Philippine clothing brands to merge to compete with foreign brands


Philippines clothing brands Bayo and Unica Hija are to merge to improve their chances of competing in the local market. In a statement, the two clothing lines today said they would maintain their respective brands and outlets “to cater to different segments of the market”.

The merger comes amid an invasion of foreign clothing brands, including Forever 21, Uniqlo and Cotton On, just some of the largest that have established retail outlets in the Philippines in recent years.

The Philippine Franchise Association earlier warned of a silent “tsunami” of foreign retailers that could wrest the local market from home-grown brands, especially with ASEAN integration in 2016.

Bayo and Unica Hija said the merger would allow them “to increase operational efficiency, accelerate customer and product expansion, and price their offers more competitively for the Philippine market”.

For the full story, see the November 2013 edition of Textiles South East Asia. Not a subscriber? Subscribe HERE