Chapter 1 - 2
Chapter 1 - 2
Chapter 1 - 2
INTRODUCTION
One of the most industrialize city in Metro Manila, according to MMDA.
The City of Marikina is the "Home of the largest shoe". Also known as the shoe
capital of the Philippines. Marikina was given the title the "Shoe Capital of the
Philippines", because of its notable shoe industry. Shoemakers in the city
recently finished creating the world's largest pair of shoes and it was only
recently that the Guinness Book of Records recognized this feat. Marikina is the
biggest manufacturer of quality shoes in the Philippines. It is also the
Philippines' largest worldwide exporter of leather shoes that tagged Marikina as
the Shoe Capital of the Philippines. Hundreds of footwear establishments are
located throughout the city, generating thousands of jobs and city financial
resources that continue to make the shoe and leather industry the top livelihood
in the city. By the 2000s, the Marikina shoe industry was affected by
competition from Chinese manufacturers.
For decades, the Marikina shoe industry has been considered as a vital
part of Philippine economy, providing employment opportunities to
approximately 300,000 workers and generating almost 65% of the citys total
revenue. During the 1950s to the 1970s the Marikina shoe industry was
responsible for almost 80% of the shoe production in the Philippines, and
enjoyed a prestigious share of the Asian market for footwear, especially in the
1960s when Marikinas craftsmanship was considered second only to Japan.
However, policies of trade liberalization, coupled with aggressive
competition from other Asian countries led to the gradual deterioration of the
industry. The relentless importation of cheap shoes and other footwear products
offered products offered stiff competition in the local market and has resulted in
the widespread loss of livelihood for many residents, as manufacturers and shoe
factories closed shop.
In fact, research shows that the number of registered shoemakers in
Marikina has drastically declined over the years, from 722 in 1991 to 632 in
1993. By 1994, Marikinas six major shoe manufacturers were already
producing shoes not for local consumption but for international brands such as
Reebok, Nike, Sketchers and LA Gear. By 2003, there were only major shoe
manufacturers left, namely Stefano Manufacturing and Trident International
Trading Corporation.
Latest figures from the Board of Investments (BOI) show that as of 2009,
approximately 24 registered firms exist, majority of which can be classified as
micro, small to medium-sized enterprises owned by families or under sole2
industry of Marikina. Since its humble beginnings after World War II, Marikina
has always been the pride of the Philippines when it comes to producing worldclass leather shoes. It is safe to say that at that time, every Filipino aspired to
have a pair of shoes that came from the shoe capital of the Philippines.
This paper examines how the shoe industry in Marikina City affects the
employment of the local residence living in the said place.
counters and top lifts are imported from other countries. As such, shoe
manufacturers are often prey to exorbitant tariffs and smuggling of shoe
components. There is also an absence of product quality standards for shoe
components and accessories.
Manpower
Because of the seasonal nature of shoe production in Marikina, there is a
shortage in new labor entrants to the industry, with majority of the workers
mostly coming from the older generation. The average employment level ranges
from 20-60 workers per company, with wages ranging from P250-P350 a day.
There is a pressing need to enhance worker productivity and efficiency.
Marketing
Even though many local manufacturers opt to produce womens shoes
owing to the quicker fashion cycle of womens footwear as compared to men
there are no specific markets catered by the industry. There has been no
identified target markets and product categories implemented industry-wide.
There is also a pressing need to develop marketing and promotional efforts
among domestic and international markets. The influx of cheap imported shoes
from Asian countries such as China and Vietnam has exacerbated the situation.
Institutional Aspects
Policies and Legislation
The institutionalization of Republic Act No. 9290, otherwise known as
The Footwear, Leather Goods and Tannery Industries Development Act, was a
substantial accomplishment towards the development of the Marikina shoe
industry. However, many provisions of the law have yet to be enacted and
implemented fully. Exorbitant tariffs and the continuing proliferation of
smuggled imported shoes continue to plague local shoe manufacturers. As of
the present no efforts have been made to establish an inter-agency coordinating
body that would address the issues and concerns raised by stakeholders within
the Marikina shoe industry.
Credit and Finance
There is a scarcity of credit and financing opportunities for local shoe
manufacturers.
Current Opportunities and Prospects
Despite the problems and issues confronting the Marikina shoe industry,
the future still remains bright. With a major retooling in the industrys
operational methods in place, the revitalization of the industry is possible.
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in uniform, i.e. combat boots and work shoes for soldiers and policemen. This
way, the industry is ensured with a steady supply of orders and clients.
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OBJECTIVES
The researchers of this study will gather information from the people in
Marikina City in order to get information that will come up below
To give a catching study where residents get interested about the issue of
booming and the slowly dying of the shoe products in Marikina City.
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HYPOTHESIS
There will be an effect to the employment rate of Marikina wherein they
will give jobs to the residence of the said place.
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The Researchers this study will help the researchers to enhance their
knowledge as tourism students, to know more information about the
contribution of Marikina shoe industry to our economy.
Future researcher this study presented may be used as reference data in
conducting new researches or in testing the validity of other related findings. It
will serve as their guide regarding their performance and knowledge about
importance research activities.
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Chapter 2
REVIEW OF THE RELATED LITERATURE AND STUDIES
TOPIC PRESENTATION
Through the review of related literature and related studies, researchers
were provided the knowledge and background on the topic or subject being
studied. A collection of extensive related literature is an essential part of a
research paper in a way that it serves as the framework of the study to make it
substantial, credible, and reliable. It serves as the feet of a research study so it
can stand on its own and make it strong enough for future researches to build
upon.
The researchers gathered all literatures, both foreign and local, that are
deemed important to the topic at hand.
RELATED LITERATURE
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The Philippines shoe industry can be drawn back for well over a century
(Ibon Databak, 1986). The larger part of the industry has always been focused in
Marikina City in the Northeast of the Metro Manila, where it commences the
spatial and functional form of a traditional marshallian industry district. The
production of the industry today consists for the most part of inexpensive shoes
fabricated in both leather and synthetic materials for the domestic market. Yet,
Philippines has never been in the ranks of the worlds largest shoe-producing
countries, and in Southeast Asia alone, it trails far behind China, Vietnam,
Taiwan, Indonesia, and Thailand, in terms of both employment and output.
Likewise, the industry has been subject to robust competition over the last
decade or as producers from other countries (above all China) have penetrated
deeply into domestic markets in the Philippines while concurrently hindering
out many export for Filipino manufacturers. Presently, the industry is in great
disorder, and its future is extremely ambiguous (Scott, 2005).
On the other hand, an online article published on Manila Bulletin dated
August 25, 2012, entitled, Marikinas Ailing Shoe Industry Tackled, found the
following:
Markina handled a symposium aimed at strengthening the partnership
and the local government that was held in order to revitalize the shoe industry
in Marikina City. Dr. Loreto A. Santos, one of the speakers of the symposium,
shares the history of Markinas shoe industry and is saddened to know that the
industry is ailing (Http://Ph.News.Yahoo.Com/Marikina-Ailing-Shoe-Industry-
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One of the proofs that Marikina is doing the best they could do to retrieve
the ailing industry is by the events that they are holding for the promotion of
Marikina Shoes.
Marikinas Ailing Shoe Industry Tackled
The Caravan promotes Marikina Shoes. The caravan helps promote the
product in our neighboring cities like Malabon, Navotas, Caloocan, Valenzuela,
Quezon City, Pasig, Taguig, Muntinlupa, San Juan, Manila, Pasay, Paraaque,
Mandaluyong, Las Pias, Makati and Pateros town in order to let them know
that the quality of shoes that Marikina is making could compete to the quality of
shoes that they buying from the department stores, especially those imported
brands.
With these kinds of promotions, the demand of shoes could get higher
percentage of consumers and the city will be able to be endorsed not only by
Marikeos but also by other consumers who tried using it and was pleased with
the product, even though they are not from Marikina.
The Rise and Fall of Manufacturing in Marikina
Marikina was once a bustling industrial town, the first to develop an
industrial zone (http://www.marikina.gov.ph/), inaugurated in 1957. The zone,
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Aside from its shoe industry, Marikina became home to a number of large
manufacturing companies (Santos, dela Paz, & Cordervilla, 2002), including
Manila Bay Spinning Mills, a manufacturer of yarns, polyester, rayon, acrylic,
etc.; Goya, a producer of chocolate bars and candies; BF Goodrich (which later
became Sime Darby), a maker of radial tires; Noritake Porcelana, then the
countrys leading producer of porcelain plates, saucers, cups, and drinking
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2.
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5. The industrial unrest that followed the lifting of martial law hit the town in
the crisis decade of the l980s and was another factor that arrested
industrial growth. Although not properly chronicled, anecdotally, many in
Marikina reminisce that the 1980s was a red decade, when the number
of strikes, industrial mass actions and protest rallies in the city (as was the
case in many industrial towns in Rizal and Metro Manila) conducted by
both moderate and militant unions increased in number and reached
record levels when compared across historical periods (p. 17-18).
RELATED STUDIES
The Status, Management Practices and Problems of the Shoe Industry
in Marikina, Metro Manila
Lourdes S. Tamayo, in her unpublished masters thesis in 1995, entitled
The Status, Management Practices and Problems of the Shoe Industry in
Marikina, Metro Manila she said that Marikina and the word shoes are terms
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that are inextricably linked to each other and are inseparable. A mention of one
evokes association of the other because the town of Marikina after times labeled
as the Shoe Capital of the Philippines, and the thousands and thousands of
shoes sold in more popular department stores throughout the country are made
in Marikina. There are even reports that shoes produced in the area have found
their way in the big department stores in the United States of America and in
several countries in Europe.
was
however,
to
quickly
come
with
trade
liberalization
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(http://www.dlsu.edu.ph/research/centers/aki/_pdf/_concludedProjects/_volumeI
/Tanchuco.pdf).
I could say that in the early years Marikina is known for shoes around the
country. Marikina is known for its quality shoes that even foreigners and big
personalities visit Marikina just to order a pair of shoes of their own. According
to Tamayo the word Marikina and shoes are words that is inseparable
because Marikina is the Shoe Capital of the Philippines.
According to Tanchuco, Marikina Shoe Industry was at its peak in the
1970s and quickly declines the industry because of the trade liberalization.
SYNTHESIS
The shoe industry in Marikina has been strong until the foreign investors
came along the country and empowers this industry, especially China. For the
previous years, Marikina is on good terms in terms of its industry, Marikina
serve nationwide and sometimes international, although Marikina never ranked
as the worlds largest shoe producing countries. Nevertheless in our country, we
are number one.
The shoe industry has confronted an extreme rivalry between other Asian
countries that cause the obstructive of our export opportunities. With these, the
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THEORETICAL FRAMEWORK
The Lancasters theory of consumer choice (1966) postulates that consumption
decisions are determined by the utility that is derived from the attributes of a good.
Because consumers often link attributes to consequences of purchasing or consuming
products (Akpoyomare, Adeosun, & Ganiyu, 2012), marketers differentiate and set its
product apart from competitors based on a specific attributes (Belch & Belch, 2001).
According to Aaker, Batra, and Myers, (1992) an important attribute is one that
offers an important benefit towards the satisfaction of consumer needs. Aaker (1991)
adds that because most product attributes provide consumer benefits, there is usually a
one-to-one comparative between brands. Kotler (2002) explains that the most
prominent attributes or features of a product to the consumer do not necessarily
always imply that they are the most important ones. Manufacturers must view product
attributes from consumers point, understand their specific needs to reduce the lost
opportunity to sell or raise the level of customer satisfaction. Therefore, identification
of those important factors will help the shoe-making companies to tailor their
marketing and manufacturing strategies to take advantage of these influences in a way
that will satisfy both the consumers and marketers.
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CONCEPTUAL FRAMEWORK
INPUT
Current ways and
practices of shoe
industry in
Marikina: -Reasons
for decreasing sales
- Reasons for not
purchasing
PROCESS
Data Analysis: The
data will then
retrieve, tallied,
tabulated, process,
presented, analyzed
and interpreted
based on the Survey.
OUTPUT
Findings will be
used to provide
recommendations/
Improvements for
marketable shoe
industry in Marikina
and uplift their shoe
quality compared to
imported shoes.
The input for this study refers to the current ways and practices of shoe
industry in Markina, which specifically focus on the reasons for decreasing of
sales and not purchasing its own product. These ways will be used to further
understand the background of the process in relation to shoe industry in
Marikina. The pursuit for understanding will be done through the process stage,
wherein data analysis on the current ways of the respondents in terms of the
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reasons would be evaluated. The last is output stage, wherein it will produce
recommendations/improvements for marketable shoe industry based on the
findings and that would also include recommendations to uplift their shoe
product compared to imported shoes.
This research intends to develop more understanding about the typical
practices, particularly those who are involved in the shoe industry of Marikina.
The framework states that by studying the ways and practices, it will help the
shoe industry of Markina in developing a more customized and effective
programs to gain back more of marketable shares and better livelihood for the
Marikeos.
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References:
Akpoyomare, O. B., Adeosun, L. P., & Ganiyu, R. A. (2012). The influence of
product attributes on consumer purchase decision in the Nigerian food and
beverages industry: Astudy of Lagos Metropolis. American Journal of Business
and Management, 1(4), 196201.
Aaker, D. A. (1991). Managing brand equity: Capitalizing on the value of a
brand name. New York, NY: The Free Press.
Aaker, D. A., Batra, R., & Myers, J. G. (1992). Advertising management (4th
ed.). London: Prentice Hall.
Belch, G. E., & Belch, M. A. (2001). Advertising and Promotion: an Integrated
Marketing Communications Perspective (5th ed.). Boston, Mass:
Irwin/McGraw-Hill.
Kotler, P. (2002). Marketing management (11th ed.). Upper Saddle River, NJ:
Pearson Education.
Lancaster, K. (1966). A new approach to consumer theory. Journal of Political
Economy, 74, 132157.
Tanchuco, J. Q. (2012). Linearization and the Value Chain Upgrading
Imperative: The Case of the Marikina Footwear Industry.
http://www.dlsu.edu.ph/research/centers/aki/_pdf/_concludedProjects/_volumeI/
Tanchuco.pdf
Online
http://dx.doi.org/10.1086/259131
Marikina's Ailing Shoe Industry Tackled. Yahoo News (Via Manila Bulletin),
Http://Ph.News.Yahoo.Com/Marikina-Ailing-Shoe-Industry-Tackled084957885.Html, Aug. 25, 2012.
http://www.marikina.gov.ph/
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