Exporters slash prices to curb slowdown in orders

MANILA, Philippines - Philippine jewelry and houseware exporters are drafting new product designs and slashing prices by half to ensure continued orders from rich countries currently affected by the global crisis. Exporters will soon be offering new product models to their foreign buyers to retain current customers and attract new ones, results of a survey undertaken by the Philippine Exporters Confederation (PhilExport) said. Even in “economic storms," these new strategies “can bring in buyers to the country if they are in search of unique designs, novelty, and the “wow factor" in a product," PhilExport said, citing the response of another exporter who participated in the poll. Besides marketing their products in resorts, hotels, and restaurants, other exporters surveyed said that they have cut prices by 50 percent to entice buyers. The survey involved 12 companies and covered the effects of the 2008 financial crisis. These new efforts are expected to curb the slide in orders, PhilExport said, adding that half of the survey respondents disclosed that orders have plunged anywhere from 20 to 50 percent. A jewelry company even reported that it received no new orders this year after posting approximately $1 million in revenues last year. As a result of these developments, some companies have temporarily suspended operations while others have either let go of 20 to 60 percent of their workers or cut their operation schedules. Meanwhile, others plan to avail of the Export Development Fund and participate in international exhibits to promote their products, said PhilExport, the country’s umbrella organization of exporters. - GMANews.TV