Philippines: Interview with Rudy Tan

Rudy Tan

CEO (Burlington Industries)

2007-02-13
Rudy Tan

In your opinion, what have been some of the most positive reforms that the Philippines have undergone recently?

Burlington is a medium-sized company presently serving the local market. We’ve been interested in export but somehow the prices from other countries (like China) are too competitive. We’re focusing more on quality to have a marketing difference. Locally, the expansion of the local department stores and major retailers like Shoe Mart and Robinsons has been expanding. This way, we get to have our products in different regions of the Philippines.

Generally, what are the competitive advantages of the Philippines that your market has to offer compared to the rest of the region?

We are at par with other countries in terms of machinery and technology. I think the major concern is in becoming global. The competition of prices is there. The global market has been affecting manufacturing companies that have not been able to modernize to be productive and hold prices at the same time.

What would you say are the main players and competitors in the local industry?

We are not only competing against foreign factories, we’re now competing against global supply. The main supply is coming from China. US and Italian brands target the A B markets.

How successful has the year 2006 been in terms of turnover and profits?

We really had to do some cost cutting and planning to keep our costs down. The market is asking for more affordable items.

How are you managing the operational cost management while pleading the standards and the trademark of the Philippine industries, which is quality in lower value?

It’s the quality that goes with the brand, so we could not sacrifice the quality. What we are introducing to the market are innovations such as anti-microbial socks. We have to maintain our products’ standards. We are finishing our ISO certification. We are coming up with more competent procedures. Second to this would be the marketing side: the distribution of marketing and retail business.

What are some of the sports events, which you are currently sponsoring?

Last year, we had a tie up with the Philippine Basketball Association. During summer, we support a Junior PBA project for 10 to 12-year-old children interested in playing basketball. They get to play in the Araneta Coliseum, the league’s official stadium for competitions. It supports the parents’ desire to develop children in the skills of basketball and sportsmanship.

You also sponsored the 8th Annual Asian Women’s Softball Competition last July.

Yes, we are really focused on sports.

Can we expect any future partnerships with international markets?

Right now, we are trying to license other grants for the Philippine market.

What would you say have been the main challenges and highlights of the career?

Actually, Burlington started with two machines. It was really a hard start because we are competing against those big manufacturing companies then. It was the perseverance of our President who wanted to come up with quality products and innovations. It became a family corporation. In 1994, we changed our name to Burlington Industries Philippines, Inc, which is now one of the most popular in the local market. Since then, we started modernizing our equipments. We still maintain the same focus: quality and innovation.

It would also have to be the modernization. We had to change all our mechanical machines to be very competitive because socks are becoming a fashion item nowadays.

Do you have a specific message to the investors looking at the Philippines?

Burlington is very interested to go into the export market. I think we have the expertise to give the quality that the customer would want since we have been in the business for so long. We’ll do our best to give a very competitive price. We’re willing to start with small orders.