Textiles and clothing to the Philippines

(Last updated: 3 Sept 2008)

Trends and opportunities

With 60 per cent of its 90 million population under 30 years of age, a thriving economy powered by consumer spending and a rapidly expanding retail sector, the Philippines is an ideal market for Australian fashion companies.  

Australian fashion enjoys a niche market in the Philippines. Positioned not to compete head on against European signature brands available in Philippines, it is recognised recognition for cutting-edge designs and trendy artistry by upcoming young designers.   

The Philippines is a price-sensitive market. Retailers always try to negotiate the best price from their suppliers to be able to offer clothes at prices, which the market can afford. Therefore, they are not averse to clothes being manufactured in China as this means lower freight costs and shorter shipping times. However, the label must emphasise that the clothes were designed and conceptualised in Australia. To be able to compete on price points, most Philippine stockists also look out for stock lots or the previous season’s fashion.

Philippine retailers generally prefer Australian brands which are currently sold in other Asian markets. This assures them that the brand has achieved some degree of exposure, the sizing is already tailored to the smaller Asian build and the pricing suited to Asian budgets. 

Opportunities

Street wear, swim and surf wear have traditionally been the staple of Australian exports to the Philippines. However, market interest in men’s street wear and children’s wear is picking up. Interest in Australian concept stores is also growing because of the success of European concept stores in the Philippine retail scene.

Tariffs, regulations and customs

Import duty on fashion apparel is 15 per cent and VAT is 12 per cent. Normally, retailers use a factor of three to four of landed cost to estimate their retail price.

Marketing your products and services

Market entry

Philippine retailers generally buy direct from fashion houses and not through local agents or distributors.   

Visual marketing tools are very important in the decision-making process. Importers/retailers want to look at websites, look books and samples from before they make decisions.

Buying season is March for delivery in September in time for the holiday season, and August for delivery in February for summer. Philippine retailers generally attend spring/summer fashion trade shows as the country does not have a fall/winter season. 

Distribution channels

Australian fashion brands are sold in up-market department stores or multi-label boutiques. They target the upwardly mobile young-adult market made up mostly of 18 to 35-year-old women who are upwardly mobile, financially empowered and fashion forward. They keep a close eye on international fashion trends and are keen to try-out the latest fashions.

Links and industry contacts

Textiles and clothing-related resources

Philippine Retailers Association – www.philretailers.com
Unit 2610, Jollibee Plaza
F Ortigas Road, Ortigas Center
Pasig City
Tel: +63 2 687 4985
Fax: +63 2 636 0825
Email: philretailers@gmail.com

Philippine Franchise Association – www.philfranchise.com
Unit 701, One Magnificent Mile (OMM-Citra)
San Miguel Avenue, Ortigas Center
Pasig City
Tel: +63 2  687 0366 to 67
Fax: +63 2  636 0365
Email: pfa@nwave.net