Challenges and Solutions for Operating in the Philippines Fashion Industry

This article discusses the challenges and solutions for operating in the fashion industry of the Philippines. It covers the cultural dimensions, communication practices, and negotiation process. It also addresses concerns with the local community and provides solutions to maintain a long-term relationship with them.

Running head: PHILIPPINES FASHION INDUSTRY
PHILIPPINES FASHION INDUSTRY
Name of the Student:
Name of the University:
Author Note:

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Challenges:
To operate in the fashion industry of the Philippines, it is vital to know various factors
that distinguish this particular culture to that of Australia. There are some major challenges
that the company may face such as, difference in cultural dimension, communication
practices, negotiation process which is associated with the government as well as the supply
chain or other stakeholders (White III, Boddewyn and Galang 2015).
Cultural dimension:
There are six major cultural dimensions such as Power Distance, Uncertainty
Avoidance, Individualism, Masculinity, uncertainty avoidance and finally Term Orientation.
After judging these dimensions, the organisations enter any foreign market. In these
dimension there is a high variation among the Philippine and the Australian culture.
Communication practices:
As the company is going to deal with the fashion business in the Philippines. It is
important for it to come across with the nuances of culture and communication. It is
necessary to build networks which has proved to be great challenge previously.
Negotiation process:
In the Philippines it is necessary that the company head will be making decisions who
avoids meeting people in order to shun confrontation. The negotiation process takes time
because the Philippines has made the group consensus necessary. In case the representatives
are changed, the company has to start over the negotiation process that slows done the
negotiation process.
Infrastructure and regulation:

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The country has proved to have low advancement in infrastructure development. This
include their near to the ground transport system, overcapacity in the international airlines
and regular Urban as well as port congestion. In addition to this, the Philippines has ranked
lowest in the field of internet speed, penetration and connectivity. The country is having huge
restrictions in product registration and environmental and labelling requirements.
Addressing the challenges:
In order to avoid these challenges, the corporation needs to first realise the methods of
motivation, training and manage performance of the local employees before entering the
Philippine market. To communicate successfully, there is a need of getting introduced by a
third party (Gootiiz and Mattoo 2017).
Concerns with the local community:
The local community of the Philippines is concerned with the increasing corruption in
each level of society. The country has low judicial efficacy. These are slow and complicated
that fail to inhibit fair resolution of the commercial disputes which affect the local people.
Despite the fact that English language is used in governmental activities, a great
number of community is incapable of understanding and communicate which affect their
business. This leads to unemployment and depression.
Solution:
 As it is a fashion garment company, it can do a lot to maintain a long term
relationship with the local communities. These communities have a huge like for
fashion and they are capable to amalgamate the tradition with modern. The company
will-

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 It is a carbon neutral brand which will support the environmental problems in the
Philippines.
 Understand the community’s stated needs and maintain the relations to keep
motivated them
 Conducting the adaptation research which strengthens to allow for greater elasticity in
resource their utilization.

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References:
Bird, K., 2018. Reducing Youth Not in Employment, Education, or Training through JobStart
Philippines.
Gootiiz, B. and Mattoo, A., 2017. Regionalism in services: a study of ASEAN. The World
Economy, 40(3), pp.574-597.
Kleibert, J.M., 2015. Industry-academe linkages in the Philippines: Embedding foreign
investors, capturing institutions?. Geoforum, 59, pp.109-118.
White III, G.O., Boddewyn, J.J. and Galang, R.M.N., 2015. Legal system contingencies as
determinants of political tie intensity by wholly owned foreign subsidiaries: Insights from the
Philippines. Journal of World Business, 50(2), pp.342-356.