Crisis breeds success in cebu

CEBU CITY—The global financial crisis has one advantage to Cebu because it has led to a highly successful project that has brought business to the most rural corners of the country, while expanding the production base of the region’s world-class creative industry.

The unique program of the Department of Trade and Industry (DTI) in Central Visayas in cooperation with exporter-members of the Cebu Gifts, Toys and Houseware Foundation (Cebu-GTH) is a subcontracting scheme—the Subcontracting Partners for Innovation (SPIN)—under which rural craftsmen supply the needs of the foundation.

It was awarded early this month with the 2009 Presidential Citation for Best Practices after its successful bridging of the rural suppliers with international exporters in Cebu.

The SPIN has spread to nine regions—from all of the Visayas to Central Luzon and the Ilocos to Davao, Soccsksargen and Caraga in Mindanao, according to DTI Central Visayas director Asetria Caberte.

In one year, the program that started with P500,000 in seed budget from government has successfully facilitated P67.175 million in orders by Cebu-based exporters to rural suppliers, mostly weavers.

“This project could not have come about if not for the economic crisis,” said Caberte. “As exporters tried to cut their costs, they found subcontracting one viable option. As the industry prepares for the upswing, the exporters now have a larger production base and at the same time had their eyes opened to new creative opportunities.”

In various parts of the country, indigenous tribes are now weaving for the export market through world-class designers from Cebu. In one subcontracting community, former rebels and rebel recruiters are now either trainers or subcontractors.

“We took this as an opportunity to bring business to the countryside especially in conflict areas,” said Caberte.

No other region could better lead the project than Cebu, a hotbed of the creative soul and the country’s biggest and most successful producers and exporters of world-class furniture, fashion accessories, and GTH items.

More than 2,600 people are directly benefiting from the SPIN project after training was brought to 35 rural-based enterprises. The Cebu GTH industry, led by its president Jenifer Cruz, is leading the training of countryside weavers and craftsmen. So far 13 giant Cebu exporters are taking part and more are expected.

“The exporters were surprised at the craftsmanship they see in the rural areas. And the designers, they can create many things out of them,” said Caberte. “A bag made in one community may be made into table mats and ordered by volume.”

Caberte said in one instance, Cebu exporters were brought by DTI to the backwoods of Talaingod town in Davao del Norte to visit a tribe of Manobos, who are expert weavers.

The Manobos are now also among those who supply the needs of the exporters for their unique fabrics, which is blended into various design creations for the export market.

source: http://businessmirror.com.ph/home/top-news/13466-crisis-breeds-success-in-cebu.html

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P250 million allocated for anti-poverty program in Cebu City

Cebu City– In line with the implementation of the Pantawid Pamilyang Pilipino Program (4Ps) in this city, the Department of Social Welfare and Development (DSWD)’s Region 7 office has allocated P250 million for the project’s five-year duration period.

Cebu City Mayor Tomas Osmeña and DSWD’s Margarita Sampang who supervised the implementation of the Program, signed a Memorandum of Agreement (M0A) to formalize the partnership with the City distributing financial assistance amongst identified beneficiaries.

The Program is a poverty-reduction strategy by the Government which includes the provision of conditional cash transfer to extremely poor households identified by the DSWD.

It hopes to break the poverty cycle by addressing hunger, low educational achievement, high maternal and infant mortality rate, high malnutrition rate and child labor among the poor.

The Program also entails the direct provision of cash to family beneficiaries where parents are obliged to send their children to school and visit health centers regularly.

To recall, DSWD 7 has identified 10 most depressed areas in the city, including Barangays Tejero, T. Padilla, Sawang Calero, Duljo-Fatima, Inayawan, Mambaling, Kalunasan, Sudlon I, Sudlon II, and Tagba-o.

These barangays have a total 3,000 identified beneficiaries of 4Ps wherein each family beneficiary will receive cash aid from the DSWD over a five-year period. Under the program, R6,000 is given to each family for health and nutrition expenses every year for six years and P3,000 for each child, up to a maximum of three children per family for educational expenses.

Moreover, each household with three qualified children shall receive a subsidy of P1, 400 per month or P15, 000 annually as long as they comply with the requirements.

Beneficiaries unable to comply with the DSWD-prescribed requirements will be subject for suspension of the cash grants or, worse, expelled from the program.

The program is expected to provide primary education, reduce child mortality, improve maternal health and promote gender quality.

To date, some P3.5 million have already been disbursed by DSWD 7. The amount represents the first batch of cash distributed under the program in the city. A total of P46 million has been distributed in the entire region.

source: http://mb.com.ph/articles/211813/p250-million-allocated-antipoverty-program-cebu-city

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Over 100 inmates in Cebu, Bulacan observed for A(H1N1)

MANILA, Philippines - Over 100 inmates in jails in the provinces of Cebu and Bulacan are under observation for A(H1N1) symptoms, a radio report said Monday.

Radio dzBB’s Cebu affiliate reported that at the Mandaue City Jail, 100 inmates have been placed under observation after they showed A(H1N1) symptoms since last week.

The symptoms prompted the Bureau of Jail Management in Central Visayas to shorten time for jail visits.

As of Monday morning, the report said “only" 67 of the 100 suspected cases had flu-like symptoms.

Meanwhile, 10 inmates at the Bulacan Provincial Jail were quarantined Sunday after showing A(H1N1) symptoms.

Radio dzBB reported that the 10 inmates were placed in a holding area separate from other inmates’ cells.

Provincial administrator Pearly Mendoza said the inmates appeared to recover fast after they were given medication.

Mendoza said changes in the weather and lack of space may have helped the spread of the flu symptoms.

But the incident also prompted jail officials to conduct thermal scanning of visitors before they can enter the jail compound.

Jail officials also reminded the inmates to observe personal hygiene.

As of July 9, 2009, the Health department has recorded 2,688 cases with 95 percent recovery rate at 2,543. Four swine-flu related deaths have so far been reported.

As of July 6, the World Health Organization recorded 94,512 confirmed cases worldwide with 429 deaths. - GMANews.TV

Source: http://www.gmanews.tv/story/167775/Over-100-inmates-in-Cebu-Bulacan-observed-for-A(H1N1)

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Cebu retailers bullish on last quarter, 2010; spending will not equal 2007 level

CEBU CITY — Retailers are looking forward to the last quarter when consumers shop for the holidays, and to 2010 when election spending is projected to fuel consumption and drive up retail sales.

They don’t, however, expect to duplicate the double-digit growth rate achieved in 2007, an election year, because of the continuing global financial crisis.

"It’s still going to be challenging. To go back to double-digit growth as in 2007, an election year, will be extremely difficult because of the external environment now," said Bernie H. Liu, chief executive officer of Golden ABC, Inc. and director of the Philippine Retailers Association Cebu chapter, at the sidelines of the third Cebu Regional Retail Conference yesterday.

Mr. Liu said it could take another year or two for the global and the local economy to fully recover from the crisis.


"Nobody really knows when the economy would recover. Even (US President Barack) Obama can’t say when. But the environment in Cebu is not as depressing," he added.

Cebu’s retail industry is not as badly affected by the crisis as the other sectors and is projected to continue to grow, albeit at a slower pace than in 2007, because of the business process outsourcing (BPO) sector, the overseas Filipino workers and their families, and the tourists.

Focused markets

"These are our focused markets that are stable. We’re still very positive. Maybe, it won’t be the same kind of growth, but we expect some growth nonetheless," said Marissa N. Fernan, SM Prime Holdings, Inc. vice-president for marketing in Visayas and Mindanao, in a separate interview.

She said food continues to be the top seller, followed by apparel and electronic gadgets.

There is, however, a shift in consumer preference — from high-end to more affordable products.

Mr. Liu said some retailers cope with this "obvious and daring" shift in consumer behavior by repositioning their product mix.

For Golden ABC, Mr. Liu said they have come up with non-apparel products such as fashion accessories that cost less than P200. Golden ABC makes Penshoppe, Oxygen, Memo and ForMe apparel and accessories.

"Our accessories are growing by 300% while growth in apparel is a little lower," he said during a panel discussion.

Advertising

Despite the shift in consumer preference, Ms. Fernan said there has been no let-up in advertising efforts.

"Our budget (for advertising) is bigger. It’s times like this that more than ever, we need to boost promotions," she added.

Pinky Yee, managing director of Goldilocks, said retailers can’t afford to lose presence in the market. The last thing to go in times of crisis should be advertising, she added.

"We just have to be creative in reaching out to our customers. Have a strategic partner and work together," she said.

Ms. Yee also noted the need to maintain product quality despite being squeezed by the high cost of raw materials, ensure product availability and stay attuned to customers’ needs.

Source: BusinessWorld


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Cebu Pacific overtakes PAL in global ranking

MANILA - Low-cost carrier Cebu Pacific said Wednesday it has overtaken older local carrier Philippine Airlines in terms of number of weekly flights as of June. The Gokongwei-led budget carrier cited data from global flight information and data solutions company Official Airline Guide (OAG).

In a statement, Cebu Pacific said it now ranks 65th among world airlines--7 notches higher than PAL's 72nd rank this month.

Cebu Pacific has 1,655 weekly flights as of June this year, higher than PAL's 1,566.

"This new leadership milestone was a result of the airline's sustained focus on offering the newest planes and the lowest possible fares to its passengers," Cebu Pacific Vice President for Marketing and Distribution Candice Iyog said.

Delta Airlines ranked first with 26,898 weekly flights, followed by American Airlines (24,893) and United Airlines (23,996). Among Asian airlines, China Southern Airlines had the highest ranking (11th) with 9,440 weekly flights.

At present, Cebu Pacific said it is now Asia's third largest budget airline, serving 32 domestic destinations and flying to 14 cities in the region. Iyog said the airline's reach will be expanded further with the delivery of 15 new Airbus A320 over the next three years.

By 2013, Iyog said Cebu Pacific should have a total of 27 Airbus aircraft and 10 turbo-prop ATRs, the youngest aircraft fleet in the Philippines. On top of these, she said the Gokongwei-led airline is considering to buy five more planes.

"We are about 40 percent cheaper on average than the other airlines. So with low fares, new planes, and the convenience we offer by flying from four hubs--which allowed direct flights within regions anddid away with flying via Manila--we are in effect are offering what the people want and need," she said.

Cebu Pacific uses its four hubs (Manila, Cebu, Clark, and Davao) to fly 1,401 times weekly within the Philippines and 264 times weekly in Asia.

"We will continue to seek ways to expand and make more people fly. We have a great busines model that has shown domestic growth despite the present global downturn. We are confident that our march to further growth will continue," she said.

Cebu Pacific ferried 6.7 million passengers last year, and is expecting to carry close to 9 million this year. From 2010 onwards, the airline is looking at higher passenger traffic with the arrival of new aircraft and the growing list of destinations.

Source: ABS-CBN News

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