Holiday décor and giftwares sector sees modest growth in 2012

Saturday, January 21, 2012

GIFT and holiday décor manufacturers expect growth of between eight and 12 percent in 2012 after posting negative figures the previous year due to the weak global economy, an official of the Philippine Exporters Confederation Inc. (PhilExport) said.

“The vitality of the export sector has returned after the October Manila FAME (Furnishings and Apparel Manufacturers' Exchange) exhibition. It was a good break for the sector and buyers are now buying even in small amounts," said Nora Halili Lao, PhilExport trustee for the holiday décor and giftwares.

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More orders keep coming in from both the local and foreign buyers, according to Lao.

"In fact, one exporter is scheduled to ship abroad two 40-footer containers of goods worth $10,000 to $15,000 (or around P630,000). Exporters are already happy receiving orders of even a volume of one or two 40-footer containers," she said.

These goods will be shipped to Japan and Europe, except in the so-called PIGS countries comprising of Portugal, Ireland, Italy, Greece and Spain, which are facing a debt crisis.

The United States also continues to be a market destination, although its purchases have declined, Lao said.

Earlier, Trade Secretary Gregory Domingo said the assumption that the United States and the European Union would pull off modest rebounds failed to materialize.

That assumption had to be reviewed as the country moves on to meet the target of hauling in $120 billion in export revenues by 2016. Exports followed a downward trajectory last year.

As a result, Lao said that some small companies making gifts and holiday décor located mostly in Metro Manila have already closed shops.

"They had low capital investments and few buyers. They lacked product development and marketing budget as well," she said.

For one, Lao said it will cost a company some P300,000 to join a trade fair in Europe, and between P200,000 to P300,000 in Hong Kong, adding that some regular foreign buyers are not coming to Manila to attend such events. (Virgil Lopez/Sunnex)