Philippine handicrafts are no longer competing against the mass-based Chinese and Vietnamese products but are already catering to the upscale market competing in terms of quality, innovation and craftsmanship comparable with the high-end Italian items.
Trade and Industry secretary Gregory L. Domingo told reporters at the opening of the Manila Fame 2012 that competing in the high-end category is more profitable than in the low-end category because producers can price their products at a higher level.
“We are not competing anymore with the Chinese and Vietnamese, we are competing with the Italians,” Domingo said.
In fact, he noted that a locally-produced bag being exhibited at the ongoing Manila FAME fair at the SMX Convention has a tag price of $800 a piece, which was already sold.
“We are competing for design, innovation and craftsmanship for our handicrafts,” he said.
Manila FAME has also raised its standards of the products to ensure only quality products are showcased at the fair. The size of the exhibit has remained the same, but the quality of the products was topnotch and the staging of the show was given a more world-class appeal than the previous events, Domingo said. “A few of the buyers that I’ve talked to describe this show as spectacular while others are wowed by the display,” he said.
As a result, he said, the show has also attracted the upscale market in terms of foreign buyers and visitors.
In addition, Domingo said, producing high-end products is less vulnerable to foreign exchange factor.
“The high-end products have higher margin unlike the mass produced handicrafts or for any other mass-based consumer goods, which margin is very small,” he said.
So far, exports of handicrafts this year have already breached the $100 million market on strong demand from overseas markets.
The amount already exceeded by 11 percent the $90 million handicraft exports for the whole of 2011. The volume of orders has gone up substantially despite a global economic slowdown. (BCM)
source: mb.com.ph
