Cebu’s shoe capital: Facing the sunset?

CEBU, Philippines - For the past decades, it was then considered as Cebu's sunrise industry and was once a solid foundation of the local economy.

But now, the shoemaking industry in Carcar City, Cebu has been facing its toughest times in history.

Shoemakers in the locality have realized the fact that the industry that has given them profitable business for many years, is now slowly declining in this age of globalization.

Carcar has been considered as Cebu's shoemaking capital. The industry might had its glory days in the past years but now, it is gradually dwindling as domestic businesses struggle to compete with the invasion of cheaper, mostly Chinese-made footwear products in the local market.

The truth is that the phenomenon is beating the supposed employment opportunities for the people and hurting the local economy.

Sunset stage

Even Mayor Nicepuro Apura of Carcar City, in an interview, claimed the city's local footwear industry has arrived to its "sunset" stage and its toughest fate.

"Actually moangkon ta nga ang shoe industry nato dinhi sa Carcar is really dwindling," he said. "Kung kaniadto sunrise industry ni siya, karon makaingon ta nga sunset industry na siya."

Apura pointed out Carcar is losing its skilled shoemakers, as well as other manufacturers, and is being threatened by a fierce competition with much cheaper, poorer quality Chinese imports which are dominating the local market.

Trade liberalization is one key factor that has led to the influx of cheaper goods from China, Taiwan, Korea and other nations.

The event was even strengthened when the Philippines became a member of the World Trade Organization in 1995, increasing the volume of shoe imports every year.

The spurred liberalization in global trading, in a notable way, has been the main reason behind the industry's downfall.

For Mayor Apura the demise of Philippine-made footwear is a result of the continued penetration of cheaper and aesthetic --although lower quality -- shoes and sandals made in China in particular.

According to the city official, there are now barely 50 players in the footwear sector in Carcar. This is much lower compared to 500 small entrepreneurs who were engaged in shoemaking business years back, he added.

"Karon ang volume sa production (sa sapatos) di na as mayo as sauna," he said, recalling that the shoe trading in Carcar started to flourish in 1985 and began to decline in 2010. The year 2010 was included in the period when aggressive liberalization under the WTO was further intensified.

Globalization

In a separate interview, Dr. Elias Tecson of the Department of Trade and Industry in Cebu has put the blame of the dwindling industry on the rising globalization.

Tecson, who is chief of the agency's Business Development Division, stressed local shoe manufacturers should adapt global strategies to keep up with the changing trends in the market.

He mentioned bulk buying of raw materials as one way for Carcar shoemakers to compete in terms of pricing with other shoe producers in the country and outside the nation.

He explained the local makers could save a lot of money if they buy their raw materials in bulk quantities, thus creating lower price for finished products. These materials are sourced from Luzon-based leather tanneries.

"In terms of quality, they have good quality. (They need) to be updated on designs and compete really with the global (market) -- and we go down to raw materials and labor," he stated.

He further explained Carcar-made shoes are hardly competing in pricing with other shoe brands because of high cost of raw materials which makers buy in small quantities.

The Carcar United Footwear Manufacturers Association, Incorporated has the biggest shoe center in the city where both local and foreign customers buy the locally-made comfortable and durable leather synthetic shoes and sandals.

Another potential reason of the downfall of this vital sector is the failure of shoe makers and shop owners to keep updated on consumer trends and the latest styles and models.

But in the end, the government and other stakeholders in the community have to step up to make the shoemaking industry in the Philippines survive.

In a way, imports have destroyed the Cebuanos' ancestral craft of shoemaking and that the government must impose stricter laws to protect and support this dwindling industry. (FREEMAN)