FPPS 147 LEC 1ST EXAM (Unit 1) Lec 2

• -10% decline in globale furniture sales

• rise of the “aesthetic” trend on furnitures

• increase in the demand for high quality home furniture

• increase for the demand on multi-functional pieces

effects of the pandemic

Philippine furniture industry

then: one of the fastest growing industries in the country

now: one of the most pormising industry

Mandaue city

where 75% of the country’s exports come from

Metro Manila, including surrounding CALABARZON

specialize in wood and mixed-media furniture

Pampanga

newly-established furniture hub where hand-carved wood, wicker, and iron products are produced

• Detalia Aurora, Inc.

• HoliCOW Gallery-Store

• Kenneth Cobonpue

• Obra Cebuana by Selina Romualdez

• Vito Selma

famous furniture manufacturers in Cebu

• Gentleprince Incorporated

• Queens Arts and Trends Corp.

• TOP-WORK BUILDERS CONSTRUCTION CORPORATION

famous furniture manufacturers in Metro Manila

• Betis Crafts, Inc,

• Genteel Home

• Industria Edition

• Las Palmas Furniture

• Triboa Bay Living

famous furniture manufacturers in Pampanga

furniture for households, offices, schools, businesses, hotels, resorts, and other public and private spaces

Major products in PH furniture industry

• premium wood like kamagong, molave, narra, tanguile, yakal

• NWFPs like rattan, bamboo, buri, nito

Major materials used in PH furniture industry

• home renovation trends

• work-from-home setup

• online schooling

sources of demands in furniture during pandemic era

• past issues

  • working capital

  • high labor cost

  • depleting resources

• current issues

  • economic crises of 1997 and 2008

  • more cautious international markets

  • pricing and labor competitions in the international markets

  • product transport

challenges of the furniture industry

• millions of orders cancelled

• factories shutting down

• significant scaling down of production

• increased unemployment

current issues: pandemic era

• toned-down and more cautious spending on non-basic necessities

• personalized shopping behavior brought by digitization

current issues: the pandemic and consumer behavior

• price-based competition between local operators and international substitutes leads to industry consolidation

• increased revenue volatility

• digitization and automation of marketing and selling

• personalized shopping behavior leads to competitive pricing which further leads to changes in the manufacturing process and marketing

other effects of the pandemic

Philippine furniture and furnishings industry roadmap 2013-2030

“… to be a global design innovator and a center for the production of sustainably sourced and produced products by 2030 and to create a thriving domestic and international market that is supported by a competitive and motivated workforce.”

• product development

• marketing

• capacity building

• advocacy

4 focal points of the

Philippine furniture and furnishings industry roadmap 2013-2030

• contributes greatly to the economy

• provides employment to the related and contributing sectors

• contributes to the conservation and preservation of the craftmanship, creativity, and special skills of Filipino artisans

societal significance of the furniture industry

• kultura filipino

• manila FAME

• MCCA industrial corporation

• TADECO home

• T’nalak Home

major filipino handicraft manufacturers

Kultura Filipino

collaborated with local artisans within the country. some of their products are handmade souvenirs, eco-friendly Barongs and Filipiniana, and artisanal chocolates. they also practice traditional handcrafting techniques, and they utilize local materials such as bamboo, abaca, and rattan. its crafts for a cause campaign aims to showcase and promote products made by underserved communities and IPs

Manila FAME

is a bi-annual trade show organized by the Center for International Trade Expositions and Missions (CITEM), the authority responsible for export trade promotion under the Philippine Department of Trade and Industry. the featured products in this trade show include hand-woven textiles, pottery, woodcarvings, fashion accessories, furniture, and home decor

MCCA Industrial Corporation

Situated in Porac, Pampanga, it started primarily on producing wrought-iron pieces in 1991. presently, the corporation is also engaged in manufacturing baskets, trays, storage boxes, planters, and home decor made from rattan, abaca, and pandan

TADECO (Tagum Agricultural Development Co.) Home

a handicraft manudfacturing company in Cebu that focuses on using natural materials like abaca, bamboo and rattan as raw materials for their handmade home decoration and accessories. it started as a community development program of a major banana exporter in Asia

T’nalak Home

a subsidiary of TADECO Home. it features the T’nalak fabric and incorporates T’boli patterns on its contemporary designs. its fabric is made of abaca fiber and is known as a traditional textile of the T’boli people of Sout Cotabato

raw materials

aside from labor and equipment, another important component of handicraft production is this.

abaca

rattan

bamboo

coconut shells,

fibers (buri, raffia, buntal, pineaple, maguey, and banana

raw materials

• rattan craft

• bamboo craft

• coconut shell craft

major handicraft products

rattan or yantok

• comes from Araceae or the palm family

• it thrives in moist environments, hence it is ussually found in tropical countries like Asia and Africa and some parts of Australia

• products are flexible and durable. locally there is an abndance of supply in this, specifically in mountainous regions of Mindanao, Visayas, and Palawan.

• consequently, the PH is on of the main exporters of this product in the world

bamboo

• belongs to Gramineae or Poaceae, a family of grasses

• the PH is one of the largest exporter of thi with 66 metric tons of annual exports and annual production of an estimated 940,500 poles

• it is known as economically significant non-timber forest product because of its many uses that range from handicraft production to construction of infrastructures

pangasinan, tarlac and bukidnon

provinces that lead in the production of bamboo

coconut

has a high economic value since even its waste. like its shell can be used in creating valuable products. its shell can be considered as a hardwood except that it has a higher lignin content and lower cellulose level. because of its inherent properties, the potential of these shells as a raw material for handicraft was recognized, hence the emergence of the its shell handicraft industry

• woodware

• artmetal ware

• hand printed textiles and scarves

• embroidered and crocheted goods

• zari and zari goods

• imitation jewelry

• sculptures

• pottery and glass wares

• attars

• agarbattis

other know types of handicrafts in the market

economic significance

• employment generation

• assistance to marginalized communities

cultural significance

• prevention of cultural erosion

societal significance of the handicraft industry

• economic downturn and declining consumer spending

• high competition and saturation of the market

• stringent regulations and government policies

• availability of substitute products

• technological obsolescence

• lack of availability of sufficient data

• industrialization and mass production challenge

• unwillingness of younger generation to participate in the industry

• lack of availability of basic infrastructure

• lack of innovation and technology

• lack of education and training facilities

• lack of financial resources

challenges in the handicraft industry

• philippine export development plan (PEDP)

• rural microenterprise promotion programme (RuMEPP)

• shared service facilities project (SSF)

• presidential decree no 279

• roadmaps for gift, houseware, and holiday decor industries

programs and policies in the handicraft industry

philippine export development plan (PEDP)

this plan includes strategies and programs with the aim to accelerate the export performance of the country. this plan is aligned with the objectives of the Philippine Development Plan and is a collaboration between the government and various export stakeholders

RA 7844 or the Export Development Act of 1994

the department of trade and industry (DTI) created the PEDP as mandated by?

rural microenterprise promotion programme (RuMEPP)

this program aims to improve the income and livelihood of rural communities through provision of loans and financial assistance, capacity-building, market linkages, and product development. it focuses on stakeholders of microenterprises such as women, young people, and indigenous people. the program aims to expand current rural microenterprises and ensure that they operate profitably and sustainably

shared service facilities project (SSF)

this project offers assistance to small and medium enterprises (SMEs) across the country, including those involved in handicraft production, by providing shared facilities, equipment, and technical support. this is intended to guarantee the productivity and competitiveness of SMEs

presidential decree no 279

aims to increase foreign exchange earnings and expand entrepreneurship and employment by boosting the export trade of products made from indigenous raw materials.

design center philippines

the PD 279 established a government entity called

roadmaps for gift, houseware, and holiday decor industries

the board of investments (BOI) has developed these that provide strategic guidance for enhancing the competitiveness and productivity of MSMEs, specifically those that are engaged in gifts, houseware, and holiday decor manufacture. consequently, these pave the way for MSMEs to participate in the value chain of the ASEAN economic community market

• in the present time, there had been increasing interest in products that are sustainably made. this can be attributed to the growing awareness among people about the impact of their purchasing decisions on the environment and local communities

• with the popularity of online transactions today, the industry can now easily penetrate the global market and reach consumers worldwide through e-commerce platforms

the future of the furniture industry

• design pilferage

• lack of good infrastructure

• difficulty in accessing finances

• development of skilled manpower

challenges that should be addressed