Cotton Garment Industry Profile of Taytay, Rizal

Date

6-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cherry Lou R. Nuñez

Committee Member

Melodee Marciana E. De Castro

Abstract

The garment industry of Taytay, Rizal is the economic driver of the town as it provides job opportunities for a lot of local residents and contributes to the economy of the town. Cotton garments is one of the garments that is being produced by the local garment producers of the town and sold by the local garment sellers through retail, wholesale, bulk orders and online. Despite the contribution of the industry, there is still a lack of research on the cotton garment industry.

The general objective of the study is to provide a description of and conduct garment industry profile on cotton garments in Taytay, Rizal, in 2023. Specifically, the study intends to present the profile of the selected stakeholders of the cotton garments in the garment industry of Taytay, Rizal; assess the external environment of the cotton garment industry; conduct an analysis of the internal environment of the cotton garment industry; determine the key success factor(s) of the selected stakeholders of cotton garments in the garment industry; identify problems and constraints of the selected garment producers and sellers of the cotton garment industry; and analyze potential opportunities available for the selected stakeholders of the cotton garment industry in Taytay, Rizal.

Random sampling with replacement is used to gather the necessary data information needed from the cotton garment producers and sellers. To analyze and interpret the results of the study, a descriptive method is used. A total of 116 cotton garment producers and sellers are surveyed with the supervision of the researcher. Logistics and 7P’s of marketing will be used to analyzed the general cotton garments. For the external analysis, PESTLE analysis; Michael Porter’s Five Forces of Action; Industry Performance; and Industry Life Cycle are used. For the internal analysis, stakeholder mapping analysis, input-process-output model, and key success factors are used. These analyses will help determine the problems and constraints of the garment industry together with the recommendation for the selected stakeholders.

All of the respondents surveyed were of age ranging from 20 to 66 years old. Majority of the respondents are female, married, with a household size of five to seven individuals, high school graduates, and selling cotton garments as a source of income. It is also important to note that aside from selling cotton garments, producing cotton garments is another source of income for the surveyed respondents.

Taytay, Rizal is a go-to place for individuals looking for excellent cotton textiles and a large assortment of cotton outfits. It has 29 tiangges selling cotton garments with 2,994 stalls and is strategically positioned along the national highway, allowing both public transportation and private automobile travelers easy access. The garments are being promoted through the municipality's official website and Facebook page, HAMAKA festival, light and sound show, and pageant, and sellers create a Facebook page to promote their garments. The cotton garment industry in Taytay involves a variety of people, including government, manufacturers, suppliers, sellers, and customers. Cotton clothing offered at Taytay's tiangges does not have tags attached to it, but is usually put in a plastic bag large enough to hold all of the products bought. The initial stage of creating cotton textiles is the acquisition of cotton fibers, which are cleansed and removed from seeds and contaminants. Three primary stages are acquisition xi of raw materials, pattern creation, and cutting and sewing. Purchase raw materials in advance to ensure a smooth manufacturing process.

The political-legal factors that affect the garment industry are Consumer Product Safety Improvement Act of 2008; Multi-Fiber Agreement (MFA); Republic Act no. 4653; incentive; import tariff; Resolution No. 178, Council Resolution, and Taytay Local Tax Ordinance No. 10; local government taxes; and Ordinance No. 25. The economic factors that influence the garment industry of Taytay are inflation and disposable income. The socio-cultural factors of the garment industry in Taytay are HAMAKA festival, demographic requirements, light and sound show, and pageants held in the town. Modern sewing technology, digital marketing, e-commerce are the technological factors of the garment industry. Then, the environmental factors are climate change for the cotton and natural calamity for the stakeholders of the industry.

Cotton garment manufacture involves creating a pattern, cutting and sewing the fabric, and sewing machines to join the fabrics together. Acquiring cotton textiles involves extracting cotton fibers from plants, processing and changing them into functional textiles, distributing them to enterprises, and selling them to customers. The logistical information presented is based on the viewpoint of the seller and the maker. Cotton garment acquisition involves extracting cotton fibers from plants, processing them into functional textiles, distributing them to enterprises, and selling them to customers. The logistical information is based on the viewpoint of the seller and the producer/seller.

For Michael Porter’s Five Forces of Action, the threats for new entrants for the garment industry is in high; the bargaining power of buyers is high; the threat of substitute is high; the bargaining power of suppliers is low; and the rivalry among firms is high.

The garment industry of Taytay, Rizal is growing. It is a profitable industry for the garment producers and sellers. It provides a viable means of livelihood for the locals.

The shareholders of the garment industry are: customers, who have high power and low interest in the success of the garment industry; garment producers and sellers who have high power and high interest in the success of the industry; suppliers who have low power and interest in the success of the industry; and employed sellers and producers who have low power and high interest on the success of the industry.

The cotton garment producers are sewing cotton garments at their own houses while cotton garment sellers are renting stalls in one of the organized tiangges. Only one person is responsible for producing cotton garments based on the xii respondents. Meanwhile, the majority of the stalls surveyed have only one cotton garment seller. The start-up capital of the majority surveyed is Php 30,001-50,000. Majority of the suppliers of the respondents are from the Philippines. Retailing and wholesaling is the selling strategy of all of the respondents. Majority of the respondents say that retailing gives the respondents the most profit. Majority of the cotton garment producers are able to produce 300 pieces of cotton garments per month. Meanwhile, the majority of the cotton garment sellers are able to sell 300 garments per month. Then, most of the respondents are able to generate a monthly income of Php 16,000-30,000.

The problems and constraints faced by the cotton garment producers and sellers are because of the lockdown, competition, the constant change in style of garments, inflation, marketing, fewer customers, garments being seasonal and the emergence of ukay-ukay.

The recommendations for the cotton garment producers are to increase monthly production, produce more women's apparel, and introduce new designs and colors. For the garment sellers; do online selling in Shopee and do digital marketing on Facebook. Lastly for the government, provide online selling workshops; provide sewing workshops, advertise TESDA sewing training more; increase TESDA training slots; advertise the tiangges; address the ukay-ukay issue; and take note of the recommendations of FOBAP.

Language

English

LC Subject

Clothing trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 D84

Notes

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Document Type

Thesis

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