frame; powdercoated; 92x305x72
and 92x123x72cm modular
sofa, and 100x148x48cm
coffee table
Model:
MOQ:
Packaging:
Delivery:
Price:
Description:
Paulina
1 set
Bubble wrap, carton
30 days
$520
Outdoor dining set;
synthetic rattan body and
aluminum frame; 80x80x75cm
table and four 56x60x88cm
chairs
Model:
MOQ:
Packaging:
Delivery:
Price:
Description:
Romana
1 set
Bubble wrap, carton
30 days
$907
Outdoor furniture set;
synthetic rattan body
and aluminum frame;
powder-coated; 83x154x73cm
loveseat; two 83x85cmx73cm
armchairs and 60x120x38cm
coffee table
Model:
MOQ:
Packaging:
Delivery:
Price:
Description:
Paris
1 set
Bubble wrap, carton
30 days
$2,605
Outdoor furniture set; synthetic
rattan body and aluminum
frame; powder-coated;
190x90x72cm sofa; two
71x 90x72cm armchairs and
120x80x40cm coffee table
www.ChinaSourcingReports.com 29
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