Pinoys can help local firms thrive in AEC

CEBU, Philippines - Filipino consumers can help local entrepreneurs survive a tougher ASEAN market by patronizing and promoting Philippine-made products.

Cebuano entrepreneur Jonathan Jay P. Aldeguer said while the Philippine market is bombarded with big international brands specifically in the retail sector, Filipinos can do their part to help local businesses thrive by simply buying our own.

"It is sad to know that local brands/businesses are folding up because of tough competition and the entry of established international names," Aledguer said adding that Filipino consumers could actually contribute something to help local entrepreneurs thrive under the intensifying competition by adopting a pro-Pinoy, pro-SMEs attitude.

Patronizing Pinoy-made products and upholding proudly Philippine made is one way to win the battle of increased competition once the ASEAN integration will come into play. With 100 million Filipino consumers opting to choose Philippine-made, it will make the Philippines a "star" in the ASEAN while helping the country's thrust of achieving inclusive growth.

Aldeguer, whose family owns the Island Souvenirs Inc., (ISI), the company that operates the largest pasalubong retail chain in the country, said that buying locally-made products instead of the imported goods could help strengthen the country’s economy in general and prevent international players from totally wiping out the existence of locally operated and owned companies.

Meanwhile, in his recent visit to Cebu, Philippine Chamber of Commerce and Industry president Alfredo Yap said that the chamber is intensifying its advocacy to promote the Pro-Pinoy Campaign, urging Filipino manufacturers to uphold the advocacy for better and quality product, as well as consumers to patronize and be proud of Filipino-made products.

Yap said that today is high time for Filipinos to guard its turf and strengthen its hold in the market, while gaining confidence to conquer the worldwide market, bringing the banner of "proudly" Philippine-made.

In the forthcoming ASEAN integration, the Pro-Pinoy advocacy is crucial to protect Filipino products from losing its grip in the local competition.

Yap said PCCI and the government have an existing program to strengthen the local product makers and improve their quality, packaging, and value chain to well compete with the ASEAN.

PCCI chairman Sergio Ortiz earlier said that the Philippines has already carved its name in the world market--somehow.

"When it comes to the clothing industry, the Philippines handle a lot of prominent overseas brands. As you know, 40 percent of Ralph Lauren's Polo product line is made from the Philippines," said Ortiz.

However, Ortiz said that there is a real need to invest in a country branding effort.

"We do have some initiatives here at DTI from time to time. We have the "seal of excellence". That is the most that has been done so far. Country branding requires a more collective effort for it to be effectively executed in the international market," Ortiz said.

"Our export products (particularly the processed food items) are not known for their good packaging. The immediate problem we have in that area is that most of our manufacturers and exporters are just trying to keep their head above the water. These manufacturers are more focused on content. The last thing on their list of priorities is an increase in their prices due to improved packaging. That is why we find ourselves in a chicken-and-egg situation. They cannot improve on their packaging, but they have to, and when they do, they have to increase the cost of each product that they are selling to the market. Having a higher price point in a highly price-driven market has the tendency to lower your level of competitiveness. They are, however, trying to improve the quality without spending much on packaging," Ortiz added.

In other countries, the governments subsidized their local manufacturer's yearly expenses. "We do not do that here. It is therefore not surprising when the packaging in places like Thailand is fantastic, even when their products are essentially copied from another competitor, " Ortiz added.

Aldeguer said although Filipino entrepreneurs are trying to improve the quality of their products to achieve world-class standard, the collective support from Filipino consumers to patronize (and even promote) Filipino brands is vital for the survival of local players. (FREEMAN)