Philippines Sourcing: Gifts & premiums 2017

 

In Philippines Sourcing: Gifts & premiums 2017, buyers can find:

Verified exporters– 14 featured suppliers various gifts and premiums

Products– Full color images with specifications & prices

Supply market intelligence– Supply centers, industry trends, challenges, production and pricing

Export data– Philippines-wide details and survey results from featured exporters

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewProduct featuresSupplier surveyPDF downloadSupplier list

Philippines Sourcing: Gifts & premiums 2017 Sector highlights

Industry overview

Product featuresSupplier survey
  • Access to a skilled workforce enables suppliers to offer innovative designs crafted using traditional techniques.

  • 2016 exports of products associated with the gifts and premiums sector amounted to about $112.6 million.

  • MSMEs account for the majority of suppliers in the industry.
  • Suppliers use materials from trees, plants and other natural resources endemic to the country.

  • Makers are combining two or more indigenous materials in their products to achieve greater variety in looks and textures.

  • Subcontracting is a common practice.
  • Suppliers will be keeping prices at current levels or capping increases at 10 percent in the next six months.

  • Outlook on export sales in the next 12 months is generally optimistic.

  • Makers are expected to release more environment-friendly products in coming months.

Philippines Sourcing: Gifts & premiums 2017 Suppliers & products

Philippines Sourcing: Gifts & Premiums 2017

Philippines Sourcing: Gifts & premiums 2017

• Gifts & novelties • Promotional items • Stationery • Gift packaging

Our team has visited all Philippine manufacturers featured here to verify their export capability. Each has a website on GlobalSources.com with full company detailsproduct images with specifications, manufacturing capability and complete contact details.

Click suppliers’ names below to view their full profiles and product offerings on GlobalSources.com.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Gifts & novelties   
tPhilippine gifts and premiumsPhilippine gifts and premiumsPhilippine gifts and premiumsPhilippine gifts and premiums
[table “1849” not found /]
Stationery   
Gift packaging   
Philippine gifts and premiumsPhilippine gifts and premiumsPhilippine gifts and premiumsPhilippine gifts and premiums

Philippines Sourcing: Gifts & premiums 2017 Industry overview

Philippines Sourcing: Gifts & premiums 2017

Philippines Sourcing: Gifts & premiums 2017

• Gifts & novelties • Promotional items • Stationery • Gift packaging

This section discusses key issues affecting export manufacturers in the Philippines, offering insight into industry composition and important supply centers.

Philippine gifts & premiums exportsCompetitive advantagesChallengesIndustry composition
  • Indigenous materials remain a hallmark of exports.

  • 2016 exports of products associated with the gifts and premiums sector amounted to about $112.6 million.

  • Products sent to the US accounted for more than 50 percent of the export value.
  • Access to a skilled workforce enables suppliers to offer innovative designs crafted using traditional techniques.

  • The Philippines is home to a wide range of materials that can be used in gifts and premiums.

  • Government support for MSMEs also benefit the sector.
  • Raw material costs are on an upward trend.

  • Labor costs are relatively high compared with neighboring hubs.

  • Limited knowledge of the international market hampers product development.
  • MSMEs account for the majority of suppliers in the industry.

  • Metro Manila, Baguio City in Benguet province and the Bicol region are the key manufacturing centers for gifts and premiums in Luzon.

  • The provinces of Cebu and Negros Occidental are the key production hubs in Visayas.

Indigenous materials remain a hallmark of gifts and premiums from the Philippines. As consumers become more eco-conscious and socially aware, suppliers are opting for sustainable or environment-friendly options to differentiate their products.

The latest releases include handmade stationery, gift packaging and other paper products made from abaca, cogon grass and pandan leaves. Storage solutions, vases and home furnishings made of coco coir, or the fiber extracted from coconut husks, are also being offered.

Several companies are going “green” by using indigenous natural materials together with recycled paper, plastic or wood. Exhibits at recent trade shows include shopping bags and totes made from old newspapers and fitted with rattan handles.

Besides adopting environment-friendly materials, suppliers are exhibiting their social awareness by sourcing from or subcontracting processes to organizations that provide employment to marginalized communities.

The Leather Collection, for instance, uses textiles handwoven by the women of the Bagobo tribe in Southern Mindanao. The Metro Manila-based maker of leather goods features the fabrics in its Bagobo Weaves collection, which includes cardholders, key fobs, desk trays and coin purses.

Exports

The Philippines does not track gifts and premiums as a separate export category. 2016 exports of products associated with the sector, however, were valued at about $112.6 million. The data covers the following Philippine Standard Commodity Classification (PSCC) codes: 392640, 441400, 442010, 442090, 442190, 460210, 481730, 490900, 830621, 830629, 830630, 960110, 960190, 960200, 970200 and 970300.

Basketwork, wickerwork and other articles made from plaited materials accounted for nearly one-third of the export value. Wooden statuettes, ornaments, cases and other items made of wood contributed 21 percent. Worked bone, horn and other animal carving material, and articles made of these inputs accounted for 13 percent.

The US was the primary export destination. Products sent to the US accounted for more than 50 percent of the export value in 2016.

The other main markets were the EU, Asia and the Middle East. Products sent to these destinations together accounted for 38 percent of the export value.

Competitive advantages

Having access to a skilled workforce is a key advantage of the Philippine gifts and premiums industry, as this enables suppliers to offer innovative designs crafted using traditional techniques.

The country’s labor pool includes weavers, carvers and other artisans whose techniques have been passed down from previous generations. Suppliers can also tap locally for creative designers, who have received training within the country or overseas.

Literacy rate in the country exceeds 90 percent. The majority of the population has some level of proficiency in the English language, facilitating communication of buyers and sellers.

Another factor enabling makers to offer unique handcrafted products is the wide range of materials found in the country.

Abaca, for one, grows on all three major island of the Philippines. The country is the largest producer of the fiber, accounting for about 85 percent of global supply. Within the Philippines, the primary source of the material is the Bicol region in Luzon, which consists of the provinces of Camarines Norte, Camarines Sur, Albay, Catanduanes, Sorsogon and Masbate.

Rattan is also grown in various parts of the country. Palawan province in Luzon and the Caraga region in Mindanao are among the major producers of split and unsplit rattan, according to statistics posted on the website of the Forest Management Bureau of the Department of Environment and Natural Resources (DENR).

Government support for micro, small and medium enterprises (MSMEs) also benefit the industry since most gifts and premiums suppliers are MSMEs.

Philippines Sourcing: Philippines Gifts & premiums 2017

Challenges

High production costs remain a major concern of suppliers, as these push up prices and place Philippine products at a disadvantage compared with models from hubs with lower manufacturing expenses.

In recent months, rates of abaca fiber rose by up to 50 percent. The increase was due primarily to a shortage of supply caused by unfavorable weather conditions, which included Typhoon Nock-ten, known in the Philippines as Typhoon Nina. Production in the first quarter of 2017 was down nearly 8 percent from the same period in 2016, according to data from the Philippine Statistics Authority.

The Philippines also has relatively high labor costs compared with neighboring hubs. Monthly minimum wage rates in the National Capital Region range from 13,620 14,730 Philippine pesos, or about $273 to $295. Rates in other regions are approximately 25 to 45 percent lower, according to information posted on the Department of Labor and Employment.

In comparison, monthly minimum wage rates in Vietnam range from 2,580,000 to 3,750,000, or about $112 to $163. In Jakarta, Indonesia, the monthly rate is 3,355,750 Indonesian rupiah or about $252. Other provinces of the country have lower rates.

The industry’s heavy reliance on manual processes, including in managing raw material and component inventory, pushes up production costs. Compared with computerized methods, the manual process takes longer, prone to error and often results in wastage.

In terms of product development, Filipinos have the artistry and creativity to create innovative designs. Suppliers and designers, however, need more exposure to international markets. Maria Rita Matute, deputy executive director for value creation and promotion of the Center for International Trade Expositions and Missions (CITEM), noted in a 2016 interview with the HInrich Foundation that Filipino designers need to know who the consumers, how these consumers behave and what their lifestyle is so that they can “anticipate the products of tomorrow.”

Sector support

The Philippine government has policies and programs designed to enhance the competitiveness of MSMEs. Among these initiatives are the following:

• The Regional Interactive Platform for Philippine Exporters (RIPPLES) Plus program—jointly implemented by the Export Marketing Bureau (EMB), the Department of Trade and Industry’s Regional Operations Group (DTI-ROG) and the Philippine Trade Training Center (PTTC)—aims to expand the Philippines’ supply base of internationally-competitive export products and services. Under this program, the government provides potential exporters capability building trainings and information on markets and trends to enhance their competitiveness in terms of volume, quality, price, design and packaging.

• DTI has co-funded the establishment of fabrication laboratories or fab labs that offer rapid prototyping and digital fabrication services. The first fab lab shared service facility (SSF), funded by the DTI, the Department of Science and Technology (DOST), Bohol Island State University (BISU) and Japan International Cooperation Agency (JICA), was launched in 2014 and is located in BISU. The country currently has 12 fab labs scattered across its three major islands.

• DTI, through CITEM, organizes Manila FAME, a biannual trade event showcasing Philippine-made furniture, home furnishings, holiday gifts and decor, and fashion accessories.

• Under the Small Enterprise Technology Upgrading Program (SET-UP), the DOST encourages MSMEs to adopt technological innovations to improve operational efficiency, productivity and overall competitiveness. SET-UP supports MSMEs by providing training and consultancy services, as well as seed fund for the acquisition of new technology. It also offers assistance in packaging and labeling of products.

Industry composition

Micro, small and medium enterprises account for the majority of business establishments in the Philippines, including the gifts and premiums industry. In terms of ownership, makers are typically family-owned businesses or sole proprietorships.

The country had more than 900,000 business establishments in 2015, according to information posted on the DTI website, which cites data from the Philippine Statistics Authority (PSA). Of these establishments, 99.5 percent consisted of MSMEs.

According to the Philippine classification of MSMEs, microenterprises have up to nine employees and assets of up to 3 million Philippine pesos. Small companies employ between 10 and 99 people, and their assets can reach 15 million Philippine pesos. Midsize operations can have as many as 199 employees and assets of up to 100 million Philippine pesos.

There is no official number of gifts and premiums suppliers in the Philippines, but membership in organizations associated with the sector indicates more than 200 companies in the organized sector.

The Philippine Federation of Furnishings Associations (PhilFFA), which consists of eight organizations from the furniture, home decor, fashion and gifts sectors, reported having 558 members as of May 2017. Of the member organizations, the three directly associated with gifts and premiums companies—Association of Negros Producers (ANP), Cebu Gift, Toys and Housewares (Cebu-GTH) and Philippine Chamber of Handicraft Exporters & Artisans Inc. (PCHEAI)—had a total of 248 members.

PhilFFA’s other member organizations are:

• Cebu Furniture Industries Foundation Inc (CFIF)

• Chamber of Furniture Industries of the Philippines (CFIP)

• Home Accents Group of the Philippines Inc (HAPI)

• Philippine Homestyle and Holiday Decor Association (PhilHHDA)

• Health and wellness companies

Key production hubs

Metro Manila, Baguio City in Benguet province and the Bicol region are the key manufacturing centers for gifts and premiums in Luzon.

Suppliers in Metro Manila typically have their head offices in the city of Manila, while their factories are located in the nearby provinces of Quezon, Rizal, Laguna, Cavite and Pampanga. Makers from farther areas often have sales offices in Metro Manila as well.

Gifts and premiums suppliers in Baguio City usually offer craft gifts made of mahogany, gmelina, acacia and other types of wood. Ifugao woodcarvers, in particular, are skilled in creating ethnic designs.

The Bicol region, comprising the provinces of Camarines Norte, Camarines Sur, Albay, Masbate, Catanduanes and Sorsogon, is home to manufacturers specializing in abaca-based products. Exports from the region include mats, purses, slippers and decorative paper.

In Visayas, suppliers in Cebu province typically offer shell crafts and mixed-media novelty items made of indigenous wood, coconut lumber and grasses. Makers in the province of Negros Occidental are known for using capiz shells, pandan grass and parts of banana plants, coconut and buri palms.

In Mindanao, Cagayan de Oro in Misamis Oriental province is known for handmade paper products made from abaca and other plant fibers.

Supplier locations map

The highlighted areas on the map show the locations of the head offices and factories of the gifts & premiums featured in this report.

Philippines Sourcing: Philippines Gifts & premiums 2017 Supplier Locations Map

Philippines Sourcing: Gifts & premiums 2017 Product features

Philippines Sourcing: Gifts & premiums Product features

Philippines Sourcing: Gifts & premiums 2017

• Gifts & novelties • Promotional items • Stationery • Gift packaging

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Philippine gift & premium suppliers.

Buyers can also learn more about the materials used and the common price ranges of certain designs.

Materials & designsManufacturing & QCPricing
  • Suppliers use materials from trees, plants and other natural resources endemic to the country.

  • Makers are combining two or more indigenous materials in their products to achieve greater variety in looks and textures.

  • Samples of custom designs can be provided in one or two weeks.
  • Subcontracting is a common practice.

  • Color, texture and other product specifications are checked against client requirements primarily through manual handling and visual inspection.

  • Depending on the type of product and order volume, manufacturing lead times range from 30 to 45 days for the MOQ.
  • Handcrafted gifts and premiums from the Philippines typically target the midrange or high-end segment.

  • Order volume, payment conditions and inter-island shipping costs are among the factors considered in pricing.

  • Prices have been on an upward trend due to rising production costs.

Materials & designs

Philippine suppliers adopt a wide range of materials in gifts and premiums. Materials from trees, plants and other natural resources endemic to the country are popular inputs since these immediately differentiate products as being made in the Philippines.

Abaca is a staple in the production of craft gifts, premiums, stationery and gift packaging. The fiber is sourced mainly from Bicol Region in Luzon. Eastern Visayas is also a major provider, as well as Caraga, Davao Region and the Autonomous Region in Muslim Mindanao (ARMM).

Rattan is another common material in craft gifts such as bags, animal figurines, magazine and wine racks, and baskets. Palawan province in Luzon and Agusan del Sur in Mindanao are among the major sources of split and unsplit rattan, according to statistics posted on the website of the Forest Management Bureau of the Department of Environment and Natural Resources (DENR).

Fibers from the buri palm are also widely used in craft gifts and gift packaging. These are typically procured from Bulacan, Cavite and Pangasinan in Luzon, and Negros Occidental in Visayas.

For coco coir and other manufacturing inputs from coconut trees, the major sources are the Davao Region, Zamboanga Peninsula and Northern Mindanao. Craft gifts made from these materials include magazine organizers, mats and other home furnishings.

Cogon grass or Imperata cylindrica, which can be found across the country, is adopted in the latest paper products such as gift packaging, albums, notebooks, journals and pads.

Visual appeal is the main factor influencing material and design choices. To achieve greater variety in looks and textures, makers are combining two or more indigenous materials in their products. Natural inputs are also being partnered with metal, plastics and other synthetics.

Many of Tumandok Crafts industries’ products combine banana bark and capiz shells. Artisana Island Crafts offers coasters and storage boxes created using woven pandan leaves, wire and ceramic.

Besides creating more visually appealing models, suppliers are releasing multifunction or multipurpose designs to attract a wider market. The Leather Collection offers tablet PC holders with pockets and compartments for ID and credit cards. The company’s collection also includes memo holders with pockets for passports, boarding passes, and ID and credit cards.

Suppliers can customize designs, packaging, logo, colors and sizes. Samples can be created within one or two weeks, depending on the size and design.

Manufacturing & QC

The manufacturing process across all product categories of the gifts and premiums sector is labor-intensive. Many steps, including inlaying, woodworking, weaving, crocheting, embroidery and painting, are done manually with the aid of hand and power tools such as knives, cutters, jig saws, surface planers and paintbrushes.

Subcontracting is a common practice in the industry, but inlaying, assembly, finishing, QC checking and packing are usually done in-house. Among the production stages that suppliers often outsource are weaving and crocheting.

On average, makers have three personnel conducting QC checks. These employees focus mainly on inspecting raw materials and outsourced components and doing spot checks on products before finishing and packaging.

Color, texture, size and other product specifications are checked against client requirements through manual handling and visual inspection. Third-party testing and certification are done on client request.

Depending on the type of product and order volume, manufacturing lead times range from 30 to 45 days for the minimum order quantity.

Pricing

Handcrafted gifts and premiums from the Philippines are typically positioned in the midrange or high end. In addition to raw material costs and design complexity, order volume and payment conditions affect pricing. Inter-island shipping costs are also considered.

Quotes have generally been on an uptrend due to rising production costs. Rates of abaca, for one, rose by up to 50 percent due to a shortage caused by recent typhoons.

Suppliers, however, have generally strived to keep price adjustments at a minimum. In a survey of 15 suppliers conducted by the Hinrich Foundation, most respondents indicated that price increases will be kept within 10 percent.

Price guide

Price guide: Trays
$10 to $15
Vanity tray; woven pandan leaves; cotton lining; ceramic embellishment; 3.25x2.5x1.75 to 17x6x4in
$16 to $20
Serving tray; woven pandan leaves; synthetic leather or ceramic handles; 15x10x2.5 to 17.75x12.5x2.5in

Click image to enlarge.

Philippines Sourcing: Philippines Gifts & premiums 2017 Product features Typical Components of a tray
Price guide: Keychains
Less than $3
Stainless steel key ring; handcarved animal-shaped tag made of santol or gmelina wood
$3 to $7
Stainless steel key ring; handwoven cowhide tag
Philippines Sourcing: Philippines Gifts & premiums 2017 Product features Typical Components of a keychain
Price guide: Notebooks
Less than $3
30 leaves; paper made from abaca or cogon grass; bead embellishments
$3 to $10
72 leaves; ruled paper made from abaca or cogon grass; vegetable-dyed
Philippines Sourcing: Philippines Gifts & premiums 2017 Product features Typical Component of a notebook
Price guide: Gift boxes
Less than $5
Carton or paper mache; circle, square, rectangle or novelty shape; custom size
$5 to $10
Abaca twine; wire frame; pressed flower or leaf embellishment; organic dye; custom size
More than $10
Capiz or banana bark; brown or gold; custom shape and size
Philippines Sourcing: Philippines Gifts & premiums 2017 Product features Typical Component of a gift box

Philippines Sourcing: Gifts & premiums 2017 Supplier survey

Philippines Sourcing: Gifts & premiums Supplier survey

Philippines Sourcing: Gifts & premiums 2017

• Gifts & novelties • Promotional items • Stationery • Gift packaging

To give buyers first-hand information from active gifts & premiums exporters in the Philippines, we’ve surveyed the manufacturers featured on this site.

Export pricesExport markets & salesProduct trendsChallenges
  • Most suppliers intend to keep prices at current levels or capping increases at 10 percent.

  • Companies point to rising production costs as a reason for price adjustments.

  • Most suppliers will keep price adjustments within 10 percent.
  • Outlook on export sales in the next 12 months is generally optimistic.

  • Of the surveyed companies, 47 percent are anticipating export growth to exceed 10 percent.

  • Marketing efforts will be geared mainly toward North America and the EU.
  • Philippine gifts and premiums suppliers are taking various paths in product development.

  • The combination of traditional and modern elements in designs will remain a strong trend.

  • Environment-friendly products are also expected to increase.
  • Most suppliers consider price competition the primary roadblock to growth.

  • Makers are targeting niches or focusing on midrange and high-end segments to avoid direct price competition.

  • Design piracy also remains an issue.

Export prices

Most suppliers will be keeping prices at current levels or capping increases at 10 percent in the next six months.

Of the suppliers surveyed for this report, 27 percent indicated they will be taking the first strategy to retain existing customers and attract more orders. The rest will be raising their quotes, pointing to higher production costs. Those using abaca, for example, noted that rates for the fiber rose by up to 50 percent in past months.

Price adjustments will generally be kept within 10 percent, according to the survey. Of the respondents planning to raise quotes, 73 percent will be capping increases at 5 percent and 18 percent see adjustments ranging from 6 to 10 percent. Only one supplier projected a higher price hike.

Philippines Sourcing: Philippines Gifts & premiums 2017 Supplier survey export prices

Export markets & sales

Outlook on exports in the next 12 months is generally positive. Of the survey respondents, 40 percent expect overseas sales to increase by up to 10 percent and 47 percent are looking forward to higher growth. The remaining companies anticipate no significant change in export sales.

Marketing efforts will be geared mainly toward North America and the EU, the traditional destinations of Philippine gifts and premiums. Of the suppliers surveyed for this report, 46 percent will be focusing on North America and 27 percent will concentrate on the EU. One-fifth of the respondents are looking to establish stronger ties with buyers in Asia, specifically Japan, Hong Kong and mainland China.

Marketing efforts will include attending international trade shows such as the Hong Kong Gifts & Premiums Fair, which is organized by the Hong Kong Trade Development Council, and Christmas World in Germany.

Philippines Sourcing: Gifts & premiums 2017 Supplier survey Export Forecast

Companies are also looking to using online marketing platforms and establishing their own company websites.

Philippine gifts and premiums suppliers are taking various paths in product development. For 27 percent of the surveyed companies, simplicity is the key word. Upcoming products from these companies will highlight only one or two colors.

Another 27 percent will be combining traditional and modern elements in their designs. Releases in line with this strategy include fashion accessories and decorative boxes incorporating textiles handwoven from indigenous materials.

The adoption of environment-friendly manufacturing inputs such as cogon grass and recycled paper will remain a strong trend. Embellishments such as dried flowers, leaves and tree bark are anticipated, as these highlight products as being natural and environment-friendly.

More multipurpose designs are also anticipated. These include wallets, notebook covers and journals with pockets or sleeves for pens, credit cards and other items.

Challenges

For 46 percent of the suppliers surveyed, dealing with price competition is their primary concern. Due to high production costs, companies find it difficult to match the quotes of counterparts in China, Vietnam, Indonesia and other neighboring hubs without sacrificing margins.

To avoid direct price competition, makers position their products in the midrange or high end. Many are focusing efforts on niches such as novelty stores and gift shops.

Design piracy also remains an issue. After exhibiting their products at trade shows, suppliers have found their designs copied and sold at a lower price by competitors.

Philippines Sourcing: Philippines Gifts & premiums 2017 Supplier survey Key findings

Some suppliers also indicated that government support remains limited, especially in terms of enabling small businesses to access financing and promote their products abroad.

Philippines Sourcing: Gifts & premiums 2017 PDF download

Philippines Sourcing: Gifts & premiums  2017

Philippines Sourcing: Gifts & premiums 2017

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Industry overview

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  • Industry composition
  • Key production hubs
  • Philippine gifts & premiums suppliers

Charts


  • Export value & markets
  • Supplier exports
  • Supplier locations map

Product features

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  • Highlights
  • Materials & designs
  • Manufacturing & QC
  • Pricing
  • Price guide
  • Philippine gifts & premiums suppliers

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Supplier survey

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  • Highlights
  • Export prices
  • Export markets & sales
  • Product trends
  • Challenges
  • Philippine gifts & premiums suppliers

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Philippines Sourcing: Gifts & premiums 2017 Supplier list

Philippine gifts & premiums suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier statusGifts & noveltiesPromotional itemsStationeryGift packaging
Artisana Island CraftsActive   
Cagayan de Oro Handmade Paper CraftsActive  
Golden Arts and FurnishingActive   
Hagonoy Sports International Inc.Active   
JRCS EnterpriseActive 
Marjorie B. Arellano HandicraftsActive  
MERR-C Society of the Word Foundation Inc.Active   
Rathbone & Co. Inc.
Active   
Salay Handmade Paper Industries Inc.Active
Silay Export Inc.Active  
The Leather CollectionActive  
Tumandok Crafts IndustriesActive   
Twenty Nine Eleven Handicraft TradingActive  
Vivo HandicraftsActive