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DTI Plans and Programs for the GDH Sector

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1 DTI Plans and Programs for the GDH Sector
To the officers and staff of the University of the Philippines Institute of Small Scale Industries (UP ISSI), associates in government, industry leaders, entrepreneurs from the MSME sector; special guests, Good Afternoon. I am glad to have this opportunity to join all of you in this activity called GDH Industry Situationer and Workshop. In May 2013, I participated in a workshop that crafted the Philippine Gifts, Decors & Houseware Industry Roadmap as National GDH Cluster Head of DTI. In attendance were stakeholders and leaders of the GDH industry cluster, among others.. That workshop revealed the challenges and opportunities of the national GDH sector. Let me share the outcome of the workshop with you ---- A Philippine GDH Roadmap This roadmap is meant to help industry stakeholders and the national government find more ways to assist our MSMEs become more competitive in the domestic and international markets considering that SMEs are the backbone of the economy. Asteria C. Caberte Regional Director, Department of Trade and Industry 7

2 PHILIPPINE GDH INDUSTRY ROADMAP (2013 – 2016)
STRATEGY FOCUS 2013 2014 2015 2016 Bottom-line Target I. MARKET DEVELOPMENT Develop and Implement a Branding Program in Cebu, Negros Occidental, and Leyte Export, New Products, New MSMEs, New Markets, Brands, Investment, Employment Improve access to market information (esp. On new trends, technologies, how to add value to competitor products, designs and customer requirements) MSMEs Assisted, Domestic Sales, Online interactive market info system, On-line web-site with brochure Conduct in-depth market research on the needs of specific ASEAN countries to prepare and exploit opportunities of FTA Knowledge management, Knowledge products, Collaboration and information sharing, MSMEs assisted, New Product Concepts Strengthen market promotions through quad-media, local and international fairs and other venues MSMEs Assisted, Sales, Orders Converted to Sales Improve productivity levels of people, machines, capital and in the areas of raw materials research and design These are the Interventions under Market Development and Customer Strategy Focus.

3 PHILIPPINE GDH INDUSTRY ROADMAP (2013 – 2016)
STRATEGY FOCUS 2013 2014 2015 2016 Bottom-line Target II. RAW MATERIALS SOURCING AND R&D Design more products using eco-friendly raw materials through DTI-PDDCP, BSOs and MSMEs MSMEs benefited, Sales, New products developed III. PEOPLE DEVELOPMENT 1. Continuous Capability Building and Training of MSMEs (BSOs, Owners, Managers, Workers and Suppliers) MSMEs Assisted, TNAs done, Project Proposals, Trainings Done, Post Activity/Terminal Reports IV. DESIGN, PRODUCT DEV’T AND PRODUCTION Continuous Product Design and Development Program (including segmentation of product dev’t stages or product components and adoption of appropriate technologies) Prototypes, Products, Sales, Jobs Generated, Trade Fairs/Shows Upscale the Regional Hip and Trendy Souvenir Design Export, New Products, New MSMEs, New Markets, Brands, Investment, Employment OTOP Merchandise Development Program (for OTOP TP Exhibitors) These are the Interventions under Raw Materials Sourcing and Research and Development, followed by People Development and Design, Product Development and Production Strategy Focus. As to Raw Materials Sourcing, the ECCP has created the Materials Innovation Centre (Matic) in Cebu to showcase the indigenous products of Cebu producers in hope to promote sustainability and eco-friendly products. ECCP Cebu Matic, located at the S&T Complex of the Department of Science and Technology of Central Visayas in Banilad., also aims to link native product makers with local suppliers of raw materials. ECCP Cebu believes that creativity and competitiveness of design industries can be done through innovation of indigenous materials, manipulation of new materials, use of efficient technology and reinvention of designs.

4 PHILIPPINE GDH INDUSTRY ROADMAP (2013 – 2016)
STRATEGY FOCUS 2013 2014 2015 2016 Bottom-line Target V. BUSINESS ENVIRONMENT, COSTS & FINANCING Provide SSF to MSMEs through their GDH-BSO’s MSMEs Assisted, Sales, Jobs Generated, Products Demand for Special Financing Window thru National-BMSMED Council (starting with small group discussions between DTI 7 and GTH-Cebu) One per Region Special Window rolled out and active; 55 MSMEs (or 5 per Region as pilot) VI. BSO DEVELOPMENT & INDUSTRY CLUSTERING Strengthen collaboration among stakeholders through industry clustering using VCA as a tool Industry Associations assisted, MSMEs Assisted, Upgrading Strategy Strongly advocate wage structure review and updating through the National MSMED Council Jobs generated, MSME wage structure Review, update and avail of MSME incentives esp. If geared for the ASEAN 2015 FTA MSMEs benefited, GDH LGUs with Incentives, Incentives for GDH Ensure that LGU’s with active GDH MSME’s streamline their BPLS to improve business environment Streamlined BPLS in all LGU’s in enrolled Regions, Ease of Doing Business These are the Interventions under Business Environment, Costs and Financing, as well as for BSO Development and Industry Clustering.

5 SUPPORT TO TOURISM MSME DEVELOPMENT
Objectives: To develop and promote competitive tourism products and services To strengthen accessibility and connectivity to tourism destinations To generate investment, jobs and market opportunities in the tourism sector At this point, I would like to share with you the outputs and agreements made during the National Industry Cluster (NIC) Strategic Planning Workshop for the Tourism Support Industries: Wearables and Homestyle (W&H) / Processed Food (PF) which was held on November 11 to 12, 2014 at Harolds Hotel, Cebu City. In attendance were the NIC Coordinator and DTI VII, National GDH Cluster Head, and some 30 regional participants coming from the regions enrolled to the NIC. As a backgrounder, The DTI 7 realized during the implementation of NICCEP project that there is an undeveloped Souvenir Industry Sector in the regions. To address this problem, we proposed to improve the ability of local MSMEs to access market opportunities in the growing tourism industry. We strategized on how to grow the local Souvenir Industry by fostering deeper collaboration among players in the tourism cluster and by linking communities to the tourism cluster.

6 Tourism As Market Here is a global tourism value chain map.
Based on this map, we have developed our strategic directions which include : 1. Tourism cluster as Target Market for Products and Services (LInCs) 2. Development of a Souvenir Industry (Philippine GiFTS Program) 3. Increase the Productivity and Efficiency of MSMEs in the Tourism Value Chain 4. Improve access to finance 5. Improve the business enabling environment

7 PROJECT TEAM AND STRUCTURE
In order to achieve our goal, we partnered with the Department of Tourism and our tourism players.

8 ACTION PROJECTS Projects Total Amount of project costs
Projects Total Amount of project costs Fund sources of the project costs Source 1 (JICA) Source 2 (DTI) Source 3 (Others) Enhancing Competitiveness of Souvenir Products for Tourism Sector (R6-Aklan + Bacolod) 172,500.00 - Souvenir Development Program (R7-Bohol) 761,000.00 261,000.00 500,000  Souvenir Product Development Program (R8-Tacloban) 300,500.00 307,000  During the National Industry Cluster (NIC) Strategic Planning Workshop for the Tourism Support Industries, we identified opportunities for the W&H and PF sectors and developed action projects . The main agreements during the workshop included the following. The markets of the Tourism Support Industries (Wearables and Homestyle and Processed Food) are the tourism establishments and the tourists themselves. In view of the foregoing, the NIC Tourism Support Industries shall appropriately include both W&H and PF sectors. The Wearables & Homestyle (W & H) shall include the following subsectors: Fashion Accessories (FA) Furniture and Furnishings (F&F) Gifts, Decors and Housewares (GDH) Handicrafts [Bags and Bayong] (HC) The Processed Food (PF) sector shall include ALL attendant subsectors and not only processed fruits and nuts.

9 SWOT ANALYSIS (Souvenirs)
Strengths Availability of skilled and trainable manpower HACCP and HALAL certified food processors Strong LGU and national government agencies support Presence of strong sectoral organizations Convergence of public and private sectors Available raw materials Weaknesses Poor access to credit Lack of accredited tourism establishments Lack of compliance to food safety standards Poor network between tourism related industries and support industries Lack of knowledge of the market Lack of pasalubong centers and souvenir shops Upgrading of facilities and services is not a priority Lack of competency to develop new or innovate existing tourism products MSMEs lack the capacity to produce on a larger scale/low productivity Opportunities Increasing market opportunities for local souvenirs Presence of government support programs Growing demand for organic rice Increasing market for green products Online marketing opportunities Shared Service Facilities Increasing investments MICE Threats Competition and substitute products from other provinces, regions, countries pose a local threat to local souvenir industry No proper waste disposal or treatment facility Lack of enforcement of tourism policies and laws Environmental degradation Weather disturbances Excessive collection fees Here is our SWOT Analysis for souvenirs. During the workshop, two NIC Team-steered programs / projects were developed, namely : 1) the DTI activities, possibly showcases / trade fairs in five focal areas – Boracay, Cebu, Iloilo, Legaspi and Manila, around the APEC Year 2015 meetings and events and, 2) the Travel Retail Program which takes advantage of the fast growing travel retail market in the Philippines. This program includes Product Development, Branding, Upcycling and Green Products initiatives. Stakeholders shall anchor efforts on ongoing initiatives.(RD Aster Caberte with possibly RD Joy Blanco to meet with Mr Butch Carungay to brainstorm and develop a workable concept for this program. ) 3) the Green Business Practices Promotion, was also accepted but only to be embedded within the other two programs / projects.

10 Programs & Projects for 2015
2015 APEC Year Travel Retail Program Green Practices Promotion Take advantage of the APEC related events and meetings in the PH in late 2014 and the whole of 2015 in five focal areas – Boracay, Cebu, Iloilo, Legaspi and Manila. Possibilities DTI to organize product showcases / trade fairs around the APEC meetings and events at the entry / exit / venue areas. Regional Participation All regions are invited to start asap selecting their best of the best products (mostly lightweight souvenir items) for possible inclusion in these showcases / fairs. Way Forward RD Aster Caberte will get in touch with BDT Director Rhodora Leaño on the concept and arrangements. Results of discussion / agreements will be communicated to the regions by the NICC. Take advantage of the fast growing travel retail market in the Philippines. . Will include Product Development, Branding, Upcycling and Green Products initiatives. . Anchor efforts on ongoing initiatives of Mr Carungay such as the following: . Intl shows of Eco Products eg in Hongkong RD Aster Caberte with possibly RD Joy Blanco to meet with Mr Carungay to brainstorm and develop a workable concept for this program. Results of discussions will be conveyed to NIC Team members. Green business practices will be promoted as an environmentally friendly response and a cost reduction opportunity. Will include: . Brand Development . Documentation of cases, figures, impacts to support promo campaigns . Capacity building of entrepreneurs in doing self audit of firms . Giving of recognitions to outstanding practitioners . Green product promotion (In the PH, being a green product is not yet a buying motivation; in developed countries, the so-called green lane ensures a market for green products.| . Pursue this in lower intensity compared to the two previous PAPs and simply integrate in the two other nationally-steered PAPs. Here are our Programs and Projects for 2015.

11 DEPARTMENT OF TRADE AND INDUSTRY CENTRAL VISAYAS REGIONAL OFFICE
3/F, WDC Building, Osmena Boulevard, cor. P. Burgos Street, Cebu City, Cebu, Philippines Telephone (032) • Fax (032) With that I end my presentation. Thank you and good day.


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