Habagat eyes investors

CEBU, Philippines - Outdoor gear and equipment manufacturer, Habagat Outdoor Equipment, expressed its interest to consider taking in partner investors as it drives to dominate the Philippine market amid the entry of international outdoor gear brands.

Habagat Outdoor Equipment, a Cebu-based brand that started 23 years ago, is now on its aggressive move to expand in the Metro Manila market, after it successfully made its name in Visayas and Mindanao.

In an interview with Habagat general manager Jenar Suson he said that the company is open for negotiations with interested investors, although this is not really a part of its formal plan.

Despite the entry of international outdoor or interactive sports brands like North Face, Columbia and others, Suson said Habagat has been able to enjoy good sales revenue. In fact, the company is expanding into developing eco-tourism facilities, starting with its four-hectare property in San Francisco, Camotes Island, Cebu.

Suson said Habagat will invest on the development of an outdoor Summer Camp, retreat, and team building facility in Camotes that will make use of indigenous materials, as what Habagat is known for.

Initially, the company will build a two-story structure that will be utilized as dormitory, as well as develop a camping area within the property. At present though, the management has not yet identified how much the company will be spending in this expansion plan.

Aside from investing on the eco-tourism related facility, Suson said Habagat is also on a serious move to turn-around the company’s branding campaign especially in Metro Manila.

“We want to capture the 13 million market in Metro Manila,” Suson said adding that the company has already made initial tie-up with retailers in Manila, like the ROX chain of stores, the retailer of outdoor gear and equipments offering mostly international brands.

In the first semester of this year, Habagat registered a P79 million gross sales, much higher than the P50 million it achieved in the same period in 2008.

According to Suson there is a good potential for outdoor sports products and equipment in the Philippines, especially that the country has identified its niche in adventure tourism.

The brand’s bestsellers are outdoor bags, followed by other accessories, footwear and apparel.

With start-up capitalization of P4,500, Efren “Junks” Muana, Randy Su and Dindo Sugatan—then struggling young architects and avid mountaineers, formed the Habagat Outdoor Equipment 23 years ago, and set up shop in a borrowed garage.

The first models that they personally designed, patterned and sewed on a grandmother’s old sewing machine gained favorable response from peers and fellow mountaineers.

Today, Habagat has four major outlets around the country, located in Cebu, Davao, two in Metro Manila at SM Mega Mall and Recto.

In Visayas and Mindanao, Habagat has a total of 27 dealers. The company maintains its manufacturing plant in Cebu located at Archbishop Reyes Avenue, adjacent to the Cebu Business Park (CBP).