Cebu’s furniture makers eye bigger slice of South African mart

CEBU — Some of Cebu’s furniture manufacturers are looking at tapping the South African market amid increasing competition in the traditional markets of Europe and the United States.

Cristina Chan Lo, vice-president of Coast Pacific Manufacturing Corp., said the furniture sector should start exploring markets that have not yet been penetrated by competing furniture-manufacturing countries such as China and Vietnam, which are now eating up a chunk of the American and European markets. Her company already has some South African clients.

“We have to keep moving. It’s only wise to go for markets that are not yet saturated. There will be so much room for growth and development if the market is fresh and new,” Ms. Lo said, noting that many of South Africa’s furniture retailers are direct buyers.

Direct buyers, she explained, would cut cost in a supply chain usually dominated by middlemen.

Factory Direct Ventures Co. Ltd. Executive Vice-President Allan C. Limas confirmed the viability of South Africa as a market for Philippine-made furniture.

“South Africa is a growing market. Its economy is really growing too. There are a lot of high-end hotels and businesses being put up there right now that we can tap as target markets,” said Mr. Limas, who also has South African customers.

The two furniture exporters will leave this Friday along with 23 other Cebu-based businessmen to join Cebu Chamber of Commerce and Industry’s Trade Mission to South Africa. The other businessmen are engaged in fields like the real estate, construction supply, as well as food and beverage business.The nine-day trade mission will focus on cities of Johannesburg and Cape Town.

“The trade mission will also help us understand why there are not so much orders coming from South Africa. In this way, we will find concrete ways in expanding our market there,” Mr. Limas added. — Regina T. Aguilar

Taken from www.bworldonline.com