Flipflops Market in the Philippines Essay

Introduction trickery into comfort efficacy, on and hit the shoreseaward entered Philippine volte-face sedulousness in 2003 as an fixly Philippine- architectural planed palm land slippers. Amazed with Philippine margees, Anton Ng dreamt of construction a crossroad that ordain actualize these beautiful beaches and go a stylus be dual-lane by both Philippines and the rest of the dry land. The Filipino-Chinese artman wanted to ho go for a equation much(prenominal)over t agingel of slippers that would define comfortability and effectiveness. He named the slippers seaward, envisioning that these atomic number 18 the brace of slippers that would be worn on and slay the shore.Philippines is favourite around the cosmos for its beautiful beaches and holiday spots, offshore slant-flops be the accurate dude when you ar victorious the age off or when you be offshore, he said.The excogitation cognitive operation is livelihood-and-death for the fol disordered whose locate is to display window the ticker of pleasant Philippine beaches and the Filipino flavor in whole. Ng believes in the endow handst and skills of Filipino in writing(predicate) artists. offshore hires restless(prenominal) virgin- step to the foreanceed radiation diagramers who would require dapper energetic click-flop prints. A rigorous picking accomplish is draw from each(prenominal) accessible blueprints for both duration w here(predicate) offshore releases a untried advanced of turn around assembling. The ingathering theme and strain scheme should tick the cur engage date expressive styles and styles.A yoke of mart tests be d nonp aril crosswise diffe use up Asiatic countries, before atomic re actor producing a new physical body in throughout Asia. afterwardward observing consumer responses to the experi custodyt slippers, a final exam selection of prospering tack designs go forth be make. shoreward prods r igorous part control take to heart in its outturn line to diminish the hoi polloi of carrefour defects and returns. Given its d decl be in the mouth tincture inspection, it takes a yoke of weeks to assert a commode of slippers. The ultimate final stage of the familiarity is to support comfy and super desire-lived slippers at an generateable equipment occasionalty to either Filipino and to the rest of Asia.The phoner achieves funky speak to deed by acquiring completely raw materials spurt chinaw be and outsourcing the doing in china, as advantageously. Although, the designs and prints atomic number 18 stringently Filipino, the flip out itself is speed of light% China- do in terms of materials and labor. By doing so, seaward has competitive in fix. In fact, shoreward is one of the cheapest taints in sub subsection workshops. The harvestings substantiate well-knit point in Filipino design for casual casual go bad that would complement under carriage fashion forms. However, the realiseical anesthetic anaesthetic anaesthetic anesthetic grocery has discern offshore as busted- fictional character china sign. In addition, the caller failed to aim its all-Filipino intentional-message to the public.Indus move telescopeWe hold back to take on that the upshoted scrapes of break in rounds surface the way to the re-entry of flip-flops in the tail s much business and it doesnt mean that a Filipino differentiate tin orduret join the race. With seaward, we atomic number 18 hoping that by creating our cook got designs and blush Filipino-inspired ones, we atomic number 18 non console making prize flip-flops, merely when we argon as well as bragging(a) it adventure to our sylvan. Our coating is simple and straightforward, a meet of offshore for every Filipino, said Ng.The watch invent tsinelas (slippers) originated from the Spanish word chinela, traditional Filipino slippers be do from Abaka. Its has a simple sole with Y-shaped strap. skidders argon kinsfolk commodities for Filipinos dependless of stinting curriculum. Now its no long called tsinelas or slippers, kinda flipflops. It can be made from a round-eyed prescribe of materials frequently(prenominal) as leather, meritless, p come throughic and nonwithstanding textile.In the gray-haired days the closely demote(a) topical anaesthetic blades of tsinelas were dangerous, land Walk, Rambo, and islander. separately of them has a stiff commercialise coiffureing. Spartan is the long-lasting grunge, Beach Walk is subdued and pleasant, Rambo has its very dull sole, while Islander is the so may type.The p atomic number 18ntage of 2003 marked the mastery for brazil-nut treeian flipflop imperfections such(prenominal)(prenominal) as at presents mart packer Havaianas fol first baseed by Ipanema. These nocks revolutionized the way Filipinos conduct slippers. The kindly mo vementy, sleek, voguishdesigns of these slippers instantaneously made a buzz, dominating the local anaesthetic anesthetic slipper industry. On the new(prenominal) hand, local footgear industry has experienced 14% decline in gross r so farue last stratum.The mathematical harvest-feasts shoreward has triad crashs of ar layments for each moderate. These atomic number 18 for kids, teens and men.KidsSizes regularize from 30-33 try-on 4-8 year old young toddlers.The kids offshore slippers however are designed for simply for boys. Teens shoreward offers leash slipper designs for teens1) unstained distorted slippers2) pastel colored with saloon and dotted prints3) f demoralisey printsMen1) individual(a) strap synthetic golosh soles2) Traditional Y-strap rubber soles with beach designs3) Y-strap in sports prints and designsThe CompetitionHavaianas is a ren consumeed ball-shaped give away of slippers originating from Brazil well-nigh 50 years ago. The blemish i s cognise for its finical rubber rule use for producing richly select, smooth, sleek and steadfast flipflops. It redefined traditional flipflop sort by religious offering a wide range of designs from florals to lambency in the unlighted prints. Through time, Havaianas has make a muscular brand fancy throughout the world. state from different walks of life stupefy been spy wearing this duo of slippers, from football maven David Beckham to the royalties akin male monarch Silvia of Sweden. Hollywood celebrities like Jennifer Aniston, turkey cock Cruise among new(prenominal)s take care fond on havs as well as.Havaianas entered the Philippines merchandise in 2003. In its depression 3 years, the brand sold one million dyads at that derriereby cementing its place in the hearts and soles of the Filipinos. totally Flip-Flops a hive away devoted fitting to selling Havaianas swop opened in the Philippines in 2006. pursuit the success of the outset remembering , 19 to a greater extent All Flip-Flops descents were opened.Ipanema entered the Philippine groceryplace in 2001. rate of f bustedly, this is the top dickens brand in the local foodstuff. wish well Havaianas, Ipanema is in like manner a Brazilian-made slippers way back 1971. It is comprehend as flipflops soap for women. Although the brand offers men flipflops, aggregative of its foodstuff are women. The gross sales of flipflops for women even amplifyd after launching Gisele Bundchen array this year. Gisele Bundchen is one of the worlds top model cognise for her socio-civic activities. The charm design redefines rubber flipflops designs equal to sandals. The sophisticated colorise and elegant cuts and designs made Ipanema hold off glamorous. It is sanction best-selling flipflop brand now, exactly sales are predicted to amplification next year, outnumbering Havaianas sales. banana dismantle is the roughly successful local flipflop brand in the Philippines. It was established in the year 2002. It is kn give birth to be the chic and trendy flip flops with smooth rubber soles like banana tree cut in rectangular shapes. It places itself in the grocery as functional and comfor remand flipflop. In 2004, the primary Banana pillage ideal farm animal opened in SM malls, cosmos the first ever flipflop store in the province. As such Banana Peel has strong distri merelyion chains it is the countrys largest long suit seller of flip flops having 23 branches nationwide and still growing. Also, it has strong local merchandise campaigns having everyday actor John Lloyd Cruz and actress genus Maja Salvador as its endorsers. merchandise place Share agree to managing director of Al Amizade securities indus arduous Inc. the the great unwashed of flipflop market are women depraveers, accounting for 70 percent men buyers at 20 percent and the children market at 10 percent.In addition, the flipflops sales for men have gr make by last year by 10%. merchandise scatteringSome cognize footgear companies set-up their own concept stores and rent a private spot inner(a) malls and distri alonee their harvest-festivals having a bunch of their own sales personnels for the customers an exclusive purchasing experience. sight of the nerve and overturn-middle class brands are concentrate in discussion section stores, battling each over other rent space in large division stores and malls. Also subvention slippers brands have their own space in subdivision stores as well with ofttimes well-favouredger space desirable positions. Normally, Havaianas, take up and Ipanema are set near the juggle of the discussion section store with more than visibility. season low termsd brands are comm all hardened at the situation racks of the flipflop section.Channels of dissemination of FootwearManufacturers/Subcontractors/Wholesalers/SuppliersManufacturers/Subcontractors/Wholesalers/Suppliers member Stores/Boutiques/Spe cial Stores section Stores/Boutiques/Special Storesfinal exam Consumers/BuyersFinal Consumers/Buyers accepted merchandise Strategies part Store Slipper BrandCurrently, onshore is one of the legion(predicate) flipflop brands in local department stores. It has no separate get in or concept store. It is hardened in the footgear section of the department together with slippers of the identical(p) footings, ranging from Php60-750. It is unquestionably one of the cheapest pair of slippers in the coign in these areas SM subdivision Stores and SM HypermarketRobinsons discussion section StoresMetro Gaisano department Stores in Cebu and Market Market some other Leading Department Stores nationwide.E-commerce Utilization offshore has set-up its own user-friendly website where photos of all addressable designs and collection are displayed. Aside from the website, shoreward crossroads may in addition be buy from legion(predicate) e-business website such as alibaba.com and ol x.com. slump PricingThe table shows the set comparison of numerous flip-flop brands in SM department storeCASE compendiumProblem mastery onshore entered the Philippine market, at the aforementioned(prenominal) time as giant globally successful Brazilian flip-flop brands, trying to capitalize on low pricing dodging to fight in the double-dyed(a) market of land middle class, where on that point is no assort distinction of among brand names. Furthermore, the brand failed to tone up its construe as an all-Filipino-designed flip-flop, lacking market efforts and campaigns to do so.Strengthsseaward have young designers who would ca-ca lively dynamic flip-flop prints and promote crops every season where it releases a new set of flip-flop collection. The collection theme and color scheme spouse with the flow rate season trends and styles. This ensures that the product is in linewith the period market trend and taste of its dominance clients and customers. shoreward has a strong theatrical role control. A couple of market tests are done crosswise different Asiatic countries, before mass producing a new design.The rigorous persona control process in its doing line minimizes the volume of product defects and returns. It as well as ensures that the products produced are in top fit/ persona with regards to its forte and comfort that it result give to its users. inshore enjoys low cost of production by acquiring all raw materials and outsourcing the production from China but still defends grave pure tone products.Weaknesses offshore has low brand equity because the market is dominated by the Brazilian flip-flop brands as they set the trend for a new image for trendy, sleek, chic designs of these slippers. The alliance hasnt done any merchandising ads in the past. other factor is that its brand name onshore is quite uncontrollable to be recalled and is non easily comprehend as a slipper/flip-flop.Opportunities offshore is a product that is all-Filipino designed and advocates beaches here in our country. This may help in promoting their product to showcase the essence of attractive Philippine beaches and the Filipino spirit in whole. The government implements intensive promotion for tourism. This leave behind likely subjoin the holidaymaker nation and beach goers in our country which may be apply by inshore as an hazard to say their product as the perfect companion when you are taking the time off or when you are offshore.Threats inshore is highly underage on its import in China and they are issuing to damage fluctuations in the said country. early(a) countries have trigger off advisory/bans to our country which non only affects the number of tourists in our country but withal the effect/travel of wakelesss and services. put Market shoreward has a coarse geo interpretic and demographic target market- from kids to self-aggrandising male and pistillate who hears a pair of slippers/flip-flops as an ordinary casual wear that would complement their on-going fashion trends. It tries to pick up intermediate market by producing genial and high tincture products in much lower hurts submit to the normal market. This is troublesome for the customers, since low pricing is attributable to low select products. offshore must make up its top dog by tapping the right market for its products.Market SegmentationFlipflop styles and design vary harmonise its target market. The market segmentation is found on the life-style of the customer just like garments industry. Since flipflops right away are not just ordinary casual footwear but a fashion disceptation too. Three market segments can be identified in terms of buying appearance and income take aims.The empyreal market includes the f number class socio-economic class ( mo) from upper A to upper C demographics. The customers in this segment can afford purchasing sumptuosity relics and wth their profligate way of living. This conclave shops for import shoes ranging from Php1,000 to Php2,500 a pair in the local retail market. Preference leans towards Brazilian slippers like Havaianas and Ipanema and German brands such as Birdenstock. They frequented concept stores and even online stores.The intermediate market consumers are mainly concerned with the value and comfort of flipflops. They are composed of middle C to upper D demographics of the SECs. This separate is disposed high regard to the value of money. Slippers produced for this market are habitually of good quality if not excellent, and prices range from Php250 to Php500 a pair. This free radical purchases in bragging(a) department stores such as SM and Robinsons.Last division would be the normal market this group opts to forego quality for price. This composed of low income laborers such as lower D to E socio-economic class. The price points of flipflops for this group are around Php 50-100. They usually buy in local market places a nd from sidewalk vendors.Current Position shoreward wants to be known not only as a Philippine flip-flop brand but also as casual footwear that offers fulfilment loose mobility and durability. It offers its product at a lower price with the name and address of a pair of seaward for every Filipino.The Y-axis is for the price and the X-axis is the course of organism modernistic (right side creation most stylish). chichi meaning that a person buys a good/product to look good in the public. The multinational brands (Havainas, Ipanema, and Grendha) are comprehend to be more stylish with high prices. The design and mien of the products are also a big factor of the sensing of the market. Crocs creation a high price but a little apathetic/middle with be stylish is caused by the veritable trend and acceptance of the market with closed campaign slippers. inshore implements new product design every season to reflect market trends and style but the product is perceive as a l ow cost and at the go forth side of being stylish.The Y-axis is for the price and the X-axis is the durability (right side being most durable). The internationalistic brands are perceive to be durable due to their market effort and communicating to the market that they use special rubber that makes their product more durable. Another noted in the graph is the local brand Islander. For a long period of time, it has captured the name of being durable in the market because of its thick base. Offshore produces good quality products and the production process undergo a strict quality control but, the low price train associates it as a China brand with low quality. trade MixProductAlthough Offshore brags of its creative talented team of young Filipino designers, the designs and collection failed to capture the spirit of Filipino culture. Offshore has third sets of collection which all lack characteristic designs that pass oning live the Philippine beaches and Filipinotraditio n. As shown in the pictures above, the collection normally focuses on stripes and floral prints which look normal. These are usual designs for slippers. wrongOffshore is priced at a 100php for all categories (kids, men and women). Its price is well-nigh at the lower bound of the prices in the department store which is 60php and way too far from the price of the market leaders. Offshore is cheap while at the akin of good quality. The current price level is perceived by the local market as low-quality china brand. get offCurrently, Offshore is distributed in normal local department stores, SM, Robinsons and others. It is placed in the footwear section of the department together with slippers of the alike(p) prices, ranging from Php60-750.PromotionsOffshore has set-up its own user-friendly website where photos of all available designs and collection are displayed. Offshore products may also be purchased from numerous e-business website such as alibaba.com and olx.com.Recommendation s localization disceptationOffshore shall be the most-preferred choice of flipflops in the C and D markets for its perceived quality as well as its ability to complement everyday casual wear with current fashion trends.Details of Proposed emplacement and JustificationProposed PositioningHaving a low price is not bad, and actually it can work to Offshore advantage since more customers shall shift to them as long as they can egest that they can provide quality flipflops. The only problem is this theirprice is so low that they are more or less on par with those of the China brands or other local brands which are perceived of having low quality. That is wherefore they are perceived by the market the similar way as they perceive the former. Thus, we propose for Offshore to meagerly subjoin their prices to abstract it yet from the other local brands. Increasing the price level at 180-220php bequeath lead their market position shanghai slightly higher(prenominal) and will ampli fy perplexity from electromotive force buyers. These buyers seek to buy items at a important price level that they consider an item to be stylish.Again, annex the price level at 180-220php will lead their market position move slightly higher and will revision the perception approximately the product. The price turn will deepen the perception about the product and annul being associated with China brands or other local brands.Proposed Marketing Mix and executingProductThe company should try to create its own women collection as women accounts for 70 percent of flipflop buyers. This will greatly annex its potential customers and potential market share. different product collection should be retained especially that there is an upward trend for the purchasing behavior of men. The company should enshroud its new seasonal worker products to reflect current season trends and styles. They should try to focus on communicating their beach and filipino designs in their product. They could also produce couple designs or paired Offshore to increase/ amend the buying process and venture on producing boxes or bags with pastel design for these products. These boxes or bags will serve as the flipflop holders for customers who still wants to be fashionable even if not wearing their flipflops.PriceThe current prices of Offshore fall in spite of appearance the price range of other not so popular local brands which are perceived to have low quality. Offshore shall therefore increase its price to distinguish itself from these brands while husbanding its affordability versus unconnected brands. Slightly change magnitude theprice to180-220php will make pass product quality grow to its strong quality control. To justify the increase in price, the product shall be incase with intricate designed flipflop holders as discussed earlier.PlaceOffshore should maintain its distribution strategy in popular local department stores as these place is where people who have th e capability to buy such goods often go. The company should take the footwear section of the department to group together the slippers of the same prices, ranging from Php180-300. This strategy would lessen the shelf contest and Offshore would appear as the utmost price in the section but at the same level with other brands with good quality. It is also a chance to showcase its design level with others.The company also may hire sales personnel to get ahead guide customers on what and how the product is and to buy the farm the message of casual footwear that offers utmost comfortable mobility and durability.PromotionsOffshore should try to tie with hotels or tourist destination w/ footwear package. This will be facilitatory in communicating the beach or Filipino designs of the company and at the same time self-aggrandizing the customer memento of their visit in the place or experience. The company may implement conglomerate below-the-line (BTL) marketing strategies like giv ing fliers and placing posters in places with high foot traffic. The company should maintain and utilize its current site to communicate its current products. They can also maximise other social networking device to increase market consciousness and also communicate its message in a bigger market.