MANILA, Philippines - Manufacturers and exporters need to set their sights on the domestic market which is becoming a lucrative option to the unstable behavior of the global market, according to Philexport president Sergio Ortiz-Luis.
Manufacturers and exporters need to set their sights on the domestic market which is becoming a lucrative option to the unstable behavior of the global market.
“For one, the Filipinos are in love with Christmas that consumer spending for the holidays happen all year-round, with the peak period registered in the last quarter every year,” Ortiz-Luis said.
Ortiz-Luis said the real estate boom provides opportunities for the furniture and furnishings sector which has the capacity to supply from low- to high-end pieces that fit institutional sales or specialty stores.
He said the demand for basic gourmet and healthy food products is expected to increase considering the food consumption volume of Filipinos.
The export leader also believes that the tourism sector can play a crucial role in boosting the services sector. This, as the government put priority on tourism development.
Moreover, remittances from overseas Filipino workers are one area that has consistently resisted both the local and global turmoil.
“With remittances projected to reach $18 billion this year, our retail sector for food, non-food and services can look forward to even better days ahead,” he added.
But while exporters establish or strengthen a niche in the local market, Ortiz-Luis urged them to continue producing basic and even luxury goods which the rising global consumers need.
The high demand in the domestic market was confirmed by the result of the recently held Manila FAME International that consolidated with Manila Now, Cebunext and Bijoux Cebu.
Philexpert vice president for Promotion Leonor Abella shared that exhibitors from Pampanga, Cebu and Manila that participated in the fair were surprised at the big orders placed by the domestic institutional buyers.
Abella particularly cited one manufacturer and an officer of a big business support organization based in Bacolod who were amazed that they did not know how to price quote the domestic market.
“They just know how to quote the export market so they said they had to learn how to quote (the local market),” she said. “These are awakening (situations) of the need to really develop the domestic market while traditional markets like the US and Europe are softening.”