Garments sector sees US buyers coming back

Local garments exporters are expected to cash in on the expected comeback of American and European buyers, who have reportedly started increasing their outsourcing activities in the country.

Robert Young, president of the Foreign Buyers Association of the Philippines (Fobap), was quoted by the Philippine Exporters Confederation Inc. as saying that Fobap members were now “receiving more purchase orders from their principals” in the United States.

These are the same US buyers who have stopped buying five years ago during the recession. The buyers have started to come back looking for suppliers of knit playwear for children and woven sportswear for women. Orders from the US, he added, had doubled about two to three months ago.

“Every year, we have to observe the market. Compared to my trips (to the US) in the past five years, my trip this year is really different in the sense that there is really an increase in market activity. You can see that shops are really full. These are the likes of Neiman Marcus, Macy’s, Kohl’s, Target and Wal Mart which are all members of Fobap,” Young said in a statement.

He said European buyers had also expressed interest to place more orders from the Philippines, which had niche products that were highly in demand abroad. Some of these are placemats, bowls made of acacia wood and abaca-woven bags.

Young said the increase in orders from buyers abroad could be attributed to the improving US economy and the increasing labor cost in China.

The Philexport statement noted that the US had also planned to shelve its trade privileges for Bangladesh on concerns over safety problems and labor rights violations in its garment sector.

“Somehow we will be getting some share of these orders on the garments and hard goods (comprising handicrafts and housewares),” Young said.

The improving buying interest of the US firms is expected to prop up export sales of local makers of home accents by 10 percent this year. The US is the sector’s biggest market.

“The US is coming back. China, Vietnam and so on have increased their costs, so they (buyers) are coming here. We are now competitive plus we have good designs,” Luis Sicat, Home Accents Group of the Philippines Inc. (Hapi) chair, was quoted by Philexport as saying.