Fashion accessory makers focus on existing markets

CEBU, Philippines - Amid call to expand their penetration coverage to emerging markets, fashion accessory makers opted to focus on their existing markets, while inquiries for more orders have started to come up.

Avatar Accessories Inc., president Butch Carungay said United States and the European markets are still dynamic, although the industry in general have seen a 30 percent decline of orders in the last few months.

“Emerging markets? Forget it—some emerging markets also have collapsed,” Carungay said.

In fact, the US market continues to place orders for fashion accessories from the Philippines, “it’s not as bad as we thought.”

He said Avatar is working with three big fashion accessory buyers from the United States. Also, the company just got a bulk order from Spain-based brand “Mango” to supply the requirements of fashion accessory items for over 3,000 Mango stores worldwide.

According to Carungay, the recession in the US has pushed fashion accessory makers to create products with more value for money, while branded names and even department stores continued to place orders.

Marose Soberano of ABS International Corporation also said that her company is receiving order requests and inquiries (for more orders) especially from London, and United Kingdom (UK).

Soberano’s company is also working with Marks and Spencer for its fashion accessory requirements.

Although, the competition with China and India is tough, Soberano said “we expect them to buy more from the Philippi-nes.”

Fashion accessory exporters have been working hard to sustain its competitive edge, especially in design, as China and India, among other countries are trying to replicate what “they do.” But, they said buyers still come back to them.

Cebu fashion accessory exporters are supplying items for world renown brands like Banana Republic, some bags and accessory components of popular brand Louie Vitton, Liz Claiborne, and others.

Fashion accessory exporter Karen Woolbright also said that her company is getting increased orders from its clients in Germany, Spain, and United Kingdom. Although volume is still not good as before, but it is “improving,” she said.

Although, reaching out to emerging markets is not bad for the players, Carungay said this time, efforts is more focus on sustaining their market-based to guard their share and sustain their competitiveness, while competition is tough.

Generally, most fashion accessory makers are putting their eyes on the European markets, although US is still there.

Some have cut down their cost in international show participations, but sustained their attendance to good shows, like in Hong Kong and Paris, France.

Players are expecting a full recovery next year, “the year 2010 is good for us,” Carungay said.