"Its called SikapMo Corp. and it is a consolidated effort of the private and public sector to match the price and quality of imported shoes," he said.
SikapMo is capitalized at P6 million, broken down into P5 million from Lee, Natasha general manager Mahar Jardiolin, and other incorporators and a P1 million loan at 9% interest per annum from Marikina Rep. Del de Guzman. The companys shoe brand, Marquina will be launched in June this year.
"We pooled our resources to train shoemakers in the modern techniques of shoemaking. We developed our own styles with the help of the Marikina government," said Jardiolin, who is president and chief executive officer of SikapMo.
"The Philippines used to export shoes to other Asian countries in the 1980s until China began mass-production.Because they are mechanized and they use modern technology equipment, they are able to produce in huge volumes in shorter periods of time at cheaper price," said Lee.
As more footwear is imported, local manufacturers become increasingly vulnerable because of their adherence to traditional methods of production. Out of the $35 billion exported by the Philippines last year, shoes accounted for only 0.07%. In 2001, shoes accounted for 0.11% of total exports.
The exported shoes were manufactured rubber shoes and leather shoes of foreign labels.
As a result, the cost of labor is reduced by at least 20% and is passed on to the consumer. For example, Marquina shoes will be able to sell its mens line at between P800 and P1,200 instead of the usual price range of P1,000 to P1,500 a pair. Ladies shoes currently selling at between P500 and P1,000 could be brought down to between P400 and P800, depending on whether it is a pair of sandals or a pair of closed shoes.
SikapMo is targeting a production run of 100,000 pairs of shoes a month that will create 2,000 jobs in Marikina. Payback is expected within a year.