Exporters told to turn to domestic market

Monday, November 28, 2011

WITH global trade weakening, Philippine exporters and manufacturers are being advised to set their sights on the domestic market this holiday season.

"For one, the Filipinos are in love with Christmas that consumer spending for the holidays happen all year-round, with the peak period registered in the last quarter every year," said Sergio Ortiz-Luis, president of the Philippine Exporters Confederation (Philexport).

Have something to report? Tell us in text, photos or videos.

Ortiz-Luis also said the real estate boom provides opportunities for the furniture and furnishings sector, which has the capacity to supply from low- to high-end pieces that fit institutional sales or specialty stores.

He said the demand for basic gourmet and healthy food products is expected to increase considering the food consumption volume of Filipinos especially by December.

Exporters really need an alternative, Ortiz-Luis said, as Filipino goods shipped abroad slipped to a two-year low of $3.876 billion in September.

This was attributed to anemic consumer appetite in major trade partners United States and Europe, the National Statistics Office (NSO) reported two weeks ago.

Until recently, the policy-making Exports Development Council (EDC) has stuck to its original target of 8-10 percent growth despite a steady retreat in sales of the biggest industry group, electronics.

Meanwhile, Ortiz-Luis said consumption will be driven anew by remittances from the families of overseas Filipino workers.

"With remittances projected to reach $18 billion this year, our retail sector for food, non-food, and services can look forward to even better days ahead," he said.

But while exporters establish or strengthen a niche in the local market, Ortiz-Luis urged them to continue producing basic and even luxury goods which the rising global consumers need.

The high demand in the domestic market was confirmed by the result of the recently held Manila Fame International that consolidated with Manila Now, Cebunext, and Bijoux Cebu.

Philexport vice president for promotion Leonor Abella said exhibitors from Pampanga, Cebu, and Manila that participated in the fair were surprised at the big orders placed by the domestic institutional buyers.

Abella particularly cited one manufacturer and an officer of a big business support organization based in Bacolod who were amazed that they did not know how to provide price quotes to the domestic market.

"They just know how to quote the export market so they said they had to learn how to quote (the local market)," she said. "These are awakening (situations) of the need to really develop the domestic market while traditional markets like the US and Europe are softening." (Virgil Lopez/Sunnex)