However, according to GTEB executive director Serafin Juliano, the quality of Philippine exports this time around reveals the country’s advantages and its improving competencies in moving up the value chain.
Philippine garments exports to the European Union, Canada and other markets grew by a notable 35 percent to $ 159 million in April compared to $118 million in April 2004.
The growth in exports to the EU, Juliano said, was driven by the retail sales growth of the Europe businesses of Polo Ralph Lauren, Liz Claiborne, Adidas, Levi’s, and other major global brands using the country as manufacturing base for many of their value-for-money product executions.
However, the EU market accounts for just 10.74 percent of total Philippine garments and textile exports, while Canada accounts for a mere 2.69-percent share and other markets accounted for just 8.06 percent.
Increased store sales of Philippine-made premium products supported by cost-effective manufacturing and logistics systems are the key factors to this performance, Juliano said.
Likewise, Juliano reported, exports to the United States of silk and natural fiber apparel more than doubled, posting a 105-percent growth to $23.9 million in April from $11.6 million a year ago.
Philippine exports to the US of wool apparel products also grew significantly for the period by 59 percent from $6 million to $9.4 million.
Juliano pointed out that garment exports are shifting brand-market and product mix combinations as the end of the quota regime enabled global brands to align sourcing strategies with country specific capabilities, product design requirements, and consumer preferences.
Total Philippine exports to the US declined by six percent. The US, however, is the Philippines’ biggest market, accounting for 78.51 percent of total garments and textiles export sales.
Fortunately, Juliano noted that in the US there has been a dramatic growth in demand for wool apparel and silk and natural fiber garments.
Traditional exports of cotton apparel posted a slightly lower figure from $373.5 million in April 2004 to $372.1 million in April this year.
Cotton apparel, Juliano said, accounts for more than half of Philippine exports to the US.
Man-made fiber apparel exports, characterized by low-value products, is reducing its share of Philippine business as it declines by 16 percent.
The GTEB is still confident of posting a 10-percent growth in garments and textile exports this year.
Polo Ralph Lauren reported a 10-percent growth in its first quarter sales; Ann Taylor up by 4.3 percent, and Adidas, driving its business with its sports heritage and golf apparel portfolio, grew by 11 percent.
Demand from Liz Claiborne grew by 10 percent with its 37 new store openings in Europe, Warnaco grew by 37 percent with increases in its Calvin Klein, Nautica and Chaps sourcing requirements to address instability in certain country of origins, and Levi’s grew by five percent from increased sales in Europe and Asia.
Juliano said that "if we recover just four percent of our business in cotton apparel, and another four percent of our exports in man-made fiber garments in the next nine months for the rest of the year, we shall grow total garments and textile exports by 10 percent.