HOME AND GARDEN IN THE

PHILIPPINES
Euromonitor International
September 2015

HOME AND GARDEN IN THE PHILIPPINES

LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Home and Garden Continues To Grow in 2014 ........................................................................ 1
Port Congestion Negatively Impacts Growth of Home and Garden .......................................... 1
Mandaue Foam Leads the Home and Garden Market in the Philippines.................................. 1
Store-based Retailing Still Represents the Majority of Sales .................................................... 1
An Optimistic Outlook for Home and Garden ............................................................................ 1
Key Trends and Developments .................................................................................................... 1
Middle-income Filipinos Become More Sophisticated Consumers ........................................... 1
Store-based Retailing Continues To Represent the Majority of Value Sales ............................ 2
Value Sales of Incandescent Lamps Continue To Decline ....................................................... 2
Asean Integration To Bring About Changes in the Business Environment ............................... 3
Market Data .................................................................................................................................. 3
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7

Sales of Home and Garden by Category: Value 2009-2014 ........................ 3

Sales of Home and Garden by Category: % Value Growth 2009-2014 ........ 4
NBO Company Shares of Home and Garden: % Value 2010-2014 ............. 4
LBN Brand Shares of Home and Garden: % Value 2011-2014 .................... 5
Distribution of Home and Garden by Format: % Value 2009-2014 .............. 6
Forecast Sales of Home and Garden by Category: Value 2014-2019.......... 6
Forecast Sales of Home and Garden by Category: % Value Growth
2014-2019 .................................................................................................... 7

Sources ........................................................................................................................................ 7
Summary 1

Research Sources ........................................................................................ 7

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HOME AND GARDEN IN THE PHILIPPINES

HOME AND GARDEN IN THE

PHILIPPINES
EXECUTIVE SUMMARY
Home and Garden Continues To Grow in 2014
The home and garden market grew slightly faster in 2014 than in 2013, even though more
consumers chose to buy less expensive brands as long as the product was able to perform the
same function. The opposite was also true, with some consumers, particularly middle-income
groups, beginning to consider other factors besides price. Higher disposable incomes enabled
them to invest in higher-quality products in 2014.

Port Congestion Negatively Impacts Growth of Home and Garden

A ban on trucks implemented by the City of Manila limited the movement of cargo going to
and from the Port of Manila in 2014. With many imports for home and garden products having to
go through the countrys port and trucking system, this had a major negative effect on growth in
home and garden.

Mandaue Foam Leads the Home and Garden Market in the Philippines
Mandaue Foam Corp was the leading player in home and garden in 2014, due to its wide
product portfolio which included mattresses and bedroom furniture, as well as sitting furniture.
The companys expansion into more geographical areas across the country also contributed to
its growth. In 2014 it continued to expand, opening its fifth showroom in Shaw Boulevard,
Mandaluyong City.

Store-based Retailing Still Represents the Majority of Sales

Store-based retailing continued to represent the bulk of value sales in home and garden in
2014, with consumers still preferring to purchase products such as bedroom furniture in physical
stores. However, internet retailing gained acceptance in homewares, for example, as these
products are more compact in size and can easily be purchased online.

An Optimistic Outlook for Home and Garden

The home and garden market has a positive outlook for the forecast period. Growth will
continue to be driven by categories such as light-emitting diode lamps (LED) and compact
fluorescent lamps (CFL), which grew rapidly over the review period. Homewares is also
expected to drive value growth as more middle-income Filipinos purchase higher-quality
products.

KEY TRENDS AND DEVELOPMENTS

Middle-income Filipinos Become More Sophisticated Consumers
The growth of the economy in recent years led to the rise of a more sophisticated middle
class. One of the reasons for this was the rise of disposable incomes due to the availability of
jobs in the Business Process Outsourcing market and in hotel and restaurant management. In

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HOME AND GARDEN IN THE PHILIPPINES

homewares, growth was also positively impacted by the growing number of restaurants in the
country. Whereas price was usually the main consideration when making a purchase, quality
and design began to play a greater role in the mind of middle-income Filipinos.
The availability of more premium options also increased. International brands, such as Pottery
Barn, Crate and Barrel and H&M Home, opened stores in the country in 2014. Manufacturers
also launched premium versions of their products. In November 2013, Multiflex RNC launched a
premium line of mattresses under its Kensington Collection.
Outlook
This trend is expected to continue over the forecast period. As middle-income Filipinos begin
to consider other factors besides price, value sales of premium products are expected to grow.
In gardening, products such as organic potting mixes are becoming popular as consumers
become environmentally conscious. In homewares, more Filipinos are expected to invest in
quality cookware. Glass and ceramic are some of the materials with expected growth as
consumers become more aware of these products health benefits.
Manufacturers are also expected to offer more design and colour options to suit Filipinos
evolving tastes. In fact, this was already beginning to happen at the end of the review period.
Decorative paint able to simulate wallpaper through textures and hand-painted effects was
among Nippon Paint Philippines latest products.

Store-based Retailing Continues To Represent the Majority of Value

Sales
When consumers purchased big-ticket items such as indoor furniture, it was common to go to
a physical store to look at the products. For items such as seating furniture, consumers
continued to prefer to inspect the size of the product and get a feel for its material. Physical
stores also offered a wide selection of products and unparalleled customer service. Because of
this, consumers preferred to purchase home and garden products through store-based retailers.
Internet retailing is only present in homewares and home improvement. Products such as
stove top cookware and hand tools are more compact in size and can easily be purchased
online. On the other hand, home furnishing products tend to be bulky and are better purchased
through other channels.
Outlook
While store-based retailers is expected to continue to represent the majority of value sales in
home and garden, internet retailing is set to grow rapidly as online retailers improve the online
shopping experience. Low shipping costs, as well as faster delivery times, are set to make
online shopping more attractive to consumers. The availability of a wider range of products will
also encourage more consumers to shop online.
The countrys low credit card penetration rate and Filipinos apprehension of transacting
online prevented growth in the online channel. Alternative payment options, as well as efforts to
improve the security of online transactions, will positively impact the growth of internet retailing.

Value Sales of Incandescent Lamps Continue To Decline

The Philippines had no law prohibiting the sale of incandescent light bulbs at the end of the
review period. Although House Bill No. 3132 prohibiting the production of incandescent lamps
was filed in 2013, it was still waiting to be heard in the Philippines House of Representatives at
the end of the review period. However, despite the absence of a law prohibiting its sale,
incandescent lamps recorded a value decline of 4% in 2014.

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HOME AND GARDEN IN THE PHILIPPINES

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Value sales of incandescent lamps continued to decline as more people saw the benefits of
switching to light-emitting diode lamps (LED) and compact fluorescent lamps (CFL) as prices of
LEDs and CFLs continued to fall with more players entering the categories. Companies
marketing efforts also increased consumer awareness of the cost savings and environmental
benefits associated with switching.
Outlook
Value sales of incandescent lamps are expected to continue to decline. However,
incandescent lamps will still be present in the country by the end of the forecast period. The
successful passage of the law prohibiting its production and sale within the forecast period will
accelerate its decline.
On the other hand, value sales of LEDs and CFLs are set to continue to grow rapidly over the
forecast period. Prices of LEDs and CFLs will likely continue to decline as more players enter
the categories. Companies will also continue to increase the publics awareness of the benefits
of switching to LEDs and CFLs. Marketing promotions will be in the form of discounts, free items
and raffle draws.

Asean Integration To Bring About Changes in the Business Environment

The ASEAN Integration envisions a single market which will strengthen cooperation between
member states. It was signed by the ASEAN leaders on November 2007 and was initially
scheduled to commence by 2015. The document, called the ASEAN Community Blueprint,
contains the stipulations that signatory nations have agreed to.
The ASEAN Integration aims to transform the region into one characterised by free movement
of goods, services, investment, skilled labour and freer flows of capital. The stipulations in the
blueprint include zero import duties for ASEAN products and the ability of qualified citizens of
member states to work in other ASEAN countries without a permit.
Outlook
The ASEAN Integration will inevitably change how business is conducted in the Philippines.
How the Integration will exactly affect business is still unknown but proposed lower barriers to
entry and zero tariffs for other companies in the ASEAN region may signal more competition in
the market.
Prices of goods could possibly go down with the entry of more international brands to the
country. Increased competition could also revitalise the local market and help promote
innovation. However, the opposite could also happen, with domestic brands losing out to new
entrants if local players are not sufficiently protected and/or their products are not able to
withstand increased competition. Local businesses are encouraged to make preparations to
anticipate the possible effects of the Integration.

MARKET DATA
Table 1

Sales of Home and Garden by Category: Value 2009-2014

PHP bn

Gardening
Home Furnishings
Home Improvement
Homewares

Euromonitor International

2009

2010

2011

2012

2013

2014

0.5
143.4
26.1
8.8

0.5
146.7
28.3
9.2

0.5
150.5
29.1
9.8

0.5
154.6
30.9
10.3

0.5
158.2
32.7
10.9

0.6
162.5
34.8
11.6

HOME AND GARDEN IN THE PHILIPPINES

Home and Garden

Source:

Passport

178.7

184.6

189.8

196.3

202.3

209.4

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2

Sales of Home and Garden by Category: % Value Growth 2009-2014

% current value growth

Gardening
Home Furnishings
Home Improvement
Homewares
Home and Garden
Source:

2013/14

2009-14 CAGR

2009/14 Total

4.5
2.7
6.3
6.6
3.5

4.0
2.5
5.9
5.7
3.2

21.5
13.3
33.3
32.0
17.2

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3

NBO Company Shares of Home and Garden: % Value 2010-2014

% retail value rsp

Company
Mandaue Foam Inc
SM Retail Inc
San-Yang Intertrade Corp
Blims Furniture Inc
Pacific Paint
Philippines Inc
SB Furniture Industry
Co Ltd
Canadian Mfg Inc
Town & Country
Philippines Inc
Davies Paints
Philippines Inc
Yatai International Corp
Asian Coatings
Philippines Inc
Akari Lighting &
Technology Corp
Metro Kitchenware Inc
Sawasdee Marketing Corp
Philips Lighting
Philippines Inc
Treasure Island
Industrial Corp
Tupperware Brands
Philippines Inc
General Electric
Philippines Inc
Firefly Electric &
Lighting Co
Nipponware Mfg Corp
Atlas Marketing Corp
Nippon Paint Phils Inc
Rustan Marketing Corp
Arc International Ltd Co

Euromonitor International

2010

2011

2012

2013

2014

17.2
14.6
9.6
12.6
3.6

17.4
14.5
12.0
10.8
3.7

17.4
14.4
12.5
10.1
3.9

17.4
14.3
12.4
10.0
4.2

17.4
13.8
12.0
9.9
4.4

4.2

3.0

2.7

2.4

2.0

1.7
1.3

1.6
1.1

1.7
1.1

1.6
1.0

1.6
1.0

0.7

0.6

0.7

0.8

0.9

0.7
0.5

0.7
0.5

0.8
0.5

0.8
0.6

0.8
0.6

0.6

0.6

0.6

0.6

0.6

0.5
0.4
0.5

0.5
0.5
0.5

0.6
0.5
0.5

0.6
0.5
0.5

0.6
0.5
0.5

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.5

0.5

0.5

0.4

0.4

0.3

0.3

0.3

0.3

0.3

0.3
0.2
0.2
0.2
0.1

0.3
0.2
0.3
0.2
0.1

0.3
0.3
0.3
0.2
0.2

0.3
0.3
0.2
0.2
0.2

0.3
0.3
0.2
0.2
0.2

HOME AND GARDEN IN THE PHILIPPINES

Black & Decker Asia

Pacific Pte Ltd
Noble Houseware
Marketing Corp
Osram Philippines Ltd
Corp
Robert Bosch Inc,
Philippines
American Standard
Philippines Ltd Co
HCG Philippines Inc
Others
Total
Source:

Passport

0.1

0.1

0.2

0.2

0.2

0.1

0.1

0.1

0.1

0.2

0.2

0.2

0.2

0.2

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1
27.7
100.0

0.1
28.4
100.0

0.1
28.5
100.0

0.1
28.9
100.0

0.1
29.8
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4

LBN Brand Shares of Home and Garden: % Value 2011-2014

% retail value rsp

Brand
Mandaue Foam
San-Yang
Blims
Home World
Boysen
SB
Ultima
Canadian
Akemi
Casamia
Town & Country
Davies
Omni
Welcoat
Akari
Philips
Island Paints
Tupperware
Lock & Lock
GE
Firefly
Nipponware
Sunnex
Home Basics
Nippon Paint
Tefal
Luminarc

Euromonitor International

Company

2011

2012

2013

2014

Mandaue Foam Inc

San-Yang Intertrade Corp
Blims Furniture Inc
SM Retail Inc
Pacific Paint
Philippines Inc
SB Furniture Industry
Co Ltd
SM Retail Inc
Canadian Mfg Inc
SM Retail Inc
SM Retail Inc
Town & Country
Philippines Inc
Davies Paints
Philippines Inc
Yatai International Corp
Asian Coatings
Philippines Inc
Akari Lighting &
Technology Corp
Philips Lighting
Philippines Inc
Treasure Island
Industrial Corp
Tupperware Brands
Philippines Inc
Sawasdee Marketing Corp
General Electric
Philippines Inc
Firefly Electric &
Lighting Co
Nipponware Mfg Corp
Metro Kitchenware Inc
SM Retail Inc
Nippon Paint Phils Inc
Rustan Marketing Corp
Arc International Ltd Co

17.4
12.0
10.8
9.9
3.7

17.4
12.5
10.1
9.7
3.9

17.4
12.4
10.0
9.8
4.2

17.4
12.0
9.9
9.4
4.4

3.0

2.7

2.4

2.0

2.0
1.6
1.3
1.1
1.1

2.0
1.7
1.3
1.1
1.1

1.9
1.6
1.3
1.1
1.0

1.9
1.6
1.3
1.0
1.0

0.6

0.7

0.8

0.9

0.7
0.5

0.8
0.5

0.8
0.6

0.8
0.6

0.6

0.6

0.6

0.6

0.5

0.5

0.5

0.5

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.3
0.5

0.4
0.5

0.4
0.4

0.4
0.4

0.3

0.3

0.3

0.3

0.3
0.2
0.2
0.3
0.2
0.1

0.3
0.2
0.2
0.3
0.2
0.2

0.3
0.2
0.2
0.2
0.2
0.2

0.3
0.2
0.2
0.2
0.2
0.2

HOME AND GARDEN IN THE PHILIPPINES

Metro
Neoflam

Passport

Metro Kitchenware Inc

Noble Houseware
Marketing Corp
Osram Philippines Ltd Corp

Osram
Others
Total

0.1
0.1

0.1
0.1

0.2
0.1

0.2
0.2

0.2
29.5
100.0

0.2
29.7
100.0

0.2
30.0
100.0

0.1
30.9
100.0

Source:

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5

Distribution of Home and Garden by Format: % Value 2009-2014

% retail value rsp

Store-Based Retailing
- Grocery Retailers
-- Supermarkets
-- Hypermarkets
-- Discounters
-- Other Grocery
Retailers
- Mixed Retailers
-- Department Stores
-- Mass Merchandisers
-- Variety Stores
-- Warehouse Clubs
- Non-Grocery Specialists
-- Home and Garden
Specialist Retailers
--- Home Improvement
and Gardening Stores
--- Homewares and Home
Furnishing Stores
-- Other Non-Grocery
Specialists
Non-Store Retailing
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:

Table 6

2009

2010

2011

2012

2013

2014

99.4
1.5
0.9
0.6
-

99.3
1.6
0.9
0.6
-

99.3
1.6
0.9
0.6
-

99.3
1.6
0.9
0.6
-

99.2
1.6
0.9
0.7
-

99.2
1.6
0.9
0.7
-

4.2
4.2
93.6
80.7

4.1
4.1
93.6
80.9

4.1
4.1
93.6
80.9

4.1
4.1
93.6
81.1

4.1
4.1
93.6
81.2

4.1
4.1
93.5
81.3

36.5

37.2

37.4

37.9

38.2

38.6

44.2

43.7

43.5

43.2

43.0

42.7

12.9

12.7

12.7

12.5

12.4

12.2

0.6
0.1
0.6
100.0

0.7
0.1
0.6
100.0

0.7
0.1
0.6
100.0

0.7
0.1
0.7
100.0

0.8
0.1
0.7
100.0

0.8
0.1
0.7
100.0

Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Forecast Sales of Home and Garden by Category: Value 2014-2019

PHP bn

Gardening
Home Furnishings
Home Improvement
Homewares
Home and Garden
Source:

2014

2015

2016

2017

2018

2019

0.6
162.5
34.8
11.6
209.4

0.6
162.6
34.7
11.9
209.8

0.6
163.1
34.8
12.2
210.7

0.6
164.0
35.0
12.5
212.1

0.6
165.2
35.2
12.9
213.9

0.6
166.8
35.4
13.3
216.1

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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HOME AND GARDEN IN THE PHILIPPINES

Table 7

Passport

Forecast Sales of Home and Garden by Category: % Value Growth 20142019

% constant value growth

2014/2015

2014-19 CAGR

2014/19 TOTAL

2.8
0.9
0.7
3.0
1.0

2.1
0.5
0.4
2.8
0.6

10.9
2.6
1.9
14.7
3.2

Gardening
Home Furnishings
Home Improvement
Homewares
Home and Garden
Source:

Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

SOURCES
Sources used during the research included the following:
Summary 1
Research Sources
Trade Associations

Aquaponics Philippines
Cebu Furniture Industries Association (CFIF)
Chamber of Furniture Industries of the
Philippines (CFIP)
Construction Industry Authority of the
Philippines (CIAP)
Hortica Filipina
Organic Producers Trade Association
Philippine Association of Paint Manufacturers
Philippine Hardware Merchants' Association
Inc
Philippine Horticultural Society
Philippine Wood Producers Association

Trade Press

Appetite
Condo Living
MyHome
Real Living Magazine

Source:

Euromonitor International

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