Establishing an import business in RP

[AsphaltVoyager]

Hi, all. My girl is pretty set against living in RP once we marry. She is not a fan of how "nosy" and judgmental she sees the Pinay as being. However, she has said she might be open to the idea in the future.

Knowing that folks in the Philippines are not particularly wealthy and that they are fond of clothing, I had considered the possibiity of establishing an import business for clothes, shoes, and accessories and possibly a store to sell the goods in if and when we do go to live there.

Does anyone have any information that might be of help in trying to break into this business and make it a successful venture? I was hoping that perhaps Old Navy/Gap/Banana Republic might be open to the possibility of branching out into RP, but they won't entertain any business propositions, they say, that are unsolicited. They've got GAP in Japan and China and one would think that S. Korea and Philippines would be the perfect next steps.

[Ray]

I think most of the import/export businesses for clothing in the Philippines are doing almost exclusively export, because of the low labor costs over there.

There are also import duties on most products that compete with local manufacturers.

I would start by consulting with some licensed customs brokers in the Philippines to see what kinds of costs are involved in importing those type of items. It is likely that you cannot compete with the import restrictions that are in place.

Ray

[AsphaltVoyager]

Hmm... yeah, yer probly right. However... would they have the Old Navy or GAP brand on them, made locally?

[Jeff S]

Better check with import rules too. Importing fabrics and clothing into the US has very different regulations than for general industrial goods.

I'd always thought specialty foods (like dried and processed foods and spices) would be a great ethnic product to bring in. You can buy pork and chicken anywhere but people in foreign countries miss the flavors of home, and often. particularly in small town USA, those kinds things are unavailable. Once they find a source, the buy over and over again too.

[AsphaltVoyager]

Hm.... actually, I was thinking the reverse scenario, buuuuut... there really is not a geat deal of competition in the marketplace, even in a big city like Dallas, for immigrant dollars in terms of foodstuffs and other sundries from RP. That might actually be a better option than trying to have a clothing store in RP. However, I would still like to have a getaway home there for us some day. The western and southern coasts of Macatan are gorgeous.

[robert angel]

I see more and more decent to rather well made clothes from the Philippines (and Vietnam) in the USA, sold at competitive prices, but it seems like everything made in, or associated with, the USA costs way too much for the average Filipino to buy regularly over there.

And a US Citizen trying to set up a business there always seems to have a hard time...

[Gato4Astrid]

Asphalt

I am in the Fashion business; and am doing the business in my country, United Kingdom.  I do not have any experience, owning businesses in other countries; therefore I cannot give you any advices on that matter - that's including import/export taxes duties, rules in their countries.

However, I have experience DOING the business.   

Before making a big commitment on setting up business, you need to have to make a business plan; marketing plan otherwise your business will fail.

There is old saying "If you fail to plan, you plan to fail"    It is very true to all the businesses.

Marketing plan is very important, especially when you are going to do business with the country you are not familar with.  One of the biggest mistakes in setting up business is that they fail to do research.

Don't say “I know, I know".  Be 100% sure of yourself!

Make sure you need to do some research work. 
-   Who are the customers?  Their age?
-   Who can afford to buy your products?
-   Find out about their competitions
-   How much to rent the shop?
-   Is it wise to import from other countries rather than from the same country?
So on …….

And good luck!

[Dave H]

Knowing that folks in the Philippines are not particularly wealthy and that they are fond of clothing, I had considered the possibiity of establishing an import business for clothes, shoes, and accessories and possibly a store to sell the goods in if and when we do go to live there.

Hey AsphaltVoyager,   

Good quality, especially brand name, used clothing is the way to go in my opinion.

Dave

[Bob_S]

I am in the Fashion business; and am doing the business in my country, United Kingdom.

Hey Gato!  Welcome back!  How goes the South America quest?  Or have you set your sights farther east yet?

[Gato4Astrid]

Hey Gato!  Welcome back!  How goes the South America quest?  Or have you set your sights farther east yet?

I knew someone would notice me!! lol

I have a girlfriend, Astrid from, Medellin.  We see each other 2 hours everyday for the last 6 months and am planning to go to Colombia either next month or in August.  It will be my 7th trip to Colombia but will be 1st time in Medellin

[robert angel]

Re:

>>Good quality, especially brand name, used clothing is the way to go in my opinion.


Hmm--I wonder if they're are excessive customs, taxes, tariffs, etc on USED USA brand name clothing shipped to the RP??

We hit Goodwill pretty hard for all that and have purchased a lot of nice, like new--some even still labled, Levi's Gap, Banana Republic and the USA sport designer names too, but we send it over, with new shoes, etc,  in balikbayon boxes, which in and of themselves, cost a bundle to send.

There's a real wealthy neighborhood around where we live, where it seems the people, especially the women, must buy 2 or 3 complete wardrobes a year. We've seen real exclusive, quality designer stuff for ridiculously cheap--$500 Coach purses for $15. new, $700 Hickey Freeman men's sport jackets for $10, that kind of stuff.

If we could fill shipping cargo, semi truck sized containers with nice stuff we purchased second hand, I 'think' we'd make money reselling it over there --if the govt. didn't gouge us before it left the docks on both ends.

It kills me to see the fungicide stinking clothes that they get for free from Goodwill & Salvation Army, stuff that usually didn't sell in the states, along with torn up old books and magazines--all gotten for free, but sold at crazy prices on the streets and in the malls.

I have never seen malls so crowded with happy people, most who have bought nothing....but hey, they're cool and happy!

[Dave H]

Hmm--I wonder if they're are excessive customs, taxes, tariffs, etc on USED USA brand name clothing shipped to the RP??

If we could fill shipping cargo, semi truck sized containers with nice stuff we purchased second hand, I 'think' we'd make money reselling it over there --if the govt. didn't gouge us before it left the docks on both ends.

You would be surprised at the amount of clothes and other things that can be stuffed into balikbayan boxes. Although a 20-40ft shipping container would be better. I moved practically our entire household to the Philippines in Balikbayan boxes. Hmmm...I wonder if I could fit in a Harley? Bedsheets and Corel dishes are something to consider, as they are quite expensive in the Philippines.

Personally, I would have stuffed the shoes full of socks and small fragile items such as  perfumes.

[thekfc]

I was surprise how much stuff I can fit into one box if you pack everything well. I got 5 empty boxes from LBC (for free) & all the stuff I wanted to send now fitted into 2 boxes.

Chocolate? Isn't that gonna melt by the time it arrive? There was a scented candle in the first set of boxes I sent & it melted but it did give the box & contents a nice scent.

We should have a thread "What is in your Balikbayan Box?".

[robert angel]

We just had some balikbayon boxes that we sent to Davao, Mindanao take over TWO months before arriving last week. We also sent one to Manila, which got there a few weeks before, still pretty dang slow.

Never mind the proverbial 'slow boat to China'--the shipping lanes to the RP must run pretty slowly at times.

All the chocolate was fine, I hate to admit (cheap, cheap) that even some in the original sealed bags that we got after halloween, arrived in fine condition.

Everything, including a new laptop, Singer sewing machine, Mp3 players, flash drives, movies,  clothes shoes and believe or not--a lot more stuff too, got there--in two big, and one small box.

Kfc, it's weird a candle melted. maybe it was a different kind of candle, soft wax or something?--it's been real hot and dry in most of the area our packages passed thru the last few months and no melted chocolate. Oh they LOVE that Nutella chocolate sandwich spread!.

We had those boxes sooo jam packed tightly that my wife had to sit on them to close the tops off enough for the first layer of tape. Then we must have put ten more layers of the better quality 3M clear packing tape. They look mummified, but I don't think I'll ever pack them so tightly again (at least not until next time) because as time kept going by and no online indication of arrival, I had visions in my head of the box's ripping/bursting open and their contents flying across a dock or ship deck, never to arrive.

Oh well, as I said in my last book written here: "All's well that end's well" I also originated the line 'It was a cold, dark night', of course and invented the internet in my spare time...

[AsphaltVoyager]

Never mind the proverbial 'slow boat to China'--the shipping lanes to the RP must run pretty slowly at times.

I checked with the post office when I sent a package on 5/24/10 and they toldl me there IS NO surface transport to Philippines any longer. Once it gets to the point of departure here in the States, it goes by AIR. So, the delays are in RP. She still hasn't gotten her package, by the way. It wasn't that big, either -- only 6 lbs.

As for sending chocolate, I figure as long as it's in some kind of sealed plastic bag, whether it melts or not isn't any big deal since a short time in the fridge will harden it again. I'm sending my girl some in her next care package.

[thekfc]

We just had some balikbayon boxes that we sent to Davao, Mindanao take over TWO months before arriving last week. We also sent one to Manila, which got there a few weeks before, still pretty dang slow.

Never mind the proverbial 'slow boat to China'--the shipping lanes to the RP must run pretty slowly at times.

LBC picked up my boxes on May 1st (I missed the shipping deadline for that week - so it would be "shipped" on the 7th), I just did the tracking (your post reminded me to track it - thanks) & it showed that it was received (arrived) at Manila Port Area yesterday - 6/11/2010 (42 days from the day it was pickup & 35 days from the "suppose" shipped day). Actually there is available tracking info for one of the 2 packages - I may have written the other number wrong or maybe it haven't been unloaded yet.

All the chocolate was fine, I hate to admit (cheap, cheap) that even some in the original sealed bags that we got after halloween, arrived in fine condition.

I always get these 40 ounce bags of chocolate but I am afraid to send them via BB for fear of melting.
 

Kfc, it's weird a candle melted. maybe it was a different kind of candle, soft wax or something?--it's been real hot and dry in most of the area our packages passed thru the last few months and no melted chocolate. Oh they LOVE that Nutella chocolate sandwich spread!.

Yes it was a soft wax candle - white chocolate scented.

I have 2 jars of Nutella Chocolate spread in my luggage now (I was surprise to find it at Target) - I think that they will love it. Both of my luggage are already packed/weighed and I have 5 & 10 lbs to spare. I am just waiting on one few thing to come (hopefully) -  Allure Summer Beauty Box. 
I have a few VS reward cards as well as staples rewards to use - I will hit the store this week (VS SAS in the stores start this Tuesday). I also want some more flash drives & memory cards but Staples have nothing good this coming week - maybe I will do a pm.

Depending on how much room/weight I have left - I may add a jar (or more) of Nutella.

I checked with the post office when I sent a package on 5/24/10 and they toldl me there IS NO surface transport to Philippines any longer. Once it gets to the point of departure here in the States, it goes by AIR. So, the delays are in RP. She still hasn't gotten her package, by the way. It wasn't that big, either -- only 6 lbs.

For this time of year (from 5/24/10) - it should have gotten there already. I sent Ahya a small package (2 lbs) last week (6/3/10) via USPS express mail & she got it earlier this week.

[Dave H]

I checked with the post office when I sent a package on 5/24/10 and they toldl me there IS NO surface transport to Philippines any longer. Once it gets to the point of departure here in the States, it goes by AIR. So, the delays are in RP. She still hasn't gotten her package, by the way. It wasn't that big, either -- only 6 lbs.

Hey AV,

Balikbayan boxes are usually placed in containers and sent by ship to the Philippines by private companies, not the US Postal Service or accompanied by Filipinos on airplanes. The post office wouldn't ship a jumbo box (big and heavy)...if they did, it would cost about $ One Million Dollars $.

US post office employees have absolutely no idea how the Philippines Postal Service operates! If your letter is not stamped "AIR MAIL" it will be put on the "slow boat" once it reaches the Philippines. I know...I have heard the sarcastic, condescending postal clerks say a million times..."Sir, ALL mail to the Philippines goes by AIRRR!!!" After a few years of that and trying to explain how things operate in the Philippines (they just can't accept it!), I finally gave up and bought my own "AIR MAIL" stamp. The further south, and more sea ports away from Manila...the more weeks or even months it takes to arrive!

Dave


Sir, your package is at our modern headquarters in Manila and is being sorted for delivery...



Oh, I see Sir...It is going to "THE PROVINCE"...For a while Sirrrr...



Sir, the shipping container with your package is in route by ferry...but there may be a small delay...for awhile Sir...


The shipping container with your package has now arrived at her island...



Sir, your package will be transported to your city by our modern delivery truck...as soon as we fill the truck.



Sir, your package is being delivered today...

[thekfc]

Cool pics Dave H.
I think I see one of my packages in there. 

I was out and about yesterday doing some grocery shopping & I say something that I haven't seen it a while - Mango Coconut Sauce. I bought a bottle of the sauce as well as a 2 jars of  Chocolate Peanut Butter Jelly - they love the jar of it I gave them last time.
Now I will see which one they like best:  The Nutella, the Chocolate Peanut Butter Spread or the Nusco Hazelnut Chocolate Spread.

[Dave H]

Hey thekfc,

"Mango Coconut Sauce, Chocolate Peanut Butter Jelly, Nutella, Nusco Hazelnut Chocolate Spread"...you are killing me!  

Dave
 

[robert angel]

Geeze, Kfc!

Man alive, I like ya and think you've got your wits about you, but bringing >>Mango Coconut Sauce<<  to a Filipino?

Isn't that akin to sending a box of snow to an Eskimo?

[robert angel]

Dave,

My wife 'tolerates' my P-L postings and basically ignores what goes on here, as she studies, does household stuff, etc., but she really is getting some chuckles from these balikbayon realted pictures!

Thanks again--keep them coming--this place needs all the humor it can get! Too much drama and not enough comedy is not good!

Rob

[thekfc]

Geeze, Kfc!

Man alive, I like ya and think you've got your wits about you, but bringing >>Mango Coconut Sauce<<  to a Filipino?

Isn't that akin to sending a box of snow to an Eskimo?

I told Ahya that I wanted chicken with  Mango Coconut sauce & she her response: "are you loko loko me?"
She said that she have seen that sauce.   
Even if they they have it - they will get a taste of our version (from the West Indies to be exact).

In the last Balikbayan box I sent, I included Lea & Perrins Worcestershire sauce & steak sauces, a few different barbeque sauce & a few other sauces/marinates.
Maybe I will send some coconut curry sauce/mix in the next balikbayan box.

[robert angel]

Hey Kfc, re:

>> Lea & Perrins Worcestershire sauce" --my Filipina likes that stuff--especially the thicker version. I had to actually tell her to go light on it....

[Dave H]

Dave,

My wife 'tolerates' my P-L postings and basically ignores what goes on here, as she studies, does household stuff, etc., but she really is getting some chuckles from these balikbayon realted pictures!

Hey Rob,

Maybe your wife will like these...  


Manila is like another country...a city-state. Things are done a little bit differently in the the Visayas and Mindanao!  


I know I can get it all in! Closing a typical balikbayan box.


My sister went to America and sent me the latest fashion rage!



Balikbayan Box Bags are the greatest! They make life so much easier. BS...a forklift would make life easier!!!


How to get rid of all of your old junk...hide it in a container full of balikbayan boxes and send it to the Philippines...the same way Japan sends its hazardous medical waste to the Philippines...  



Well done!

[thekfc]

The Balikbayan Boxes were delivered today to Ahya.

She said that she will not open them - she will wait for me to arrive & we will open the boxes together.