Proudly Philippine made

A 2018 study by Kantar Worldpanel’s Brand Footprint revealed disturbing facts about Filipino consumers’ brand preferences.

According to the study, out of the 50 brands purchased by Filipino consumers, only 28 percent are local brands while a whopping 72 percent are global brands.

A report on Consumerism of Filipinos on Foreign Brands published in 2021 noted that Filipinos tend to patronize global brands over local brands and that one reason could be the general perception that local products are inferior to internationally recognized brands.

It is not surprising that remnants of colonial mentally still exist considering that the Philippines was under the Spanish rule for 300 years and then under the Americans from 1899 to 1946.

Market research firm Kadence International observed that international brands often hold a certain allure among Filipino consumers, attributed to their global reputation, perceived quality and status symbol, especially in categories like fashion, technology and luxury goods, adding that the globalization of consumer culture also reinforces the appeal of international brands, with Filipinos exposed to global trends through the internet and media.

The same article, however, emphasized that there are local brands that command a significant place in the hearts and wallets of Filipino consumers. Take for instance local brand Jollibee, which has outperformed global giants like McDonald’s in the Philippines.

It also noted that in recent years, the Philippines has seen a growing consciousness among consumers regarding sustainability and ethical purchasing, a gradual shift toward eco-friendly and ethical brands that prioritize environmental sustainability and social responsibility, a growing popularity of local, organic and handmade goods to support healthier lifestyles, local economies and products with lower environmental footprint, among others.

There are also foreign-made products that you don’t just buy just because they are imported.

Take the case of imported cement for instance. Most of them are sub-standard and produced using unsustainable processes and therefore potentially dangerous for building, home and infrastructure project developers and owners.

This fact was admitted in an article by Vietnam Economic News in 2018, where associate professor Dinh Trong Thinh of the Academy of Finance revealed that in general, the Vietnamese cement industry’s technology remains old and poor, with some still using shaft kilns, and that their exported cement has a lower price due to the poorer quality of some of its products.

Around 93 percent of cement imported by the Philippines comes from Vietnam.

Vietnamese exporters have been found by Philippine authorities to be selling their cement to us at dumped prices or at prices much lower than that at which they are being sold in their country of origin. Some of them also do not pay the correct duties. This is hurting not only local cement manufacturers but also businesses and workers that directly or indirectly depend on the cement industry.

Just recently, the Federation of Philippine Industries (FPI) expressed its support to a decision by the Department of Trade and Industry (DTI) to initiate a motu propio preliminary investigation into the growing importation of cement into the country from 2019 up to the present, with the end in view of possibly slapping safeguard duties on imported cement.

FPI said DTI’s action is a necessary response to the pressures and potential harm to the local industry posed by the surge of imported cement, adding that this is an essential step toward protecting domestic manufacturers and ensuring a level playing field for Filipino businesses.

We now have the Tatak Pinoy (Proudly Filipino) Act which aims to encourage, support and promote the production and offering of Philippine products and services of increasing diversity, sophistication and quality by domestic enterprises that are globally competitive.

The law, signed last February, is in effect a formal policy directing the government to support the development of domestic industries and to implement a national industrialization strategy.

Cement is a basic material required to construct essential infrastructure, like roads, bridges, power plants, water supply systems. It plays a vital role in building economic development. The cement industry is also a significant source of employment and a big contributor to our gross domestic product.

Without a viable and sustainable domestic cement industry whose growth should be unhampered by the influx of cheap, sub-standard and dumped imported cement, the Philippines’ journey toward economic progress and industrialization can never take off.

CREATE MORE

President Marcos just last week signed Republic Act 12066 CREATE MORE Act which aims to make the country’s tax incentives regime more globally competitive, investment-friendly, predictable and accountable.

The new law, extended the maximum duration of tax incentives availment to 27 years, reduced corporate income tax for registered business enterprises to 20%, simplified local taxation for RBES, streamlined the VAT refund process and streamlined incentives-related processes to cultivate an investment-friendly climate, among others.

This new law has been hailed as another game changer.

It was actually the country’s economic czar Secretary Frederick Go, special assistant to the President for Investment and Economic Affairs who shepherded the CREATE MORE bill into law, personally engaging with legislators as he tirelessly advocated for the bill’s passage.

Philexport president Sergio Ortiz-Luis has credited Go for playing a vital role in championing the bill’s passage into law and for ensuring collaboration among various industry groups which was instrumental in advancing the legislation.

Meanwhile, Philippine Chamber of Commerce and Industry vice president Bryan Ang praised the administration’s ability to attract top talent from the private sector, saying only seasoned capitalists like Go can push for massive reforms in the business and export sectors that can immediately attract foreign investors. Go was president and CEO of Robinsons Land, which he grew from having just five assets when he joined in 1992 into becoming a publicly listed company with a hefty portfolio of over 50 shopping malls, 31 office buildings, 28 hotels and resorts, six industrial facilities and 19 mixed-use developments, among others.

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