The Status of Woven Furniture Designs, Inc.

Post-Pandemic

I. Introduction

Woven Furniture Designs is a manufacturer of outdoor furniture.

Located in the northern part of Cebu, Caimito St., Purok Narra, Simborio,

Tayud, Liloan, Cebu. An exporter company for more than ten years now,

Woven Furniture Designs teamed up with a UK-based Garden Furniture

Wholesaler, Alexander Rose Ltd enabling them to develop their designs and

directly manage the quality of performance of their products. The company is

renowned for its tradition in top-quality weaving and furniture making. They

pride themselves in bringing only the best products to their clients by

employing experienced in-house designers and personnel dedicated to

manufacturing and maintaining products of good quality and suitable

standards. The products are a perfect mix of form and function, catering to

clients from different countries. The company values its clients and their

needs; thus, they offer only the most competitive prices and provide prompt

and quality service with regard to delivery and technical support.

This study aims to determine the current status of the production and

marketing aspect of Woven Furniture Designs Inc. three years after pandemic

and propose recommendations for the company’s ability to satisfy the

customer’s needs and wants.

 The study sought to answer the following questions:

1. What is the current status of Woven Furniture Designs Inc. in terms of the

following:

a. Marketing

b. Production

2. What recommendations can be proposed to enhance the efficiency and

effectiveness of Woven Furniture Design Inc. in these aspects?

II. Company Overview

Woven Furniture Designs Inc is a Philippines-based furniture company

founded in July 2007. With office space in Tipolo, Mandaue City, and only six

office staff and ten in-house production workers to start their first year of

operation, Woven Furniture paved its way up to make a name for itself in the

furniture industry. The company earned positive feedback from its customers,

and because of that, the company decided to take a giant leap to cater to

more customers. In 2011, they moved to a better place in Tayud, Liloan,

Cebu. With a total lot area of 5821.86 sq.m, the company has a production

area, a warehouse, a showroom, and a much bigger office space with a

conference room. Employing at least two hundred personnel, Woven

Furniture is staying true to its vision to become one of the leading outdoor
furniture manufacturers in the international market offering innovative and

superior quality products.

Figure 1. Woven Furniture Products

The figure shows the products of Woven Furniture Designs, Inc. Some

of products include bar stools, dining chairs, 4-seater tables, lounge chairs,

sun beds, day beds and many more. The product is made mainly from

synthetic fibers and aluminum tubes, which makes it more durable and

withstands different weather conditions.

 The company offers customization as per customers' needs and wants

and a one-year service warranty for all of its products (terms and conditions

apply).

III. Industry Analysis

According to the Department of Trade and Industry (DTI) roadmap, the

furniture business is one of the most labor-intensive and sustainable

industries in the Philippines. Filipino creativity and innovation are the

cornerstones of the long-standing success of the Philippine furniture industry.

Considered one of the best in the world in terms of design and quality. We

also have the agility and flexibility to make furniture based on the buyer's

needs and preferences. The industry is also capable of mass production, but

many companies specialize in creating custom furniture with higher value and

durability.  

In recent years, outdoor furniture has had a high presence in the

exterior landscape. Made from different variations of materials such as wood,

wicker, and metal, stylistically we will find antique pieces scattered among

contemporary designs, such as exterior corner-seat sofas. Since its creation,

outdoor furniture has developed in line with changing garden landscapes,

extensive artistic influences, and the demands of outdoor and social activities.
 According to a report by Expert Market, the expanding infrastructure

and hospitality sectors are the primary drivers of the global furniture market,

which is anticipated to continue growing over the forecast period of 2023–

2028 at a compound annual growth rate (CAGR) of 5.2%. Additional market-

driving elements include evolving consumer preferences in emerging

economies, expansion of organized retail, and rising residential and

commercial construction (1).

Figure 2. Market Share by Type

The figure shows the projected compound annual growth rate of the

global furniture market. Metal is the highest at 2.32%, wood is 1.50%, plastic

is 1.07%, other type is 0.23%, and glass is the lowest at 0.08%.

 The sudden COVID-19 pandemic, which struck during the first days of

2020, has drastically altered the furniture industry's landscape. The supply

chain disruptions and the temporary suspension of international trade have

had a particularly negative impact on the nations that rely most heavily on

imports for their furniture needs. COVID-19 also emphasized the importance

of reducing reliance on imports, along with improving automation and

digitalization in the industry. The pandemic forced approximately 58% of the

world's population to switch to the stay-at-home protocol for a longer period of

time, which motivated customers to optimize their homes and furniture with
(2)
the increase in the time they spend at home .

The market in developing countries is growing rapidly thanks to a huge

increase in the number of e-commerce sites offering various furniture designs

and models. The growing demand for ready-to-assemble (RTA) and do-it-

yourself (DIY) furniture products, particularly in the home and office furniture

segments, is also helping the market grow further, thus helping the market

record more sales across the globe. Key players have developed a variety of

offers on their products in response to the significant demand from the

younger generation. The expansion of the market is anticipated to be fueled

by the expanding residential and commercial construction around the world

(2)
as well as the rising number of strategic partnerships and alliances .
IV. Operations Analysis

The outdoor furniture manufacturing process at Woven Furniture

Designs includes product design, cutting, framing, powder coating, weaving,

penciling, upholstery, final quality check, and packaging. Product design is the

process by which new product development begins. Machining is the process

of cutting aluminum according to the desired design. Framing is the process

of assembling cut pieces into a frame. Powder coating is the process of

coloring the frame with various chemicals. Weaving is the process of weaving

synthetic fibers into a frame. Penciling is the process of applying logos and

gliders. Upholstering is the process by which all cushions and foams are

made. Packing is the process of packing a product and preparing it for

shipment. At the production stage, the company divides it into framing,

powder coating, and upholstery. After the aluminum profile has been cut and

welded, the finished frame is transferred to the powder coating area, where it

is powder coated and placed in an oven at a specific temperature to ensure

the color strain to the frame. After powder coating, the frame is sent to

weaving, where the weaver uses a tucker gun to ensure that the synthetic

fibers will hold to the weave. Quality control in this field is rigorous to ensure

all standards are met before shipment. 

The supply chain of the company is similar to that of other

manufacturers. After receiving a sales order, we check the inventory and

 confirm the materials required for production (production lead time is 60-90

days after deposit). Once materials are identified, a Material Request Form

(MRF) will be issued to purchase the required materials. The delivery time for

local materials is usually two weeks, and the delivery time for imported

materials is four to eight weeks after order confirmation. For this reason, lead

times are essential to ensure that the material we request arrives before the

shipping date. 

The pursuit of innovation and improvement was the ultimate goal of

Woven Furniture to keep up with the changing demands of the industry. In

fact, they started it in 2019 when the company still had so many choices.

What they innovated was the packaging label. Convert simple, plain package

labels to barcode labels. They have many plans for innovation but have been

halted by the pandemic. Despite many hurdles, the company remains open to

innovation. They are constantly looking for factors that will help them survive

and remain relevant in the current business environment characterized by

uncertainty and complexity.

V. SWOT Analysis

A SWOT analysis helps assess where a company stands in a

competitive market and what steps the company needs to take to improve
 further in order to be successful in that area. The SWOT analysis of Woven

Furniture Designs are as follows:

Strength Weaknesses
1. The company makes efficient use of raw 1. No one in the office is responsible for after-
material waste and turns it into profit. sales service.
2. The company has a strong base of
2. Sluggish marketing strategy - Too much
reliable raw material suppliers to overcome
reliance on partners for customer orders.
supply chain bottlenecks.
3. The company's production flexibility and
3. Manual operation There is no system used
short processing time lead to customer
for the entire operation.
satisfaction.
4. The company is open to innovation
Opportunities Threats
1. Decresing local sales numbers due to poor
marketing can also reduce a company's 1. Changes in consumer purchasing behavior
sales, so in order to increase profitability or through online channels may pose a threat to
attract potential buyers, digital marketing existing physical infrastructure-based supply
strategies can be used to market today's chain.
products.
2. As traditional methods of selling products
may become obsolete, expanding a 2. Not all consumers are willing to purchase
company's market reach by selling products the product. Because it is classified as a
through online channels may be a good luxury rather than a basic need.
option.

Figure 3. WFDI SWOT Analysis

The figure shows the SWOT Analysis of Woven Furniture. The above

SWOT analysis can be very helpful for a company to assess the likelihood of

an event occurring in the near future and how strong the impact will be on the

company's performance.
VI. Conclusion and Recommendation

Woven Furniture is known to have partnered with Alexander Rose Ltd.

since 2007. The company's goal is to provide high-quality outdoor furniture

that not only withstands changing weather conditions but also offers a modern

alternative to traditional furniture products. Based on the data collected, the

company's manufacturing operations were on track before the pandemic.

They were able to ship an average of eight (8) 1x40 containers of finished

goods each month. But when the pandemic hit, all opportunities were

shelved. The company was forced to lay off some employees as orders were

low and the operating costs incurred outweighed the profits. Additionally, the

company's production capacity has been severely impacted. Restrictions, port

congestion, and the threat of a global recession are some of the reasons the

international furniture business has slowed down. Moreover, the internet and

e-commerce have drastically changed the way people buy everything they

need. More and more people are becoming aware of the wide variety of

products that can be successfully purchased online. And it only gets stronger.

It also poses a significant challenge for companies that rely heavily on sales

in the traditional way.

Currently, as part of company’s strategy to increase orders, they

participate in various exhibitions to attract potential customers to purchase

their products. Although the domestic and international markets are showing a
gradual recovery trend but, the number of orders is still insufficient, and it is

difficult for employees who have been temporarily laid off to return to work.

Figure 4. Company’s Average Monthly Sales

The figure shows the comparison of company's average monthly sales

before and after the pandemic. The 52% drop in sales shows how the

pandemic is affecting the company.

To further improve the company's ability to satisfy its customers, the

following recommendations are made:

Marketing Aspect:
  The company must base its marketing strategy on current

consumer behavior.

 The company should consider online sales as a distribution

channel for its products.

Production Aspect:

 There should be someone in charge of after-sales service.

 Invest in an ERP system used for the company's manufacturing

operations.

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