CEBU, Philippines - Aside from their goals to protect the environment, six Carolinian students are banking on affordability, innovation and creativity in earning a profit from their denim bag business.
Ecompass is one of the enterprises put up by the Business Administration students of the University of San Carlos that specializes in making used jeans into durable and fashionable bags.
The group of young entrepreneurs is headed by Ma. Niña Ocampo as general manager along with Georgia Artes as marketing officer, Christopher Davis Señor for human resource, Phil AnnaMarrie Lim for finance, Chrislyn Kith Concepcion as operations head and Johann Michael Yap as operations assistant head.
The business started with an initial capital of P50,000 and was established last June as part of the course requirement of the Bachelor of Science in Entrepreneurship and Bachelor of Science in Business Administration Double Major in Marketing and Entrepreneurship.
“During our marketing research, we decided to venture in making used jeans as bags. Since the school is into recycling, we also want to help the environment while doing a small-scale business,” she told The FREEMAN.
Its products vary from shoulder, sling and tote bags that cost P150, P160 and P180 respectively for retail prices and are also available in bulk orders at a discounted price.
Other than employing two sewers for its manpower, Ocampo cited that they have to spend for the operational costs that include jeans, designing machines, labor transportation and advertising expenses.
Although they began with a slow sales performance in the first month due to labor problems, she said that Ecompass was able to recover in July and sold a total of 263 bags for the first three months of operation which was already beyond their projected profit that is P10, 000 a month.
She noted that Trans Cebu ordered 2,000 bags last month but they were only able to deliver 110 pieces due to schedule constraints and lack of materials.
Such negotiation with the client, she added, was the group’s greatest achievement along with the positive feedbacks of customers on the affordability and durability of the products.
After the Ayala Entrepreneurs Fair last August 25 to 27, she revealed that they are planning to join other exhibits in SM City Cebu next week and other bazaars in the province and in Manila.
She also cited that the group aims to introduce a new product or design every month or two and make pouches, wallets, and cell phone cases made of used denims.
“Innovation is very important to go with the trend. People want something new,” Ocampo continued.
She further said that a tough competition could be observed in the local bag industry due to the rising imitation of original bag brands and other innovations from matbags and tarpaulin bags.
She said that they are eyeing to continue the operations of Ecompass after graduation as they see a booming performance in their business venture.
Aside from personal use, she said that the products are also good for corporate giveaways during occasions and other events and for reselling.
The bags are sold through direct and online selling and the group also caters to demands on customized design based on customer’s preference.