PH garments, hard goods exports seen growing 15%
Exports of garments and hard goods are expected to grow by as much as 15 percent to about $1.4 billion this year as buyers reinstated their cancelled orders last year due to the pandemic.
Robert Young, president of the Foreign Buyers Association of the Philippines (FOBAP), expressed hope that 2021 could be a recovery year for garments and hardgoods/furniture and housewares.
“FOBAP has adopted an ‘optimistic playbook’ for 2021 based on gathered data and fearless forecast, plus non-stop appeal for our principals for more production orders,” he said.
Young revealed of $280-million worth of new orders received by domestic factories.
"From sewing floor to store shelf, the 2021 outlook for troubled mid to high fashion items are dim and hazy, therefore a price recosting/re-levelling is a must. Only the basics and essentials, such as undergarments, fast fashion are now staying alive," said Young.
In addition, he said there have been confirmed export orders for the country's soft goods comprising mostly garments of about $200 million for the first quarter. Buyers include are Wacoal, Adidas, Ralph Lauren, Ann Taylor, JCPenny, among others.
Last year’s Philippine garment export was estimated at $900 million only.
In addition, Philippine hard goods and home fixtures or wares also received reinstated orders roughly $80 million from stores like TJMax, Crate & Barrel, Target and Costco.
"We expect to receive fresh orders in March 2021," Young said.
He said bulk or 70 percent of the orders come from the United States, while the rest from European Union, Canada, Australia, among others.
Young, also Philippine Exporters Confederation Inc. (PHILEXPORT) trustee for textile, yarn and fabric sector, is optimistic about export growth of the sector despite the pandemic, as the country's factories hope to book orders which are unserved by other Asian neighbors due to their full production.
"Most of these orders are coming from the relocated (moved out) foreign factories in China. Also, the Philippines will have added volume for the more complicated items jackets/sportswear which are not the production preference of other countries. They opt for more basic wearables," he said.