CITEM Executive Director Leah P. Ocampo cites geopolitical factors as the ultimate challenge to Philippine merchandise exports penetrating the global market.
Apart from global headwinds, the CITEM chief also revealed budget constraints which prevent the group from showcasing Philippine-made products to some markets that could hold immense potential for Philippine exports.
The lack of funds, Ocampo said, has only allowed the export promotions arm to move through “a few” sectors.
“Because of budget constraints, we had to limit ourselves to just a few sectors. We were focusing only, for so many years, on the Manila FAME sector and the IFEX sector which shouldn’t be the case because we also want to look into other exportable (merchandise) and services,” she said.
Ocampo noted that delving into the world of services means exploring IT-based technologies like animation and game development—areas in which, she said, “we are being recognized already,” along with “construction, education, even performing arts, and the creative industries.”
Weighing the risks on exporting goods versus services, Ocampo recognized the limitations of showcasing merchandise.
“I’d like to promote our design services, not only our merchandise, but also our services. My vision is to look into this sector (services) because I think it is where we are stronger compared to merchandise,” the CITEM head stressed.
Ocampo elaborated that at present, the agency is focusing on home, fashion, lifestyle, and processed food.
“We would like to go into electronics as well because we’re very strong in electronics,” adding that the Philippines has an equally strong IT-based sector that covers game development, animation, and health information management system.
According to Ocampo, the lack of raw materials and lack of technologies are hampering the potential of Philippine goods. “We’re not able to go out and promote these sectors (IT and electronics) because we don’t have that much budget.”
“We don’t have the capability to invest on high-tech equipment just like what other countries are doing so we’re not able to make our production more efficient,” she further explained.
The head of the export promotions arm of the Philippines underscored that if the country is able to address the issues on getting the necessary tools to make goods exports competitive, “then we can price our products in a more competitive manner.”
FILIPINO DESIGN
According to Ocampo, Filipino design is “global,” adding that “we can really compete with anyone else in the world.”
She traced back to a time when the Philippines was regarded as the “Milan of Asia.”
Based on the platform of Design Center Philippines, the country was dubbed as such in the 1980s to 1990s, “owing to the country’s prolific furniture designs and with several furniture designers winning international awards (Star Awards of Paris and Roscoe Awards of the US) for their product designs, which included Design Center designers.”
“We were being compared already to Italian design at that point in time. We can actually really compete with whoever. We are really known as a ‘design capital’ and I think you could see that, it’s evident in all of the products, especially in Manila FAME,” Ocampo said.
PINOY FLAVOR
On the Filipino flavor, Ocampo noted: “We have yet to identify a real, distinct Filipino cuisine because of the so many influences in our culture and they are evident in the many variations of the dishes. Like Adobo alone, there’s probably hundreds of versions of Adobo.”
The head of the export promotions arm emphasized that the country has to come up with a distinct Filipino offering when it comes to food just like the Japanese, Vietnamese and Korean people were able to do.
Peeping at the opportunity of Filipino cuisine in the United States, however, Ocampo shared, this distinct trait of Filipinos in America.
“Although they say that the Filipino cuisine is the next big thing in the US, at least that is good news. I think it’s because of the presence of a lot of Filipinos, our very own kababayans living in the US. That makes a lot of difference kasi sila na rin ‘yung nagpo-propagate ng [because they are the ones who propagate] Filipino taste,” she explained.
FILIPINO ENTREPRENEURS
Ocampo regards Filipino entrepreneurs as the embodiment of resilience, a quality that the CITEM head regards as both a blessing and a curse.
“I think the Filipino entrepreneur is the most resilient entrepreneur in the entire world,” she said.
Ocampo added, however, that it has been observed that government support is more evident among the Filipinos’ counterpart entrepreneurs.
“Other countries like Vietnam, Thailand, Malaysia, Singapore, and Indonesia have a more supportive government daw,” Ocampo observed.
“I think for the Filipino entrepreneur, I think they are resilient because there’s really not much support from the government,” Ocampo said.
EXPORT PROMOTION MARKETS
Ocampo stressed that the P200 million budget allows CITEM to cover “only a few markets.”
These are the markets in the United States, Japan, Korea, Taiwan, Middle East and Europe.
“We only have six markets right now and if you compare that to all the other ASEAN countries they’re all over the place. They are all able to join all the major trade events in the world while us, we cannot do that. We’re only present in six markets,” the CITEM head explained.
Ocampo further said that with CITEM’s current budget, the agency is only able to cover two industry sectors—food & home and fashion & lifestyle.
As to the products that are being offered to these markets, she divulged that the Philippines can offer home, fashion and lifestyle, as well as processed food.
Moving forward, however, other markets such as Canada, Australia, and some parts of America, hold so much potential for Philippine products.
“In America we’re not even fully present there. In fact, in the past years, we were absent in America and people were forgetting that we also have all of these products. They forget that we have the capability for home decors, furniture, fashion etc. We were absent in the US for quite some time already,” Ocampo revealed.
Still, she expressed optimism for next year. “We’re planning to go to at least three events. One for electronics, one for food and another one for the creative industry in the US.”
After the US, CITEM will most likely go to Canada, the United Kingdom, the Netherlands, including countries in Eastern Europe, according to Ocampo. “Canada is also a big market. Of course in Europe we’re only able to go to Germany and Paris but we have to go to UK as well and also to the Netherlands.”
Being the trading hub for the entire Europe, Ocampo sees the Netherlands as a considerable market, as well as countries in Eastern European.
REIMAGINING FAME
With just four months since being appointed as CITEM Executive Director, Ocampo said she “hit the ground running” to come up with a good offering for the coming Manila FAME from October 17-19.
Brandishing the theme for this year’s edition, she highlighted that Manila FAME 2024 will be about REIMAGINATION. “It’s all about the never-ending evolution of designs and of things,” Ocampo mentioned.
The CITEM head said they prepared many special vignettes that would demonstrate how their designers “reimagine” things.
Explained the CITEM head: “We talk about Design Commune for Fashion which is being done by Maco (Custodio) and the way he interpreted REIMAGINATION is really about how nature could be an inspiration to your design.”
Ocampo said Custodio, a Manila-based shoe designer, looked at nature as his inspiration and reimagined the smallest details that are occurring in nature and applied it into his own designs. “He looked at even the minutest cells of the leaves of a tree or how the ripples would look like.”
Based on his profile on the FAME+ website, Custodio’s most recent creation was the LALAPATOS, a design that was all about “authenticity, boldness, and collaboration.”
According to Custodio, the name is broken down into two—“LALA”, which means woven, and “PATOS,” meaning sapatos (shoes). He said that he combined foil, rubber, and leather to create a pair of shoes.
Speaking of the design, Custodio told FAME+ that he wanted it to look very Filipino without sacrificing the look and style, adding that he wanted it to be able to compete in the global market.
As for the Home category of Design Commune, Ocampo said this is being spearheaded by Rita Nazareno and Gabby Lichauco.
“What they did was to put together all of these old pieces which they redesigned, re-upcycled. They turned them into something else,” the Citem head said.
“It’s a different take of reimagining things because these are already existing pieces but turned into something else like a basket that has been turned into a lamp or a mat that was turned into a wall decor,” Ocampo elaborated.
NOSTALGIA
The CITEM chief shared that the Manila FAME will also feature a “nostalgia setting,” which she said is actually a collection of all the iconic pieces of Manila FAME in the era of the 1980s to 1990s. “These are iconic pieces that really made waves in the global market.”
Ocampo pointed out that the goal of FAME 2024 is for the younger generation of artists, designers and artisans to look into these creations and iconic pieces and “be able to draw inspiration from them.”
Asked on how the pieces showcased at Manila FAME have evolved through the years, Ocampo said, “It’s a never-ending revolution. Unlimited possibilities. For example: A handmade paper that was used for making boxes or as stationery paper. They now turn it into big panels of paper that could be used as wallpapers. Or the ordinary weaving techniques are now turned into bigger things they can be wall panels or wall dividers.”
Fame 2024 will showcase baskets being turned to planters and hanging lamps. “They used to be weaving techniques that were applied only to furniture or to baskets but now they are turned into hanging lamps or hanging lights,” Ocampo noted.
Asked if these Manila FAME pieces have the potential to flourish in the global arena, Ocampo said “Definitely. It all depends on the positioning. Like us, we’re positioning ourselves as a high-end supplier of well-crafted, well designed items. You don’t see these normally in Vietnam or in Indonesia.”
After speaking with utmost passion in promoting Philippine-crafted goods and the potential of Filipino creatives and entrepreneurs, Ocampo concluded with a no-frills response as to how she wants to be remembered as the leader of CITEM. She simply said that she “would like to be remembered as someone who did her best in stirring the agency to where it should be and that it should be recognized as the country’s trade promotion organization.
Entering the global market: Tips for Filipino MSMEs
The Public Statistics Authority (PSA) reveal that of the more than one million business enterprises listed as operating in the country, some 99.5% represent micro, small, and medium enterprises (MSMEs).
Considering this huge chunk of the business sector, CITEM Executive Director Leah P. Ocampo shared a handful of tips to Filipino MSMEs who wish to penetrate the global market.
“I think they have to first strengthen their domestic base,” said the CITEM head. “One of the mistakes that are being done by many of our MSMEs is that they want to go into export first. Mali yun [This is wrong]. They have to be able to train themselves first in the local market and strengthen their foothold in the market first before they go outside.”
Focusing on the domestic market, Ocampo said “Dito palang [Right here], the market is already huge. And if you’re able to supply the domestic market and there are extras already like your production is already stable, etc., you already know the ins and outs of business, then that’s the time that you go outside.”
Ocampo explained that entering the global market entails a lot of risk, since the global market is “very volatile,” and is influenced by a lot of factors such as wars and calamities.
“If there are occurrences like calamities or financial crisis, these are all being considered if you’re into export,” she said.
Ocampo added: “If you have a strong domestic base then you have an alternative market. If the world is collapsing, at least you have your local market.”
The CITEM head firmly believes that the domestic market is a strong market, considering the 110 million population of the country and the Filipino consumers having the spending power.
Ocampo further said that it’s really the consumers that are now keeping our economy afloat because of the remittances coming from abroad and the rising employment rate.
“People have the money to spend and that is the reason why consumer spending is the biggest contribution to the [Gross Domestic Product] GDP,” she noted.
