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Cebu X: A show of bold independence

By Gary Evans -- Furniture Today, April 8, 2002

Id: 1579

The annual furniture fair here has taken on a whole new image. Literally.

The late February/early March show has separated from its sister show in Manila and is no longer know as the Philippine International Furniture Show. The show is known simply as "Cebu X."

Represented with a large red X, the show's new logo is as bold as the show's move do its own scheduling, budgeting, policies, promotion and other factors associated with running a show that brings in 1,500 to 2,000 buyers and attracts 150 exhibitors, mostly local.

"We are not doing it together with Manila any more but are doing it completely on our own," said Sabine Schacknat, a promotions and marketing specialist for the show.

This year, for instance, the Cebu show was scheduled before the Manila show and, managing it's own budget, was more aggressive in its promotions and advertising.

Schacknat said the show's new name, Cebu X, is to distinguish it from a string of Asia furniture exhibitions with acronyms like PIFS, TIFF (Thailand International Furniture Fair), SIFF (Singapore International Furniture Fair) and others.

And she said the establishment of a show image is not only important to exhibitors but to buyers as well.

"We want to establish all over the world the meaning of the Cebu brand as high quality lifestyle furniture and furnishings," she said.

Growing an industry

The changes are part of a larger strategy by the Cebu furniture industry to remain viable in the face of competition from other Asian countries, notably China, and to survive the whims of up-and-down economies.

A large portion of Cebu furniture is exported, with whole factories here, capitalizing on the high quality of workmanship and the low cost of labor, dedicated to export. Seventy percent of the Philippines' furniture exports originate in Cebu, with Cebu manufacturers making up only 20% of the country's manufacturers. Sixty percent of Philippine exports are to the United States.

Jay Yuvallos, chairman of Cebu X 2002, said that directly and indirectly the furniture industry in the Philippines "has close to a million mouths to feed. One of the responsibilities of this chamber is to make sure these people are fed."

To that end, Cebu has developed a strategy that stresses innovation and design, capitalizing on what Cebuanos say is their inherent artistic ability, and a product of their culture and diversity. That started two years ago when the industry established a designers' guild to train young artists to become furniture designers. Currently, Yuvallos said the industry is working to establish more formal design and manufacturing training at the university level.

The show here puts that strategy into words. "Lauded as the Milan of Asia, the Cebu show has, over a short span of time, elevated itself into a league of its own, as the furniture design destination in the region, consequently becoming the 'must-see' show in Asia. Distinctly different from the other furniture shows in the Asian circuit, the Cebu show is recognized as the trend-setting and fashion leader in furniture in the region."

And Schacknat said that the industry here wants to be known as manufacturers who "don't copy."

Clearly, Filipinos are masters in the art of using local materials in innovative ways and uses everything from seed pots to termite wood to palm leaves and native grass. Not to mention the staples like rattan and abeca.

Whether the strategy will work is debatable. The Philippines is losing designers and engineers to China factories in a big way, leaving manufacturers to shrug and say that the supply is abundant enough to keep the country ahead.

Some manufacturers think the industry should look at other ways to stay competitive. Edward Carey, general manager of the Maitland-Smith plant, the largest here, thinks the industry should take a lesson from Udine, the region in Italy where large manufacturers sit side-by-side with small factories that separately make parts that eventually end up in highly competitive products.

If the industry wants to compete with China, it has to make the investment in technology to do it, he said.

Attracting new business

Meanwhile, the show is doing all it can do to attract business. With U.S. forces chasing terrorists in the southern Philippines, the tragedy of 9-11 hanging in the air, and the global economy sagging, Cebu X fell short on attendance this year. But officials said that orders written were up about 30% or more.

And while visitors were down, the show has expanded to the point that it has nearly outgrown the Cebu International Convention Center at the Waterfront Cebu City Hotel and may have to seek a new venue.

"We received a lot of orders, more than I expect," said Carlo Cordaro, president and chief executive officer of Cebu Fil Veneer, a contemporary Italian producer based in Cebu. "I think the year 2002 could be better, of course, than 2001, maybe getting closer to the year 2000, which was our record year."

Shirley Sy-Dy of Southeast Metro Arts said business was off all over Asia last year, even China. "Before, if you only wanted one container (from China) it was, 'We're too busy.' Now, 'It's okay'," she said, laughing.

"We're expecting 2002 to be better because we have new items to bring to the market. You have to keep expanding because they're (buyers) looking for things with value. We're expecting better this year and next year," she added.

This year, the show grouped exhibitors according to whether they were contemporary or traditional to make it easier for buyers. And it went so far as to evaluate the design of exhibitors before they were admitted and to require those who didn't pass muster to undergo training.

"What I've noticed this year is that most of the items here are fantastic," said Roel Sarmiento, president of Techmaster Furniture. "Everybody's working really hard. Last year or the year before, only a few companies had new things."

Yuvallos
Signs at the entrance of the International Convention Center welcome visitors to the new Cebu X 2002.
Carlo Cordaro, president and chief executive officer of Cebu Fil Veneer.
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