Exporters see recovery ahead, urged to brace for competition

CEBU, Philippines – Exporters are now seeing a glimmer of hope that one of their major markets, the United States, is now on its way to recovery.

"The United States market has already given clear signal for [order] recovery. Orders are improving in a more encouraging fashion now," said Gifts, decors and Housewares Exporters Foundation Inc. (Cebu-GDH) past president Ramir Bonghanoy in an interview with The Freeman yesterday.

Although recovery is clearer now, it does not mean however that everybody shall be benefitted by it, as the preference of the market has changed compared to the pre-crisis times.

Bonghanoy said due to stiffer competition, fast market movement, and other factors, what used to work in the past--in terms of design, the way "they do business" may no longer work today.

Thus, it is imperative for exporters to invest more seriously on innovation, research and development, market intelligence, and more out-of-the-box concepts and ideas.

Aside from the fast transforming market, exporters also have to strengthen their ability to fight off the increasingly difficult competition, while the US market is starting to consider newer, and fresher makers, outside of the Philippines.

"It is crucial for us to introduce new items, avoiding the traditional designs and styles," said Bonghanoy, who owns Bon Ace Fashion Tools Inc.

With the US market rebound, Bonghanoy said those that are expected to seize the opportunity are those companies that spent or have invested on innovations and constant product development programs.

Likewise, Pete Delantar, former president of Cebu-GDH said that the industry life-blood with or without crisis, however will depend largely on the exporters' ability to diversify and innovate their businesses.

Delantar, whose company Nature's Legacy Eximport Inc., sustained its market grip and normal operations amid weak international market, said that the Philippines alone is a rich market-field to cultivate, as its economic strength brought about opportunities for industries across sectors, including exports.

Admittedly, for some, Delantar said the export market is too difficult to face especially at these changing times. But, the flip side is to see the opportunities beyond export and recognize the extraordinariness of the things around.

According to Delantar, exporters can turn the slow business around, if they were to exploit the opportunities in diversification, and innovation.