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PHILIPPINES: Jewelry Industry targets world class status

The Philippine jewelry industry aims to convert small producers into a unified major player in global and national markets. Top jewelry industry leaders, who are officers of the Confederation of Philippine Jewelry Inc.. (CPJI), announced the overriding purpose in a recent national conference to organize the jewelry industry to attain a collective goal that not one player can singly achieve. The leadership includes Peter Zuniga, CPJI President and President of Meycauayan Jewelry Industry Association (MJIA) , Malou Unson, CPJI Vice- President and President of Phil Jewelry Business Club Foundation, Inc. Cecile Ramos, MJIA Chair, and Mia Faustmann, President of the Guild of Phil Jewellers, Inc. The industry’s goal is to become a world class player by 2014 in terms of the relative size of its exports.

Global Filipino Nation (GFN), an international good governance organization of global Filipinos leaders and organizations in over 25 countries, provided technical assistance in the CPJI-constituency formulation of a Logical Framework (LogFrame) to attain the jewelry industry’s goal of becoming a world class player. GFN Convenors Victor S. Barrios and Evelyn R. Singson, assisted by GFN Deputy Executive Director Connie Gomez Valdes, guided the industry leaders over a period of 6 months in fleshing out the details of the expected outcomes, inputs/resources required, time-bound performance indicators and monitoring mechanisms. A LogFrame is a tool used by multilateral financial institutions, such as The World Bank and IMF, to serve as a roadmap in programs and projects. Barrios and Singson stressed that the success of the jewelry industry in moving forward, aided by a LogFrame, could provide a template for lifting other Philippine industries with similar potentials to become world class players.

The outcomes and requisite activities of the jewelry industry’s logframe cover a strengthened enabling environment; world class standards, designs and skills developed; strong markets established; enterprise management strengthened; efficient and sustainable production technology in place; and collaborative arrangements launched. A strengthened enabling environment would require efforts to lobby for the retention of jewelry incentives under RA 8502, streamline Bureau of Customs importation procedures, streamline procedures for access to government incentives, and establish an Assay Office. The introduction of world class standards, designs and skill require the implementation of Philippine National Standards on Jewelry, the development of expertise that would provide a continuous supply of talents, rationalization of jewelry design competition, development of skills standards and hiring of local and foreign consultants to train workers. The establishment of strong markets requires initiatives that define market niches, establish Hallmarking Scheme, work out a branding roadmap, involve participation in global trade fairs to increase market share and to be aware of market and product trends, prepare a list of suppliers to provide access to different sources and products, and strengthen the domestic market.

Strengthened enterprise management entails assisting workshops/seminars via financial support and training, and having the Dept. of Trade & Industry informing mall owners of the branding concept and possible assistance from the malls. The attainment of an efficient and sustainable production and technology necessitates the issuance of jewelry waste disposal guidelines, production mechanization and enhancement of productivity, acquisition of modern machine tools to be globally competitive and observance of green technology practices. Collaborative arrangements include requesting DTI regional offices to establish stronger network with jewelry associations and designation of point persons, organizing industry players into a unified collaborative corporate arrangement, initiating global sub-contracting, adopting efficient management and finance systems, and mobilizing government support. Inputs and resources needed include tapping the Export Support Fund, coordinating with the BETP and CITEM marketing and promotional strategies, coordinating the TESDA and DOST skills training programs, and assembling SME loan package inputs for the industry.

Jewelry industry officials pride themselves in asserting that they have achieved significant progress in moving the industry closer to its goal through the use of the LogFrame. The achievements include, among others: 1) streamlined Bureau of Customs accreditation procedures; 2) streamlined access to government incentives, capped by availment of export funding assistance for trade exhibits that had been difficult to tap in the past; and 3) the establishment of an Assay Office, thus facilitating the mandatory standardization of assaying, the adoption of ISO standards (including 20 Philippine National Standards on Jewelry) — elements that project the country’s world class image.

As a demonstration of its success, Mr. Luis Sicat, Trustee of Philexport for Fashion Accessories and Fine Jewelry has cited the exceptional progress of the jewelry industry in its confederation initiatives, especially the adoption of competitive standards relating to design and branding. Amidst the global economic crisis, the industry stood out as the only Philippine industry sector that posted a growth rate exceeding11.7% this year 2009.

CONNIE GOMEZ VALDES
Deputy Executive Director
GLOBAL FILIPINO NATION

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