Although economists believe this year will be another challenging feat for the Philippine export industry, an export group still looks at a brighter prospect this year.
“We have felt pain from the previous downturns so with the present economic crisis, our members are cautious but we have also become more open and aggressive to grow the organization and strengthen our businesses,” said Cebu Gifts, Toys, and Houseware (Cebu GTH) Foundation Inc. president Ramir Bonghanoy.
He said that with the softening economies in most major foreign markets, 2008 was not really a good year for their sector but growth was still seen as the local market has started to peak up.
“Filipinos have started to accept our products in their houses and also it has become part of their lifestyle. The affluent OFWs are also coming back to the country and businesses here have started to grow,” said Bonghanoy.
He added that because the local market has been showing positive growth potentials, a lot from their organization’s members have also started to cater to them and display their products in local bazaars held in the city’s local malls.
“The acceptance of the product is becoming stronger. In a way this has helped our finances in a small scale because we are able to augment our income through selling our overruns. Through exploring the local market we have converted our non-moving products into cash,” he added.
Through their local selling activities, GTH exporters have also saved on warehousing cost which usually reaches around P4, 000 per month, said Bonghanoy.
And although they are cautious, GTH exporters are still looking forward to more productive activities this year.
Bonghanoy said that in order to support their members to weather the looming crisis, they will also strengthen their programs and provide more training this year.
Last year, Cebu GTH held several trainings to improve the skills of their stakeholders which included: factory improvement trainings, SPIN program for rural areas, subcontractor’s development program, and product development program.
Past president Jennifer Cruz on the otherhand urged players in their sector to review their existing operations and focus on product development to help weather the crisis.
“The market is so scarce that to be able for us to cope up, we should strive to produce desirable and exclusive products to capture our buyers. We have to push ourselves further to make our skills more efficient and competitive in the market so that our capacity will not be a problem when the economies improve all over the world,” said Cruz.
He said that in the “lull” period when everything seems to be down, exporters should continue to compete and come up with better styled products.
“We have to be prepared so that when the market settles back and more opportunities come, it will be a best time for us. Luck is also a matter of time and the best thing to do right now is to stay there and be there when the market is still under a lull. We have to take the crisis as a challenge,” he added.
He said that unlike other sectors from the export industry, gifts, toys and housewares have no mortality rates so far because most companies are not very big and players can diversify their products.
So far, the major markets of GTH exporters are 50 percent Europe base which include countries like Germany, Ireland, France and Italy and 50 percent American.
Cruz said that Europeans patronize high-end, decorative, desirable and exclusive products while Americans prefer functional and reasonably priced items.