Niching saved Cebu exporters

CEBU, Philippines - Despite the fast-paced growth of the Business Process Outsourcing (BPO) sector, traditional export players in Cebu are still holding on and refused to be tagged as “sunset” industry.

Export Development Council (EDC) Visayas representative and former PhilExport-Cebu president Alan Suarez said that some Cebuano exporters have braced themselves and the change of consumer preference and the market fragility in the United States and Europe have not discouraged them to continue exporting.

Suarez said one strategy that saved the exporters from the weakening demand from major markets is the exporters’ early adoption to “niching,” thus there are still a few export survivors who enjoy brisk sales performance, although not comparable to the “heydays.”

“Export is still much alive. Those that are able to go into niching are growing,” he said although in general, export sector is still struggling.

He said the major problem of the export sector, is not about the upcoming ASEAN Integration, as they are already used to compete with other ASEAN exporters, but the sector needs help in terms of conducive and updated policies from the government, including the easy and harmonious entry to different Free Trade Agreements (FTAs) entered by the Philippines in different countries.

“ASEAN integration doesn’t worry the exporters,” said Suarez in an interview.

While the export sector is still protecting its turf and market share in the world, including the penetration of the emerging markets, Suarez reiterated that the sector badly needs government’s assistance.

Meanwhile, earlier PhilExport president Sergio Ortiz-Luis Jr., said that the export sector is expected to exploit the opportunities arising from the ASEAN Economic Community (AEC).

"It is important to note that the greater majority of  our exports today are more and more being influenced by the dynamics of the global value chain," said Phil Export President Sergio Ortiz-Luis Jr.

Ortiz-Luis identified big-ticket items and winners such as electronics and semiconductors, automotives and machineries and consumer goods such garments, furniture and some agriculture-based product.

He said services, being largely call centers and shared services of multinational companies, are investment-driven and also form part of  the global value chain.

Ortiz-Luis also cited the potential of creative industries particularly animation, movie making, book publishing and inter-active media.

The national export sector President added that the industry and its stakeholders aim to expand indigenous exports that utilize mainly local raw materials and make full use of the creative energies of Filipino artisans, artists and craftsmen.

These export products include fine and fashion jewelry and furniture and home furnishings.

However, the export leader underscored the bigger challenge posed by ASEAN 2015 in these sectors.

"We produce almost similar products with those of our ASEAN counterparts. But our edge can come from our workers'  natural  flair for design, creativity and commitment to quality and hard work," he said.

The ASEAN market remains to be the Philippine second top export destination, accounting for 22 percent share in the total merchandise exports in May 2013 at $1.2 billion.

ASEAN is also an important source of raw materials and other imported goods for the country. /JOB (FREEMAN)