Pinoy exporters urged to look for new markets

MANILA, Philippines - Filipino exporters of handicrafts and other hard goods are encouraged to look for new export markets as the country’s traditional buyers (US and Europe) are shifting their purchase preference to cost-competitive countries.

Celestino Mijares, Foreign Buyers Association of the Philippines (FOBAP) vice president for hard goods, said changes in the costs of producing these products “have pushed purchase preference to move outside of the country where cost remained competitive.”

“(But) the FOBAP does not see the doors closed for Philippine exports. The door may appear small right now but there is still a chance for it to get wider,” Mijares said.

He said the US remains a strong trade partner for the country even as the opportunity for the Philippines there is a “trickling down of design trends from internationally recognized trade exhibitions into other countries.”

Mijares said these other countries can form a target pool for Philippine exports.

He identified Canada’s potential as a huge market for locally made products, noting the influx of Filipino immigrants in that country.

While Japan can be considered as a trendsetter for Asia, Mijares noted that the country still picks up some ideas from American and European influences.

“(This) highlighting the need to get a feel of the US market fairs. The key to this country is still an exporters’ flexibility, in terms of customizations, to serve the Japanese market,” he advised.

Mijares further said that Australia and New Zealand, due to proximity to the Philippines, should be considered as well ready to be tapped.

“Both countries are receptive and warm towards Filipinos. However, these are both price-driven markets. The market for hard goods reflects a simpler design perspective compared to that of its US counterparts,” he said.

Mijares added FOBAP recognizes that free trade agreements (FTAs) will open up some form of innovation within the production facilities of Philippine exporters.

“With free trade opportunities within Asean countries, materials the Philippines long has short supply of can be tapped. In the end, with the long-recognized design edge of Filipinos, it won’t be long that exporters can come up with winning products that can also compete in terms of price points,” he said.

Moreover, Mijares underscored the need for a competitive logistics provider for exporters.

“Exporters are automatically saddled with logistics costs that push the price of products up,” he said.

Hard goods comprise non fabric/textile-based products such as handicraft, housewares and accents, furniture, footwear and accessories.