HISTORY OF THE INDUSTRY

In the Philippines, the funeral service industry is relatively new. Until the 20th century, funerals were organized by family and neighbors and held at home. People were often buried on family property. As communities became larger and more established common cemeteries began to be used. Funeral homes were later established to relieve the family of the logistical problems presented by a death. The term “undertaker” refers to the person who “under took” responsibility for funeral arrangements. Many of the early undertakers were furniture makers because building caskets was a logical extension of their business. For them, undertaking was a second business rather than a primary profession. Embalming began during the Civil War when it became necessary to preserve the bodies of dead soldiers for the trip home. As embalming gained favor, the skills that it required helped to turn undertaking into a real profession. On the other hand, casket making also evolved from the early days when the undertakers made the coffins. By 1950, there are a lot of manufacturing caskets in the Philippines. At that time, over 50% of the caskets sold were made of cloth-covered wood or cardboard. However, metal caskets were gaining favor and they required a more sophisticated manufacturing process that could only be provided by larger companies. Merging of the casket manufacturers occurred during the same time as merging of the funeral homes and cemeteries. Consumer preferences continued to change and by 1990 metal caskets represented over 60% of the industry’s production. The capital-intensive manufacturing required to produce metal caskets has contributed to the consolidation. Over the years, most funeral homes and cemeteries have been small, family-owned businesses that were passed down to successive generations. The funeral industry has become more competitive with the emergence of “alternative” funeral service providers and retail stores. These organizations market themselves as a lower cost alternative to traditional funeral homes. These alternative funeral service providers typically offer the services of Funeral Directors but they may specialize in certain services or offer a packaged, simplified, or “no frills” approach. For example, they may specialize in cremation or offer only graveside services. To control costs, many of these organizations do not own their own funeral homes. Instead, they will rent facilities on an hourly or daily basis as needed. Caskets and other funeral-related products are sold directly to consumers in specialized retail stores and internet sites. These retailers are relying on regulations that require funeral homes to accept a casket the consumer has purchased from another party. However, most of the major casket manufacturers sell their products only through funeral homes.