By Product Categories in Home Furniture: There has been a rapid growth in real estate sector due to the demand for residential property in the country. Bedroom furniture was the highest selling product category in home furniture segment as of 2016, followed by living room furniture, kitchen furniture, dining room furniture and all other home furniture.
By Organized and Unorganized Sector: Unorganized sector dominated the market, in terms of number of manufacturers, and about 3,720 unorganized furniture companies operated in the country in 2016. Abundance of raw materials and availability of cheap, skilled labor has led to the growth of the Philippines furniture market. Lower cost of production by using the locally available resources assists them in selling products at a lower price than the one sold by established companies with multiple retail outlets in Philippines.
Snapshot on Philippines Online Furniture Market
Sales for furniture in Philippines have been dominated by offline retail outlets, franchisee outlets, showrooms and exclusive stores of manufacturers and major players operating in the space. Despite having approximately 44.5 million internet users in the country during 2016, online sales of furniture contributed poorly to the overall market revenues during the same year. Online players faced stiff competition from brick and mortar stores all across the country, which offered a wide variety of products at competitive prices. All companies selling via online channel had at least one offline store and are yet to register significant traffic and product orders through online in the country. The major players which have dominated the revenues of online furniture sales in 2016 are Lorenz Furniture, Urban Concepts, Homeplus, Blims Furniture, Philux, Murillo, Furniture Republic, Bonny Furniture and others.
Competition
The furniture industry in Philippines is highly competitive owing to large number of companies, both domestic and international, offering furniture products at competitive prices with limited variations in design and aesthetics. Furniture products of all price segments, including cheap, mid-segment and luxurious / premium ones are designed by several manufacturers to cater to customers of all classes. Generally, manufacturers and retailers focus on targeting a particular customer segment based on purchasing power of consumers. Despite the presence of international brands, the unorganized players largely cater to the furniture demands of the country. They offer cheaper and customized solutions for furniture needs across the country.
The unorganized sector poses a stiff competition to organized players existing or entering the space due to abundance of raw material and availability of reasonably priced skilled labor. Organized players have been successful in marketing modern furniture products largely in the metro cities of the country.