Exporters told to step up Asian market penetration

CEBU, Philippines – Although exporters in the Philippines, especially in Cebu are now looking at Asia as an alternative market, an economist have suggested that they have to double-time as eve-rybody is also looking at Asia now.

"The US market is not growing, even shrinking. There are different ways to adjust, and one of those is to start a massive penetration in the Asian market," said Standard Char-tered Bank economic and head for research-East, Nicholas Kwan.

According to Kwan if exporters will stick to the US or even European market, it would be very difficult for them in the long term, as recovery will still go through a long proc-ess, and other exporting countries may eat up the market share of the Philippine exporters.

Asia, on the other hand, offers a sustaining market momentum, and if penetrated very well will save dying export companies from folding up, as Asia's market size is growing significantly and could almost equal the usual demand from the US.

Kwan said most export growth in the world today, are coming from Asia and the Middle East, "the export market is going through structural changes."

Asian exporters, like the Philippines should immediately take advantage of this change, he said.

Kwan suggested that exporters should prioritize countries like Japan, China, Indonesia, and the rest of Southeast Asia, including the Middle East.

Meanwhile, Cebuano exporters are already working at penetrating the fast growing Asian market, as companies are now starting off its massive promotion to attract Asians to patronize Philippine-made products like furniture.

Cebuano furniture exporter Charles Streegan earlier announced that the furniture industry in Cebu is moving at hitting Asia as its alternative market.

Streegan said that although the players are not dumping its marketing efforts to sustain its penetration in major markets (US and Europe), special attention however, will be given to the growing Asian market.

China, which is considered as a big competitor for some export products in the Philippines, especially in the manufacturing sector, is not regarded as competitor by the furni-ture makers, instead it is a good emerging market for them, Streegan said..

"China is never our competitor. We offer certain products that are not offered by the Chinese," said Streegan, who now sits as the chairman of the 2nd Cebu International Fur-niture and Furnishing Exhibition (CebuNext) next year,

Strengthening its market base in Asia, is seen to provide "air" for relief to furniture makers this time, while US and Europe markets are still on an unpredictable stage.

According to Kwan, the downfall of the US active market, as well as Europe, should not discourage the exporters, as Asia is offering a huge opportunity to sustain dynamic business.

This means that export growth is still assured, and retrenchments of workers can be avoided, but exporters should "do it fast," Kwan said. (FREEMAN)