(Photo shows DTI Undersecretary for Regional Operations Merly M. Cruz with an exhibitor's product)

Micro, small and medium enterprises (MSMEs) in the country now have a permanent exhibition venue where they can display and sell their products for free year-round.

Called the Philippine Product Depot, the facility was opened by President Gloria Macapagal-Arroyo and Trade Secretary Peter B. Favila on August 11, 2009 and now showcases the products of 1,007 MSMEs from the 16 regions in the country. About 80 percent of them are participants to the One Town – One Product (OTOP) program.

“This will provide efficient structure and mechanism where the MSMEs will meet the buyers, traders, consolidators, tourists, and domestic consumers. It’s like an everyday trade fair,” Trade Undersecretary for regional operations Merly M. Cruz told Entrepreneur.

The depot currently covers 1,900 square meters inside the HK Sun Plaza on Macapagal Avenue in Pasay City. By next year, Cruz said the facility could expand to 4,000 square meters, which will be enough to accommodate the close to 4,000 MSMEs that the Department of Trade and Industry (DTI) is supporting throughout the country.

Regional pavilions

The DTI is footing the expenses for the depot, including the P200/square meter/month rent all-in. Cruz said they got a good lease price because the property is owned by the Social Security System.

She said all entrepreneurs are welcome to display their products at the depot. But they need to go to the regional and provincial offices of the DTI in their areas to apply. The DTI officials will then decide if the product’s quality is suitable to be displayed there.

The 1,900-square meter space is equally divided for the 16 regions. The administrators per region will then decide the make up of the regional pavilions.

The depot also has its own warehousing facility at the back, which Cruz said should be enough to store a month of inventory.

The DTI already has a budget for the depot for up to 2010. After the Pasay depot, the DTI is also looking at putting up similar facilities in La Union or Baguio City in the North, Cebu City in the Visayas and Davao City in Mindanao.

Ready markets for MSMEs products

Cruz said in developing the MSME sector, the DTI is making sure that the producers will have ready markets for their products so they will continue to register sales and grow.

The depot targets foreign tourists, those visiting Metro Manila, and the usual buyers. It will tell the buyers which products are available in the different areas in the country at the moment.

According to Cruz, they are looking at hiring a private party that will professionally manage the facility. It will be open seven days a week from 9 am to 7 pm. “We plan to have special events twice a month, and every three months we will do a sale for the products that are not fast-moving,” Cruz said.

“The other MSMEs also need to polish their products, so we will rely on comments that we will be getting from the visitors at the depot to improve their quality. This will also serve as a platform for OTOP entrepreneurs who are not confident yet to explore other markets. After displaying their products at the depot, they may develop the confidence to seek new markets already,” Cruz said.