PTAP airs plight

Over 200 photo developing franchises are feeling the squeeze of the aggressive competition on top of the 40 percent higher cost of raw materials in the Philippines compared to other Asian countries, according to the Photo Trade Association of the Philippines.

A scenario of facing closure is not far off for the photo laboratories said PTAP because they are finding it difficult to recover their investments.

PTAP cited the following factors that threaten the permanence of their members’ photo labs: High cost of materials – the same raw materials being sold in Bangkok, Canada, US and other countries is allegedly 30-40 percent cheaper than those being supplied in the Philippines; Infringement on proximity agreement – Granting of franchise to operate on a particular location without regard to existing franchise nearby. As such the franchisee cannot achieve maximum output possible from its location as prescribed in the franchise agreement given the existing conditions when the particular local market is not only served by regular competition but by unexpected allies as well; and compromising the provision in the agreement enjoining franchisees to keep confidential the information, and training of one’s respective systems to protect its distinctiveness and value.

The predicament of the photo industry has reportedly reached the Department of Trade and Industry (DTI) according to the PTAP board of directors and believes that Secretary Mar Roxas will soon take a favorable action on the matter. – Wilfredo Suarez