THE GDH VISAYAS EXPERIENCE UP Diliman, Quezon City UPSSI April 7, 2015 VENUS C. GENSON President, Cebu GTH Foundation Inc. Out of the ruble comes a Strong, More resilient & Sustainable ONE VISAYAS The Concept… The Visayas region is endowed with rich natural raw materials coming from plants in the area. Raffia, Piña, Pandan, Abaca, Tikog and Sinamay, among others, are versatile indigenous fibers that can easily be integrated into any recyclable materials – hats, bags, wallets, placemats, table runners, pillow cases, and other home decorations. The Concept… With this abundance, HINIMO was conceived. From the Visayan word for creation, HINIMO is the brand name of the beautiful products and artworks created by the people living in the Visayas Region. It represents the creative output of the participants of the NICCEP Design Workshop from Regions 6, 7, and 8. The concept… MSMEs behind HINIMO products aim to use raw materials that are traceable and biodegradable, and will maintain an eco-efficient manufacturing process with less energy and water use. Products will be functional and safe from toxicity. Design will be modular, transport efficient and sustainable. Product Consultation with Mr. Yoshida – Japanese Designer November 26, 2013 (HINIMO soft launching-Reg 6-6;Reg 7-13;Region 8-5 MSMEs Cebu GTH Foundation on its 2nd General Membership Meeting and Election of Officers 2014-2015 Product Development & Design Center Phils. (PDDCP) Merchandise Development Program for Cebu GTH Members & OTOP Store Tindahang Pinoy Exhibitors Designer Ms. Vina Roy during consultation meetings •1st batch (March 12-14, 2013) – 10 companies •2nd batch (June 6-7, 2013) – 12 companies Business Matching in Japan Products from Region 6-78 during HINIMO Soft Launching were brought to Japan for the business matching. AGREEING ON A SHARED VISION OUR IDEAS SHARED VISION What does a successful CONVERGENCE look like? What does an effective Gifts Décor and Housewares coalition look like? CONSTRAINTS AND CHALLENGES Barriers to SMEs market expansion 1.Shortage of working capital to finance exports 2.Identifying foreign business opportunities 3.Limited information to locate/analyze markets 4.Inability to contact potential overseas customers 5.Obtaining reliable foreign representation 6.Lack of managerial time to deal with internationalization 7.Inadequate quantity of and/or untrained personnel for internationalization 8.Difficulty in matching competitors’ prices 9.Lack of home government assistance/incentives 10.Excessive transportation costs Source: OECD-APEC 2007 International Trace Center (ITC) 1. RECOGNIZE & EMBRACE THE LARGER MARKET • Collectively, ASEAN countries have more than $2 trillion GDP, making it the fifth largest market in the world. Promote awareness on the ASEAN Economic Community. The ASEAN Economic Community provides an opportunity to diversify markets in order to leverage the risks in focusing too much on traditional markets (e.g. United States and European countries which experienced economic slowdown) AEC could promote access to finance and technology transfer. Other nation ’ s industry knowledge and expertise could also be shared. These countries could usher additional supply of raw materials Source: ATKearney, Countdown to 2015: Creating ASEAN Champions 2. DEVELOP PEOPLE & INNOVATE PRODUCTS •Formulate policies that would encourage lifelong learning and skills development throughout the country •Education and skills training and development for workers to increase competitiveness of the industry •Skills of craftsmen and designers could defy intense competition posed by AEC •Use creativity to upgrade furniture standards •ASEAN consumers are spending more on higher value items. •Do-it-Yourself (DIY) GDH 3. TAKE A PAGE FROM A WINNER’S BOOK 1. Inspiration has no formula: Design is a discipline 2. Find your voice: Look for something new 3. Keep evolving: Design has to be always progressive As we head toward the AEC, approach product innovation and brand development from a wider perspective. •Diversity is a distinct feature of the ASEAN region, and understanding regional and country-specific idiosyncrasies can help your company use these differences to build a flexible, targeted value proposition. Source: Rappler.com 4. BUILD MARKETING MUSCLE Now is the time to create a regional brand, as consumption is about to surge and local consumers are feeling positive about the region’s outlook and about ASEAN. Being first or selling cheaply doesn’t mean you’ll remain a market leader. Tap Big or Global Homestyle chains Source: ATKearney, Countdown to 2015: Creating ASEAN Champions 5. EMPLOY BEST MANAGEMENT PRACTICES AND SUPPORT BSOs ie CEBU GTH; CFIF; CEBU FAME Robert Solow explained that differences in productivity of industries and countries are found in technological advances and management or organizational techniques. Source: McKinsey Global Institute, September 2014 6. PREPARE A STRATEGIC GAME PLAN 7. BE RESOURCEFUL Use alternative materials & mixed-media to respond to new GDH trends/market Identify areas which are suitable for mass cultivation and production of raw materials 8. STUDY ASEAN CLUSTER MARKET We must study the cluster market (like what can be exported within the ASEAN region, etc) and also to study competition within the region by studying the clusters in other ASEAN countries....its like developing cluster strategic roadmap towards ASEAN integration. SMEs need to be familiar of what's outside the country...they need to travel to get first hand information and to be able to share it with other SMEs • Time Commitment Deeper partnerships emerging • Program commitment required to resource people (with the right competencies ) • Different approaches Emerging outcomes Engagement • Review/reflect/adapt • Risks by not completing due diligence • Build and sustain trust • Continually explore • Agree a shared agenda Effective partnerships • Discover and agree mutual opportunities • Deepen understanding • Connect • Joint projects benefit Evolution Sustainability • Facilitate mutual learning • Provide/secure adequate funding • Agreement processes/structures Practices • Believe in yourself and your goals • Change from within and your sphere of influence S - Seize every OPPORTUNITY T - Tame your FEARS A - Announce your FAITH R - Receive from GOD T - Take a step of FAITH • Commitment • Fair business practices • Compliance of market demands • partnering • Understanding buyers’ challenges With buyers, suppliers but also govt. agencies • Act & Interact • Communicate and strategize Never..never…never give up! Times of crisis are for learning, redirection and reinvention of yourself! Visayas Gifts, Decors & Housewares (GDH) Cluster “Level Up GDH Visayas”
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