Bobson maker remains unfazed by competition

CEBU, Philippines - Although not spared from the effects of the entry of more international brands in the market, Filipino-made Bobson apparel remains optimistic to rake in a significant growth in the Philippine market.

Crolific Garments Mfg. Corporation chairman Victor Tan, the maker of Bobson brand for the past two decades, said there is still a huge opportunity for growth in the country’s apparel market.

However, the market landscape has become more challenging with the entry of more international brands coupled with the unresolved problems on the dumping of cheap garments as well “ukay-ukay” in the country.

Tan, who was in Cebu recently as the guest speaker of the “Meet the Business Legend” program of the Cebu Chamber of Commerce and Industry (CCCI) said that while there is still opportunity for growth among local apparel makers, the industry has to fight against the obvious problem on illegal importation of clothing products from other countries.

“With the over 93 million population in the Philippines, we have huge room for growth and improvement, especially in the garment industry,” Tan said.

But, because of inefficient implementation of some importation rules, the local garment industry is now faced with a myriad of problems in competition, while some are able to freely sell their garment products without paying the necessary taxes.

This, if not being addressed by the government properly will ultimately hurt the local apparel brands, and manufacturers, who have been in the business for a long time in the Philippines.

Tan said he is actively coordinating with the Philippine Retailers Association (PRA) on this particular concern, to cushion the long-term impact of these woes on the industry.

This homegrown company has been in the Philippine apparel market landscape for the last 20 years. It started to manufacture jeans with Bobson brand, now it expanded into a full-range clothing apparel brand name, and is able to compete with the branded giants entering the Philippines for the past few years.

Amid the economic difficulties, Tan said Bobson has been able to post encouraging growth, however, the company decided to cut down on operational costs by closing down 30 percent of its total number of outlets nationwide. It is now maintaining 86 outlets nationwide.

Stiff competition and unresolved problem of garment smuggling, and dumping of apparel goods to the Philippine market have contributed to a more challenging business landscape for local apparel manufacturers, he said.

Thus, the company is now focusing on investing more into strong branding development, capitalizing on its captured market, which is the broad C segment.

Over the years, Bobson has captured its own niche market in the C consumer segment, especially those young, hip and stylish individuals.

The brand is capitalizing on the growing “youth” market, as it also introduced products designed for the younger ones, the “Little Bobson” product lines.