THE slowdown of the US economy, as well as Japan and those in the European Union, has pushed some Cebuano export companies to look at the local market for their products.
“At the same time, (we) must take this time to retool, be more productive and be smarter as (we) continue to trade in the global stage that requires us to be so,” said Confederation of Philippine Exporters (Philexport)-Cebu president Jay Y. Yuvallos.
He noted that some export companies like those selling handicraft and fashion accessories are still enjoying good sales, which are augmented by the local market.
“We must understand that in bad times, winners are produced. It just happens that the export sector, especially the creative industries—like furniture—are not in the pink of health,” he said.
“Is this reason for people to be cautious in investing their hard-earned capital? Yes. But is it over? No.”
Yuvallos, also president of Interior Basics Export Corp., told reporters that the worldwide phenomenon of rising prices of oil and other basic goods may affect everyone, but there are many people in different parts of the world who still want to furnish their homes.
“So there is still a market in what we do. The important thing is our resiliency. We must adjust and be quick. At present, we are coping up very well with what is happening in the world market, no matter how hard it is,” he said.
Diversify
To cope with the growth slowdown of markets, Philexport has been urging its member-companies to diversify, like producing new products for traditional markets, new products for new markets or by finding new markets for the usual products.
Philexport also encourages exporters to study other countries, like those in Europe, that can be potential trading partners.
With the slowdown in the European Union and United Kingdom, Yuvallos advised export companies to consider branding as an option and a coping mechanism.
“We are beginning to see good Cebuano brands in the international market like Cobonpue, Avatar and Dedon,” he noted.
“Branding, though, takes a long process that requires you to be smarter, more creative, and to understand marketing.
Branding requires discipline. I’m not saying it is for everybody. But it’s an option,” he said. (NRC)
