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RP handicraft industry faces stiff competition

abs-cbnNEWS.com | 10/02/2008 9:44 AM

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Strong competition, continuous recruitment of Filipino designers abroad and high prices of local artworks are threatening the handicraft industry in the Philippines. 

Ajun Valenzuela, executive director of the Philippine Chamber of Handicraft Industries (PCHI), said these factors are shaking the Philippine handicraft industry and affecting the local business. 

The Philippine handicraft industry thrived in the early 1980s. 

“… but in the late 90s other competitors like Vietnam and Thailand already adopted the technology that we were using and the craftsmanship that we had. China is also a competitor because of the volume that they are now [manufacturing],” Valenzuela said during Monday’s episode of ABS-CBN News Channel’s “Shop Talk.” 

Valenzuela said the country’s strongest competitor is Thailand in terms of design but when it comes to volume orders the Philippines has to compete with China because of its relatively cheaper products.

“Before 30 percent higher ang Philippine price kaysa sa China. Ngayon, 15 to 20 percent na lang kasi malaki na ang cost sa China,” he said. 

“There are also a lot of factors. Isa competition, not just the design, the cost of inputs, masyadong mataas ang power cost and labor. Ang bottom line ang prices. Kung makita ng buyer na mataas ang presyo, although maganda ang design ng produkto, doon pa din sila sa [mas mura],” he added.  

Another threat is the continuous “piracy” of Filipino handicraft designers by other countries, particularly China. Valenzuela admitted that local companies cannot compete with foreign firms in terms of offering the designers a higher salary. 

Fluctuating foreign exchange rates also affect the handicraft business in the country, forcing some companies to shut down. He noted that last year 60 exporting local companies closed shop because of peso appreciation against the dollar.    

Bright spots

Despite these challenges, the PCHI official said the Philippines still has an edge compared to other countries. Filipinos’ ingenuity and creativity as well as the country’s unique raw materials make the local handicraft business more competitive. 

“Of course, we can still have new designs. Design-oriented ang Pilipinas kasi very creative ang mga Filipino. Sabi nila sa abroad we are the Milan of Asia in terms of design. So, doon mahihirapan pa ding humabol ang competitors,” he said. 

As proof, Valenzuela noted that during trade shows abroad foreigners flock Philippine booths to take pictures and buy their products because of their unique designs. 

The PCHI is partnering with design schools like the University of Santo Tomas and University of the Philippines to train more designers. Valenzuela said this way the country can also address the so-called brain drain in the handicraft business.   

Valenzuela’s group also helps micro, small and medium enterprises to show their products especially to local consumers through exhibits. He said through exhibits the group hopes to dispel notions that export products such as handicrafts are expensive.    

Government’s support programs in terms of marketing initiatives also boost the industry.  

“The Department of Trade and Industry provided P10 million for our marketing program so meron kaming two-year marketing program in which we sent delegation to different countries na gusto nating i-penetrate,” he said.  

Chiqui Veneracion, owner of handicraft store TwentyNine:Eleven, said Filipinos can “manipulate” a raw material and turn it into something unique. “We were able to push something further kaya nila tayo pina-pirate.”

as of 10/02/2008 9:44 AM