Manila Bulletin, PhilippinesÂ
Edu Lopez
Domestic handicraft companies are targeting the high-end market as they focus on product design and craftsmanship as well as creativity and innovation to be more competitive in world market.
Chiqui Veneracion, executive director of Philippine Chamber of Handicraft Industries Inc., said they are creating specific product line collections that are more geared towards the A-B market.
“Rather than going mass production where we confront China as our main competitor, we are finding a niche where there is enough market for us. We are really targeting the A-B market.”
Veneracion said some of their old buyers particularly European and American companies are already coming back looking for new materials amidst the rising prices of China.
“That is also a good sign for us. We can tap these people not only to cater to the A-B market but even made it to supply their C market. “We can make a pitch that our product are more innovative. We have been lowering our prices and its very difficult but we have to.”
Veneracion said they are also pursuing groupings of production to meet volume orders from buyers. “We are networked with each other so several companies can actually work hand in hand to produce that particular order.”
She noted that trainings being undertaken by business support organizations and continuous trending are also imperative for companies to stay in the business despite internal and external factors. Veneracion was referring to the China factor where consumers are affected by the recession and the unpredictable foreign exchange rate.
“Already, 10 percent have closed shop and there are still more companies at the brink of closing. I’m talking of the small and medium enterprises that are with us, not just companies that are exporting but even the subcontractors who cater to the exporters,” she said.
They are hoping for at least 5 to 10-percent growth this year just to recover their expenses and windfall losses from the currency exchange.
Veneracion is optimistic that the government will continue providing assistance to exporters especially for the promotion of their products in international trade shows.
“I hope the government will see fit to put in some more money (to the export promotion fund) because we have still projects in the pipeline.We really need a lot of marketing funds because all our money is tied up in the manufacturing side,” she added.