Cebu furniture company turns 'crisis into opportunity'
abs-cbnNEWS.com | 03/05/2009 4:32 PM
While other companies are laying off many of their workers due to the economic crisis, one Cebu furniture company says it is still managing to stay afloat by turning "crisis into opportunity."
Rather than succumb to massive layoffs in the dwindling market, Dedon Manufacturing Incorporated president Herve Lampert said the company would rather invest in its workers. “People are our asset. Our products are delicately woven by hands. Lying off people would mean that we lose competency, skill, and quality edge of an organization," he said.
“Crisis gives us a lot of pressure how to manage our cost. But it is more challenging for us to think how to develop our products, develop new collection, expand a little bit our product range to be ready after the crisis," he added.
Lampert said their strategy includes enhancing their workers' skills, teaching their workers how to maximize the materials available to them without sacrificing quality, a trait that he says is very important in the face of cautious buyers.
“Looking for workers who are artists is hard. We all know that crisis will pass, and if it will, we need our artists to produce more quality products,” added Lampert.
Lampert said that they are constantly meeting with their workers, telling them honestly about the company's status. By involving the workers, he said, he will gain their trust and support, saying that the employees even agreed to a freeze on their annual income increase until the crisis is over.
Lampert said, however, that although they are stable, the company was also affected by the global financial crisis, saying that their orders from abroad dropped 27% as of the last week of February.
“People are spending less, they are more cautious with their money. For the first time, the luxury market has been affected by the crisis,” he said.
Lampert said that their clients are mostly exclusive shops of luxury furniture. Some of their distinguished clientele include actor Brad Pitt, singer Beyonce Knowles, and Hollywood diva Cher. President Arroyo, reportedly also owns some of their furniture products.
Lampert said that as of the moment, the company is still able to operate fully because although client demand decreased, orders have not stopped coming in. He remained cautious, though, saying that in a global financial crisis, everyone loses security, including his company. He was optimistic, however, that Dedon would not have to lay off its workers.
Dedon Manufacturing Incorporated, considered as one of the "Big Four" furniture-export companies in Cebu, is reportedly the only company among the four that remains “stable” during this period of crisis, according to reports from Philexport Cebu. The other companies, Maithland and Smith Cebu, Philippine Traders, and Mehitabel Incorporated have reportedly laid off some of their workers.
Dedon, located in Barangay Pagsabungan in Mandaue City, is owned by a former European soccer player, Bobby Dekeyser, who played for the German team Bayer-Munchen. Established in 1990, the company has factories in 80 countries around the world. Its Cebu factory has 3,500 workers. Its signature style is luxury outdoor furniture woven from Hular fibers, a durable fiber produced in Luneberg, Germany. with a report from Carine M. Asutilla ABS-CBN News Central Visayas
as of 03/05/2009 4:33 PM
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