Hard goods exporters face tough times
MANILA, Philippines - Exporters of hard goods will have to look for alternative markets as US and Europe are shifting to purchase items from cost-competitive countries, an industry group said.
In a statement, Foreign Buyers Association of the Philippines (FOBAP) vice president for hard goods Celestino Mijares said changes in the costs of producing such products have “pushed purchase preference to move outside of the country where cost remained competitive.â€
Hard goods comprise non-fabric or textile-based products such as handicraft, housewares and accents, furniture, footwear and accessories.
“(But) the FOBAP does not see the doors closed for Philippine exports.
The door may appear small right now but there is still a chance for it to get wider,†Mijares said.
He said there are other destinations for Philippine exports such as Canada which is home to many Filipino immigrants.
Hard goods exporters can also tap the Japanese market.
“The key to this country is flexibility, in terms of customizations,†Mijares said.
Given the proximity of Australia and New Zealand to the Philippines, he said exporters can also look into those two markets.
“Both countries are receptive and warm towards Filipinos. However, these are both price-driven markets. The market for hard goods reflects a simpler design perspective compared to that of its US counterparts,†he said.
Mijares also said FOBAP expects free trade agreements (FTAs) to open opportunities for exporters particularly in innovation within production facilities.
“With free trade opportunities within ASEAN (Association of Southeast Asian Nations) countries, materials the Philippines long has short supply of can be tapped. In the end, with the long-recognized design edge of Filipinos, it won’t be long that exporters can come up with winning products that can also compete in terms of price points,†he said.
The Philippines has entered into FTAs with Japan and ASEAN, as well as with China, Korea, India, Japan, Australia and New Zealand through the ASEAN.
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