Link This | Email this | Blog This | Comments (0)

Tom Russell

Steele to Philippine mfrs.: Market what you do

Ultimate Accents Vice President Ray Steele went to the Cebu furniture market in the Philippines for the first time this past February. He was amazed by what he saw.

While there, he took photo after photo of goods with mixed-media elements ranging from abaca and coco sticks to sea grass, shells and stone. It’s the type of creativity he would love to add to his own occasional line. The photos are a reference — and a reminder — that eventually could result in those manufacturers producing something for his company.

But what struck Steele more than anything was that he hadn’t seen or heard much from the Philippine manufacturers. For years, his company has concentrated on China, which has been a reliable source for its hand-painted chests, vanity sinks and other accent and occasional furniture.

But at a first look, he realized the Philippine factories he saw at Cebu could bring even more value to his line. Not only did their products look good, they came at a pretty good price.

His advice to them is simple: “Market and sell what you do.”

“I was so excited by what I saw there,” Steele said. “To me, if I were a retailer, I would see profit all over the joint in Cebu.”

An advantage the Philippines has over China, he said, is raw materials — the list above and many others.

“They have to sell the wow factor and the profitability of their goods,” he said.

Of course, many importers and manufacturers that work with these manufacturers know this. But the word is slowly getting out to first-time Cebu attendees such as Steele. His point is that if they market themselves better before the show, they will have an easier time selling at the show.

The question is how to do that without affecting relationships with existing clients. One manufacturer I spoke with at the Cebu show said he doesn’t want to produce for client B what he already produces for client A. Manufacturers also are reluctant to show in High Point for fear of upsetting their existing vendors.

But the word is indeed getting out. In its press kit at the show, the Cebu Furniture Industries Foundation, which organizes the market, produced excellent materials describing Filipino craftsmanship and the history of the industry in the Philippines.

CFIF also promotes the show in Furniture/Today and at a booth during High Point markets.

Could more be done? Probably so, especially when you consider the potential in the U.S. marketplace. Not to mention the fact that industry veterans like Steele are just now discovering Cebu and the Philippines.

For Steele, it’s about communicating with the retailer and the end user. For the retailer, the advantage over China is the design and profitability of the goods, plus the ability to produce mixed containers. For the consumer, it means telling her the materials story on something as simple as a hangtag.

To achieve this, importers and manufacturers must work together to better promote what they do. If that happens, U.S. consumers could be clamoring for Philippine-made furniture.

After all, as Steele say, “The American consumer wants something that everybody else doesn’t have.”

What do you think needs to be done to get across the Philippines’ story to U.S. consumers?   (to add or view public comments click on "Add your Comment" below, or to email Tom directly click here.)