THE “great” potential of Cebu-made furniture in the global market, especially in Europe, has been reduced by high prices of locally-made pieces.

Frank Sander of the Association of German Industrial Designers (VDID) said there is a need for furniture manufacturers and exporters in Cebu to bring down the prices of their products to become competitive in the global market.

Compared to Cebu- and Philippine-made furniture, those from other Asian countries are cheaper, he said.

Cebu and the Philippines, in general, also need to increase their presence in Europe, particularly in Germany, to increase awareness of Cebu-made furniture.

The European Union (EU), composed of 27 countries, is the second largest market for furniture, next to the United States, Sander said.

In a press conference, Eric Mendoza, chairman of the Cebu International Furniture and Furnishings Exhibition 2007, said Cebu’s furniture industry has been facing the price issue for years already.

“We (in the Cebu Furniture Industries Foundation or CFIF) as an industry, have been asking and encouraging them (players) to review and lower the prices of their products to be able to compete with other countries,” he said.

For his part, CFIF president Michael Basubas said the high prices of Cebu-made furniture is partly due to the cost that manufacturers incur in their participation in international trade fairs and promotions.

Costs

Exporters have to add participation costs to the prices of their products.

Basubas said each company will have to spend at least P1 million to join an international sales mission.

“This is the reason we have been asking other institutions and the government for financial assistance such as subsidizing the cost of our participation in trade fairs,” he said.

Seaweed Industry Association of the Philippines president Benson Dakay earlier said subsidies to trade fairs and exhibits are insignificant.

He said the appreciation of the peso against the dollar is the reason the prices of local exports are not competitive in the global market.

But Basubas said the value of the peso is “something we can’t do anything about.”

Sander said Cebu’s furniture industry is on the right track in focusing on the high-end market in Europe and other countries.

“There is no middle-market in Europe. Only low-end and high end. (The low end has been captured by China,” he said.

VDID is an organization whose main function is internal and external communication of design. It supports the professional activities of its members by representing their work in politics and society.

VDID has been working with CFIF on the “strengthening the CFIF through networking with two German intermediary business associations in the field of product design and marketing.” (JBN)

Source: www.sunstar.com.ph

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