Philippines Sourcing: Home decor 2017

 

In Philippines Sourcing: Home decor 2017, buyers can find:

Verified exporters – 14 featured suppliers offering various types of home decor

Products – Full-color images with specifications & prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

Export data – Philippines-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

Philippines Sourcing: Home decor 2017 Sector highlights

Industry overviewProduct featuresSupplier survey
  • Philippine home decor suppliers continue to focus on high-value, low-volume product lines.

  • The country sent abroad about $278.7 million worth of home decor and other houseware in 2016.

  • MSMEs account for the majority of suppliers in the industry.

  • Suppliers use materials from trees, plants and other natural resources found in the country.

  • Mixed-media designs abound as suppliers vary material combinations to create unique products.

  • Raw material preparation and weaving are typically subcontracted.

  • The majority of suppliers will be keeping quotes at current levels.

  • Outlook on export sales in the next 12 months is generally optimistic.

  • The eco-friendly selection will continue to expand in coming months.

Philippines Sourcing: Home decor 2017 Suppliers & products

Philippines-home-decor-banner

Philippines Sourcing: Home decor 2017

• Home textiles • Storage • Lamps & lighting • Other home accessories

Our team has visited all Philippine manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company details, product images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Home textiles   
Philippines home decorPhilippinePhilippine home decorPhilippine home decor
Storage   
Philippines home decorPhilippinePhilippine home decorPhilippine home decor
Lamps & lighting   
Philippines home decorPhilippinePhilippine home decorPhilippine home decor
Other home accessories   
Philippines home decorPhilippinePhilippine home decorPhilippine home decor

Philippines Sourcing: Home decor 2017 Industry overview

Philippines Sourcing: Home decor Industry Overview

Philippines Sourcing: Home decor 2017

• Home textiles • Storage • Lamps & lighting • Other home accessories

This section discusses key issues affecting export manufacturers in the Philippines, offering insight into industry composition and important supply centers.

Philippine home decor exportsCompetitive advantagesChallengesIndustry composition
  • Philippine home decor suppliers continue to focus on high-value, low-volume product lines.

  • The country sent abroad about $278.7 million worth of houseware in 2016.

  • The US was the largest single-country importer during the period.
  • A key factor enabling makers to offer artisanal home decor is the wide range of materials found in the country.

  • Having access to a skilled workforce is another key advantage of Philippine suppliers.

  • Business support organizations and the government have initiatives to boost exports.
  • Suppliers’ concerns revolve around issues affecting their price competitiveness.

  • Transportation and logistics costs have risen by about 10 percent from 2016 levels.

  • Slim margins limit resources that can be poured into R&D and marketing.
  • The home decor industry consists mostly of family-owned businesses or sole proprietorships.

  • MSMEs account for the majority of the sector.

  • The membership of various organizations indicates there are more than 250 companies in the organized sector.

Philippine home decor suppliers continue to focus on high-value, low-volume product lines. Most enterprises ask for MOQs ranging from five to 100 pieces.

To boost sales, several makers are accepting orders for various products for a minimum order value. This gives buyers the option of purchasing different products or variants of the same model, provided their purchases total a certain value. Buyers can therefore get different models in small quantities, allowing them to test the salability of the product first before buying in bulk.

Philippine suppliers of gifts, decor and houseware (GDH) industry aims to grow revenues from a range of 5 to 10 percent annually until 2030. In line with this effort, GDH suppliers collaborated with the Board of Investments (BOI) and various business support organizations (BSOs) to create a unified brand for the sector.

Ma’i, the unified brand unveiled in October 2017, was the name used to refer to the Philippines and its people by Chinese traders back in the 9th century. This initiative is part of efforts to differentiate the country’s products, and thereby boost their competitiveness in the international market.

Exports

Based on data gathered from survey and interview with suppliers, the industry is export-oriented but is gradually leaning toward the domestic market because of strong demand.

The country sent abroad about $278.7 million worth of houseware products in 2016, up 12 percent from 2015, according to international trade data from Philippine Statistics Authority (PSA) and processed by the Export Marketing Bureau Department of Trade and Industry (DTI-EMB), as of Sept. 11, 2017.

Tableware and kitchenware accounted for 32 percent of the export value. Basketwork, wickerwork and other articles of plaited materials contributed 18 percent, while statuettes accounted for 17 percent. The remainder came from shellcrafts, holiday decorations and other types of houseware.

The US was the largest single-country importer of houseware from the Philippines. Products sent to this market amounted to $126.3 million. Japan was also a key destination, with exports to that country reaching $74.5 million.

The other major markets were Australia, Singapore, the UK, Germany, the Netherlands, China, the UAE and Canada. Total exports to these countries reached nearly $40 million in 2016.

The US and the EU are expected to remain the main markets. Several suppliers have already established relationships with buyers in these areas and are therefore familiar with the local policies and requirements.

Russia is considered as an untapped market, but companies are still developing strategies to penetrate the market.

Competitive advantages

A key factor enabling manufacturers to offer artisanal home decor is the wide range of materials found in the country.

Abaca, used in a wide range of home decor, grows on all three major islands of the Philippines. The primary source is the Bicol region, which comprises the provinces of Camarines Norte, Camarines Sur, Albay, Catanduanes, Sorsogon and Masbate in Luzon.

Rattan can also be sourced within the country. Cagayan and Palawan provinces in Luzon, and Agusan del Sur in Mindanao are among the major producers of split and unsplit rattan, according to statistics posted by the Forest Management Bureau of the Department of Environment and Natural Resources (DENR). Buri fibers, which also comes from a type of palm, are procured in Iloilo and Bacolod.

For gmelina wood, suppliers look to Bukidnon and Agusan del Norte in Mindanao. Mahogany and acacia wood is procured in Benguet and Batangas provinces in Luzon.

Having access to a skilled workforce is another key advantage of Philippine suppliers. The country’s labor pool includes weavers, carvers and other artisans. Literacy rate in the country exceeds 90 percent, and the majority of the population has some level of proficiency in the English language, which facilitate communication of buyers and sellers.

BSOs provide a voice for and help suppliers access support from government and non-governmental organizations. Home Accents Group of the Philippines Inc (HAPI), for instance, facilitated the approval of financial support from Center for International Trade Expositions and Missions (CITEM) for HAPI members to showcase their products in the Manila FAME.

The government also has policies and programs in place to grow its exports of home decor and other products. Among recent initiatives is House Bill 5636, also known the Tax Reform for Acceleration and Inclusion (TRAIN) Act, was approved on the third and final reading in the House of Representatives on May 31. It includes an “enhanced value-added tax (VAT) refund system,” under which exporters must be given their actual refund or informed of the denial of their application for refund within 90 days of the filing of the VAT refund application.

If the bill becomes law, the enhanced VAT refund system is expected to ease the cashflow of suppliers.

The weakening of the Philippine peso is also benefiting the industry, as it encourages buyers to increase orders. The Philippine peso closed 51.77:$1 on Oct. 25, 2017, its lowest level since July 25, 2006’s 51.87:$1. The peso ended 51.28:$1 on Nov. 6, 2017, and it is expected to remain weak against the greenback in coming months.

Challenges

Suppliers’ concerns revolve around issues affecting price competition. With their products already priced higher than those from China, Indonesia and other sourcing centers, companies are wary of losing orders if they raise quotes. Demand has not recovered to levels seen before the 2007-2008 financial crisis.

Consequently, any increase in raw material costs and overhead is troubling. The cost of capiz shells, for instance, have more than doubled in the past year. A popular embellishment on lamps, vases and decorative tableware, the shells rose to $2.50 per kilogram this year from $1 per kilogram in 2016.

Transportation and logistics costs have risen by about 10 percent from 2016 levels due to higher fuel and electricity costs.

Suppliers typically opt to sacrifice margins to keep price adjustments to a minimum despite higher costs. Many companies operate on single-digit margins, which limit the financial resources that can be poured into R&D and marketing.

Industry composition

The home decor industry consists mostly of family-owned businesses or sole proprietorships. There is no official number of home decor suppliers in the Philippines, but membership in organizations associated with the industry indicates more than 250 companies in the organized sector.

The Philippine Federation of Furnishings Associations (PhilFFA), which consists of eight organizations from the furniture, home decor, fashion and gift sectors, reported having 558 members as of May 2017. Of the member organizations, the four directly associated with home decor companies—HAPI, Association of Negros Producers (ANP), Cebu Gift, Toys and Housewares (Cebu-GTH), and Philippine Chamber of Handicraft Exporters & Artisans Inc. (PCHEAI)—had a total of 287 members.

PhilFFA’s other member organizations are:

• Cebu Furniture Industries Foundation Inc. (CFIF)

• Chamber of Furniture Industries of the Philippines (CFIP)

• Philippine Homestyle and Holiday Decor Association (PhilHHDA)

• Health and wellness companies

Micro, small and medium-sized businesses account for the majority of the industry. According to the Philippine classification of MSMEs, microenterprises have up to nine employees and assets of up to 3 million Philippine pesos. Small businesses employ 10 to 99 people, and their assets range from 3 million to 15 million Philippine pesos in value. Midsize companies can have as many as 199 employees and their assets have a value reaching 100 million Philippine pesos.

In Luzon, the key production hubs for home furnishings are Metro Manila, Baguio City in Benguet province, Pampanga and the Bicol region.

Being the nation’s business center, Metro Manila offers the convenience of sourcing materials such as bleach and other chemicals. Home decor suppliers typically have offices in Metro Manila, but their factories may be located in the nearby provinces of Quezon, Rizal, Laguna, Cavite and Pampanga. Makers from farther areas often have sales offices in Metro Manila as well.

Makers in Baguio City usually offer products made of mahogany, gmelina, acacia and other types of wood. Those in the Bicol region, which comprises the provinces of Camarines Norte, Camarines Sur, Albay, Masbate, Catanduanes and Sorsogon, specialize in abaca-based home accents.

In Visayas, the provinces of Cebu and Negros Occidental are the main manufacturing centers. Suppliers in these hubs are known for shellcrafts and the use of laminated inlays featuring coconut shells, banana leaves and other indigenous materials.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the home decor suppliers featured in this report.

Philippine home decor Industry Overview Locations Map

Philippines Sourcing: Home decor 2017 Product features

Philippines Sourcing: Home decor Suppliers and Products

Philippines Sourcing: Home decor 2017

• Home textiles • Storage • Lamps & lighting • Other home accessories

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Philippine home decor suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Materials & designsManufacturing & QCPricing
  • Materials from trees, plants and other natural resources found in the country are popular inputs.

  • Mixed-media designs abound as suppliers vary material combinations to create unique products.

  • ODM orders account for the majority of production and exports.
  • Production is labor-intensive, with many of the stages completed using handheld tools and simple machines.

  • Suppliers typically subcontract processes such as raw material preparation and weaving.

  • Among the standards suppliers follow are those of the General Product Safety Directive of the EU and CITES.
  • Philippine products typically target midrange and high-end markets.

  • Quotes are largely determined by the components used and the complexity of the design.

  • Intricately woven design or carvings push up quotes.

Materials & designs

Philippine suppliers export a wide range of artisanal home decor. Product-wise, the selection includes home textiles, storage solutions and lamps.

Materials from trees, plants and other natural resources found in the country are popular raw materials for such products since these immediately differentiate designs as being made in the Philippines.

Home textiles such as table runners, placemats and throw pillow cases are handwoven from abaca, cotton or polyester fibers. Hablon, hinabol and t’nalak are some of the textiles typically used.

Hablon, from the Hiligaynon word habol or to weave, is a handwoven textile sourced from Iloilo province and Negros island in Visayas that comes in abaca, banana, pineapple or silk. Versions woven from a combination of abaca and rayon or cotton fibers are also adopted.

The fabric typically features squares, rectangles and other geometric patterns. Emerald, lavender, pink, tangerine and crimson are the common hues adopted in hablon.

Hinabol, which means woven in the Binukid dialect, is an abaca textile woven by the Higaonon, an ethnolinguistic group living in the mountainous regions of North Central Mindanao.

T’nalak, is a traditional textile woven by the T’boli women of Lake Sebu in South Cotabato, which is in Southern Mindanao. Woven using a backstrap loom, the cloth is made of abaca fibers dyed using the ikat method.

For storage solutions, abaca, rattan, buri, sedge, bamboo and water hyacinth are some of the raw material options. The selection includes fruit and laundry baskets, toy chests, wastebaskets and magazine holders.

For table lamps and other types of lighting, frames and bases often come in wood, terra cotta or wrought iron. Lampshades come in various materials, including abaca fabric, capiz and paper.

Home accents exported from the Philippines also include a range of decorative tableware, vases and candle holders. Acacia wood, capiz, coconut shell and terra cotta are some of the raw material options in these lines.

In the various categories, mixed-media designs abound as suppliers vary material combinations to create new designs and differentiate products from competitors. Many makers are pairing abaca fiber, capiz, and other natural materials with wrought iron sheet or wire mesh, as production costs are lower compared with versions that use hardwood or rattan.

Suppliers release 10 to 30 models for trade shows happening in April and October. Buyer-specified samples can be created within 30 days, depending on the product. The development of designs requiring intricate embroidery, carving and weaving take longer.

ODM orders account for the majority of production and exports.

Manufacturing & QC

Manufacturing processes and QC steps vary depending mainly on the material used. Production is generally labor-intensive, with many of the stages completed using handheld tools and simple machines.

For wooden crafts, designs are formed using gouges or knives of various sizes. Most are coated with varnish or paint for aesthetics and protection against decay and insects.

In products using shells, the shells are soaked first in water and then a cleaning agent. Afterward, they are rinsed with water then dried before being cut and attached to the frame or inlaid on a product.

For wicker furnishings, strips of the material are woven according to the design chosen by buyers, and then coated with paint or varnish. Hole-to-hole weaving is common.

Suppliers typically subcontract processes such as raw material preparation and weaving. Cutting of recycled paper for lampshades, for instance, is often outsourced. Weaving of the abaca twine for storage solutions is also among the steps done by a third party.

QC involves mainly checking that raw materials comply with requirements. Product details are typically checked visually against design specifications. Products are sent to independent agencies for chemical testing of paint and checking of lamps’ electrical specifications on buyer’s request.

Among the standards suppliers follow are the General Product Safety Directive of the EU and the requirement of the Convention on International Trade in Endangered Species (CITES).

Production lead time ranges from 30 to 60 days, depending on the complexity of the product’s design and the order volume.

Pricing

Philippine products typically target midrange and high-end markets to avoid direct price competition with makers in China, Vietnam, India and Indonesia. Quotes are largely determined by the components used and the complexity of the design.

Models that utilize abaca or rattan are generally priced higher than similar items that adopt metal or paper. Products that adopting gmelina, plywood and fiberboard are less expensive than those made of mahogany and other types of hardwood.

Intricately woven design or carvings push up quotes since these often involve labor-intensive tasks. The other factors affecting prices are packaging and logistics costs.

Most suppliers intend to maintain prices at current levels for the next six months.

Price guide

Price guide: Table runners
$3 to $5
Hablon polyester or acrylic fabric; dual- or tricolor design; 1 to 1.5m long; 13in wide
$35 to $40
Hinabol abaca fabric; ethnic design; natural dyes; 2.3m long; 14 to 16in wide
$55 to $60
T’nalak abaca fabric; monochromatic design; synthetic or natural dyes; 2.3m long; 18 to 24in

Click image to enlarge.

Philippine home decor 2017
Price guide: Storage baskets
$3 to $10
Wicker basket; sedge, buri or abaca; fabric lining; natural finish; 16.5x6.5x5.5 to 17x14x10in
$11 to $20
Soft basket; hinabol abaca fabric; ethnic pattern; 5x5 to 6x6.5in
Philippine home decor 2017
Price guide: Lamps
$25 to $60
Table lamp; terra-cotta base; capiz or paper lampshade
$61 to $100
Hanging or floor lamp; wrought iron frame or base; handwoven textile lampshade
More than $100
Hanging or floor lamp; wrought iron frame or base; handwoven textile or paper lampshade
Philippine home decor 2017

Philippine Sourcing: Home decor 2017 Supplier survey

Philippines Sourcing: Home decor Supplier Survey

Philippines Sourcing: Home decor 2017

• Home textiles • Storage • Lamps & lighting • Other home accessories

To give buyers first-hand information from active home decor exporters in the Philippines, we’ve surveyed the manufacturers featured on this site.

Export pricesExport markets & salesProduct trendsChallenges
  • The majority of suppliers will be keeping quotes at current levels.

  • Suppliers are keeping prices stable to remain competitive with counterparts in China, Indonesia, India and other production hubs.

  • Companies planning to raise prices will keep adjustments within 10 percent.

  • Most survey respondents have an optimistic outlook on export sales.

  • North America and the EU will remain key markets.

  • Several companies plan to establish stronger ties with buyers in Japan and other markets in the Asia-Pacific region.

  • The eco-friendly selection continues to expand.

  • Products combining old and new elements also remain on trend.

  • Several suppliers are expanding their product range to provide a one-stop shop for buyers.

  • Most suppliers are concerned about rising raw material costs and overhead.

  • A few companies consider worker retention a major challenge.

  • Due to intense competition, suppliers cannot easily raise quotes to cover higher costs and maintain margins.

Export prices

Prices of Philippine home decor are expected to remain relatively stable in the next six months. Of the suppliers surveyed for this report, 75 percent will be keeping quotes at current levels and 6 percent will be cutting prices during the next half year. These companies are matching the price points of production hubs such as China, Indonesia, India, Thailand and Vietnam to retain and attract new clients.

Among makers planning to raise prices, two-thirds will cap adjustments at 5 percent and the rest will keep increases within 6 to 10 percent. These companies will be raising quotes to maintain margins amid higher raw material costs and overhead such as electrical bills, logistics expenses and rental fees. They are also planning to Invest in new equipment.

Philippine home decor Survey Export Prices

Export markets & sales

The export outlook for the next 12 months is generally optimistic. Among survey respondents, 44 percent see overseas sales rising by up to 10 percent, and 25 percent are anticipating higher growth as a result of price changes and recent promotional efforts. The remaining companies are projecting export revenue to remain flat year over year.

North America and the EU will remain key markets for many suppliers because they already have relationships with buyers in countries. Makers are also familiar with these markets’ policies and requirements.

Of the suppliers featured in the report, 50 percent intend to boost exports to North America. These companies are targeting the coastal states of the US, particularly Hawaii, California and Florida, because most of their designs are inspired by the beach and other objects in nature.

Nearly 20 percent of the survey respondents plan to fortify their foothold in the EU. The region remains a preferred destination because of its buying capacity. In addition, there is strong demand for natural and environment-friendly products in this market, as well as in North America.

India Footwewar Supplier Survey Export Forecast

One-fourth of the suppliers featured in this report plan to establish stronger ties with buyers in Japan and other markets in the Asia-Pacific region. The remaining companies intend to expand their presence in the Middle East, specifically in Dubai and Saudi Arabia.

Environment-friendly products remain on trend. Of the suppliers featured in this report, 38 percent plan to create more models using recycled materials or sustainable natural inputs.

The combination of old and new elements also continues to be a strong trend. Traditional handwoven fabrics are being incorporated in lamps and storage solutions. Vases and pottery, meanwhile, feature Aeta iconography and other ethnic patterns.

Several suppliers are expanding their product range to provide a one-stop shop for buyers. In line with this, several companies are adding larger products such as bathroom storage solutions and wall lamps to their selections.

Challenges

Suppliers’ concerns revolve around rising production costs and their effects on price competition. Among surveyed companies, 38 percent are worried about rising electricity rates and other overhead costs.

For 25 percent of the survey respondents, rising raw material costs are the main concern. Rates for mahogany, gmelina and other types of wood, for instance, increase an average of 20 percent each year.

Philippine home decor Survey Key Findings

A few suppliers are finding it difficult to retain workers. This is due in large part to workers in the shop floor not being full-time employees. They are typically paid a per-piece rate, and most go into carpentry and other extra jobs for additional income.

To attract and retain workers, suppliers offer bonuses if a quota is met. Some offer snacks as an incentive.

Philippine home decor suppliers cannot easily raise quotes to cover higher costs and maintain margins. Price competition in the market is intense and Philippine products can be up to four times more expensive compared with those from China, Vietnam, Indonesia and other manufacturing hubs.

Philippines Sourcing: Home decor 2017 PDF download

Philippine home decor

Philippines Sourcing: Home decor 2017

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Supplier & products

Sections


  • Products
  • Philippine home decor suppliers

Industry overview

Sections


  • Highlights
  • Exports
  • Competitive advantages
  • Challenges
  • Industry composition
  • Philippine home decor suppliers

Chart


  • Export value & markets
  • Supplier locations map

Product features

Sections


  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • Philippine home decor suppliers

Supplier survey

Sections


  • Highlights
  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Philippine home decor suppliers

Chart


  • Export prices
  • Export forecasts
  • Key findings

Philippines Sourcing: Home decor 2017 Supplier list

Philippine home decor suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier statusHome textilesStorageLamps & lighting Other home accessories
Betis Crafts Inc.Active 
Beyond Home DecorActive  
Chall Inc.Active  
CustomMade Crafts Center Inc.Active 
Designcraft Inc.Active 
Hacienda Crafts Company Inc.Active 
Jet Jed Handicraft Furniture WoodworksActive  
Lampara Trends Inc.Active 
Lapekto Lapel Paper Mache and Wooden Products International Active   
LBR PhilcraftsActive   
Redfern Arts and CraftsActive  
Red Slab PotteryActive   
That One Piece EnterpriseActive  
Yssa's CraftsActive