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Countries» About» Contact us Philippines Sourcing: Gifts & premiums Industry overview Philippines Philippines Sourcing: Gifts & premiums Philippines Sourcing: Home decor Philippines Sourcing: Fashion

1 Countries» About» Contact us Philippines Sourcing: Gifts & premiums Industry overview Philippines Philippines Sourcing: Gifts & premiums Philippines Sourcing: Home decor Philippines Sourcing: Fashion accessories Philippines Sourcing: Furniture Philippines Sourcing: Garments Philippines Sourcing: Holiday decor Philippines Sourcing: Wicker baskets All sourcing countries Philippines Sourcing: Gifts & premiums Gifts & novelties Promotional items Stationery Gift packaging Download PDF of page This section discusses key issues affecting export manufacturers in the Philippines, offering insight into industry composition and important supply centers. Sections Highlights exports Competitive advantages suppliers Charts Gifts & premiums export value Supplier exports Supplier production Supplier locations map Click charts below to enlarge The gifts and premiums industry is facing stiff price competition from neighboring sourcing hubs, compounded by increasing production costs. Philippines Vietnam India Nepal Myanmar Cambodia The sector is officially categorized under the handicrafts segment, which is having difficulty keeping up with mass-produced items from mainland China, Vietnam, Thailand and Malaysia. This concern has led to fluctuations on export values, companies closing and factories downsizing. The root of the problem lies in rising production expenses, particularly for raw materials, and disorganized supply chains that result in high logistics costs. Since most suppliers promote environment-friendly models, certain components are utilized. This includes shell, wood trimmings, recycled aluminum, coconut husks, grass, dried flowers and leaves. Typhoons and other natural calamities, furthermore, destroy plantations, and damage roads and infrastructures. This forces enterprises to procure some raw inputs overseas. In general, imported materials push up prices by at least 10 percent. Philippine gifts & premium exports Competitive advantages The local handicrafts industry registered $204 million of overseas sales in 2013 The major market for gifts and premiums is the US Local suppliers are urged to look into alternative markets in the Middle East and East Europe Abundant supply of natural materials A wide pool of skilled laborers Strong OEM capability Learn more here Widespread piracy of local designs and concepts Disinterest to learn handicraft skills among younger generation Lack of government support Gifts, Toys and Houseware group has 198 members The Philippine Exporters Confederation has 141 affiliates, 60 percent of which export gifts and premiums The majority are SMEs Quotes for chemicals used for molding, bleaching and casting usually increase by 5 percent annually, which pose problems for manufacturers that try to keep export prices stable for at least two years. High cost of shipping is also burdening makers because of quote fluctuations, which lowers the profit margin. A possible solution to this challenge according to the trade group Foreign Buyers Association of the Philippines is more free trade agreements with ASEAN countries to lower import duties and facilitate faster

processing of goods. exports Findings from the Ibisworld market research state that the world gifts and premium industry is a lucrative sector, accounting for $19 billion in sales from 2009 to 2014.

According to the Philippines Statistics Authority, the local handicrafts industry registered $204 million of overseas sales in 2013.

2 processing of goods. exports Findings from the Ibisworld market research state that the world gifts and premium industry is a lucrative sector, accounting for $19 billion in sales from 2009 to Statistics from the International Trade Center show a total global value of about $909 million, with China as the main exporter, followed by the UK and the US. According to the Philippines Statistics Authority, the local handicrafts industry registered $204 million of overseas sales in In general, the sector s foreign revenue has been increasing by an average of 51 percent over the past five years, particularly in 2012 when the US and the EU markets have slowly recovered from their respective financial crises. The major markets for gifts and premiums are the US, accounting for about three-fifths of exports. Other key destinations are Japan, Hong Kong, the Netherlands, the UK and Canada. Local suppliers are urged to look into alternative markets in the Middle East and East Europe. They are likewise advised to be aware of the increasing preference for environment-friendly items, particularly among buyers from traditional destinations. Competitive advantages Abundant supply of natural materials, including bamboo, rattan, raffia fiber and Manila hemp, is the primary strength of the industry. These materials are procured from the regions of Bicol and Visayas. Suppliers usually stock up on these inputs during the dry season in preparation for the monsoon months. A wide pool of skilled laborers is another benefit enjoyed by the sector. These workers are adept at embroidery, wood- and metalwork, and weaving. They are likewise trained to process indigenous fibers and natural inputs such as buri and mother-of-pearl, which make locally made products unique. Another advantage of the industry is manufacturers flexibility in terms of clients customizations, particularly in design and materials used. Suppliers are also willing to adjust their MOQs, depending on style complexity and order volume. Aside from increasing costs of components and labor, companies are grappling with widespread piracy of local designs and concepts. The current development in this area is that not only are certain products replicated, even Philippine designers are hired by competing enterprises from nearby sourcing hubs. These stylists are offered salaries that are about five times higher than what they receive domestically. Another problem faced by the sector in terms of manpower is that younger employees are increasingly becoming disinterested in woodcarving and weaving. They prefer to go to urban areas and work in more corporate settings. Lack of government support is also a roadblock to the industry s progress. Since most suppliers are SMEs, they have insufficient export promotion funds and capital. They likewise have outdated machinery and processes that prohibit them from competing with more technology-savvy enterprises. The handicrafts segment had already submitted a proposal to the national administration for larger budget allocation since 2012, but there are still no concrete programs that aim to help small producers. The supplier base is directly associated with the handicrafts industry. As of 2013, the Gifts, Toys and Houseware group has 198 members. The Philippine Exporters Confederation has 141 affiliates, 60 percent of which export gifts and premiums. Approximately two-fifths of the total number of manufacturers caters to retailers. The rest directly sends their shipments abroad. Enterprises focus on both the high-volume, low-end production, and low-volume, high-end production

segments. Small companies have less than 100 permanent employees. Assets are at least $76,000. Factories have an area of less than 500sqm and are capable of creating 500 pieces monthly.

3 segments. Small companies have less than 100 permanent employees. Assets are at least $76,000. Factories have an area of less than 500sqm and are capable of creating 500 pieces monthly. Annual revenue can reach $50,000. Midsize makers are staffed by up to 200 full-time workers. Assets can reach $2.5 million. Plants cover at least 500sqm and can roll out up to 100,000 pieces every 30 days. Total sales can reach $400,000 every year. Large suppliers have more than 200 permanent laborers. Assets exceed $2.5 million. Factories measure up to 9,000sqm can assemble about 150,000 pieces monthly. Annual income exceeds $400,000. The main production hubs are the Bicol region, and the cities of Manila, Baguio, and Cebu. Each area differs in terms of specialization based on raw material availability. Natural components and skilled laborers are abundant in these sourcing centers. Easy access to ports is an advantage enjoyed by Metro Manila manufacturers. Most have their main offices in the city, but outsource their factories to Bicol, and the provinces of Quezon and Pampanga. Enterprises located in Baguio specialize in woodcrafts made from mahogany, and gmelina, acacia and adawi timber. Woodcarving had been present in the area s villages for a long time, and the skill had been passed from one generation to the next. Suppliers of models made of plant-based fibers, including Manila hemp and buri, are found in Bicol. The region has about 50,000 hectares of abaca plant fields tended by 21,000 farmers. Mats, purses, slippers, bags, hats and handwoven fabrics are some of the lines created in this production hub. Cebu makers specialize in shell and mixed media items, including those made of recycled aluminum, wood, weed and grass. Labor cost is much lower in this city compared with Manila s levels. Access to inputs is also easy because of the area s organized logistics and access to ports. It is also situated near other input centers such as the island of Mindanao and Southern Luzon region. Supplier locations map

suppliers Click company names below marked Active to view verified suppliers and products featured on Global Sources Online. Companies marked Listing have basic information on Global Sources Online.

4 suppliers Click company names below marked Active to view verified suppliers and products featured on Global Sources Online. Companies marked Listing have basic information on Global Sources Online. Suppliers featured on Supplier Status Gifts & novelties Promotional items Stationery Gift packaging Contaq Enterprise Listing Craftime Unlimited Corp. Listing Freeriders International Corp. Listing Gracie s Woodcraft Listing Masferre Souvenir Listing Debaro Export Corp. Listing Manoarts Corp. Listing Regalos Exim Inc. Listing Speedy Crafts International Corp. Listing Dianne Hawthorne Designs Listing Globeasia Nature Industries Inc. Listing Korben Corp. Listing Salay Handmade Paper Industries Inc. Listing The Rains Handicraft Listing Saffy Inc. Listing San Roque Dayawan Handmade Listing

Countries» About» Contact us

Countries» About» Contact us Philippines Sourcing: Wicker Product features Philippines Philippines Sourcing: Gifts & premiums Philippines Sourcing: Home decor Philippines Sourcing: Fashion accessories