Micro, small and medium enterprises (MSMEs) can try targeting the premium market and exploring the potentials of Brunei Darussalam, a small but wealthy Southeast Asian country where opportunities to sell niche products abound, according to a trade expert.
Commercial counselor Norjamin Delos Reyes, who focuses on Malaysia and Brunei Darussalam, is encouraging Filipino exporters to Southeast Asia to also cast their eye on Brunei as a potential market destination.
Delos Reyes was part of a panel of commercial attachés at a recent exporters’ convention discussing trends in overseas markets. In her talk, she acknowledged that Philippine export products in Malaysia are generally not as price competitive as the goods produced in that country itself.
“We have to be very careful in positioning ourselves because we do not want to compete with the other products that already have a market base in, say, Malaysia or Thailand,” she said. Instead, she advocates going niche or premium rather than mainstream.
Thus she is pushing for the “premiumization” of Filipino export commodities. “The market strategy I am proposing… is to bring in our premium products because that is where we [can] position ourselves. It can be an opportunity for the MSMEs to get more value for their products.”
Premiumization is the strategic process of enhancing product and brand positioning to cater to consumers seeking quality, authenticity, and exclusivity, emphasizing meticulous attention to detail, refined craftsmanship, and superior value.
Moreover, Delos Reyes suggests that MSMEs looking to sell in Malaysia and other places in the ASEAN region also try their luck in oil-rich Brunei, as the sovereign state has a comparatively larger purchasing capacity.
“Why not look at Brunei?” she said, adding that “your one box of soap in Malaysia would yield you more profit if you will sell it in Brunei.”
She tells MSMEs that “there are always opportunities as long as you know your market and you know your competitors.”
She points out that “it is always the market that will decide… let’s see what they don’t have… sometimes we’re very self-centered. We love our products [but] let’s always look at this from the eyes of the buyers. If I am the Malaysian or Thai or Singaporean, if I look at your product, will I buy it or the other one?”
“If we can’t compete in the mainstream, let’s go to the premium products. Let’s look at the premium market of Malaysia and Brunei and other ASEAN consumers.”
Meanwhile, commercial counselor Vichael Angelo Roaring, whose area of expertise is the Middle East, advises exporters to incorporate their sustainability practices, including the use of energy-efficient technologies, ethical sourcing, circularity, and regenerative agricultural practices, into their brand stories.
“Try to communicate that the brand or product that you have adheres to all of these ethical considerations,” he said.
He also urges entrepreneurs active in e-commerce to “at least for the Middle East market, really capitalize on social media marketing.” He shared that the current top Filipino cosmetic brand in the United Arab Emirates is not that well-known in the Philippines, but because of the company’s savvy social media-driven marketing strategy, the brand has secured a major spot in the UAE market.
“Social media marketing is really important. It will catapult you [even] beyond… the UAE,” he said.
On the other hand, vice consul Froilan Emil Pamintuan advises would-be exporters to China to “digitalize and get into WeChat,” while commercial counselor Magnolia Misolas-Ashley calls upon Filipino firms to “not be scared of Europe.”
“It’s far away, it’s not a traditional market for a lot of our exporters,” she admitted of the European Union. “But do not be scared of all these requirements because it’s a very rewarding market. Once you enter one market in Europe, it is very easy to export to the other countries as well. It will take a bit of time to hurdle the requirements but once that’s done, it’s a 450-million market” that can yield huge payoffs for the intrepid entrepreneur.
