MANILA, Philippines--Though members of the Philippine Chamber of Handicraft Industries, Inc. no longer feel that they are the government's "flavor of the month" especially in the allocation of resources and support, they are valiantly taking the stand to keep their space under the sun.

Ever since the governments of Indonesia, Vietnam and China poured support and attention to its own handicraft industries, the Philippines has found itself steadily losing its markets.

"We continue to be haunted by the high cost of inputs, such as power and labor," according to Ajun Valenzuela, PCHI executive director. Even with a dogged persistence in calling government's attention to two of the most critical industry problems, there seems to be no solution in sight.

To bolster the industry's competitiveness, the PCHI board has shifted its attention to finding alternative markets and alternative marketing tools. "We have repositioned the industry to be a provider of products for the higher-end A and B market," according to Chiqui.

The chamber, for example, sees China not as a competitor, but as a market with enormous purchasing potential and as a partner in the production of some of its finished products.

With a P10-million assistance from the Bangko Sentral ng Pilipinas' Export Development Fund, PCHI organized mini-trade shows for target countries, with the chamber taking on the role of institutional matchmaker.

For its first leg held last February, for example, selected chamber officers met with German, French and Spanish businessmen to promote selected products of its 130 members.

"After four months, in June, several businessmen from Spain came over," says Ajun. Of the 33 companies that showed off their wares, 20 received firm orders for their products, while a few others are still in the middle of negotiations. The value of trade is already at an impressive P44 million.

The shipment will be made this November, which means that proudly made Philippine handicrafts should be found at the outlets of El Corte Ingles, Spain's largest and most prestigious department store chain, during the Christmas buying season.

The chamber has just concluded its second leg focusing on the Japanese and South Korean markets. This month, PCHI is preparing to participate in the much-attended Furnishings and Apparel Manufacturers Exchange, or more popularly known as the Manila F.A.M.E International.

Working together

"We now work as an organization when participating in trade shows," Chiqui Veneracion, PCHI executive vice president and marketing director, notes. By jointly promoting the handicraft industry and its members, instead of letting individual members work on their own, PCHI has been able to negotiate bigger and more export orders.

"Also by taking a lifestyle approach," says Chiqui, "exporters are also given a wider range of products." Whereas members before sold singular items, like a lamp or ashtray or table, as stand-alones, the chamber is now putting together different products and grouping them as belonging to a bedroom or a living room showcase.

The chamber has also served to maintain the high quality standards that export markets demand. "We have a sort of accreditation," says Chiqui, while adding "We also help each other with problems. If a company gets into delivery problems, we try to find other members that could provide assistance while maintaining the product quality."

"The Philippines enjoys a creative edge over other countries," says Chiqui. This, plus the fact that Filipinos are quality craftsmen adept at handling the production of intricate housewares or decorative items, is an undisputed edge of the local handicraft industry.

The trade of handicrafts, or craft work, is characterized by labor-intensiveness, with the chain of production often extending to mountain communities or island villages where unique raw materials are extracted and polished often by the locals for use in the end-products.

The handicraft industry is highly regarded for its role in providing jobs largely in the rural areas and among the urban poor, and as a honing ground for budding micro and small entrepreneurs. Currently, it ranks 11th as contributor to the country's gross domestic product.

It's not just the current financial crisis that the United States, still the industry's biggest market, is facing that is worrying exporters. While China and other countries are able to quickly copy Philippine designs and mass manufacture them, the local industry is also feeling the effects of designers being pirated by other countries.

Alex Tan, a PCHI director in charge of product development, likewise sees more challenges ahead for Philippine handicrafts. "We have to push our creative limits. We have to push our raw materials and how we manipulate them," he says.

For Ajun, the months ahead will be crucial in catapulting the industry back to fighting form. "People should work together," he says of the new PCHI. By the end of 2009, the chamber looks forward to expanding the sector's workforce to 10,000-strong, and reaching out to providing employment opportunities to 50,000 more.

The handicraft industry, it seems, does not want to be written off. "Make no mistake," Alex warns, "we will survive and flourish."