Far Eastern University

Institute of Accounts, Business and Finance

A.Y 2016-2017
INT BUS IA14311

Country Paper
Native Abaca Bags export to France

Members:
Calleja, Almira Joy
De Guzman, Andrea
Del Mundo, Shane
Dizon, Katharina
Enclona, Joy
Francisco, Frances
Mamanta, Charlene A.
Quiñones, Marvin
Ventura, Samantha

1
 TABLE OF CONTENTS

I. Executive Summary....................................................................................................3

II. Introduction.................................................................................................................4

III. The Country’s Environment.....................................................................................6

a. Socio-cultural...........................................................................................................6

b. Technological...........................................................................................................8

c. Economic/Business/Trade.....................................................................................10

d. Environmental........................................................................................................11

e. Political...................................................................................................................12

IV. Doing Business......................................................................................................13

a. Proposed Business................................................................................................13

b. Product and Service offerings...............................................................................14

c. Competitive Advantage of Company.....................................................................18

d. Opportunities and Threats for International Trade.................................................19

e. Strategic Adjustments for International Business..................................................21

V. Conclusion................................................................................................................22

VI. Recommendation...................................................................................................22

VII. Reference..............................................................................................................23

2
I. Executive Summary

This paper aims to study, provide an analysis and evaluation of the current

prospective profitability, and propose a business of exporting our native handmade

Abaca bags to the country of France. (Add methods of analysis and findings)

(Conclusion)

(Recommendation)

(Limitation)

II. Introduction
3
 Abaca is a specie of banana native to the Philippines. It is grown as a

commercial crop in the Philippines, mostly used for making fiber. The fiber is stripped

from the stem rather than the leaf, with each stalk being cut into sheaths and then strips

or "tuxies." The strips are then scraped to remove the pulp, then sometimes washed

and dried. The outer leaves of the plant are wider and contain more but coarser fiber

than the inner leaves. Harvesting of the stalks usually takes place between 18 and 24

months from the first shoots. It is classified as a hard fiber, along with coir, henequin and

sisal.

The abaca fiber became known to the western commercial world in about 1820,

was, until the advent of henequen, used for general cordage purposes where it largely

replaced true hemp and flax. Until the advent of the first synthetic fibers, Manila was the

premier material for marine ropes where its strength, lightness and water-resistance

were appreciated.

Now, most of it is pulped and used in a variety of specialized paper products

including coffee and tea bags, filter paper, banknotes, sausage casing paper, electrolytic

papers, cigarette filter papers, medical/food preparation/disposal papers and some high-

quality writing paper. The Philippines remains the largest producer at around 50,000

tons per annum. Philippine abaca products are sold to countries like the US, Germany,

United Kingdom, France, Belgium, China, Taiwan and South Korea, among others.

There is also a thriving abaca fiber handicraft industry operating in the

Philippines, exporting on a worldwide basis. Native handmade abaca bags are one of

4
the prime products from abaca produced today in the Philippines, particularly in Bicol.

These bags come in different designs and vibrant colors.

Since France, one of the main countries which Philippines exports Abaca to, is

famed for its inclination with fashion and art, the team decided to focus on the

probability of exporting our native handmade Abaca bags to France. Most of these

Abaca bags are classified as trendy beach bags. This is one of the probable product

lines to be explored and to interest the French because of their known enjoyment of

fashion and their Mediterranean beaches.

5
III. The Country’s Environment

a. Socio-cultural

France is the largest Western European country, and it takes immense pride in its

history and prominent culture. Their motto, “Liberté, Égalité, Fraternité,” stems from the

French Revolution, which means “Liberty, Equality, Fraternity.”

The word "culture" came from France. According to Cristina De Rossi, an

anthropologist at Barnet and Southgate College in London, the word “culture” derives

from the same French term, which in turn derives from the Latin colere, meaning to tend

to the earth and grow, cultivation and nurture. Historically, French culture was influenced

by Celtic and Gallo-Roman cultures as well as the Franks, a Germanic tribe. France

was initially defined as the western area of Germany known as Rhineland but it later

came to refer to a territory that was known as Gaul during the Iron Age and Roman era.

Most people associate French culture with Paris, which is a center of fashion,

cuisine, art and architecture. Most art styles and famous art revolutions stemmed from

France, such as the Gothic art and architecture from the thirteenth century, Baroque to

Classicism of the seventeenth century, the most famous and revolutionary Romanticism

during the French Revolution, and today’s Realism.

The Louvre in Paris is one of the most famous and the largest art museums in

the world, created by the new revolutionary regime in 1793 in the former royal palace. It

holds a vast amount of art of French and other artists, particularly, the Mona Lisa by

Leonardo da Vinci, and classical Greek Venus de Milo and ancient works of culture and

art from Egypt and the Middle East.

6
 Paris is also known as the home to many high-end fashion houses, such as Dior,

Hermes, Louis Vuitton and Chanel. Many French people dress in a sophisticated,

professional and fashionable style, but it is not overly fussy. Since the 1960s, France's

fashion industry has come under increasing competition from London, New York, Milan

and Tokyo, and the French also have increasingly adopted foreign fashions.

b. Technological

Science and technology in France dates back to the Acádémie des Sciences,

founded by Louis XIV in 1666, at the suggestion of Jean-Baptiste Colbert, to encourage

7
and protect the spirit of French scientific research. France's achievements in science

and technology have been significant throughout the past centuries as France's

economic growth and industrialization process was slow and steady along the 18th and

19th centuries. Although not widely heard in this field, research and development efforts

form an integral part of the country's economy.

Unknowingly, some daily used items originated in France, including the

refrigerator, parachute, development of photography, internal combustion engines, high

speed transport, and even electric generators. Today, France is the leader in nuclear

technology export.

Since the advent of internet, the industries in France had coped up and various

online stores have been opened to reach a more global market. Particularly in the

fashion industry, technology highly influences the way of the markets and boutiques.

This especially due to a one united pop culture and taste building up in the global

community connected through the net. With this, many brands aim to break the barriers

between digital and physical presence.

As an example, Parisian grands magasins and flagship stores on the Champs-

Élysées have been testing smartphone frequency detectors and connected

merchandising displays to experiment with collecting data from shoppers as soon as

they approach their retail store — much like online retailers has for years used “cookies”

planted in web browsers.

8
 Such customer intelligence could be the key to understanding why a particular

shopper gets back on the bus with a parcel from Gucci rather than Louis Vuitton, or vice

versa, and gives brands an edge in a fiercely competitive luxury sector.

Scientific research in the country is supported by industry, by the network of

French universities and by higher education establishments outside the main

framework, Grandesécoles.

9
 c. Economic/Business/Trade

The French economy is one of the strongest across the globe. France has the

second largest economy in Europe and it was the sixth largest economy in the world by

nominal GDP in 2008. As of 2013, the International Monetary Fund ranked it the 20th

largest economy in the world by GDP per capita based on purchasing power parity

(PPP) at $44,099 per person.

France is among the leading industrial economies in the automotive, aerospace,

and railways sectors, as well as in cosmetics, luxury goods, insurance,

pharmaceuticals, telecoms, power generation, defense, agriculture and hospitality.

France is also the world's leading tourist destination – at least in terms of numbers,

though not in terms of tourist spending.

France is the Philippines' fourth largest trading partner in the European Union

after Germany. In 1947, France and the Philippines signed a Treaty of Amity which

established diplomatic relations with the two countries. Philippine exports in 2015 are

slightly increasing to €602 million (compared to €469 million in 2014).

France discovered the potential use of abaca in the manufacture of naval

supplies, particularly ropes. Despite restrictions of Spanish colonial government's

restrictions against foreign trade, French and other foreign traders were already in

Manila before it was formally opened for foreign trade.

10
 d. Environmental

The French terrain is mostly flat plains or gently rolling hills in the north and west

and mountainous in the south and the east, the highest points being in the Alps. The

French mainland has water on more or less three sides – the Atlantic, the English

Channeland the Mediterranean, so France has beaches. The Côte d’Azur or ‘the blue

coast’ stretches the whole length of south, facing Mediterranean coast from Marseilles

in the west to Menton in the east, while the French Riviera is the posh eastern section

from Cannes to Menton. Most of France’s beaches are well-developed with plenty of

amenities and few hazards, though northwest Atlantic beaches tend to have colder,

rougher, less clear water while the Mediterranean strands of sand tend to be quite

small, crowded and expensive with the best stretches taken by pay-parasol operators.

France was one of the first countries to create an environment ministry, in 1971.

Although it is one of the most industrialized countries in the world, France is ranked only

17th by carbon dioxide emissions, behind less populous nations such as Canada or

Australia. A shift away from industry over the past three or four decades has led to many

improvements in France’s environmental issues. Deindustrialization has also led to less

water pollution from production facilities and urban wastewater. However, water

pollution from agricultural sources has remained consistent.

France’s affluence means that it also has a high demand for natural resources.

While many improvements in resource-use efficiency have been made, increased

efficiency has been offset by ever-increasing demand. In addition to an increasing use

of resources, solid waste production collected per inhabitant each year has increased

by 25 percent since 1996.

11
 e. Political

The politics of France take place with the framework of a semi-presidential

system determined by the French Constitution of the French Fifth Republic, which is

established in 1958 and has been amended for 17 times. The nation declares itself to

be an "indivisible, secular, democratic, and social Republic.”

Just like in the Philippine setting, The French government is a republic and is

divided into three branches, namely the executive, legislative and judiciary.

The executive is headed by the president is elected by universal suffrage with a

term of seven years, renewable for a maximum of two terms. The President, who is also

supreme commander of the military, determines policy with the aid of his Council of

Ministers (Conseil des ministres). The residence of the President of the French Republic

is the Elysée Palace (le palais de l'Elysée) in Paris.

The President appoints a prime minister who forms a government. The residence

of the French Prime Minister is at Matignon House (l'HôtelMatignon) in Paris.

The legislative branch of the parliament is made up of two houses or chambers.

The lower and principal house of parliament is the Assemblée nationale, or national

assembly; the second chamber is the Sénat or Senate.

While the Minister of Justice, le Garde des Sceaux, has powers over the running

of the justice system and public prosecutors, the judiciary is strongly independent of the

executive and legislative branches. The official handbook of French civil law is the Code

Civil.

12
 Member states of the European Union, such as France, have established a

Community Integrated Tariff (TARIC) system, where duties are applied to imports from

non-EU countries. TARIC was established by the 1958 Treaty of Rome as part of the

European Economic Community (EEC). The Uruguay Round has reinforced the Single

Market program. It focuses on the consolidation of an integrated European market,

rather than on developing new policy directions. There are combined bilateral, regional,

and multilateral policies.

Duties levied on imports from non-EU countries, including Philippines, are

moderate. Most raw materials enter duty-free or at low rates, most manufactured goods

are subject to rates between 5 and 17 percent.

The EU tariff schedule is based on the Customs Cooperation Council

Nomenclature (CCCN), which is also referred to as the Harmonized System. This

system was introduced to provide a standard tariff classification regime for all products

imported and exported throughout the world.

French VAT applies to:

 The acquisitions of goods from another EU member state by a taxable

person.
 Reverse-charge services received by a taxable person in France (that is,

services for which the recipient must account for the VAT due).
 The importation of goods from outside the EU, regardless of the status of

the importer. (As a general rule, exports outside the EU are exempt from

VAT.)

13
 Goods presented to customs are covered by a summary declaration, which is

lodged once the goods have been presented to customs. The customs authorities may,

however, allow a period for lodging the declaration, which cannot be extended beyond

the first working day following the day on which the goods are presented to customs.

The summary declaration can be made on a form corresponding to the model

prescribed by the customs authorities. However, the customs authorities may permit the

use, as a summary declaration, of any commercial or official document that contains the

particulars necessary for identification of the goods. It is encouraged that the summary

declaration be made in computerized form.

To sell products on the EU market of 27 Member States as well as Norway,

Liechtenstein and Iceland, U.S. exporters are required to apply CE marking whenever

their product is covered by specific product legislation. CE marking product legislation

offers manufacturers a number of choices and requires decisions to determine which

safety/health concerns need to be addressed, which conformity assessment module is

best suited to the manufacturing process, and whether or not to use EU-wide

harmonized standards.

French Certification body, “AFNOR CERTIFICATION,” relies on the strength and

expertise of a network of impartial and competent bodies whose scientific knowledge

and technical know-how ensure the value and credibility of its certifications.

AFNOR Certification calls upon mandated bodies (to which all the certification

operations are assigned), technical secretariats (to which part of the certification

process is subcontracted), specialized laboratories and inspection and auditing bodies,

a network of specialized auditors. All these bodies meet the requirements for

14
impartiality, competence and integrity described in NF EN 45011 or NF EN ISO/IEC

17025 that define the respective obligations to be fulfilled by the product certifying

bodies and laboratories. AFNOR CERTIFICATION controls the entire NF network and

ensures its consistency.

Manufacturers should be mindful that, in addition to the EU’s mandatory and

voluntary schemes, national voluntary labeling schemes might still apply. These

schemes may be highly appreciated by consumers, and thus, become unavoidable for

marketing purposes. Manufacturers are advised to take note that all labels require

metric units although dual labeling is also acceptable until end of December 2009. The

use of language on labels has been the subject of a Commission Communication, which

encourages multilingual information, while preserving the right of Member States to

require the use of language of the country of consumption.

15
IV. Doing Business

a. Proposed Business

The team proposes a business to export our native and handmade Abaca bags

to France. Particularly, handmade Abaca bags made from various small-time

enterprises in Albay, Bicol. The entity will hire these natives to make the bags, which will

be made in accordance with a set and standardized design and will undergo quality

control before its release to be shipped. The entity will also supply them with high-

quality materials from local producers of Abaca fibers, which costs 75Php per kilogram

as of this late 2016.

The entity will contract with various designer brands through a partner company,

Stillbag, to produce their designs here in the Philippines and export the bags in bulk

back to France.

Stillbag is a well-established company which owns shops that specializes in men

and women’s accessories and luggage. They sell various brands and accept imports, as

long as it suits the customers’ taste. They have physical branches all-over France, the

main branch at 73 Rue Vieille Monnaie, and also has an online store.

16
 The items will be shipped, FOB destination, via sea courier, and shall be

vacuum-sealed to protect the quality of the bags. This is especially due to the risk of

change in humidity that will affect the bags’ texture, durability and quality if not properly

taken care of. It will also be insured during the whole shipping, until it reaches the

physical stores. Once made and shipped, it shall be considered sold. Payments will be

made via bank to bank basis.

Upon approval of the various contractors and brands, the bags shall be retailed

in the all branches of Stillbag throughout France. These will also be made available in

their online store.

There is a probable chance for the market to take interest to the launching of

such product since it fits the French’s love for craftiness, simplicity and elegance. It will

also fit their love for beaches, as these type of bags tend to fit into the fashion of

summer.

17
 b. Product and Service offerings

Each Abaca bag is skillfully handcrafted from well-grown Abaca plants. This is

one of the things that make the product special, unique and eco-friendly. The team will

receive designs from various designer brands through a partner company, Stillbag, to

produce their designs here in the Philippines and export the bags in bulk back to

France.

The following are sample designs that are available in the market today:

Stick Abaca Bags (€10-12)

The handbag is made up of abaca with synthetic or leather trimmings and some

wooden handles. Each bag features a unique pattern matched with vibrant color

combination, perfect for a classy night out.

18
Candy Knit Abaca Sling Bags (€9-11)

These are simple yet bright colored sling bags, perfect for a casual day. It is

made from handmade woven Abaca fibers and cotton cloth on the inside.

Fruit Knit Abaca Sling Bags (€18-20)

This cute adorable sling bag is made from the finest eco-friendly jute abaca fiber.

It is perfect for kids and kids-at-heart.

19
Knit Knot Abaca Shoulder Bags (€12-15)

This bag is built to carry large and heavy load which is great to carry along on

your shopping day. It is made up of strong and high quality abaca and soft leather for

the handle. It is a simple yet practical and fashionable style of bag.

Abaca Beach Bags(€10-13)

This bag will perfectly match any outfit you’ve been hiding on your closet for the

summer season. You can pack your beach essentials in this vibrant beach bag.

20
Abaca Clutch Bags (€4-6)

This clutch bag is perfectly matched in any occasion and you can easily carry it

wherever you go. It is made of hand-woven abaca fiber and leather.

21
 c. Competitive Advantage of Company

The foremost competitive advantage to be secured in doing business

internationally is the rapport between the transacting countries. Fortunately, Philippines

has been becoming more associated with France for this past few decades. Presented

below, in descending order, is the list which shows trade partners of France who earned

the highest trade surpluses in 2014.

25.00%
21.80%

20.00%

15.00%

10.00%
7.70%
6.20%
5.00% 4.60% 3.90%
3.50%3.50% 3.00%3.00% 2.90%
France’s Highest Trade Surpluses in 2014

0.00%
UNITED KINGDOM HONGKONG
UNITED ARAB EMIRATES SINGAPORE
SOUTH KOREA ALGERIA
AUSTRALIA GREECE
PHILIPPINES BRAZIL

United Kingdom US$14.2 billion (21.8% of French country-specific

surpluses)
Hong Kong $5 billion (7.7%)
United Arab Emirates $4 billion (6.2%)
Singapore $3 billion (4.6%)
South Korea $2.5 billion (3.9%)
Algeria $2.3 billion (3.5%)
Australia $2.3 billion (3.5%)

22
Greece $2 billion (3%)
Philippines $1.9 billion (3%)
Brazil $1.9 billion (2.9%)

23
 France enriched its trade surplus amounts with the countries below at the fastest-

pace during 2010 to 2014.

France’s Highest Fastest Pace of Trade Surpluses from 2010 to 2014

4500%

4000% 3945%

3500%

3000%

2500%

2000%

1500%

1000% 886% 822% 760%

512% 466%
500% 355%
248% 247% 245%

0%
SOUTH KOREA FIJI PHILIPPINES SAMOA
MAURITANIA TAJIKISTAN TOGO TURKS/CAICOS ISLANDS
MYANMAR (BURMA) COLOMBIA

24
 Aside from this growing relationship of Philippines and France, another

advantage is that Abaca has been an ongoing industry in the Philippines and continues

to be developed.

In fact, Philippines is the top producer of Abaca worldwide, Ecuador coming in

second within a huge gap. Philippines produce about 85 percent of the world’s abaca

supply while Ecuador accounts for 15 percent only.

Major Abaca Producing Countries

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Philippines Ecuador

Under the 85 percent, it contains 59 provinces; Bicol Region had the largest

share of 33.15% in the national production of Abaca while other top ranking regions

were Eastern Visayas and Davao Region with shares of 29.31% and 13.29%

respectively.

25
 Philippine Abaca Exports

Bicol Region
Eastern Visayas
Davao Region
Other Provinces

Taking care of an Abaca plant depends on the climate of a particular location and

the soil that is used. Dry sandy soils, stiff clays or limestone soils are avoided to use in

planting abaca. But climate is more important than soil. Since Philippines has a tropical

climate, planting abaca here is better because the four climatic factors are, rainfall,

humidity, winds and temperature. Temperature is relatively unimportant.

One of the recent developments in the business of Abaca is the growing industry

of handicrafts, particularly, bags. Abaca handmade bags are unique and fashionable. It

can compete along with the well-known brands in the fashion industry. Aside from being

stylish and fashionable, abaca fiber or Manila Hemp is highly competitive and one of the

sturdiest natural fibers. Strongest, three times stronger than cotton and two times

stronger than sisal fibers. It is also resistant to salt water decomposition.

26
 Export earnings from abaca products went up 17 percent in the first nine months

of 2016 despite a decrease in volume demand from major markets, the Philippine Fiber

Industry Development Authority (PhilFIDA) reported this February 2017. According to

PhilFIDA, abaca export sales reached $101.8 million from $86.7 million in the same

period in 2015.

$80.00

$70.00

$60.00

$50.00

$40.00 2015
2016
$30.00

$20.00

$10.00

$0.00
Pulp Fabric Cordage Crafts Raw Fiber

Export Earnings from Abaca 2016 (rounded to nearest millions)

Abaca pulp accounted for $70.3 million of total exports, 20 percent higher than

the earnings in the comparative period. Shipments to Europe declined five percent to

12,187.2 metric tons (MT), while shipment volume to Asia went down nine percent to

2,935.4 MT. The US purchased 2,101.5 MT, up three-fold year on year. The total volume

of abaca pulp exports expanded by four percent in the January to September period to

17,224.1 MT. Meanwhile, the value of outbound shipments of fabric and cordage

27
declined 20 percent and 38 percent, respectively. Fabrics exports contracted to

$623,517 from $783,209, while cordage exports shrank to $5.6 million from $9.1 million

in 2015. The value of raw fiber exports increased 21 percent to $18.4 million with total

volume of exports slightly up to 79,678 bales. Most importantly, exports of fiber crafts

reached $6.8 million, more than double the $3.2 million recorded a year earlier. This is

very significant to our business since this shows the increasing demand for Abaca

crafts. This includes our product, the native and handmade Abaca bags.

These Philippine abaca products are sold to the US, Germany, United Kingdom,

France, Belgium, China, Taiwan and South Korea among others.

According to experts from TechSci Research, the Philippines will remain as the

world’s top source of abaca, the strongest-known natural fiber for the next five years.

The global demand for Philippine abaca fiber is expected to grow 5.7 percent through

2019. With continuing development of fiber-craft industry in the Philippines, the abaca-

fiber market has been witnessing a boost due to growing demand for gifts, toys and

housewares.

Abaca has very good ecological balance combined with its excellent technical

properties. Compared to leather products, abaca handmade bags are more durable and

eco-friendly. It will be a trend in French's fashion industry. Not only the French, but also

the tourists will be attracted to our product not only because of its style but also its

quality.

28
 d. Opportunities and Threats for International Trade

France, being the 5th largest economy in the world and largest country in Western

Europe, became a major market area all by itself. It is closely connected to the entire

Western European markets and is very open to foreign investors. Opening a business in

France in fashion line would be difficult because it is the home of many high-end fashion

industries but our company's product can compete among them.

The chart below shows the one, three and five-year survival rates of enterprises,

business economy in countries member of European Union, 2014.

France has an average rate of enterprise survival compared to other countries. At

the first year, start-up businesses in France have 83% chance of surviving. At the third

year, chances of survival reduce to 59%. On the fifth year, only 45% chance of survival.

It can be seen as a trend, not only in France, but in other countries as well, that the

older the enterprise is, the riskier it gets.

29
 The next chart shows trend of enterprise death rates, business economy among

countries member of European Union, 2013-2014.

France is ranked in the latter part, coming at 6 th less likely enterprise death rates.

This means that a lot of businesses are stable in the said country. Unfortunately, this

doesn’t necessarily mean too well for a start-up business. This data suggests that most

companies are already established and well-known. Starting up a new name in the

business world will be harder to attain.

Aside from these risks, French businesses can be wary of buying outside France.

Foreign businesses need to reassure French customers and clients about quality, price

and reliability.

30
 Fortunately, the product that we are about to export is among the list of top ten

industries importing into France, clothing and fashion items being in the top ten spot.

This gives us risk of competition, yet secures us a market. France also has been

importing Abaca from the Philippines for the past decades. Philippines, being the top

exporter of Abaca, can definitely ensure France of the quality of the products to be sold.

We are also aiming to manufacture and produce quality bags for well-establish brands

in partnership and through the company Stillbags, thus eliminating the challenge of

competing with bigger brands.

Provided that the business would deemed successful, new business ventures

would be possible such as the business will be able to take part in fashion shows for

further recognition, increase in demand and to expand its business from France to

entire Europe, and to be notable among the fashion industry.

Export cost such as tariff taxes and transport cost would lead to less desirable

prices for the consumers. France being the home of high-end fashion products it would

be difficult to compete with other companies.

31
 e. Strategic Adjustments for International Business

Most of the adjustments to be made in doing business in France are with the

French culture. Since France hosts immigrants, doing business with foreigners are

uncommon. However, foreigners who do not respect their language and culture will

most likely get disrespected as well.

The foremost adjustment in France is the language. The French are extremely

proud of their language, and even though most French speak English, they refuse to do

so unless you apologize first for not knowing the language. This will then shift the

conversation from French to English. Starting a conversation in English will most likely

cut your chances off from getting a deal.

The French business model is also different from most. Their organizational

structure is mostly vertical, giving the top personnel more power and control over their

subordinates. In contrast, presentations in front of higher ups or small meetings are

considered an open debate. A person presenting should be prepared to defend his/her

ideas. This will not be seen as rude, but a useful way to think through things. Harmless

flirtation is also very common, especially with female. This should be seen as a

compliment.

Social cues should also be observed, just like in any other country. Ways of

transport is mostly public, and dealing with customers will be well as long as you treat

them with utmost respect.

Since the business will be venturing into the fashion industry, the heart of France,

there will be many competitions ahead. Since such a start-up is risky, the entity does not

32
aim to compete, but instead aims to manufacture and produce quality bags for well-

establish brands in partnership and through the company Stillbags, thus eliminating the

challenge of competing with bigger brands.

Laws and regulations to be considered in doing business in France encompass

their local laws. It also entails compliance with standards set by the European Union.

Thorough quality control shall be established and promulgated, along with attainment of

certifications to ensure the quality standard of the product. Such shall be observed

starting from purchasing raw Abaca fiber to the manufacturing process, following the

designated patterns set by clients, to shipping and delivery.

33
V. Conclusion

As Philippines being the top exporter of Abaca, and the Abaca handicraft exports

growing twice as much than previous years, it is deemed that a business to export

native and handmade Abaca bags from Philippines to France is probable and profitable.

Despite of the wide range of competition within the fashion industry, Abaca bags can

make its way to the business once a deal is made with the proper company. With the

good resources of raw materials and skilled labor available in our country, a business

start-up can be set up. It can grow into a multi-national company with the proper

management, compliance with law and regulations, and quality control procedures.

VI. Recommendation

The following recommendations are offered for related

34
VII. Reference

 https://en.wikipedia.org/wiki/Abac%C3%A1#History
 http://www.wigglesworthfibres.com/products/abaca/history.html
 http://www.philstar.com/business/2016/10/01/1629069/abaca-exports-40?

nomobile=1
 http://www.philstar.com/business/802314/income-abaca-exports-down-87
 http://www.livescience.com/39149-french-culture.html
 https://en.wikipedia.org/wiki/Culture_of_France#Fashion
 https://en.wikipedia.org/wiki/Science_and_technology_in_France
 http://toggg.com/spip/spip.php/french-technology-status/
 http://www.heritage.org/index/country/france
 http://about-france.com/geo/french-economy.htm
 http://www.economywatch.com/world_economy/france
 http://www.rappler.com/world/regions/europe/85171-fast-facts-philippine-france-

relations
 https://en.wikipedia.org/wiki/Geography_of_France
 http://www.bugbog.com/european_cities/france_travel_guide/france_beaches_gu

ide/
 https://en.wikipedia.org/wiki/Politics_of_France
 http://about-france.com/political-system.htm
 https://www.ft.com/content/81d8ffe8-7451-11e6-bf48-b372cdb1043a
 http://www.ibtimes.com/doing-business-france-8-cultural-cues-make-or-break-

deal-368258
 http://businessculture.org/western-europe/business-culture-in-france/
 http://www.globaltrade.net/f/business/text/France/Legal-and-Compliance-Trade-

Regulations-and-Standards-in-France.html
 http://www.businessmirror.com.ph/global-demand-for-phl-abaca-to-grow-5-7/
 http://www.philstar.com/business/2017/02/10/1670669/abaca-export-earnings-17

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