LOCAL exporters believe they can weather the present financial crisis that is affecting their markets in the United States and Europe.

Officials of the Confederation of Philippine Exporters (Cebu) Inc. (Philexport-Cebu) stressed that Cebu exporters are resilient to various challenges, including the present global financial crisis.

“Our trademark is resiliency,” said Philexport president Jay Yuvallos. He pointed out that Cebuano exporters have become stronger, having made their operations more efficient to survive the challenges in the past two years, which saw the peso rise as much as 40 against $1, and stiff competition from China and Vietnam.

“(But) yes, lisud gyud kaayo (It’s very difficult). Nobody is saying it is not challenging. But that doesn’t mean all are suffering,” he said in a press conference Thursday night, following the launch of i-Search—an online platform that helps Philexport members access information and research about markets and their buyers.

There are good signs, though, said Jenifer Cruz, former president of Cebu GTH (Gifts, Toys and Houseware) Manufacturers and Exporters Association.

US retailer

He said a retail chain in the United States is scouting for suppliers among garments, fashion accessories and GTH exporters in Cebu.

“We believe we (have) good chances in the world market…because we are improving, all of us are improving,” he said in the same press conference.

He said Cebu exporters have done a lot to improve their product designs and have made their prices more competitive against China and Vietnam.

He said the buyer, considered one of the biggest in the US with 1,700 stores, has orders from his company, 33.3, until June 2009. The US retail chain also has orders with another local exporter and in Manila.

Cebu Fashion Accessories Manufacturers and Exporters (Cebu Fame) president Janet Chua admitted though that the sector’s sales growth have “slowed a bit.” But she attributed the slowdown to the usual cycle in the fashion business.

She said Cebu Fame is also able to attract the attention of buyers who are environmentally conscious through the Go Green product labels and the organization’s nature conservation program. Four buyers, she said, have made donations of $2,500 each under the Go Green Philippines project, which is implemented in the province by Cebu Fame.

Survivors

Pete Sepulveda, whose company Ian International Cebu is involved in fashion accessory exports, said the slowdown in the industry sector had been ongoing since 2006.
Yet, he said, many local exporters have survived the challenges in 2006 and 2007.

“It’s all a matter of market perception. (If the exporter remains confident), there’s such a wide market (out there). Although this is a very difficult time for exporters, there are also so many opportunities,” said Cebu Furniture Industries Foundation (CFIF) president Eric Casas. “We must harness our creativity in design, in innovation.”

He said there are buyers from Russia and South Africa who are looking at the export industry in the Philippines, particularly furniture exports.

“(But) we have to persevere, we have to be quick in finding markets,” he said, adding that even in the US “there are new players.”

He raised the need for niche marketing, which should prod an exporter to find and focus on its niche market.

“We have to be positive thinkers,” he said.

Casas disclosed that his company’s sales is “better” than in 2007, but he did not give figures.

Yuvallos, who expressed dismay at reports about the slowdown in the export industry and the closure of some companies in Cebu, said talks about the “gloom” caused by the weakening of the US economy—the Philippines biggest export market—will create fear and will eventually harm the Philippine economy.

“So much bad news…creates fear…crippling effect. The least we need right now is more bad news,” he said. “We want to show what is good in the face of challenges.
The resiliency of players in the industry have to be highlighted,”

Allan G. Suarez Jr., furniture sector trustee of Philexport (national level), said even with global financial crisis, the Philippine export industry expects a two- to four-percent
growth this year, the same as level as 2007.

He said that while several exporters have closed shop, new ones have opened up.

Prospects in the Philippine export industry is not as grim as perceived, export industry officials said.

Suarez attributed this to the weakening of the peso against the dollar, which gives exporters a 15-percent leeway, a slowdown in China and the “rightsizing” of local exporters’ operations.

“Many foreign buyers think they’re done with China (especially with the quality of products),” he said. He added that bad weather in Vietnam and terrorist attacks in
Indonesia have made buyers look at the Philippine export industry more favorably.

He said that an indication that the export industry is moving toward favorable times is the return of some designers, who had left for overseas jobs.

Yuvallos, however, declined to state which among the local exporters are strong enough to weather the financial storm. Instead, he narrated how negative thinking can make the present situation worse.

Casas, for his part, said small exporters have to make their operations very efficient.

Although industry leaders did not give specific strategies to make exporters—particularly small organizations—survive the global financial crisis, Yuvallos said Philexport offers many tools—training, database and even market research—to its members. (LAP)

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(November 22, 2008 issue)
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