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The Annual Report 2013 is published by
The Cebu Furniture Industries Foundation, Inc.
Unit 15 Green Strips Bldg., S.E. Jayme St.
Barangay Paknaan, Mandaue City
6014 Philippines
Contact Person
Cheryl Judilla
Office Manager
Telephone Numbers
(6332) 420 - 4143
Fax Number
(63 32) 420.4160
Website
www.furniturecebu.com
Email Address
[email protected]
[email protected]
Mission
• To contribute to the
sustainable growth of
the Philippine furniture
export industry through
promotions, human
resource development
and advocacy.
• To serve as a forum
wherein industry-related
issues are discussed and
resolved.
• To adhere to standards
of excellence, integrity,
social and environmental
responsibility
• To provide progressive
opportunities and rewards
to its employees.
Vision
Make the Philippine
furniture industry the leader
in high quality, designoriented furniture and
furnishings in Southeast
Asia.
THE BOARD
OF TRUSTEES
UNITED FRONT. The Board of Trustees thinks and works as one to attain the vision
of growth for the furniture industry. This term’s Trustees are, from left: Edwin Rivera
of Obra Cebuana Inc. (vice president-external); Venus Genson of Venus Crafts Corp.
(trustee); Christina Marie Gaston of Hacienda Crafts Company Inc. (vice presidentinternal); Angela Paulin of Casa Cebuana Incorporada (president); Cristina Lo of Coast
Pacific Manufacturing Corp. (secretary); Evelyn Selma of Stonesets International
(treasurer); and Trustee Clayton Tugonon of Classical Geometry Export Trading. In
separate photos are Laline Go of Crafters of Cebu Inc. (trustee); Robert Louis Booth of
Mehitabel Inc. (auditor); Guillermo Rodriguez of Detalia Aurora Inc. (PRO); and Vincent
Lampert of Dedon Manufacturing (trustee).
secretariat
STRONG FORCE. The CFIF Secretariat is a lean but strong force, providing valuable support to the Board of Trustees and
all members. From left, Dionisio del Rosario, Mae Moralde, Roel del Rosario, Peachy Arreza, Marie Angeli Enfectana, Cheryl
Judilla, Ruby Salutan and Ronie Glenn Amor.
PRESIDENT’S MESSAGE
A member’s commitment
Angela Paulin
IN the past four years, CFIF and the
furniture and furnishings industry have
gone through numerous changes that no
one back in 2007 would have thought
possible.
In 2007, when our export revenues
were so high, nearly 30,000 containers
in a year, we did not see the sense of
tapping the domestic market. Of course,
the domestic market was also different
back then. With a GDP per capita of US
$3,200, purchasing export furniture was
not an option for local buyers in 2007.
But all that is history. The Philippine
economy improved—GDP having gone
up to 6.6 percent in 2012—with evergrowing construction and real estate
industries. In the first quarter of 2011
alone, the value of private sector
construction projects grew by 11.6
percent year-on-year to P52.8 billion.
Some US $20.6 billion worth of projects
are expected to rise by the end of 2015.
While nearly half of these construction
projects are located in Metro Manila,
opportunities also abound in Cebu and
the rest of Central Visayas. According
to data from the Housing and Land
Use Regulatory Board, 14 residential
condominium projects—equal to 5,212
units with a total value of P5.17 billion—
in Cebu were issued licenses to sell in
2012. The investment is in response
to the forecast demand of 100 new
condominium buildings by 2015 and
another 170 to 200 buildings by 2017.
This growth trend in the domestic
market is discussed extensively in a
study commissioned by the Deutsche
Gessellschaft
fur
Internationale
Zusammenarbeit (GIZ) in 2012. The
Annual Report 2013 dedicated an entire
article on the issue to show there is
hope. There always is, but we need to
work harder at making it into a tangible
reality for our bottom line and the jobs of
our workers.
While it is an understatement to
describe the last four years as challenging,
CFIF would not have made it through
without the help of its members and its
board, and for that I am eternally grateful.
I thank all those who participated in
workshops, seminars, trade missions,
forums, exhibitions, fund-raising activities
and meetings after meetings, and
responded to e-mail discussions, all in the
interest of the industry. I thank our partners
in government and the private sector for
supporting us even under stress. CFIF
owes you its continued existence.
As I say goodbye to the CFIF
presidency, I make the same promise you
made through these years—to remain as a
member committed to the vision of making
the Philippine furniture industry the leader
in high quality, design-oriented furniture
and furnishings in Southeast Asia.
OFFICE MANAGER’S MESSAGE
Aspiring for excellence amid challenges
Cheryl Judilla
AS furniture and furnishings companies
strive to protect their bottom line, the
Cebu Furniture Industries Foundation
Inc. (CFIF) focused on finding ways to be
more useful to its members.
With this goal in mind, both the CFIF
Board of Trustees and the Secretariat
underwent planning sessions to map out
the new direction for the Foundation and
enable it to provide relevant services to
the members.
During the planning sessions, CFIF
assessed its members’ needs, which
can be broadly classified as: marketing,
which covers fairs, trade missions and
exhibitions, as well as market information;
value chain, which includes resource
availability; and advocacy, which
encompasses rules and regulations in
the Philippines and in target markets.
CFIF aims to answer the needs of its
members and contribute to the recovery
of the industry with a leaner secretariat.
But this is part of our evolution: to
survive, we had to right-size the staff and
upgrade the skills of those who have
stayed on so they can handle multiple
tasks.
This is a feat by itself, but we have
been doing it for at least four years. The
trick is to focus on the essentials, our
core competencies.
CFIF also made several painful
decisions, like selling its building and
land in Jagobiao, Mandaue City, in an
effort to cut costs and infuse muchneeded funds into our operations and
savings. With a smaller office and a
right-sized staff, we have been able to
cut our overhead significantly.
As we craft new strategies and
programs for the members, we remain
committed to the goals and high
standards this Foundation has kept for
a long time.
For sure there will be more challenges
ahead. But we have learned many
lessons from the past and will continue
to adapt, not only to survive, but to excel
as an organization.
The domestic market:
An opportunity that
can’t be missed
WHILE the United States and Europe
continue to face financial uncertainties, Asian
economies experienced robust growth.
In the Philippines, growth is driven mainly by
tourism, information technology and business
process outsourcing (IT-BPO), construction
and real estate, as well as retail trade.
Growth in tourism and the IT-BPO
industries ushered in more construction
and property development projects as
demand for offices and hotel rooms
rise. In 2011, the construction sector
reported a growth of 11.6 percent
over the previous year.
In its Regional Economic Situationer for the
first semester of 2013, the National Economic
and Development Authority (Neda) revealed
that more than 50 percent of the investment
in construction involved buildings designed for
BPOs, as well as malls and hotels in 2012.
On the other hand, the export furniture sector
that continued to look at the United States and
Europe as its main markets trudge on, losing
industry players to closures. While the US
economic recovery remained bleak, the Cebu
export furniture industry became more interested
in the domestic market, and rightly so.
A study commissioned by the Deutsche
Gessellschaft fur Internationale Zusammenarbeit
(GIZ) in 2012 revealed that the construction
business has an annual investment potential of
P5.2 billion annually. In Metro Manila alone, the
demand for furniture and furnishings by mediumto high-end hotels and real estate developers is
estimated to reach P.5 billion annually.
The study estimated the annual demand for
furniture and furnishings of medium- to highend properties in Metro Manila alone to reach
P358.3 million.
The 20 medium- to high-end hotels surveyed
by the study, on the other hand, revealed that
they refurbish their rooms every three years,
spending a total of P30 million.
But while Cebu-made furniture and furnishings
have attained international recognition, they are
relatively unknown in the domestic market.
The GIZ study revealed that 62 percent of
the potential consumers in the country had a
low level of awareness of Cebu-made furniture
and furnishings.
Although 80 percent of mid- to high-end hotels
and property developers in Metro Manila and
73 percent in Cebu have heard of Cebu-made
furniture and furnishings, many did not know the
products are locally available. This means that in
Cebu, 27 percent of respondents have not heard
of Cebu-made furniture prior to the survey.
The study noted that this low level of
awareness can be attributed to the export
orientation of Cebu manufacturers. While the
Cebu furniture and furnishings industry lost
potential income for maintaining this attitude
for some time, there are still many opportunities
between the present and the near future.
Data from the Housing and Land Use
Regulatory Board (HLURB) shows that 14
residential condominium projects—equal to
5,212 units with a total value of P5.17 billion—in
Cebu were issued licenses to sell in 2012. The
investment is in response to the forecast demand
of 100 new condominium buildings by 2015 and
another 170 to 200 buildings by 2017.
Although prices of Cebu-made furniture are
known to range between mid- to high-end, 67
percent of real estate developers, architects
and designers who responded to the GIZ study
expressed willingness to buy the products,
because of the quality of their workmanship,
innovative designs and durability.
Where there are opportunities, there will
always be threats, and the domestic market
is laden with many. Threats identified by the
GIZ study include: proximity of competitors
from Luzon; influx of low-cost furniture and
furnishings from Malaysia, China and other
Asian countries; transport costs; intellectual
property rights violations; and red tape.
Aside from these threats, the Cebu furniture
and furnishings industry also need to overcome
its weaknesses.
One of them is the perception that its
products are exclusive to the export market
and, therefore, beyond the budget of the local
market. To address this, industry players also
have tackle high production costs to effectively
bring prices down.
Two, if it wants to penetrate the Metro
Manila market, Cebu manufacturers will have
to find a way to transport items at lower
cost. Because of the distance, Metro Manila
customers also have the notion that delivery of
Cebu-made furniture would take longer than
those of Luzon-based manufacturers. The GIZ
study recommended warehousing items to
cater to those who buy off-the-floor and those
who have short time-frames.
Unlike Luzon-based manufacturers, few
Cebu furniture makers have retail outlets in
Metro Manila, where most of the mid- to highend properties are located. Cebu industry
players will have to intensify their efforts to
promote products through traditional—trade
fairs, exhibits, TV and print media—and new
platforms, such as social media and websites.
Cebu furniture pieces also need to adapt to
design, space and systems of the domestic market.
The GIZ study noted that with its export-oriented
production, many respondents find Cebu-made
furniture too bulky for most Filipino living spaces.
Simultaneous with promotions targeted at
the domestic market, Cebu companies also have
to learn transaction procedures of hotels and
property developers. Most hotels, according to
the GIZ study, conduct biddings for suppliers,
but connections and patronage with key persons
are still vital to get contracts signed.
Despite these challenges, the Cebu
furniture and furnishings industry cannot pass
up the opportunities in the domestic market,
said Cebu Furniture Industries Foundation Inc.
(CFIF) President Angela Figueroa Paulin. “The
financial meltdown in the United States and
Europe—our biggest markets, so far—taught us
not to put all our eggs in one basket. It also
taught us to strengthen our domestic market
base while we try to carve a niche in new
markets overseas,” she added.
Guided by the GIZ study and insights from
the Philippines Constructors’ Association and
Cebu Contractors Association, CFIF came
up with Tubod, a show with a single goal:
introduce Cebu-made furniture and furnishings
to the domestic market.
“Tubod encapsulates all our intentions to
bring home our world-renowned talents and
craftsmanship. And since ‘Tubod’ also means
spring, it embodies our ever-flowing hope to
turn the industry around and propel it toward full
recovery,” Paulin said during the launch of the
show, one of the special features of the Philippine
Construction
Show
(PHILCONSTRUCT)
Visayas from June 6 to 8, 2013 at the Waterfront
Cebu City Hotel and Casino.
Nineteen exhibitors from Cebu, Davao and
Negros participated in the Tubod, showcasing
products that embody some 50 years of
manufacturing high quality, design-oriented
furniture and furnishings.
Tubod also provided a venue for CFIF
members to collaborate the Philippine Institute of
Interior Designers (PIID)-Cebu, which designed
the booth interiors and overall look of the show,
and conceptualized the lifestyle setting of the
Tubod’s Design Pavilion.
For a first, the Tubod’s success can only
be described as unprecedented as it attracted
more than 6,200 buyers and guests during its
three-day run.
With the enthusiasm that met its initial foray
into the domestic market, the Cebu furniture
and furnishings industry has become more
determined to reach out to local customers.
Presently, some industry players have taken
steps to establish local showrooms. (END)
“Tubod encapsulates all our intentions to bring home our
world-renowned talents and craftsmanship. And since ‘Tubod’
also means spring, it embodies our ever-flowing hope to turn
the industry around and propel it toward full recovery.”
-- Angela Figueroa Paulin, President of Cebu
Furniture Industries Foundation Inc. (CFIF)
NON 2013:
A Review
DESPITE the prevalence of online shopping, fairs and
exhibitions will continue to be a major marketing platform for
furniture and furnishings for some time. The more discerning
buyer is more inclined to purchase a furniture piece after testing
its comfort and durability, which cannot be ascertained while
staring at online galleries.
As the support organization of the
furniture industry, Cebu Furniture Industries
Foundation Inc. (CFIF) linked with the Center
for International Trade Expositions and
Missions (Citem) and the Chamber of Furniture
Industries of the Philippines (CFIP) National
and Pampanga chapters to provide a venue
to showcase Cebu-made export furniture and
furnishings during the Manila FAME.
THE KAGIKAN PROJECT
Cebu has always been known to produce
some of the most interesting and creative pieces
of furniture and is a region that is very supportive
of young designers. The Kagikan project,
which is an initiative of the CFIF, serves as a
platform for young designers to collaborate with
manufacturers in Cebu and use this opportunity
to launch their career in the industry.
This year, the Kagikan project features the
following designers:
• Hiroyuki Kato (Hacienda Crafts Company,
Inc. and Pacific Traders & Manufacturing
Corporation)
• Aya Maceda (Obra Cebuana)
• Daniel Latorre Cruz (Bon-Ace Fashion Tools,
Inc.)
THE SIP PROGRAM
CFIF has run a Student Internship Program
(SIP) where student designers from different
schools nationwide are matched to different
export furniture companies in Cebu for
collaboration of design pieces to be displayed
at the show. The SIP Program which first
leaped last 2008 has continued to deliver
exemplary creations of furniture and furnishing
that has caught the attention not only of the
local visitors of the show but the international
buyers as well. For this year’s March show,
2013
Breakdown
of Sales
2012
% inc. / dec.
No. of
Exhibitors
Amount
in $
%
No. of
Exhibitors
Amount
in $
No. of
Exhibitors
Amount
10
315,355.00 21%
12
416,580.00 -17%
-24%
National 8
745,430.30 51%
16
892,046.00 -50%
-16%
Pampanga 6
299,786.00 20%
11
1,063,377.00 -45%
-72%
Others
5
106,896.00 7%
1
800.00 400%
13262%
TOTAL
29
1,467,467.30 100%
40
2,372,803.00 -28%
-38%
CFIF Table 1. Booked sales (exports)
CFIF continues its endeavour to develop a pool
of young student designers from the University
of San Carlos (USC) and Bohol Island State
University (BISU)that will be tapped by the
industry in the development of new product
designs and innovation.
This year, the SIP program features the
following student designers:
• Samuel Christopher Borja (from BISU to
Stonesets International)
• Niel Clark Golosino (from BISU to Stonesets
International)
• Russell Maninantan (from BISU to Stonesets
International)
• Kimberly Almazan (from USC to Stonesets
International)
• Yanessa Tormis (from USC to Stonesets
International)
• Julius Tosloc (from BISU to Crafters of
Cebu, Inc.)
• Florame Dotarot (from BISU to Coast
Pacific)
• Cirilyn Gutang (from BISU to Coast Pacific)
2013
Breakdown
of Sales
Amount
in PHP
%
No. of
Exhibitors
Amount
in PHP
No. of
Exhibitors
Amount
18
4,423,705.56 23%
13 3,632,893.00 38%
22%
National 14
10,760,490.00 55%
19 3,953,168.60 -26%
172%
Pampanga 10
3,051,261.00 16%
11 1,977,998.00 -9%
54%
7
1,273,530.00 7%
3
14,720.00 133%
8552%
49 19,508,986.56 100%
46
9,578,779.60 7%
104%
Others
TOTAL
Table 3. Booked sales (domestic)
• Floriano Barrete (from BISU to Obra
Cebuana)
• Jyle Maraton (from USC to Kirsten
International)
• Danny Relacion (from USC to Kirsten
International)
2012
% inc. / dec.
No. of
Exhibitors
Amount
in $
%
No. of
Exhibitors
Amount
in $
No. of
Exhibitors
Amount
CFIF 16
749,919.80 26%
21
1,066,138.00 -24%
-30%
National 12
1,109,071.00 39%
18
2,336,378.18 -33%
-53%
Pampanga 12
722,155.85 25%
14
1,277,281.00 -14%
-43%
8
278,006.00 10%
1
20,500.00 700%
1256%
48 2,859,152.65 100%
54
4,700,297.18 -11%
-39%
Others
TOTAL
% inc. / dec.
CFIF 2013
Breakdown
of Sales
No. of
Exhibitors
2012
Table 2. Sales under negotiation (exports)
• Angeli Reyes (from USC to Pacific Traders &
Manufacturing Corporation)
• Rei Manah Bonghanoy (from USC to
Heritage Muebles)
• Corrine Nerosa (from USC to Heritage
Muebles)
The merger of the country’s three major
furniture and furnishings exhibition, known as
NextOneNow (NON), moved into its second
year in 2013, gaining the participation of 26
CFIF members. The NON show during the
Manila FAME ran from March 14 to 17 at the
SMX Convention Center.
The show was declared a success, drawing
more than 6,000 visitors, 818 of whom
were international buyers. Notably, the show
attracted 3,542 local buyers, an indication of
the increasing interest of the domestic market.
The visitor traffic translated to US
$41,467,467 in total booked export sales of
29 furniture companies, of which 10 are CFIF
members. CFIF members reported booked
2013
Breakdown
of Sales
CFIF National Pampanga Others
TOTAL
No. of
Exhibitors
Amount
in PHP
%
2012
% inc. / dec.
No. of
Exhibitors
Amount
in PHP
No. of
Exhibitors
Amount
18
6,956,802.90 28.26%
15
4,193,356.00 20%
66%
9
8,658,400.00 35.17%
11
3,883,750.00 -18%
123%
12
8,336,659.20 33.86%
9
4,971,896.00 33%
68%
2
683,500.00 150%
-2%
37 13,732,502.00 19%
79%
5
666,700.00 2.71%
44 24,618,562.10 100%
Table 4. Sales under negotiation (domestic)
sales of $315,355, or 21 percent of total
booked sales.
Total sales under negotiation for exports, on
the other hand, reached US$2,859,152 for 48
exhibitors, 16 of which are CFIF members. CFIF
members reported sales under negotiation of
$749,919 or 26 percent of total.
These figures, however, are lower than
2012’s.
Total booked sales for exports in 2012
reached $2,372,803, which means that this
year’s figure was lower by 38 percent. A total
of 40 exhibitors also reported having booked
sales in the March 2012 show.
Total sales under negotiation with international
buyers were also higher in 2012 with 21 CFIF
companies reporting $1,066,138 worth of
orders under negotiation.
Domestic sales, though, increased this year.
Eighteen CFIF companies reported booked
domestic sales of P4,423,705, 22 percent of the
total of P19,508,986. These figures are higher
in 2012 when 13 CFIF members reported P3.6
million in booked sales, which made up 22
percent of the overall figure of P9.6 million.
Sales under negotiation with domestic
buyers showed the same increasing trend.
Eighteen CFIF companies reported P6.9 million
or 28 percent of the total under-negotiation
sales of P13.7 million.
The post fair report showed, however, that
members of CFIP National continue to take
a big chunk of booked and under-negotiation
sales since 2012. CFIP-Pampanga came in
a close third to CFIF members in booked and
under-negotiation sales.
The post-NON March 2013 figures show
that growth can be found in the domestic
market. By adapting to the needs of the
domestic market, Cebu furniture companies
can take advantage of the growth in property
development sector.
On the other hand, furniture companies
will have to find ways to reach out to the
international market at less cost. This is where
the Internet comes in. The Internet offers many
tools for businesses to connect to target
customers at minimal cost.
Studies show that an increasing number
of people conduct research and buy products
online. Thus, it is important for manufacturers
to build a good reputation online as these
customers decide based on the product
reviews by reliable netizens.
This market segment may also have different
tastes from traditional customers. The NON
2013’s The Millennial Home setting offers a
glimpse into the preferences of this group of
buyers.
While all these would require difficult, if
not painful, adjustments in manufacturing
processes, companies know they have to
adapt to survive.
NFFIC: Making the
whole
than its parts
bigger
IN an effort to address all issues and
concerns of priority sectors in the economy,
the National Government, with funding from
the Japan International Cooperation Agency
(Jica), launched the National Industry Cluster
Capacity Enhancement Project (Niccep) in
May 2012.
The Niccep identified 14 priority industry
clusters, which included the furniture and
furnishings industry. This paved the way for
a series of meetings and strategic planning
sessions to come up with a development
framework for the National Furniture and
Furnishings Industry Cluster (NFFIC).
Twenty-seven representatives of different
industry organizations in the furniture and
furnishings sector in the country put their heads
together in April 2013 to develop a strategic
plan for the cluster from 2013 to 2017.
The plan is guided by the vision of making
the Philippines the heart of design-oriented
furniture and furnishings in Asia.
Because of their design capabilities and
manufacturing processes, Philippine furniture
and furnishings manufacturers are unable to
compete for the low-cost market. This is why
NFFIC seeks to focus on medium- to high-end
segments of the traditional markets (i.e., North
America, Europe, Middle East and Japan), other
countries in Asia (like Malaysia, Indonesia,
Vietnam and Thailand and Singapore); and in
new fast-growing economies of Brazil, Russia,
India and China (BRIC).
Assuming that the US market will continue
to grow, NFFIC aims for a growth rate of one
percent in 2013; two percent in 2014; five
percent in 2015; seven percent in 2016; and
10 percent in 2017.
Indicators that the cluster hit its targets
would include posting P50 million in local
Strat Planning together with National Cluster
Coordinator for Furniture & Furnishings
sales and a 10-percent increase every year
until 2017. In export sales, the indicator would
be a one-percent increase over 2012’s export
figure of $159.6 million.
Although there is no expected change
in employment for 2013 and 2014, the
cluster hopes for more investments in green
technology.
During the strategic planning, industry
representatives identified and classified the
issues and concerns of the sector under input
provision (including raw materials supply);
manufacturing (labor issues, power costs), and
distribution and marketing.
The Strategic Plan 2013-2017 lists
various action plans to address these issues
and enable the industry cluster to reach its
growth targets. These action plans include
the establishment of a bulk buying system to
ensure availability of raw materials; lobbying
against restrictive policies; and the declaration
of clustered manufacturing facilities into a
special economic zone.
Other strategies include obtaining stronger
government support to set up forest plantations
that meet international standards; greening of
work places and manufacturing processes;
participation in local and international trade
missions and exhibitions; establishment of
strategic regional showrooms for the domestic
market; skills upgrade for workers; creation of
a design council; and organization of a design
congress.
The NFFIC also identified the collaboration
of major shows or NextOneNow (NON)—for
CebuNext, Manila Now and Pampanga One—
as an effective venue to showcase the industry
cluster’s products. (END)
CFIF as Innovation Hub
Changing
gear amid
shifting
times
FACED with weak markets and fewer
orders, member-companies of the Cebu
Furniture Industries Foundation Inc. (CFIF)
focused more on ensuring their survival and
less on institutional concerns. The scenario
contributed to a general lack of interest in CFIF
activities.
Realizing this, the CFIF Board and
Secretariat embarked on a series of assessment
and strategic planning workshops, which
aims to make the foundation more relevant to
members. While the first workshop with the
CFIF Board in April 2012 sought to determine
the current mindset of the membership, the
second segment—held at the Casino Espanol—
was designed to capacitate the Secretariat to
deliver programs and services deemed useful
to member-companies.
In the workshop, CFIF officials and members
of the Secretariat identified a set of strategies
that supports its operational goal: Innovation
Design Efficiency Action (IDEA).
IDEA encompasses eight strategic areas
that CFIF’s new direction aims to address:
• Help increase productivity, efficiency;
• provide market information;
• offer designers’ resources;
• research on production materials;
• information on new products;
• marketing platforms;
• advocacy; and
• establish database.
All these are meant to position CFIF as
an innovation hub, making its programs and
services more useful to its members.
Few member-companies have personnel
who are dedicated to conduct research on
new materials, ideas for new products and
untapped markets, so CFIF can take advantage
of information and research resources that it
can access as a business support organization
(BSO).
Among the possible research services
that CFIF can provide on traditional and new
markets are: existing product standards, tariff
and non-tariff regulations, price and style
segments, and distribution networks.
It can also help designers and companies
find new and existing materials and ideas
for new products through research and
networking with potential suppliers. It can link
with the academe to enrich the industry’s pool
of designers.
As the support organization of the furniture
It can also help designers
and companies find new and
existing materials and ideas
for new products through
research and networking
with potential suppliers.
and furnishings industry, it gives voice to its
members on internal and external issues, as
well as government policies, which affect the
sector.
By strengthening its ties with government
and private sector partners, CFIF can help
members improve promotion strategies and
find new marketing platforms; and provide
productivity enhancement services.
In providing all these services, CFIF becomes
a vital factor in the survival its members, thereby
ensuring its own sustainability as well.
The year in brief
New Member
Upland reforestation
During the GMM, CFIF welcomed Neumann Mueller
company as its newest member.
july
august
On Sept. 1, 2012, CFIF organized an upland tree
planting activity under its annual Project Green
Mountain, Blue Sea.
Representatives from six member-companies (Axent
Wood Corp., Bon Ace Fashion, Catalina Embroderies,
Cebu Fil-Veneer Corp., Crafters of Cebu and Coast
Pacific Manufacturing) joined the CFIF secretariat in
planting seedlings of indigenous tree species in Sitio
Cantipla, Barangay Tabunan, Cebu City. The area is
within the Central Cebu Protected Landscape.
CFIF partnered again with the Philippine Business
for Social Progress for the activity.
september
october
General Membership Meeting 2012
Battle-tested Seminar
On Nov. 15, 2012, 15 officials of CFIF member-companies
participated in the Battle-tested Leadership Skills Seminar, held at the
Montebello Hotel in Cebu City.
The seminar, given by Mr. Oscar Morado, OLM Consultants &
Associates president, sought to enhance the leadership skills of
company officials so that they can contribute to making their business
organizations more competitive.
november
CFIF Members’ Christmas Party
On July 31, 2012, CFIF held its General Membership Meeting
(GMM) and Elections at the J Centre Mall grand hall.
Apart from members, CFIF’s partners in the government and private
sector also attended the GMM. It was also the first time for CFIF—or
any business support organization in Cebu for that matter—to present
its Annual Report in e-book form, accessible through QR code.
After the GMM, members elected trustees to the board.
december
On December 14, 2012, CFIF members celebrated Christmas in a funfilled get-together at St. Mark Hotel, Cebu City.
Before the merry-making, CFIF President Angela Paulin gave a Christmas
message that tackled the highlights of the year. Her message was followed
by updates of the March 2013 show by NON Chairperson Ina Gaston.
The messages were then followed by entertainment and parlor games
that draw merriment from members and guests.
First Regional Bamboo Conference
CFIF sent a delegation, led by Trustee Venus Genson (Venus Crafts),
participated in the First Regional Bamboo Conference held on September
28, 2012 at the Bethel Guest House in Dumaguete City.
The one-day activity was organized by the Department of Trade
and Industry-Negros Oriental Provincial Office in cooperation with the
Provincial Industry Bamboo Development Council. The conference
provided a venue for stakeholders of the bamboo industry to meet and
discuss trade opportunities and map out the development of the industry.
2012
Christmas for Orphans
Philconstruct Press
Con/Tubod Launch
On December 17, 2012, CFIF members threw a
Christmas party and gave gifts to the orphans of
the Sto. Niño Center for Boys in Liloan, Cebu.
The activity, dubbed Fill a Christmas Box, is
in line with CFIF’s corporate social responsibility
program Adopt-A-Child.
Each of the 24 kids received one Christmas
box filled with toys, clothes, school supplies,
slippers and food.
The activity was supported by Accessoria Inc.,
Bon-Ace Fashion Tools Inc., Catalina Embroideries
Inc., Catarman Industries Inc., Clear Export
Industries Inc., Coast Pacific Manufacturing
Corp., Cosonsa Manufacturing Inc., Crafters of
Cebu Inc., Detalia Aurora Inc., Giardini del Sole
Manufacturing and Trading Corp., Obra Cebuana
Inc. and Stonesets International Inc.
december
CFIF Secretariat
Christmas Party
To celebrate Christmas and unwind, the CFIF Secretariat
held a simple get-together of singing and bonding on
December 19, 2012 at the MO2 resto-bar. CFIF President
Angela Paulin distributed bags of goodies to the
Secretariat staff during the event. There was
also a raffle with donated prizes from CFIF
member-companies.
On April 2, 2013, CFIF launched
the “Tubod” show during the
PHILCONSTRUCT press con at the
Waterfront Cebu City Hotel and Casino.
PHILCONSTRUCT is an exhibition
organized by the Philippine
Contractors’ Association and Cebu
Contractors’ Association.
“Tubod” was conceptualized by CFIF
to showcase Cebu-made export-quality
furniture to the domestic market.
CFIF partnered with
PHILCONSTRUCT to enable its
members to tap the potentials of the
growing construction and property
development industries.
january
february
march
april
Sinulog
Bodega Sale
CFIF organized a bodega
sale in time for the Sinulog,
an event that draws many
local and foreign tourists to
Cebu.
Participated in by three
member-companies, the
Sinulog Bodega sale was
held at Paseo Arcenas in
Banawa, Cebu City
from January 8 to
31, 2013.
Series of seminars
On May 14-16, 2013, CFIF
organized a series of seminars/
workshops on preparing the
furniture and furnishings
manufacturers to penetrate the
domestic market.
In the seminars/workshops,
participants were apprised of the
results of the domestic market
sensing study commissioned by
the GIZ for the furniture and
furnishings industry.
The seminars/workshops were
held at the DOST 7 Conference
Room, Sudlon, Lahug, Cebu City. The
resource speaker was Mr. PJ Arñador,
an international lifestyle designer.
may
june
SMART Cebu Ekofest
Trends Seminar
On February 12, 2013, CFIF members attended seminar that tackled
trends in furniture and furnishings industry.
Seminar participants learned about current preferences of traditional and
new markets.
The seminar was held at the Diamond Hotel, Cebu City.
2013
The SMART (SMEs for environmental
Accountability, Responsibility and
Transparency) Cebu Project came to a
close during a culmination activity at the
Radisson Blu hotel in Cebu City on June
19, 2013.
During the activity, SMART Cebu gave
recognition to manufacturers that joined
the project and embraced the principles of
sustainable consumption and production.
SMART Cebu was an European Unionfunded project under the SWITCH Asia
program.
ADVOCACIES
CFIF expresses position on PEDP 2011-2013 plan and the smuggling of raw rattan poles
In 2012, CFIF submitted to the Department
of Trade and Industry and the Export
Development Council its position on the
Philippine Export Development Plan (PEDP)
for 2011-2013.
The Foundation believes that:
• There is a need to ban the exportation of
raw materials that are being used in the
manufacturing industry.
• To take full advantage of international trade
agreements, we ask that consultations
with concerned sectors be conducted
with the following considerations:
i. Ample lead time or advance notice of
consultation meeting so that sectors
can research and prepare their
positions
ii. Involve business support or industry
organizations in the consultation
iii. There should be industry
representation in formal committees
that are tasked to draft international
trade strategies
iv. Put effort into making provisions
of international trade agreements
understandable to industry
representatives
v. Establish an efficient and effective
feedback system on consultation
outputs so that concerned sectors
would know which of their concerns
have been integrated into the trade
agreement or government positions
in international trade agreement
negotiations.
• Establish an incentive system for
companies that manufacture products
that are made of sustainable materials
(natural and do not harm the environment,
are harvested in a sustainable manner)
and manufactured using sustainable
processes, which do not pollute and
consume less energy.
• The sector’s priority promotional support
needs are:
i. Promotional support for the three
Philippine furniture and home
furnishings shows: CEBUNEXT,
Manila FAME and Manila Now
ii. Financial and market intelligence
support for selling/study missions
and trade fairs, as well as other
market penetration strategies to
identified markets.
• Based on the sector.s priority markets,
we have identified the following fairs
and shows as our priorities: 1) the
Salone Internationale del Mobile, held
in April of every year in Milan, Italy; 2)
the Index Furniture Mumbai in Mumbai,
Maharashtra, India, conducted every
October; and 3) the China (Shanghai)
International Furniture Exhibition.
• The sector believes that inputs and/
or strategies (for product market,
negotiations, export policy) that are
important to the growth and development
of the industry are hinged on:
i. Positioning of Cebu furniture and
furnishings industry, as well as
the Gifts, Decors and Houseware
(GDH), as destination of sustainably
produced products and designs;
ii. In-plant productivity enhancement
programs, trainings and testing
facility;
iii. Maximizing benefits from international
trade agreements, which can be
made possible by integrating the
concerns and issues of the sector in
international trade strategy;
iv. Pursuing an agenda that is focused
on competitiveness, which should
include a systematic and progressive
approach to eradicating graft and
corruption, whereby bringing down
the cost of doing business in the
country;
v. Linking up furniture and furnishings
and GDH industries with the tourism
industry.
CFIF believes that the PEDP can be an
effective and efficient platform for public and
private partnership that will propel the furniture
and furnishings industry towards recovery and
further growth.
In February 2013, CFIF sent letters to the
Bureau of Customs and the Department of
Environment and Natural Resources to call for
strict enforcement of the ban on the exportation
of raw rattan poles.
CFIF stressed that the declining supply of
rattan resulted in growing imports, rising prices
and declining foreign exchange earnings. For
the export furniture industry, this meant rising
production costs, delays in deliveries and
overall decline in competitive advantage.
CFIF also called on government to
encourage further the establishment of rattan
plantations to ensure availability of supply.