Dressing Up The World

Dressing up the world Behind the success of many internationally-renowned designers and retailers are Philippine garments makers.

Combine quality with sound and sensitive styling and you have JC Penny, Sears, Natori, Marks and Spencer, Otto Versand, Esprit, Macy�s, Christian Dior, Nike, Adidas, Puma. Guess, Fred Perry, Hudson�s Bay, Izod Lacoste, London Fog and many other well-known apparel firms for your clients. But very few would know that many of these branded garments went through the deft hands of a Filipino sewer, whose expertise lies in the areas of intricate hand embroidery, hand smocking and knitting. These inherent skills can be traced even during the Spanish era when women were strictly confined to household chores, including sewing their family�s clothing requirements. Transferred through generations, the art is being further enhanced with the latest technology and awareness of market trends and requirements. Dressed for success The ascent of Filipino garments and textile industry can be an offshoot of its continuing advocacy to be globally competitive in terms of cost, quality and design. Certainly dependent of each other, the garment and textile industry has correspondingly spread its product coverage from clothes to gloves, hosiery, handkerchiefs, home textiles, swimwear, yarns, stuffed toys, doll�s and industrial clothings. Over the years, it has developed bestselling export goods, among them woven or knitted babies� garments and clothing accessories; trousers, breeches and shorts; shirts and blouses; ladies� dresses; brassieres; women�s, girls� and infants� coats; men�s and boys� coats; jerseys and pullovers; jackets and sweaters; sportswear; parkas; anoraks and lingerie. Since 90 percent of the industry�s output is garments, there is a huge potential for direct exports of fabrics and yarns. Leading textile firms are integrated and sell denims, twills and yarns. Wider market reach As part of its strategies for increased competitiveness, the industry is conducting an aggressive marketing campaign to lessen its dependence on the United States, its major buyer. In 1997, the first Philippine Apparel Trade Show was held in Manila to showcase the wide range of merchandise before international guests and buyers. The following year, the Garments and Textile Export Board (GTEB) initiated a project called Profil, short for Pro-Filipino, which aims to establish our niche in the midrange to high-end markets. Envisioned to run for three years, the program is

a bi-annual selling mission to the United Kingdom with product development assistance from British designers. Its third season run ended in March 11, 1999 with 22 exhibitor-exporters mostly of knitted and woven childrenswear and ladies� wear. The project is being conducted in cooperation with two major garment associations: the Confederation of Garment Export of the Philippines (CONGEP) and the Garment Business Association of the Philippines (GBAP). Export Statistics The United States remained the country�s major garment buyer with 1.67 billion purchases in 1998, 11.71 percent more than its $1.50 billion imports in 1997. This was followed by Japan, $90.32 million and the United Kingdom, $75.57 million. Exporters attributed the general decline to stiffer regional competition which in turn caused the closure of a number of small and big garment companies in the country. Companies which continue to remain viable and operational point to their adherence to quality as the reason. Further, garment manufacturers, particularly of infantswear, have the capability to do hand- or machine embroidery, beadwork and smocking, adding good value to the products. Exports of infantswear have been �de-categorized� and thus trading is already �free for all,� noted Emmanuel Narciso, president of Eastland Manufacturing Co, Inc., a maker of childrenswear. �This is not really good because not all companies in this category are ready to compete under the free trade regime,� he said. Please refer to www.tradelinephil.dti.gov.ph/betp for the current export performance. Other developments/prospects •

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Worldwide, the Philippines has earned the distinction of supplying intricately embroidered and precisely hand-packed textile products. It ranks with Hong Kong, Taiwan and South Korea in quality and skills in garments make-up because of the existence of skilled labor force. Industrial relations problems have been very minimal in the industry. The revived Garments/Textile Industry Tripartite Council Board, which serves as forum for issues, disputes and any destabilizing deters unwarranted industrial action or harassment. The industry has consolidated its strategies for competitiveness such as tariff reduction; improving lead-time; manufacture of high-value products; promoting investments in dyeing; finishing, printing and apparel and textile manufacturing; and upgrading of skills, design and equipment. Tariffs and inputs of both the textile and apparel industries were reduced to cut down production costs and minimize smuggling.

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There is an ongoing simplification of export and import procedures designed to improve production and delivery leadtime. An Electronic Data Interchange (EDI) System was recently installed by GTEB to reduce processing time from hours to minutes. For their part, leading firms have acquired state-of-art equipment and have adopted CAD/CAM techniques, �Quick Response� and �Just in Time� concepts, which allow more flexible manufacturing. Investment missions are also being launched jointly by the government and the private sector to forge strategic alliances with foreign partners and attract more investments into the areas of apparel, textile, and accessories production. To upgrade the industry�s design capabilities and enhance the country�s bid to become the Fashion Center in Asia, fashion and design consultants will help set up the first International Fashion Design Institute in the Philippines.

Trade and investment opportunities •

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Investments are strongly encouraged in the areas of textile and apparel manufacturing, dyeing, printing and finishing to promote global competitiveness in preparation for a free trade era. The advent of the Asean Free Trade Agreement (AFTA) and the World Trade Organization (WTO) open up markets due to the acceleration of tariff reduction and the dual impact of gradual phasing out of quotas with low demand and accelerated growth for remaining quotas of import-sensitive products. Given the competitive advantages in producing the apparel and textile in the Philippines, quota allocations in selected categories and high value products are also guaranteed by the government for relocating foreign firms. The abundance of indigenous Philippine fibers such as abaca, pi�a, silk and ramie provides an opportunity for the development and production of ecologically-friendly fabrics at commercial quantities. There is also an opportunity for investment in services in a rapid prototyping facility for the manufacture of samples. Other specialized production related services such as fabric design, pattern-making laundry making, laundry and finishing are likewise open. Incentives offered include income tax holidays; additional deduction for incremental labor expenses during the first five years from registration; tax and duty exemption from taxes and duties on imported spare parts when brought in through the enterprises own bonded manufacturing warehouse; unrestricted use of consigned equipment; employment of foreign nationals; simplified customs procedures; access to bonded manufacturing warehouse; tax credit for taxes and duties paid on raw materials used for the exported products

Data Source:

* Bureau of Export Trade Promotion **Garments and Textile Export Board

Philippine Exporters Confederation, Inc. (1998). The Philippine Garments and Textiles Industry: Dressing up the world. Retrieved July 21, 2005 from the World Wide Web: http://www.philexport.ph/garments.html