Production cost, competition rein in shell craft firm's profit

CEBU, Philippines - Though business is thriving, a shell craft company admits sales have declined due to the higher production cost and increasing number of national competitors.

Known to be a wholesaler of Philippine handmade capiz shell products and an exporter of shell-based quality products, Capiz Shell Philippines Inc. still continue to survive in the local and global market.

Capiz Shell Philippines Inc. Marketing Staff Canuto Balili said that the cost of raw materials and labor expenses have exceeded the cost of the demand of their products.

He added that 2003 was the strongest year for them since it had earned 98% of their sales while on 2011, it went down to 96%. From November 2011 up to the present, Baculi noted, that the percentage of their sales volume decreased to 50%.

Although they have enough supply for production and manufacturing, he said that prices for their materials have increased such as capiz shells, polylite and others making it difficult for them to gain profit since their sales have decelerated.

Amid the sales decline and high production rate, the shell exporter company maintains to provide high-quality products to its customers who are locally and internationally-based such as Africa, Netherlands and Switzerland, United States and Europe.

The production capacity of the industry is 20 orders per month which have to be processed within 15 – 25 days and to be delivered within one week. Its order ranges from 1000 shell units as minimum to 4000 units of lampshades, 5000 units of laminations and 10,000 units of wind chimes.

Baculi added that what makes Capiz Shell Philippines Inc. stand out is its uniqueness in transforming old and ordinary items through capiz oysters and rattans into modernized and artistically-designed products.

He said Capiz Shell’s bestsellers are tea bowls, necklaces and fashion accessories, and for hotels, soap dishes and chandeliers are a hit.

It also offers a wide range of handmade capiz shell products such as hotel accessories, boxes, candle holders, table tops, wind chimes, fashion accessories, give-aways, chandeliers, curtains, furnishings, toys, decorative items, lamps, raw shells, garden accessories, picture frames and handicrafts.

Aside from its main showroom in Tungkop, Minglanilla, Capiz Shell Philippines Inc. showcases its capiz-made items at Shangri-la’s Mactan Resort and Spa, Cebu Pacific and Tindahang Pinoy. (FREEMAN)

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