Products Designed for Value and Longevity in Philippines
Introduction
Today, we're diving into the world of buying furniture and appliances in the Philippines. You will likely be shocked by the difference in prices Compared to the USA. If’ you curious about the secret sauce that makes this a reality, I’ve got you covered. Global brands like IKEA, Samsung, and Whirlpool don't make one-size-fits-all products. They design to a price point by tailoring materials, features, and even sizes to what a particular market can bear.
In the US, where folks splurge on premium everything, companies load up on extras: thick upholstery, energy-efficient motors, lifetime warranties, etc. Those things drive prices sky-high. In the Philippines, wages pale in comparison to the west, so, they manufacture manufacture to an appropriate price point.
Watch the video below to see what some common items cost in the Philippines, and if your’e curious about actual data, follow the links below.
Best,
Joe
Citations
Harvard Business Review: Explains "manufacturing to a price point" strategy in global markets.
https://hbr.org/2019/05/how-to-design-products-for-different-price-points
McKinsey & Company: Report on tiered product design for emerging markets like PH, emphasizing cost-adapted durability.
ABS-CBN News: Article on local PH manufacturing driving affordable appliances/furniture.
https://news.abs-cbn.com/business/2023/08/15/philippine-manufacturing-boom-affordable-goods
Forbes: Comparison of US vs. SEA pricing for consumer goods, highlighting functional adaptations.
Statista: Data on PH furniture/appliance import costs vs. US retail.
https://www.statista.com/topics/10492/furniture-market-in-the-philippines/