Philippines Sourcing: Home & garden decor 2018

 

In Philippines Sourcing: Home & garden decor 2018, buyers can find:

Verified exporters – 11 featured suppliers of various home and garden 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 & garden decor 2018 Sector highlights

Industry overview

Product featuresSupplier survey
  • Exports of products associated with the industry during the first seven months of 2018 amounted to $52.9 million.

  • Most Philippine suppliers of home and garden decor are MSMEs.

  • To reach more international buyers, suppliers are developing strategies to strengthen their online presence and participate in more trade shows.
  • Abaca is a popular input across the different product categories.

  • Suppliers often adopt traditional motifs and tropical elements in their designs.

  • Production is generally labor-intensive.
  • Companies will either keep quotes at current levels or cap price increases at 10 percent.

  • Most companies are optimistic export sales will increase in the next 12 months.

  • Adoption of environment-friendly inputs will remain a strong trend.

Philippines Sourcing: Home & garden decor 2018 Suppliers & products

Philippines Sourcing: Home & garden decor 2018

Philippines Sourcing: Home & garden decor 2018

• Home accents • Lamps & lighting • Storage solutions • Planters & other garden 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 detailsproduct 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 accents   
Lamps & lighting   
Storage solutions   
Planters & other garden accessories   

Philippines Sourcing: Home & garden decor 2018 Industry overview

Philippines Sourcing: Home & garden decor 2018

Philippines Sourcing: Home & garden decor 2018

• Home accents • Lamps & lighting • Storage solutions • Planters & other garden accessories

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

Philippine home & garden decor exportsCompetitive advantagesChallengesIndustry composition
  • Exports of basketwork and other products associated with the industry during the first seven months of 2018 amounted to $52.9 million.

  • The US was the largest single-country importer.

  • Several suppliers are looking to boost exports to South Korea.
  • The abundance and variety of natural resources abundant in the Philippines gives suppliers the advantages of domestic sourcing.

  • Makers have access to a skilled workforce.

  • The government and nongovernmental associations have programs to support SMEs.
  • The cost of logistics and other inputs is on the rise amid higher world oil prices.

  • The TRAIN law is also considered a contributing factor to rising costs.

  • Raw materials are expected to become up to 15 percent more expensive.

  • Membership in industry organizations indicates there are nearly 300 enterprises in the sector.

    MSMEs make up the majority of the industry.

    Suppliers are typically family businesses or sole proprietorships.

The Philippines is among the top sources of environment-friendly home and garden décor, being rich rich in natural resources commonly used in indoor and outdoor houseware. Designers and skilled workers produce items with a level of craftsmanship and attention to detail that make many of these furnishings statement pieces.

Exports

Between January and July 2018, the Philippines exported $52.9 million worth of basketwork, wickerwork, statuettes, shellcrafts, tableware and other items, according to data from the Philippine Statistic Authority (PSA). Basketwork, wickerwork and statuettes accounted for the majority of the export value.

The US was the largest single-country importer, accounting for over half of overseas sales. The other top destinations were Japan, the Netherlands, the UK and Germany, which together contributed 27 percent.

Suppliers expect the US, the EU and Japan to remain the key target markets for houseware exports. Many manufacturers already have buyers in these areas and have become familiar with local policies and requirements.

A number are looking to enter or boost exports to South Korea, encouraged by the country’s “New Southern Policy” aimed at fostering closer ties with the ASEAN and India.

To reach more international buyers, suppliers are developing strategies to strengthen their online presence and participate in more trade shows. Many are planning to expand further into the domestic market amid the influx of new hotels, resorts, condos and housing.

Competitive advantages

The Philippines has a wide variety of natural resources that can be used in home and garden décor, giving suppliers the advantages of domestic sourcing.

Manila help or abaca, for one, can be procured from different provinces. The country is the world’s largest source of this input, accounting for more than 80 percent of global production.

Home and garden décor manufacturers also benefit from having access to a skilled workforce. The country’s labor pool includes weavers, carvers, woodworkers, welders and other artisans and craftsmen. Literacy rate exceeds 90 percent, and most of the population has some level of English proficiency.

The Philippines also has several business support organizations (BSOs) willing to assist suppliers in garnering support from both government and non-government organizations. The Home Accents Group of the Philippines Inc (HAPI), for instance, has secured financial support from the Center for International Trade Expositions and Missions (CITEM) to allow HAPI members to showcase their products at the Manila FAME trade show.

The Philippine government also has policies and programs to help grow the home décor export industry. CITEM, for example, provides incentives to sellers that attend international trade shows such as the Maison et Objet in France and the Korea International Furniture and Interior Fair (KOFURN) in South Korea.

House Bill 8083, known as the Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO), is designed to reduce the corporate income tax rate from 30 percent to 20 percent by 2029. The tax break aims to help small and midsize enterprises, which constitute 95 percent of corporate taxpayers in the country.

Philippine suppliers also benefit from the weakening of the Philippine peso against the US dollar in the past few months. A number of market analysts forecast that the peso will continue to trade above 54 pesos to the dollar in the coming year. A stronger dollar often encourages buyers to increase order volumes.

Challenges

Philippine home and garden decor exporters face several headwinds, chief of which is rising production and logistics costs.

Spending for logistics and various manufacturing inputs is on the rise, due in large part to higher world oil prices pushing up rates for gasoline and other petroleum products. Many manufacturers also consider the Tax Reform for Acceleration and Inclusion (TRAIN) policy implemented in 2018, which raises the excise of petroleum products, as a contributing factor. An interviewee noted that logistics companies have raised quotes 10 to 15 percent due to rising oil prices.

Raw material costs are expected to follow the upward trend of oil rates. Abaca is currently sold at 60 to 120 pesos or $1.11 to $2.22, per kilogram, nearly double compared with rates in 2017. Other materials are expected to become 5 to 10 percent more expensive as a result of higher logistics costs.

The cost of wrought iron, which is typically imported, is expected to increase by up to 15 percent due primarily to the depreciation of the peso against the greenback.

Most suppliers choose to sacrifice margins to keep price adjustments to a minimum when production costs go up. Many companies, however, operate on single-digit margins, limiting the funds that can be invested into R&D and promotion.

Industry composition

There are no official statistics on the number of home and garden decor exporters in the Philippines. Membership in four organizations associated with the home decor industry – HAPI, the Philippine Chamber of Handicraft Exporters & Artisans Inc. (PCHEAI), Association of Negros Producers (ANP) and Cebu Gift, Toys and Housewares (Cebu-GTH) – indicate there are nearly 300 companies in the sector.

The Philippines’ home and garden decor industry consists mostly of micro, small and medium-sized enterprises (MSMEs); many of which are family businesses or sole proprietorships.

Microenterprises employ a maximum of nine people and hold assets of up to 3 million pesos or approximately $56,000. Small businesses have 10 to 99 workers and manage assets worth between 3 million and 15 million pesos (about $278,000). Midsize companies have up to 199 employees and assets reaching 100 million pesos or roughly $1.9 million in value.

Supplier locations map

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

Philippines Sourcing: Home & garden decor 2018 Supplier Locations Map

Philippines Sourcing: Home & garden decor 2018 Product features

Philippines Sourcing: Home & garden decor Product features

Philippines Sourcing: Home & garden decor 2018

• Home accents • Lamps & lighting • Storage solutions • Planters & other garden accessories

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

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

Materials & designsManufacturing & QCPricing
  • Abaca is the most popular material across different product categories.

  • Mixed-media products are widely available.

  • Suppliers often adopt traditional motifs and tropical elements in their designs.
  • Production is generally labor-intensive.

  • Subcontracting of certain processes is a common practice in the industry.

  • Makers adhere to internationally recognized standards
  • Prices depend mainly by the cost of inputs and the intricacy of the design.

  • Packaging and logistics costs also affect quotes.

  • Products with detailed carvings or intricate weaving are typically priced higher.

Materials & designs

Suppliers use a wide range of materials to create home and garden decor.

Among the plant-based fibers, abaca is the most popular. It grows on all three major islands of the Philippines, with Bicol region in the island of Luzon being the primary source.

Another non-timber material typically found in Philippine home and garden decor is rattan. In 2017, the major producers of split and unsplit variants were the provinces of Quezon, Cagayan and Palawan in Luzon, and Agusan del Sur and Lanao del Norte in Mindanao, according to statistics posted on the website of the Forest Management Bureau of the Department of Environment and Natural Resources (DENR).

Fibers from the buri palm are also widely used. Buntal fiber, in particular, is procured mostly from Palawan, Quezon and Batangas provinces.

For timber products, makers often adopt gmelina, acacia wood and mahogany, which can be found across the Philippines. Gmelina comes mainly from Eastern Visayas and the Caraga Administrative Region. Acacia wood is primarily from the Ilocos Region, while mahogany is usually from the Visayas.

Wrought iron is usually imported from China. Consequently, it is the one most affected by the weakening of the Philippine peso. If the peso continues to depreciate, sourcing the raw material overseas could increase production costs by as much as 15 percent, according to suppliers.

In terms of design, suppliers often adopt traditional or ethnic motifs and incorporate tropical elements that give the products a unique Filipino aesthetic. Handwoven fabrics such as the hinabol, an abaca-based cloth woven by the women of the Higaonon community in Mindanao, are being transformed into lampshades and storage solutions. Wall art, vases and pottery feature patterns or figures inspired by the culture of indigenous tribes.

Many use varying combinations of materials to achieve a distinct look and set their home and garden accents apart.

Common pairings include abaca or capiz shells with wire mesh or wrought iron sheet. Aside from adding a unique look to the product, production costs are lower compared with versions that adopt hardwood or rattan.

Home accents such as candle holders and picture frames are often made using a combination of laminated capiz shells and metal. For storage solutions, manufacturers opt for abaca, rattan, buri, sedge, bamboo and water hyacinth, supported with metal frame. Some of the most common products in this category are fruit and laundry baskets, toy chests, wastebaskets and magazine holders.

Planters and garden accessories are usually made from terra cotta, or cast or reconstituted stone. Makers take inspiration from indigenous motifs as well as Hellenistic architecture and other influences.

Among the latest hanging lamps, many were inspired by the sea and coastal living. The products have shades made of natural fiber or handmade paper.

Suppliers usually release 10 to 30 models for trade shows occurring April and October. They can also produce buyer-specified samples within 30 days. Customization can take longer, however, depending on the design. ODM orders account for the majority of production and exports in the Philippines.

Manufacturing & QC

Across the various categories, the production process is typically labor-intensive, using only simple machines and handheld tools.

For home and garden decor with shellcraft, companies follow a meticulous production process to properly handle the material. The shells are first soaked in water followed by a cleaning agent. They are then rinsed thoroughly and dried out before they are cut and placed on the inlay or frames of products.

Wicker furnishings require having the material woven according to buyer specifications. Models are often coated with paint or varnish not only for aesthetic purposes but also for protection against decay and insects damage.

Manufacturers use gouges and knives to create designs for wooden crafts. Similar to wicker furnishings, wooden products are coated with paint and varnish to help preserve them from damage over time.

3D computer software is often employed to create molds for reconstituted stone garden ornaments. Makers use a combination of crushed natural gravel with granite, sandstone and a special binder to produce casts and dry them using steam curing. The resulting models undergo extensive quality checks before they are packed.

Subcontracting part of the production process is a common practice among suppliers. Several suppliers subcontract cutting of recycled paper for lampshades. Weaving of the wicker for storage solutions is also among the steps done by a third party.

The QC process typically involves checking that raw materials and products are in line with importers’ requirements, often through visual checks. Products are submitted to independent agencies for chemical and electrical tests on buyer’s request. Makers follow internationally recognized standards such as the General Product Safety Directive of the EU and the Convention on International Trade in Endangered Species (CITES).

The entire manufacturing process typically takes between 30 and 60 days, depending on the order volume and complexity of the model.

Pricing

To avoid price competition with neighboring countries, many Philippine suppliers choose to market their home and garden décor to midrange or high-end markets.

The cost of the inputs and intricacy of the design are the main price determinants.

Products that use abaca or rattan, for instance, are generally priced higher compared with similar items that adopt metal or paper. Models made of metal, plywood, and fiberboard are less expensive than those made of mahogany and other types of hardwood.

Items with detailed carvings or intricate weaving tend to be more expensive since the tasks are labor-intensive.

Other considerations in pricing are packaging and logistics costs.

Price guide

Price guide: Wall art
$13 to $22
MDF frame; cast stone figure; 44.5x49.5x73.6 to 50.8x40.0x47.0cm
$23 to $32
Mahogany base; metal and woven jute leaf design; 24.1x11.4x81.3cm

Click image to enlarge.

Philippines Sourcing: Home & garden decor 2018 Product features of a candle holder
Price guide: Lamps
$25 to $45
4-arm ceiling lamp; wrought iron sheet, round tube and flatbar; includes chain and electric components; 66cm diameter; 68.6cm height
Hanging lamp; handmade paper shade in jellyfish design; rattan frame; 50.6x59.6x30.5cm; includes electrical components
$60 to $120
Pendant lamp; abaca macramé shade in gold coral, seashell or wild wasp design; includes electrical components; 32x32x30, 90x58x35 and 59x59x75cm, respectively
Philippines Sourcing: Home & garden decor 2018 Product features Typical Features of a hanging lamp
Price guide: Basketware
$7 to $10
Wire laundry hamper; woven abaca lining; 25.4x25.4x25.4cm
$16 to $20
Wicker storage basket; handwoven abaca with wire frame; natural finish; 38.1x32.4cm
Philippines Sourcing: Home & garden decor 2018 Product features Typical Component of a storage basket
Price guide: Decorative planters
$3 to $8
Cylindrical or conical planter with flat base; carbonized terra-cotta; hand-stamped engraving; 8.9 to 12.7cm diameter; 10.2 to 11.4cm height
$9 to $12
Deep dish or conical planter with flat base; carbonized terra-cotta; hand-stamped engraving; 16.5 to 20.3cm diameter; 8.9 to 25.4cm height
Philippines Sourcing: Home & garden decor 2018 Product features Typical Component of a garden planter

Philippines Sourcing: Home & garden decor 2018 Supplier survey

Philippines Sourcing: Home & garden decor Supplier survey

Philippines Sourcing: Home & garden decor 2018

• Home accents • Lamps & lighting • Storage solutions • Planters & other garden accessories

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

Export pricesExport markets & salesProduct trendsChallenges
  • More than half of the interviewed companies plan to keep prices at current levels.

  • Makers that intend to raise quotes will cap adjustments at 10 percent.

  • Suppliers are increasing prices to keep up with the upward trend in raw material costs and overhead expenses.
  • More than 80 percent of surveyed suppliers see export sales increasing in the next 12 months.

  • Most companies will target the US.

  • Europe will also remain a key destination.
  • Environment-friendly home and garden decor options will continue to increase.

  • More mixed-media designs are also expected.

  • Several suppliers will release multifunction or versatile pieces to suit small living spaces.
  • Having limited working capital is a major constraint to growth.

  • The effects of the TRAIN law on production costs is also a concern.

  • The demand-supply gap in raw materials is pushing up costs. /li>

Export prices

Interviewed companies say they are caught between having to increase prices to cover rising production costs and keeping quotes at current levels to maintain business relations with buyers.

Among the featured companies, 55 percent intend to maintain prices to match price points of counterparts in China, Indonesia, India, Thailand and Vietnam.

Makers planning to raise quotes will keep adjustments within 10 percent. The increases are expected to help suppliers maintain profitability amid rising raw material costs and overhead expenses such as electricity, logistics and rental fees. For some companies, the funds will go into product development, and investment in machinery.

Philippines Sourcing: Home & garden decor 2018 Supplier survey export prices

Export markets & sales

Survey results indicate that most Philippine suppliers have a positive outlook on overseas sales. Of the respondents, more than 80 percent see export sales going up in the next 12 months, in part due to the ongoing trade tension between China and the US.

In terms of target markets, most companies say they will continue focusing on established export markets in the coming year. North America and Europe will therefore remain key destinations, in large part because of the growing demand for environment-friendly products in these markets.

Among the surveyed suppliers, 46 percent plan to expand their presence in North America. Many are specifically targeting US markets such as Hawaii, California and Florida because most of their designs draw inspiration from the sea and marine life.

Thirty-six percent intend to boost exports to the EU and non-EU markets despite concerns over Brexit and the looming threat of another economic slowdown.

Philippines Sourcing: Home & garden decor 2018 Supplier survey Export Forecast

The remaining suppliers plan to foster stronger relationships with buyers in the Asia-Pacific, particularly in Japan, Hong Kong, and South Korea, while maintaining their presence in Middle East markets such as Saudi Arabia and the UAE.

Environment-friendly home and garden décor options will continue to increase. Of the featured companies, 28 percent will use inputs from abaca, buri and other renewable resources. Nine percent intend to recycle or upcycle materials such as used paper twine and glass bottles.

More mixed-media designs are also anticipated in coming months.

For 27 percent of the interviewed companies, product development will focus on multifunction or versatile pieces, geared toward consumers with small living spaces. Among such designs are candle holders that can also be used as vases.

Other suppliers are directing research and development toward modern and minimalist designs for Japan and South Korea.

Challenges

Suppliers face a number of challenges. For 37 percent of the survey respondents, topping the list of factors hindering growth is having limited working capital. Companies need funds to finance their day-to-day operations since their working capital cycle can be as long as three months.

Having limited working capital prevents small and medium-sized enterprises from accepting bigger order volumes, unless the buyer agrees to a 50 percent down payment. Investment on market research and product development is also constrained.

The implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Act or Republic Act No. 10963 also affects business growth, according to 36 percent of the featured companies. The policy has raised production costs by as much as 10 to 15 percent, reducing suppliers’ profit margins.

Philippines Sourcing: Home & garden decor 2018 Supplier survey Key findings

Several companies are concerned about the supply of labor and raw material, and the effect on cost. The number of artisans well-versed in pottery and other traditional crafts is limited. The supply of abaca and other plant-based fibers, meanwhile, fluctuate depending on the weather.

Philippines Sourcing: Home & garden decor 2018 PDF download

Philippines Sourcing: Home & garden decor 2018

Philippines Sourcing: Home & garden decor 2018

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Supplier & products

Sections


  • Products
  • Philippine home & garden decor suppliers

Industry overview

Sections


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

Charts


  • Exports of home & garden decor
  • Supplier locations map

Product features

Sections


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

Supplier survey

Sections


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

Charts


  • Export prices
  • Export forecasts
  • Key findings

Philippines Sourcing: Home & garden decor 2018 Supplier list

Philippine home & garden decor suppliers

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

Suppliers featured on
Supplier status
Home accentsStorage solutionsLamps & lightingGarden accessories
Aerostone Inc.Active
Beyond Home DecorActive
Cagayan de Oro Handmade Paper CraftsActive
Designcraft Inc.Active
Enpekei International Inc.Active
Island RKOC Home Décor and AccessoriesActive
Lampara Trends Inc.Active
PatikaActive
Red Slab PotteryActive
That One Piece EnterpriseActive
Weave ManilaListing