From subcontractor to exporter

In a way, Ma. Teresa Tayag was once a working student. She took over her mother’s embroidery subcontracting business while still finishing her international marketing course at De La Salle University in 1995. At that time, the business had eight sewing machines and was capitalized at P50,000.

Today, Tayag’s Little Wonders Needlecraft Inc. employs 35 in-house sewers and eight embroiderers in Arayat Pampanga, and indirectly employs 150 subcontracted sewers and stuffers of cotton. The company’s entire production of stuffed toys, children’s and inspirational books, and bags is exported.

"My marketing course in school came in very handy. From the start, I knew I had to aggressively market the company and its products," said Tayag.

Progression

From subcontracting, Little Wonders became a satellite of direct exporters. A satellite is given all the materials plus a 15% cash down payment for the job order, with full payment given upon delivery of the finished product to the exporter. The exporter then ships the products to its foreign buyers.

"When we decided to directly deal with the foreign buyers, our first buyer was so exacting in his quality and price requirements that we didn’t make any money on the order," said Tayag.

Little Wonders did better with its subsequent foreign buyers.

Today, its big buyers are based in Hawaii and the other parts of the United States regularly order 3,000 to 5,000 units of toys, books and bags a month. Britain and Australia are smaller markets, with export shipments of 1,000 units twice a year.

"For us to survive with increased competition from China, we need to concentrate on the high-priced, high-end market. Unlike China, we can accept small orders which require a lot of detailed work," said Tayag, who has had to also deal with the drop in US orders after the Sept. 11, 2001 tragedy. "We didn’t have a single order from our American buyers until February this year."

Because it didn’t get orders for the crucial Christmas season, total sales last year amounted to only P5 million.

Now that order levels have stabilized, Little Wonders intends to put up 10 more satellites in Pampanga on top of its current five. "We’re looking at resettlement areas such as Porac and Bamban where there are a lot of talented sewers and embroiderers and where employment has a bigger multiplier effect on the community," said Tayag.

Nurturing Buyers

To keep abreast of market trends, Tayag makes it a point to visit the United States twice a year. After looking in on the major toys and gifts shows, she visits her buyers. "Although we’re constantly in touch with each other through phone or e-maill, there’s nothing like seeing each other to build on the business relationship," said Tayag.

Early this year, Little Wonders was granted a four-year P1.7 million working capital loan by the Technology and Livelihood Resource Corp. This is the company’s second loan from TLRC. The first TLRC loan worth P1.8 million was repaid within five years. (During TLRC’s 20th anniversary celebration this year, it named Little Wonders one of its outstanding borrowers for helping the people adversely affected by Mt. Pinatubo).

Looking back at her seven years as an entrepreneur, Tayag has much to be proud of. She has a successful story to tell, one that shows a lot of courage, determination and hard work.