The Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) held series of seminars on Doing Business in Free Trade Areas (DBFTA) and Generalized Scheme of Preferences (GSPs) on June 15 & 16, 2016, in Quirino and Nueva Vizcaya, respectively. The DBFTA program is an initiative which aims to increase the awareness of Filipinos regarding the benefits of free trade agreements (FTAs) and GSPs.
Participants, which included exporters, would-be exporters, businessmen, government agencies, local government units, faculty members, and media men, attended the seminars to learn more about the export opportunities in the EU, US, Canada, and other FTA trading partners of the Philippines.
Discussions focused on agricultural products considering that both Quirino and Nueva Vizcaya are landlocked provinces. Both provinces have numerous opportunities of exporting agri-food products since the Philippines’ largest exports to the world comprise of fresh and processed foods, alongside electronics and parts of vessels and airplanes. At present, worldwide consumer trends are leaning towards health and wellness, uniqueness and individualism, and convenience.
EMB recently held a series of seminars on Doing Business with the United States (US) for Fast-Moving Consumer Goods (FMCG) in Manila, Cebu City, and Davao City as part of its Doing Business in Free Trade Areas (DBFTA) program.
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, over-the-counter drugs, processed foods and many other consumables. In contrast, durable goods or major appliances such as kitchen appliances are generally replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs, such as meat, fruits and vegetables, dairy products, and baked goods, are highly perishable. Other goods, such as alcohol, toiletries, pre-packaged foods, soft drinks, chocolate, candies, and cleaning products, have high turnover rates. The sales are sometimes influenced by some holidays and season.
Though the profit margin made on FMCG products is relatively small (more so for retailers than the producers/suppliers), they are generally sold in large quantities; thus, the cumulative profit on such products can be substantial. FMCG is a classic case of low margin and high volume business.