BIBLIOGRAPHY JOY S. BOTAY. APRIL...
BIBLIOGRAPHY
JOY S. BOTAY. APRIL 2011. Benchmark Study of Knitting Industry in Baguio City.
Benguet State University, La Trinidad, Benguet.
Adviser: Prof. Evangeline B. Cungihan, MSc.
ABSTRACT
The study was conducted at the different areas of knitting industry in Baguio City,
specifically in Mines View, Botanical Garden and Pacdal, from December 2010 to January 2011.
The objectives of this study are to describe the status of knitting industry, determine the practices
of the entrepreneurs in buying and selling knitted products, determine how the firms position
their products in the market and who their customers or buyers, determine the volume of sales of
knitting industry, and to identify the problems encountered by the entrepreneurs of the knitting
industry.
The respondents of the study were composed by 35 retailers, 18 knitters, and 4 suppliers
of raw materials with a total of 57 entrepreneurs. The data gathered were categorized tabulated
analyzed using frequency and percentages.
Majority of the respondents are sole proprietorships and dominated by females. Most of
the firms operated for six to ten years and above.
It is concluded that particular places were chosen as they are essentially tourist
destination where most of the firms’ customers are local tourists and foreign tourists.
It is recommended that each enterprise should study the people as to their needs, wants
and also their behavior, and then identify whom they must offer each kind of their products.
TABLE OF CONTENTS
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Statement of the Problem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Scope and Delimitations of the study. . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Concept of Knitting Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Knitting; It’s Process and Products . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Knitted Products as Fashion and
Arts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Knitting as Needle Work and
Physical Dysfunction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Location and Time of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Respondents of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Collection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data to be Gathered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
RESULTS AND DISCUSSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Profile of the Entrepreneurs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Profile of the Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Practices of Retailers in Buying and
Selling Knitted Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Perception of Respondents if
Knitting their Own Product
is Advantageous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Types of Buyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Volume of Sales per Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Problems Encountered by the
Retailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Sources of Raw Materials and
Kinds of Products Produced
by Knitters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Mode of Purchase of Raw Materials . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Marketing Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Volume of Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Market Outlet of Knitters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Volume of Sales per Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Sources of Materials of Supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Mode of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Marketing Practices of Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Volume of Sales per Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . . . .
29
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
LITERATURE CITED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
APPENDIX
A. Survey Questionnaire (Retailers) . . . . . . . . . . . . . . . . . . . . . . . . . .
32
B. Survey Questionnaire (Knitters) . . . . . . . . . . . . . . . . . . . . . . . . . .
35
C. Survey Questionnaire (Supplier of Raw Materials) . . . . . . . . . . . .
38
INTRODUCTION
Rationale
Knitting industry is one of the promising businesses in the Philippines that can
generate income and provide job for housewives.
It is a process of forming a fabric by means of interesting loops of yarn. In knitted
fabrics, vertical columns of loops are called Wales and the horizontal rows of loops are
called courses.
Historically, no one knows when women first began to knit; we do know that as
far back as 200 A.D. knitting was an advanced and accomplished art. Examples of knitted
products were found in the site of Antinoe in Egypt. In Britain the first knitting machine
was designed by Reverend William Lee of Calverton in 1589. From its beginning knitting
industry has been expanded to become one of the leading branches of the textile industry.
This evolution resulted mainly from the desire of mankind. Knitted garments are
recognized essentials in every wardrobe. They combine fit with physical freedom,
warmth with ventilation and durability with textual beauty. Now a day this activity
becomes a source of income to many housewives.
Knitted products have different designs which are available in the market. These
can be in the form of sweaters, scarves, gloves, socks, mittens, bags or hats. In addition,
runners, tablecloths and bedspreads can also do by knitting.
Knitted products are among the popular products produced and sold in the city of
Baguio especially in places where tourist go like Mines View, Botanical Garden and
Pacdal. This study will be conducted to establish baseline data on the industry in Baguio.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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Statement of the Problem
1. What is the present status of the knitting industry in Baguio City?
2. What are the practices of the entrepreneurs in buying and selling knitted
products?
3. How the firms position their products in the market and who are their
customers or buyers?
4. How much is the volume of sales of knitting industry in Baguio City?
5. What are the problems encountered by the entrepreneurs of the knitting
industry?
Objectives of the Study
1. Describe the status of knitting industry in Baguio City as to:
a. Profile of the entrepreneurs
b. Profile of the business
2. Determine the practices of the entrepreneurs in buying and selling
knitted products.
3. Determine how the firms position their products in the market and who their
customers or buyers.
4. Determine the volume of sales of knitting industry in Baguio City.
5. Identify the problems encountered by the entrepreneurs of the knitting industry.
Importance of the Study
By updating the bench mark of the industry, results will not only serve as a guide
for researchers to look into the growth and development of industry but the knowledge in
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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knitting will be imparted to the students and will be venue for an enterprise which they
can venture into the future.
Scope and Delimitation of the Study
The study focused on knitting industry in Baguio City, specifically those markets
in Mines View, Botanical Garden and Pacdal.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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REVIEW OF LITERATURE
Concept of Knitting Industry
The Grolier Encyclopedia of knowledge (International Edition) stated that
knitting is the making of fabric by using special needles to interlace yarn in a series of
loops or stitches. Hand knitting using two single – pointed needles for flat work, and a
flexible circular needle with points at each end on several double - pointed needles for
circular work, remains a popular hobby. Most knit fabrics today, however, are produced
by machines.
From the beginning of the machine age, people have expressed concern for the
loss of individuality that mass-produced objects imply. The inherent uniqueness of
anything handmade is a reassuring reflection of the individuality of each human being; it
is a gesture of defiance against anonymity and monotony. Against a background of mass-
produced objects, things handcrafted have taken on the luster of art. What had once been
simply a fisherman’s sweater or a peasant’s warm mittens have come to be seen as
desirable luxuries far from the small world in which they originated. As a result, the craft
of knitting has been taken up by people who have no need to make their own clothing
(Hiatt, 1988).
William Lee, an English clergyman, invented the first knitting machine in 1589.
His “Stocking Frame” based on an early form of hand knitting that used hooked needles
mounted side by side on a frame, allowed an operator to form an entire raw of loops with
a single stroke of a foot pedal. It remained essentially unaltered until the mid 18th century,
when mechanics were added for marking ribbed knitting and even types of lace. The
stocking frame produced a weft fabric, were the stitches were built up horizontally. The
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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first warp knitting machine invented in 1775, knit yarn together vertically and could
produce fabric for more quickly than the older machines (Solimen, 2010).
Modern Knitting machines belong to either the welf on warp category and maybe
controlled by computer. Weft machines are often circular, the needles are mounted on a
rotating cylinder, and a tabular fabric is produced as the cylinder turns. Warp machines
are usually flatbed with the needles mounted in a straight time. These machines knit a flat
fabric that is less elastic than fabrics on weft machines and are used for knitting full-
fashioned garments.
Knitting: Its Process and Products
According to the Australian Fashion News (2001), as cited by Faronda and San
Pedro (2000), knitted fabrics vary greatly from the production of woven fabrics and the
so-called non-woven fabrics. Woven fabrics are produced by interlacing yarns in the
same plane but at right angles to one another. The non-woven fabric is a more recent
development, which involves the formation of a web or layers of fibers by bonding.
The same authors mentioned that, knitting was popularized and practiced to a
great extent throughout England and Scotland. Knitting soon becomes customary to knit
the leg covering separately by hand. Hosiery is an important product, and its cost is often
a large item in the clothing budget of the customer. The construction of hosiery should be
of interest because it has a being on the serviceability of the article. In most cases, the
better constructed hosiery is well worth its extra cost, provided it is gen proper care in
wearing as well as in laundering.
Knitting became a commercial industry only in 1970’s when knitting-machines
were easily acquired. At the same period, women mostly from Sagada, Besao and Bauko
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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in Mt. Provinces have ventured into trading of knitted wear only in the Cordillera but also
in the lowlands. This activity proven to be very profitable that the same women
established home-based knitting factories in Baguio City and in La Trinidad, and in the
mining communities of Benguet. Not long after, almost anybody engaged in knitting
sweater used the trade mark “Made in Baguio City” which became popular nationwide.
According to Diaz (1992), as cited by Faronda and San Pedro (2001), Knitted
fabrics are constructed from interconnecting loops of lengths of yarn, which can be
knitted along the warp or weft giving the fabric its stretchy quality. Horizontal rows of
knit are known as “courses” and vertical rows are known as “wales”. Weft knitting is
created from one yarn that loops and links along the course; if a stretch is dropped the
knit is likely to ladder and run down the length of the wale. Hand knitting is prime
example. Warp knitting is more like weaving, with the construction being more
complicated and fabric less easy to unravel. Fabric tends to be comfortable to wear as it is
stretchy, but this can also mean that it can stretch out of shape and shrink with heat,
especially if it is made from wool. Knitted fabrics tend to be more prone to pilling than
woven fabrics. Different thicknesses of knitting can be produced according to the stitch
used, the size of the needles and the thickness or the count of the yarn.
Knitted Products as Fashion and Art
The twentieth century has witnessed far more than the mere transformation of art
works into catwalk creations. It has produced a whole array of ideas and movements that
illustrate the way in which the worlds are of art and fashion inspire one another. The
relationship between the two worlds has given rise to a number of new perspectives,
including a reassessment of the meaning of life through dress, the revising of the fashion
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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system, the creation of new spiritual dimension with in the fashion industry, and the used
of clothes as an aid to artistic expression. This new perspective turns on their heads the
rules that previously governed art and fashion. Clothing has always been a strong
indicator of social identity, and if taken out of its everyday context, is anything but
harmless and innocent. Depending on the era and the artist or couturier who interprets it,
dress can become the expression of an ideology, a social critique, or a combination of
both (Muller, 2000).
In the late 19thand 20th century fashions changed and women and men began
wearing jumpers and cardigans and other knitted garments for day, evening and more
importantly for sports. With the increase in leisure time in the 20th century, knitted fabric
has become increasingly important for sportswear as it is stretchy, comfortable and
absorbent (Udale, 2008).
Knitting as Needle Work and Physical Dysfunction
Because needlework is most often identified with women, its use is slightly
limited. While a few men will attempt it; only those with a strong sense of self are willing
to risk doing a traditionally female craft. Needlework is the kind of craft that can be done.
Small projects require little expenditure of energy. Most of the joint and muscle
movements in needlecraft are in the fingers and hands. However, needlework involves
some shoulder internal and external rotation, elbow flexion and extension, forearm
pronation and supination, wrist flexion and extension, and radial and ulnar deviation.
Many severely disabled arthritics still enjoy needlework as it does not require strength
and consequently does not hurt their joints. The patient experiences less pain when
concentrating on a craft such as needlework.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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In addition, knitting offers a creative outlet that accommodates itself nicely to
busy lives. The tools and materials represent a modest investment, and the basic
techniques are easily learned. The work is eminently portable, accompanying the knitter
on vacations or to committee meetings, or helping to fill the empty hours on an airplane.
Best of all, the result of the knitter’s efforts is something attractive, practical, and unique.
A hand-knit garment is also a special way of giving to the ones you love (Drake, 1992).
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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METHODOLOGY
Location and Time of Study
The study was conducted in Baguio City where knitting industries are found.
The study was conducted on December 2010.
Respondents of the Study
The respondents of the study were the owners or the managers of the knitting
industries in Baguio City, the sellers in the different tourist area and the suppliers of raw
materials.
Data Collection
Data gathered used survey questionnaire to gather needed data. The data was
supplemented with observations.
Data Gathered
The data gathered were the profile of the business owners, production and
marketing practices, market promotion activities, product customers and volume of sales.
Data Analysis
The data gathered were categorized tabulated analyzed and used frequency and
percentages.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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RESULTS AND DISCUSSIONS
Profile of the Entrepreneurs
Table 1 shows the personal information about the respondents specifically their
ages, sex, civil status and educational attainment.
Age. As shown in Table 1, 62.9% of the retailers belonged to 20 to 30 years of
age and only 2.8% of them belonged to 51 to 60 years old. The same table shows that
most of the knitters are at the ages of 20 to 30 which means that most of them belongs to
young adult and the rest belongs to middle age and adult age. All of the suppliers of raw
materials are in the middle age, which 50% of them belonged to 30 to 40 and other 50%
belonged to 41to 50 years old.
Sex.Table 1 also shows that majority (85.7%) of the retailers are female as
compared to male (14.3%). Almost all the knitters are female and all of the suppliers of
yarns (thread) are female. This finding implies that the key actors; the retailers, knitters
and suppliers of raw materials, are dominantly female.
Civil status. Majority of the retailers are married (60%) likewise the knitters
(83.3%) and all the suppliers of raw materials.
Educational attainment. Also Table 1 shows that few (20%) of the retailers
respondents are under elementary graduate and most (48.6%) of them are high school
graduate and undergraduate. There are also eight (44.5%) knitters who are high school
graduate and undergraduate, six (33.3%) college graduate and undergraduate and for
(22.2%) elementary graduate and undergraduate. With regards to the suppliers of raw
materials, majority (75%) of them are high school graduate and only one (25%) is college
graduate.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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Table 1. Profile of the entrepreneurs
PARTICULAR
RETAILERS
KNITTERS
SUPPLIERS
F
%
F
%
F
%
Age
20 – 30
22
62.9
7
38.9
31 – 40
9
25.7
5
27.7
2
50
41 – 50
3
8.6
3
16.7
2
50
51 – 60
1
2.8
3
16.7
TOTAL
35
100
18
100
4
100
Sex
Female
30
85.7
17
94.4
4
100
Male
5
14.3
1
5.6
TOTAL
35
100
18
100
4
100
Civil status
Single
14
40
3
16.7
Married
21
60
15
83.3
4
100
TOTAL
35
100
18
100
4
100
Educational attainment
College
11
31.4
6
33.3
1
25
High school
17
48.6
8
44.5
3
75
Elementary
7
20
4
22.2
TOTAL
35
100
18
100
4
100
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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Profile of the Business
Table 2 shows the form of ownership of businesses in the knitting industry
including information on capitalization and number of years in operation.
Form of business ownership. As shown in Table 2, majority (71.4%) of the
retailers is sole proprietorship, 25.7% belong to partnership, and one (2.9%) belongs to an
association. These findings are also true to knitters, majority (61.1%) of the respondents
are sole proprietorship. All the suppliers of raw materials belong to sole proprietorship in
which most business in the Philippines are sole proprietorship because it’s the simplest
form of business and the easiest to register. It is not encumbered by the strict regulatory
laws and rules imposed upon corporation and partnership.
Business capital. Majority (51.4%) of the retailers had capitalization ranging from
Php 20,000 to Php 50, 000 and 34.3% had a capitalization of Php 51,000 to Php 80, 000.
As for the knitters, 50% of the respondents had a capitalization of Php 51,000 to Php
80,000 and the other half had Php 20,000 to Php 50,000 (38.9%) and Php 81,000 to Php
110,000 (11.1%). The highest capital of suppliers of raw materials is Php 250,000 and the
lowest is Php 180,000. This finding implies that suppliers of raw materials need bigger
capital than retailers and knitters.
Number of years in operation. Table 2 shows that 37.1% of the retailers operated
for five years or less. This means that there are still individual who are interested to enter
in the industry. Eighteen (51.45%) of the retailers have been in operation for six to ten
years and 11.4% reached almost eleven to fifteen years. The table shows also that six
(3.3%) of the knitters have been operating for five years or less. Ten (55.6%) have been
in the business for 6 – 10 years and only 11.1% of the knitters for 11 – 15 years. Fifty
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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Table 2. Profile of the business
DESCRIPTION
RETAILERS
KNITTERS
SUPPLIERS
F
%
F
%
F
%
Business ownership
Association
1
2.9
1
5.6
Partnership
9
25.7
6
33.3
Sole proprietorship
25
71.4
11
61.1
4
100
TOTAL
35
100
18
100
4
100
Business capital
20,000 – 50,000
18
51.4
7
38.9
51,000 – 80,000
12
34.3
9
50
81,000 – 110,000
5
14.3
2
11.1
180,000
1
25
200,000
2
50
250,000
1
25
TOTAL
35
100
18
100
4
100
Years in operation
≤ 5
13
37.1
6
33.3
2
50
6 – 10
18
51.4
10
55.6
2
50
11 – 15
4
11.4
2
11.1
TOTAL
35
100
18
100
4
100
percent of the suppliers of raw materials are relatively new in the industry. They had been
in the business for five years or less while the other 50% for six to ten years years.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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Practices of Retailers in Buying and
Selling Knitted Products
There are two types of retailers in this study. The first type is the retailers that knit
their own products, while the second types are those that buy the products from knitters.
Table 3 shows that majority of the respondents belonged to the second type. This finding
implies that majority of the retailers of knitted products at Mines View, Botanical Garden
and Pacdal, Baguio City are not knitting their own products but buy them from knitters.
This practice provide employment in the economy, furthermore, this promotes efficiency
in the industry since each actor/firm would specialize in providing the good or service
that he/she could do best.
Table 3 presents the practices of retailers in buying and selling knitted products.
There were some retailers (31.4%) that knit their own products. Majority (68.6%) do not
knit but buy knitted products from knitters.
Buying practices. As shown in Table 3, twelve (34.3%) of the retailers purchased
knitted products in piece. However 28 (80%) retailers purchased in dozen, this is to
minimize cost most especially to the products that are small in size like purses and cell
phone holder.
Agreements. In purchasing products from knitters, there are agreements made
between the retailers and knitters. Three (8.6%) of the retailers said that knitted products
must be paid in full amount upon delivery. Twelve (34.3%) of them also said that
products could be paid in partial amount. There are five (14.3%) respondents who said
that down payment is needed before products are delivered and 14(40%) of them also
purchased products in terms of credit.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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Table 3. Practices of entrepreneurs in buying and selling knitted products
PARTICULARS
FREQUENCY
PERCENTAGE
Type of Retailers
Knit own products
11
31.4
Do not knit own products
24 68.6
TOTAL
35 100
Buying Practices
Per piece
12
34.3
Per dozen
28
80.0
Agreements in Buying Knitted Products
Paid in full amount upon delivery
3
8.6
Paid in partial amount
12
34.3
Down payment before delivery
5
14.3
Credit
14
40.0
Selling Practices
Per piece
33
94.3
Per dozen
5
14.3
*Multiple Responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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Selling practices. Most (94.3%) of the retailer respondents sold their products in
piece for the reason that most of their customers are tourists both local and foreign.
Others sold in dozen.
As to product positioning, some retailers prioritized selling knitted products
during its peak season, from June to February, because of the low temperature or
coldness of weather. During summer, only selected designs were prioritized by retailers
most specially the clothing’s like spaghetti strap and sleeveless.
Perception of Respondents if Knitting
their Own Product is Advantageous
There are some retailers (42.9%) who said that it is more advantageous for them
to knit their own products because they can create their own design (Table 4). If they
order the products from the knitters, the design that they want are sometimes not copied
by the knitters. Another advantage that they pointed out is they could save from the cost
of the knitted products thus their profit would be higher. On the other hand, 54.3% of the
retailers said that it is better for them to buy from knitters because they have no time to
knit. Besides, this will help the knitters financially. More people would be involved in the
knitting industry.
One of the respondents said that it is better for her to buy the thread and let
knitters knit for her.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
17
Types of Buyers
The respondents mentioned three types of buyers of knitted products; local
tourists, foreign tourists, and non-tourist who just walk in their stalls. The finding shows
that all of them sell to both local tourists and foreign tourists. Seventeen (48.6%)
mentioned that they also sell to non-tourists or walk-in customers (Table 5). It is
interesting to note that even foreigners want to buy our knitted products.
Table 4. Perception of retailers on which is more advantageous
PERCEPTIONS
FREQUENCY
PERCENTAGE
Knit their own and directly sell
15
42.9
Buy from outside knitters
19
54.3
Buy raw materials and let
1
2.8
others knit for the firm
TOTAL
35
100
Table 5. Customers or buyers of knitted products
PARTICULAR
FREQUENCY
PERCENTAGE
Customers or Buyers
Local tourist
35
100
Foreign tourist
34
97.1
Walk in
17
48.6
*Multiple Responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
18
Volume of Sales per Year
Tables 6 and 7 present a picture of the volume of knitted products sold by the
retailers at Mines View, Botanical Garden and Pacdal. Table 6 shows the distribution of
the respondents, by sales bracket per year. In 2001, there were 8 retailers with three
having sales between Php 20,000 to Php 40,000, four within Php 41,000 to Php 60,000
and one within Php 61,000 to Php 80,000. During the succeeding years until 2006, there
were new entrants in the industry. There was a rapid increase in the number of retailers in
2006. There was no change in 2007 but in 2008, 2009, and 2010 there were new entrants.
It was observed that there were changes in the distribution of respondents in the different
sales bracket. There was an increase in the number of respondents in the highest sales
bracket. This implies that some of the respondents moved from the lower sales bracket to
the higher sales bracket. There were years when the movement was from higher bracket
to the lower bracket. For instance in 2005, the three respondents from the highest sales
bracket moved down to the lower sales bracket.
Table 6. Distribution of respondents by volume sold
YEAR AND NUMBER OF RETAILERS
SALES (pesos)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
20,000-40,000
3
5
7
11
9
13
13
7
24
19
41,000-60,000
4
4
4
3
13
12
9
17
6
9
61,000-80,000
1
0
1
3
0
4
7
7
2
6
TOTAL
8
9
12
17
22
29
29
31
32
34
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
19
Table 7 presents the volume of sales per year. The result shows that total sales of
the industry had been increasing through the years but on the other hand the average sales
per firm had decreased from 2001 to 2010. This implies that the increase in total sales
was contributed by the new entrants and not from an increase sale per firm.
Problems Encountered by the Retailers
Table 8 presents the problems met by the retailers. The result shows that of them
majority (71.4%) had problems regarding the presence of many competitors. About 63%
Table 7. Volume of sales per year
YEAR
NUMBER OF
TOTAL SALES
AVERAGE SALES
RESPONDENTS
2001
8
360,000
45,000
2002
9
350.000
38,889
2003
12
480,000
40,000
2004
17
690,000
40,588
2005
22
920,000
41,818
2006
29
1,270,000
43,793
2007
29
1,330,000
45,862
2008
31
1,550,000
50,000
2009
32
1,160,000
36,250
2010
34
1,440,000
42,353
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
20
mentioned they had problem on the high cost of raw materials (62.9%) while 57% met
problem on the seasonal demand for their products. About 26% mentioned the location of
their business as a problem because their stalls are found at the back of other stalls selling
similar items thus customers drop by these other stalls before they go to them. Some said
their problem is the design of their products which they could not come up with new
designs. Eleven percent said they had problem on lack of skilled laborers two and one of
them had problem regarding unavailability of resources and decrease in demand for their
product, respectively.
Table 8. Problems encountered by the retailers
PROBLEMS
FREQUENCY
PERCENTAGE
Many competitors
25
71.4
High cost of materials
22
62.9
Seasonal demand for products
20
57.1
Location of business
9
25.7
Knitted products’ designs
8
22.9
Lack of skilled laborers
4
11.4
Resources unavailability
2
5.7
Decrease market demand
1
2.9
*Multiple Responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Sources of Raw Materials and Kinds
of Products Produced by Knitters
All of the knitters used threads that are locally made. They prefer to use locally
made threads because according to some knitters it is more durable than imported
threads. They all buy their raw materials from the four suppliers in Baguio City.
As shown in Table 9, majority of the respondents produced bags (77.8%) and
clothing (77.8%) like sweatshirt, jacket and sleeveless which retailers preferred most.
This is because knitted clothings are salable all year round. The small items produced by
majority of the knitters were cell phone holders (66.7%), pouch (72.2%), and purse
(50%). Other knitters also produced the following products: wallet, bonnets, and mittens.
Table 9. Products produced by knitters
DESCRIPTION
FREQUENCY
PERCENTAGE
Products Produced
Bags
14
77.8
Purses
9
50
Wallet
6
33.3
Cell phone holder
12
66.7
Pouch
13
72.2
Clothing
14
77.8
Bonnet
2
11.1
Mittens
3
16.7
*Multiple responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Mode of Purchase of Raw Materials
All the knitters purchased raw materials or threads not in bulk for some reasons
that they don’t have enough cash to purchase in bulk and also knitters select the desired
colors for their design.
Marketing Practices
As shown in Table 10, 72.2% of the knitter respondents delivered their products
to the retailers. About 39% of them are letting the retailers pick-up the products from the
storage area. This shows that knitters adopt different marketing practices.
Volume of Production
Table 11 shows how many pieces of knitted products a knitter can produce within
one month considering the sizes. Purses, cell phone holder and mittens are considered as
small size. Wallet, pouch and bonnets belong to medium size. Bags and clothing are
considered as big size, this classification is adopted only in this study.
Small size. As shown in Table 11, 66.7% of the knitters could knit 20 to 30 pieces
per month and 22.2% of them could knit 30 to 40 pieces. Two or 11.1% of the knitters
could produce only 10 to 20 pieces a month. These are the knitters who are just starting to
knit.
Medium size. Also Table 11 shows that nine (50%) of the respondents could
produced around 20 to 30 pieces a month. Eight (44.4%) said that they could knit 10 to
20 pieces within a month and one (5.6%) also said that she could knit as many as 30 to 40
pieces per month.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 10. Mode of delivering products to the buyers
MARKETING PRACTICES
FREQUENCY
PERCENTAGE
Delivered
13
72.2
Picked-up
7
38.9
*Multiple Responses
Table 11. Volume of production of knitters per month by sizes
DESCRIPTION
FREQUENCY
PERCENTAGE
Small Size
10 – 20
2
11.1
20 – 30
12
66.7
30 - 40
4
22.2
TOTAL
18
100
Medium size
10 – 20
8
44.4
20 – 30
9
50
30 – 40
1
5.6
TOTAL
18
100
Big size
10 – 20
12
66.7
20 – 30
5
27.7
30 - 40
1
5.6
TOTAL
18
100
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Big size. Most (66.7%) of the knitters could knit 10 to 20 per month ,five
(27.8%)could knit 20 to 30 pieces a month and one (5.5%) of them could knit 30 to 40
pieces within a month.
Market Outlet of Knitters
Table 12 shows that there are four (22.2%) respondents supplied retailers in
Metro Manila. However, all of them distributed their products to the retailers within
Baguio City.
Volume of Sales per Year
Table 13 shows the distribution of respondents and shows also how many new
entrants are there in one year. In 2001, there were three knitters who started their business
and two of them having a sales ranging from Php 20,000 to Php 40,000, the other ones
sale is ranging from Php 41,000 to Php 60,000. In the following year, one of the knitter’s
sales moved to higher bracket, from Php 20,000 to Php 40,000 it moved to Php 41,000 to
Php 60,000. From the year 2003 to 2009, new entrants were observed. The table shows
that there were changes also in the distribution of respondents in the different sales
bracket. In the year 2005 to 2009, most of the knitters sales fall under Php 20,000 to Php
40,000 which most new entrants were observed also. This findings show that new
entrants of knitters could be a possible reason for the sales of old knitters to increase or
decrease. In 2010, majority of the knitter’s sales fall under Php 41,000 to Php 60,000 and
two of them reached Php 81,000 to Php 100,000.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 12. Market outlet of knitters
RECEIVERS
FREQUENCY
PERCENTAGE
Retailers within Baguio
18
100
Retailers within Metro Manila
4
22.2
*Multiple Responses
Table 13. Distribution of respondents by volume sold
SALES (pesos)
YEAR AND NUMBER OF KNITTERS
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
20,000-40,000
2
1
2
1
5
5
7
7
13
2
41,000-60,000
1
2
3
3
4
6
5
7
3
11
61,000-80,000
3
1
2
3
3
2
3
81,000-100,000
2
TOTAL
3
3
5
7
10
13
15
17
18
18
Table 14 presents the volume of sales per year. The same table shows that there
was continues increased in the total sales from the year 2001 to 2010 except for 2009. It
was observed that average sales are not proportional to the total sales. This implies that
average sales were affected by the number of new entrants and volume of their sales. An
example for this is in the year 2009, most of the knitter’s sales fall under Php 30,000.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 14. Volume of sales per year
NUMBER OF
TOTAL SALES
AVERAGE SALES
YEAR
RESPONDENTS
2001
3
110,000
36,667
2002
3
130,000
43,333
2003
5
210.000
42,000
2004
7
390,000
55,714
2005
10
420,000
42,000
2006
13
590,000
45,385
2007
15
670,000
44,667
2008
17
770,000
45,294
2009
18
680,000
37,778
2010
18
1,000,000
55,556
Sources of Materials of Supplier
All the four suppliers of raw materials buy their supplies from wholesalers in
Metro Manila. They buy thread in bulk and sell them in retail form to the knitters.
Marketing Practices of Suppliers
From Table 15, one (25%) of the supplier respondents delivered their thread to the
knitters if they buy in bulk otherwise the knitters are the ones who go to their store and
pick up the thread. As found earlier, the knitters buy their thread in small quantity and so
they pick up the thread when they buy. One of the suppliers delivered threads to knitters
in Loakan who are not part of the study but this are knitters who knit products for export.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 15. Marketing practices of suppliers of raw materials
PRACTICES
FREQUENCY
PERCENTAGE
Delivered
1
25
Picked -up
4
100
*Multiple Responses
Mode of Payment
As to mode of payment, Table 16 shows that two of the suppliers allow the
knitters to buy on credit. However, the suppliers give them on credit if they have a
established relationship with the knitters and that they could trust them.
Volume of Sales per Year
Tables 17 and 18 present the distribution of respondents and the volume of sales
per year, respectively. It is presented in Table17 that only one supplier started operating
from the year 2004 having a sales between Php 61,000 to Php 80,000. During the
succeeding years until 2008, there were new entrants in the industry. The same table
shows that there were changes in the distribution of respondents in the different sales
bracket. From the year 2007 to 2009, there was an increase in the number of respondents
in the lowest sales bracket. Only in the year 2010 where all the suppliers sales ranged
from Php 41,000 to Php 60,000. This implies that all the respondents from the lower sales
bracket moved to the higher sales bracket.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 16. Mode of payment of knitters to the suppliers
MODE OF PAYMENT
FREQUENCY
PERCENTAGE
Credit
2
50
Cash
4
100
*Multiple Responses
Table 17. Distribution of respondents by volume sold
YEAR AND NUMBER OF SUPPLIERS
SALES
(pesos)
2004
2005
2006
2007
2008
2009
2010
20,000-40,000
1
3
2
3
0
40,000-60,000
1
1
2
1
4
60,000-80,000
1
1
TOTAL
1
2
2
3
4
4
4
As shown in Table 18, continues decrease or increase in the total sales and
average sales are not observed from the first year to the last year. This implies that
volume of sales has the greater effect in the average sales. The number of respondents
could also affect the average sales but not that much.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to describe the status of knitting industry in Mines
View, Botanical Garden and Pacdal. It is specifically to describe the profile of
entrepreneurs of the and the business, determine the practices of the entrepreneurs in
buying and selling knitted products, determine how the firms position their products in
the market, who their costumers or buyers, determine the volume of sales, and identify
the problems encountered by the entrepreneurs of knitting industry.
The respondents of the study, as presented by the owners or managers, were
interviewed using survey questionnaire.
Knitting industry in Mines View, Botanical Garden and Pacdal is dominated by
females and most of them are 30 years old and above. Most of them are also married and
did not finish their studies.
Almost all of the respondents solely owned their business for six years and above.
Most of the firm’s costumers or buyers are foreign tourist and local tourist.
Entrepreneurs usually used their products in piece and purchased in dozen to
minimized cost. Entrepreneurs put their business in tourist spots and in other places
frequented by tourist and visitors, the also prefer public places where many people used
to go.
Respondent’s biggest problems are many competitors, high cost of materials and
seasonal demand for products.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Conclusions
Based on the findings, the following conclusions are made:
1. Most of the entrepreneurs are females, 30 years old and above, and married.
2. Almost all knitting industries are sole proprietorship and have been in operation
for six years and above.
3. Knitted products are sold in pieces and purchased in dozens.
4. Particular places were chosen as they are essentially tourist destination where
most of the firm’s costumers are local tourist and tourist.
5. The three major problems encountered by the retailers are many competitors,
high cost of materials, and demand for products are seasonal.
Recommendations
In line with the finding of the study, the following recommendations are
forwarded:
1. Each enterprise should study the people as to their needs, wants and also their
behavior, and then identify whom they must offer each kind of their products.
2. Knitters must design new style and innovate some of their old designs to catch
more customers.
3. Knitters must consider retailers in other places as their target market not only
around Baguio City. In this case, knitters must ensure attractive styling and good service.
4. For other knitters, they should make their own product brand so that their
products are differentiated from their competitors.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
LITERATURE CITED
DRAKE, M.1992. Craft in Therapy and Rehabilitation. Book Promotion and Service
Ltd., Pp. 67-68.
HIATT, J. 1988. The Principles of Knitting. A Division of Simon and Schuster
Inc., Pp. xi-xiii.
FARONDA, G. and A. SAN PEDRO. 2000. Australian Fashion News. Afn
Australian Publishing Corp. Volume 7.
FARONDA, G. and A. SAN PEDRO. 2000. Australian Fashion News. Afn
Australian Publishing Corp. Volume 11.
MULLER, F. 2000. Art and Fashion. Thames and Hudson Ltd, London. Pp. 4-6.
SOLIMEN, F. 2010. Profile of Knitting Industry in Baguio City and Suburbs
(Unpublished). Benguet State University. Pp. 1-2.
UDALE, J. 2008. Textiles and Fashion. AVA Publishing. Pp. 76-78.
APPENDIX A
Survey Questionnaire
(Retailers)
1. Status of knitting industry
A. Profile of the entrepreneurs
Name :( optional) _______________________________
Age: _____ Sex: __________ Civil Status: ___________
Educational Attainment: ___________________________________
B. Profile of the business
Name of the business enterprise: ______________________________
Form of business ownership:
( ) Cooperative
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
( ) Corporation
( ) Partnership
( ) Sole proprietorship
( ) Others (please specify) _________________________
Business capital:
( ) 20,000-50,000
( ) 51,000-80,000
( ) 81,000-110,000
( ) Others (please specify) _________________________
Number of years in operation:
( ) ≤ 5
( ) 6-10
( ) 11-15
( ) others (please specify) __________________________
2. What are your practices in buying and selling?
A. Mode of purchase employed
( ) Per piece
( ) Per dozen
( ) Others (please specify) __________________________
B. Mode of selling employed
( ) Per piece
( ) Per dozen
( ) Others (please specify) __________________________
Do you knit your own product and directly sell it?
( ) yes ( ) no
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
(If NO, please fill up the following)
In case you purchase the products you sell, what are your agreements with your supplier?
( ) all products must be paid in full amount upon delivery
( ) products delivered could be paid in partial amount
( ) down payment is required before delivering the products
( ) payments could be in terms of credit
( ) Others (please specify) ____________________________
Which is more advantageous to you? Why?
( ) knit your own product and directly sell
Reasons: ___________________________________________________________
( ) buy products from outside knitters
Reasons: ___________________________________________________________
( ) buy the raw materials and let others knit for the firm.
Reasons: ___________________________________________________________
( ) others (please specify) _______________________________________
3. Who are your costumers or buyers?
( ) local tourist
( ) foreign tourist
( ) walk in
( ) others (please specify) _____________________________
4. Volume of sales
YEAR/
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
PESOS
20,000 - 40,000
40,000 - 60,000
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
60,000 - 80,000
80,000 -100,000
Others _____________
5. What are the problems you encountered?
( ) Location of the business
( ) Availability of the resources
( ) High cost of materials
( ) Designs of knitted products
( ) Lack of permanent skilled laborers
( ) Too many competitors
( ) Decrease market demand
( ) Demand for the product is seasonal
( ) Others (please specify) _____________________________
How do you cope up with your problems?
___________________________________________________________________
_____________________________________________________________________
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
APPENDIX B
Survey Questionnaire
(Knitters)
1. Status of knitting industry
A. Profile of the entrepreneurs
Name :( optional) _______________________________
Age: _____ Sex: __________ Civil Status: ___________
Educational Attainment: ___________________________________
B. Profile of the business
Name of the business enterprise: ______________________________
Form of business ownership:
( ) Cooperative
( ) Corporation
( ) Partnership
( ) Sole proprietorship
( ) Others (please specify) _________________________
Business capital:
( ) 20,000-50,000
( ) 51,000-80,000
( ) 81,000-110,000
( ) Others (please specify) _________________________
Number of years in operation:
( ) 5
( ) 6-10
( ) 11-15
( ) others (please specify) __________________________
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
2. Sources of raw materials
( ) within the country (Please specify)______________________________
( ) outside the country (Please specify)______________________________
3. Products produced
( ) bags
( ) purses
( ) wallets
( ) cell phone holder
( ) pouch
( ) clothing
( ) others (please specify) ______________________________
4. Mode of purchase of raw materials
( ) per piece
( ) per dozen
( ) others (please specify) _______________________________
5. Marketing practices
( ) delivery
( ) pick-up
( ) others (please specify) _______________________________
6. Volume of production per product
Smal size
( ) 10-20 per month
( ) 20-30 per month
( ) 30-40 per month
( ) others (please specify) _________________________________
Medium size
( ) 10-20 per month
( ) 20-30 per month
( ) 30-40 per month
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
( ) others (please specify) _________________________________
Big size
( ) 10-20 per month
( ) 20-30 per month
( ) 30-40 per month
( ) others (please specify) _________________________________
7. To whom do you supply your products?
( ) retailers within Baguio
( ) Metro Manila
( ) others (please specify) ____________________________________
8. Volume of sales
YEAR/
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
PESOS
20,000 - 40,000
40,000 - 60,000
60,000 - 80,000
80,000 -100,000
Others _____________
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
APPENDIX C
Survey Questionnaire
(Suppliers of Raw Materials)
1. Status of knitting industry
A. Profile of the entrepreneurs
Name :( optional) _______________________________
Age: _____ Sex: __________ Civil Status: ___________
Educational Attainment: ___________________________________
B. Profile of the business
Name of the business enterprise: ______________________________
Form of business ownership:
( ) Cooperative
( ) Corporation
( ) Partnership
( ) Sole proprietorship
( ) Others (please specify) _________________________
Business capital:
( ) 20,000-50,000
( ) 51,000-80,000
( ) 81,000-110,000
( ) Others (please specify) _________________________
Number of years in operation:
( ) ≤ 5
( ) 6-10
( ) 11-15
( ) others (please specify) __________________________
2. Sources of materials
( ) own produce
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
( ) buy from other areas
Please specify the place_______________________________________
3. Marketing practices
( ) deliver
( ) pick-up
( ) others (please specify) ________________________________
4. Mode of payment
( ) consignment
( ) cash on delivery
( ) others (please specify) ________________________________
5. Volume of sales
YEAR
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
PESOS
20,000 - 40,000
40,000 - 60,000
60,000 - 80,000
80,000 -100,000
Others _____________
THANK YOU VERY MUCH! ! !
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
JOY S. BOTAY. APRIL 2011. Benchmark Study of Knitting Industry in Baguio City.
Benguet State University, La Trinidad, Benguet.
Adviser: Prof. Evangeline B. Cungihan, MSc.
ABSTRACT
The study was conducted at the different areas of knitting industry in Baguio City,
specifically in Mines View, Botanical Garden and Pacdal, from December 2010 to January 2011.
The objectives of this study are to describe the status of knitting industry, determine the practices
of the entrepreneurs in buying and selling knitted products, determine how the firms position
their products in the market and who their customers or buyers, determine the volume of sales of
knitting industry, and to identify the problems encountered by the entrepreneurs of the knitting
industry.
The respondents of the study were composed by 35 retailers, 18 knitters, and 4 suppliers
of raw materials with a total of 57 entrepreneurs. The data gathered were categorized tabulated
analyzed using frequency and percentages.
Majority of the respondents are sole proprietorships and dominated by females. Most of
the firms operated for six to ten years and above.
It is concluded that particular places were chosen as they are essentially tourist
destination where most of the firms’ customers are local tourists and foreign tourists.
It is recommended that each enterprise should study the people as to their needs, wants
and also their behavior, and then identify whom they must offer each kind of their products.
TABLE OF CONTENTS
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Rationale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Statement of the Problem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Importance of the study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Scope and Delimitations of the study. . . . . . . . . . . . . . . . . . . . . . . . . .
3
REVIEW OF LITERATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Concept of Knitting Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Knitting; It’s Process and Products . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Knitted Products as Fashion and
Arts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Knitting as Needle Work and
Physical Dysfunction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Location and Time of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Respondents of the Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Collection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data to be Gathered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Data Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
RESULTS AND DISCUSSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Profile of the Entrepreneurs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Profile of the Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Practices of Retailers in Buying and
Selling Knitted Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Perception of Respondents if
Knitting their Own Product
is Advantageous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Types of Buyers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Volume of Sales per Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Problems Encountered by the
Retailers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Sources of Raw Materials and
Kinds of Products Produced
by Knitters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Mode of Purchase of Raw Materials . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Marketing Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Volume of Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Market Outlet of Knitters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Volume of Sales per Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Sources of Materials of Supplier . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Mode of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Marketing Practices of Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Volume of Sales per Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . . . .
29
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
LITERATURE CITED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
APPENDIX
A. Survey Questionnaire (Retailers) . . . . . . . . . . . . . . . . . . . . . . . . . .
32
B. Survey Questionnaire (Knitters) . . . . . . . . . . . . . . . . . . . . . . . . . .
35
C. Survey Questionnaire (Supplier of Raw Materials) . . . . . . . . . . . .
38
INTRODUCTION
Rationale
Knitting industry is one of the promising businesses in the Philippines that can
generate income and provide job for housewives.
It is a process of forming a fabric by means of interesting loops of yarn. In knitted
fabrics, vertical columns of loops are called Wales and the horizontal rows of loops are
called courses.
Historically, no one knows when women first began to knit; we do know that as
far back as 200 A.D. knitting was an advanced and accomplished art. Examples of knitted
products were found in the site of Antinoe in Egypt. In Britain the first knitting machine
was designed by Reverend William Lee of Calverton in 1589. From its beginning knitting
industry has been expanded to become one of the leading branches of the textile industry.
This evolution resulted mainly from the desire of mankind. Knitted garments are
recognized essentials in every wardrobe. They combine fit with physical freedom,
warmth with ventilation and durability with textual beauty. Now a day this activity
becomes a source of income to many housewives.
Knitted products have different designs which are available in the market. These
can be in the form of sweaters, scarves, gloves, socks, mittens, bags or hats. In addition,
runners, tablecloths and bedspreads can also do by knitting.
Knitted products are among the popular products produced and sold in the city of
Baguio especially in places where tourist go like Mines View, Botanical Garden and
Pacdal. This study will be conducted to establish baseline data on the industry in Baguio.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
2
Statement of the Problem
1. What is the present status of the knitting industry in Baguio City?
2. What are the practices of the entrepreneurs in buying and selling knitted
products?
3. How the firms position their products in the market and who are their
customers or buyers?
4. How much is the volume of sales of knitting industry in Baguio City?
5. What are the problems encountered by the entrepreneurs of the knitting
industry?
Objectives of the Study
1. Describe the status of knitting industry in Baguio City as to:
a. Profile of the entrepreneurs
b. Profile of the business
2. Determine the practices of the entrepreneurs in buying and selling
knitted products.
3. Determine how the firms position their products in the market and who their
customers or buyers.
4. Determine the volume of sales of knitting industry in Baguio City.
5. Identify the problems encountered by the entrepreneurs of the knitting industry.
Importance of the Study
By updating the bench mark of the industry, results will not only serve as a guide
for researchers to look into the growth and development of industry but the knowledge in
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
3
knitting will be imparted to the students and will be venue for an enterprise which they
can venture into the future.
Scope and Delimitation of the Study
The study focused on knitting industry in Baguio City, specifically those markets
in Mines View, Botanical Garden and Pacdal.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
4
REVIEW OF LITERATURE
Concept of Knitting Industry
The Grolier Encyclopedia of knowledge (International Edition) stated that
knitting is the making of fabric by using special needles to interlace yarn in a series of
loops or stitches. Hand knitting using two single – pointed needles for flat work, and a
flexible circular needle with points at each end on several double - pointed needles for
circular work, remains a popular hobby. Most knit fabrics today, however, are produced
by machines.
From the beginning of the machine age, people have expressed concern for the
loss of individuality that mass-produced objects imply. The inherent uniqueness of
anything handmade is a reassuring reflection of the individuality of each human being; it
is a gesture of defiance against anonymity and monotony. Against a background of mass-
produced objects, things handcrafted have taken on the luster of art. What had once been
simply a fisherman’s sweater or a peasant’s warm mittens have come to be seen as
desirable luxuries far from the small world in which they originated. As a result, the craft
of knitting has been taken up by people who have no need to make their own clothing
(Hiatt, 1988).
William Lee, an English clergyman, invented the first knitting machine in 1589.
His “Stocking Frame” based on an early form of hand knitting that used hooked needles
mounted side by side on a frame, allowed an operator to form an entire raw of loops with
a single stroke of a foot pedal. It remained essentially unaltered until the mid 18th century,
when mechanics were added for marking ribbed knitting and even types of lace. The
stocking frame produced a weft fabric, were the stitches were built up horizontally. The
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
5
first warp knitting machine invented in 1775, knit yarn together vertically and could
produce fabric for more quickly than the older machines (Solimen, 2010).
Modern Knitting machines belong to either the welf on warp category and maybe
controlled by computer. Weft machines are often circular, the needles are mounted on a
rotating cylinder, and a tabular fabric is produced as the cylinder turns. Warp machines
are usually flatbed with the needles mounted in a straight time. These machines knit a flat
fabric that is less elastic than fabrics on weft machines and are used for knitting full-
fashioned garments.
Knitting: Its Process and Products
According to the Australian Fashion News (2001), as cited by Faronda and San
Pedro (2000), knitted fabrics vary greatly from the production of woven fabrics and the
so-called non-woven fabrics. Woven fabrics are produced by interlacing yarns in the
same plane but at right angles to one another. The non-woven fabric is a more recent
development, which involves the formation of a web or layers of fibers by bonding.
The same authors mentioned that, knitting was popularized and practiced to a
great extent throughout England and Scotland. Knitting soon becomes customary to knit
the leg covering separately by hand. Hosiery is an important product, and its cost is often
a large item in the clothing budget of the customer. The construction of hosiery should be
of interest because it has a being on the serviceability of the article. In most cases, the
better constructed hosiery is well worth its extra cost, provided it is gen proper care in
wearing as well as in laundering.
Knitting became a commercial industry only in 1970’s when knitting-machines
were easily acquired. At the same period, women mostly from Sagada, Besao and Bauko
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
6
in Mt. Provinces have ventured into trading of knitted wear only in the Cordillera but also
in the lowlands. This activity proven to be very profitable that the same women
established home-based knitting factories in Baguio City and in La Trinidad, and in the
mining communities of Benguet. Not long after, almost anybody engaged in knitting
sweater used the trade mark “Made in Baguio City” which became popular nationwide.
According to Diaz (1992), as cited by Faronda and San Pedro (2001), Knitted
fabrics are constructed from interconnecting loops of lengths of yarn, which can be
knitted along the warp or weft giving the fabric its stretchy quality. Horizontal rows of
knit are known as “courses” and vertical rows are known as “wales”. Weft knitting is
created from one yarn that loops and links along the course; if a stretch is dropped the
knit is likely to ladder and run down the length of the wale. Hand knitting is prime
example. Warp knitting is more like weaving, with the construction being more
complicated and fabric less easy to unravel. Fabric tends to be comfortable to wear as it is
stretchy, but this can also mean that it can stretch out of shape and shrink with heat,
especially if it is made from wool. Knitted fabrics tend to be more prone to pilling than
woven fabrics. Different thicknesses of knitting can be produced according to the stitch
used, the size of the needles and the thickness or the count of the yarn.
Knitted Products as Fashion and Art
The twentieth century has witnessed far more than the mere transformation of art
works into catwalk creations. It has produced a whole array of ideas and movements that
illustrate the way in which the worlds are of art and fashion inspire one another. The
relationship between the two worlds has given rise to a number of new perspectives,
including a reassessment of the meaning of life through dress, the revising of the fashion
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
7
system, the creation of new spiritual dimension with in the fashion industry, and the used
of clothes as an aid to artistic expression. This new perspective turns on their heads the
rules that previously governed art and fashion. Clothing has always been a strong
indicator of social identity, and if taken out of its everyday context, is anything but
harmless and innocent. Depending on the era and the artist or couturier who interprets it,
dress can become the expression of an ideology, a social critique, or a combination of
both (Muller, 2000).
In the late 19thand 20th century fashions changed and women and men began
wearing jumpers and cardigans and other knitted garments for day, evening and more
importantly for sports. With the increase in leisure time in the 20th century, knitted fabric
has become increasingly important for sportswear as it is stretchy, comfortable and
absorbent (Udale, 2008).
Knitting as Needle Work and Physical Dysfunction
Because needlework is most often identified with women, its use is slightly
limited. While a few men will attempt it; only those with a strong sense of self are willing
to risk doing a traditionally female craft. Needlework is the kind of craft that can be done.
Small projects require little expenditure of energy. Most of the joint and muscle
movements in needlecraft are in the fingers and hands. However, needlework involves
some shoulder internal and external rotation, elbow flexion and extension, forearm
pronation and supination, wrist flexion and extension, and radial and ulnar deviation.
Many severely disabled arthritics still enjoy needlework as it does not require strength
and consequently does not hurt their joints. The patient experiences less pain when
concentrating on a craft such as needlework.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
8
In addition, knitting offers a creative outlet that accommodates itself nicely to
busy lives. The tools and materials represent a modest investment, and the basic
techniques are easily learned. The work is eminently portable, accompanying the knitter
on vacations or to committee meetings, or helping to fill the empty hours on an airplane.
Best of all, the result of the knitter’s efforts is something attractive, practical, and unique.
A hand-knit garment is also a special way of giving to the ones you love (Drake, 1992).
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
9
METHODOLOGY
Location and Time of Study
The study was conducted in Baguio City where knitting industries are found.
The study was conducted on December 2010.
Respondents of the Study
The respondents of the study were the owners or the managers of the knitting
industries in Baguio City, the sellers in the different tourist area and the suppliers of raw
materials.
Data Collection
Data gathered used survey questionnaire to gather needed data. The data was
supplemented with observations.
Data Gathered
The data gathered were the profile of the business owners, production and
marketing practices, market promotion activities, product customers and volume of sales.
Data Analysis
The data gathered were categorized tabulated analyzed and used frequency and
percentages.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
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RESULTS AND DISCUSSIONS
Profile of the Entrepreneurs
Table 1 shows the personal information about the respondents specifically their
ages, sex, civil status and educational attainment.
Age. As shown in Table 1, 62.9% of the retailers belonged to 20 to 30 years of
age and only 2.8% of them belonged to 51 to 60 years old. The same table shows that
most of the knitters are at the ages of 20 to 30 which means that most of them belongs to
young adult and the rest belongs to middle age and adult age. All of the suppliers of raw
materials are in the middle age, which 50% of them belonged to 30 to 40 and other 50%
belonged to 41to 50 years old.
Sex.Table 1 also shows that majority (85.7%) of the retailers are female as
compared to male (14.3%). Almost all the knitters are female and all of the suppliers of
yarns (thread) are female. This finding implies that the key actors; the retailers, knitters
and suppliers of raw materials, are dominantly female.
Civil status. Majority of the retailers are married (60%) likewise the knitters
(83.3%) and all the suppliers of raw materials.
Educational attainment. Also Table 1 shows that few (20%) of the retailers
respondents are under elementary graduate and most (48.6%) of them are high school
graduate and undergraduate. There are also eight (44.5%) knitters who are high school
graduate and undergraduate, six (33.3%) college graduate and undergraduate and for
(22.2%) elementary graduate and undergraduate. With regards to the suppliers of raw
materials, majority (75%) of them are high school graduate and only one (25%) is college
graduate.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
11
Table 1. Profile of the entrepreneurs
PARTICULAR
RETAILERS
KNITTERS
SUPPLIERS
F
%
F
%
F
%
Age
20 – 30
22
62.9
7
38.9
31 – 40
9
25.7
5
27.7
2
50
41 – 50
3
8.6
3
16.7
2
50
51 – 60
1
2.8
3
16.7
TOTAL
35
100
18
100
4
100
Sex
Female
30
85.7
17
94.4
4
100
Male
5
14.3
1
5.6
TOTAL
35
100
18
100
4
100
Civil status
Single
14
40
3
16.7
Married
21
60
15
83.3
4
100
TOTAL
35
100
18
100
4
100
Educational attainment
College
11
31.4
6
33.3
1
25
High school
17
48.6
8
44.5
3
75
Elementary
7
20
4
22.2
TOTAL
35
100
18
100
4
100
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
12
Profile of the Business
Table 2 shows the form of ownership of businesses in the knitting industry
including information on capitalization and number of years in operation.
Form of business ownership. As shown in Table 2, majority (71.4%) of the
retailers is sole proprietorship, 25.7% belong to partnership, and one (2.9%) belongs to an
association. These findings are also true to knitters, majority (61.1%) of the respondents
are sole proprietorship. All the suppliers of raw materials belong to sole proprietorship in
which most business in the Philippines are sole proprietorship because it’s the simplest
form of business and the easiest to register. It is not encumbered by the strict regulatory
laws and rules imposed upon corporation and partnership.
Business capital. Majority (51.4%) of the retailers had capitalization ranging from
Php 20,000 to Php 50, 000 and 34.3% had a capitalization of Php 51,000 to Php 80, 000.
As for the knitters, 50% of the respondents had a capitalization of Php 51,000 to Php
80,000 and the other half had Php 20,000 to Php 50,000 (38.9%) and Php 81,000 to Php
110,000 (11.1%). The highest capital of suppliers of raw materials is Php 250,000 and the
lowest is Php 180,000. This finding implies that suppliers of raw materials need bigger
capital than retailers and knitters.
Number of years in operation. Table 2 shows that 37.1% of the retailers operated
for five years or less. This means that there are still individual who are interested to enter
in the industry. Eighteen (51.45%) of the retailers have been in operation for six to ten
years and 11.4% reached almost eleven to fifteen years. The table shows also that six
(3.3%) of the knitters have been operating for five years or less. Ten (55.6%) have been
in the business for 6 – 10 years and only 11.1% of the knitters for 11 – 15 years. Fifty
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
13
Table 2. Profile of the business
DESCRIPTION
RETAILERS
KNITTERS
SUPPLIERS
F
%
F
%
F
%
Business ownership
Association
1
2.9
1
5.6
Partnership
9
25.7
6
33.3
Sole proprietorship
25
71.4
11
61.1
4
100
TOTAL
35
100
18
100
4
100
Business capital
20,000 – 50,000
18
51.4
7
38.9
51,000 – 80,000
12
34.3
9
50
81,000 – 110,000
5
14.3
2
11.1
180,000
1
25
200,000
2
50
250,000
1
25
TOTAL
35
100
18
100
4
100
Years in operation
≤ 5
13
37.1
6
33.3
2
50
6 – 10
18
51.4
10
55.6
2
50
11 – 15
4
11.4
2
11.1
TOTAL
35
100
18
100
4
100
percent of the suppliers of raw materials are relatively new in the industry. They had been
in the business for five years or less while the other 50% for six to ten years years.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
14
Practices of Retailers in Buying and
Selling Knitted Products
There are two types of retailers in this study. The first type is the retailers that knit
their own products, while the second types are those that buy the products from knitters.
Table 3 shows that majority of the respondents belonged to the second type. This finding
implies that majority of the retailers of knitted products at Mines View, Botanical Garden
and Pacdal, Baguio City are not knitting their own products but buy them from knitters.
This practice provide employment in the economy, furthermore, this promotes efficiency
in the industry since each actor/firm would specialize in providing the good or service
that he/she could do best.
Table 3 presents the practices of retailers in buying and selling knitted products.
There were some retailers (31.4%) that knit their own products. Majority (68.6%) do not
knit but buy knitted products from knitters.
Buying practices. As shown in Table 3, twelve (34.3%) of the retailers purchased
knitted products in piece. However 28 (80%) retailers purchased in dozen, this is to
minimize cost most especially to the products that are small in size like purses and cell
phone holder.
Agreements. In purchasing products from knitters, there are agreements made
between the retailers and knitters. Three (8.6%) of the retailers said that knitted products
must be paid in full amount upon delivery. Twelve (34.3%) of them also said that
products could be paid in partial amount. There are five (14.3%) respondents who said
that down payment is needed before products are delivered and 14(40%) of them also
purchased products in terms of credit.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
15
Table 3. Practices of entrepreneurs in buying and selling knitted products
PARTICULARS
FREQUENCY
PERCENTAGE
Type of Retailers
Knit own products
11
31.4
Do not knit own products
24 68.6
TOTAL
35 100
Buying Practices
Per piece
12
34.3
Per dozen
28
80.0
Agreements in Buying Knitted Products
Paid in full amount upon delivery
3
8.6
Paid in partial amount
12
34.3
Down payment before delivery
5
14.3
Credit
14
40.0
Selling Practices
Per piece
33
94.3
Per dozen
5
14.3
*Multiple Responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
16
Selling practices. Most (94.3%) of the retailer respondents sold their products in
piece for the reason that most of their customers are tourists both local and foreign.
Others sold in dozen.
As to product positioning, some retailers prioritized selling knitted products
during its peak season, from June to February, because of the low temperature or
coldness of weather. During summer, only selected designs were prioritized by retailers
most specially the clothing’s like spaghetti strap and sleeveless.
Perception of Respondents if Knitting
their Own Product is Advantageous
There are some retailers (42.9%) who said that it is more advantageous for them
to knit their own products because they can create their own design (Table 4). If they
order the products from the knitters, the design that they want are sometimes not copied
by the knitters. Another advantage that they pointed out is they could save from the cost
of the knitted products thus their profit would be higher. On the other hand, 54.3% of the
retailers said that it is better for them to buy from knitters because they have no time to
knit. Besides, this will help the knitters financially. More people would be involved in the
knitting industry.
One of the respondents said that it is better for her to buy the thread and let
knitters knit for her.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
17
Types of Buyers
The respondents mentioned three types of buyers of knitted products; local
tourists, foreign tourists, and non-tourist who just walk in their stalls. The finding shows
that all of them sell to both local tourists and foreign tourists. Seventeen (48.6%)
mentioned that they also sell to non-tourists or walk-in customers (Table 5). It is
interesting to note that even foreigners want to buy our knitted products.
Table 4. Perception of retailers on which is more advantageous
PERCEPTIONS
FREQUENCY
PERCENTAGE
Knit their own and directly sell
15
42.9
Buy from outside knitters
19
54.3
Buy raw materials and let
1
2.8
others knit for the firm
TOTAL
35
100
Table 5. Customers or buyers of knitted products
PARTICULAR
FREQUENCY
PERCENTAGE
Customers or Buyers
Local tourist
35
100
Foreign tourist
34
97.1
Walk in
17
48.6
*Multiple Responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
18
Volume of Sales per Year
Tables 6 and 7 present a picture of the volume of knitted products sold by the
retailers at Mines View, Botanical Garden and Pacdal. Table 6 shows the distribution of
the respondents, by sales bracket per year. In 2001, there were 8 retailers with three
having sales between Php 20,000 to Php 40,000, four within Php 41,000 to Php 60,000
and one within Php 61,000 to Php 80,000. During the succeeding years until 2006, there
were new entrants in the industry. There was a rapid increase in the number of retailers in
2006. There was no change in 2007 but in 2008, 2009, and 2010 there were new entrants.
It was observed that there were changes in the distribution of respondents in the different
sales bracket. There was an increase in the number of respondents in the highest sales
bracket. This implies that some of the respondents moved from the lower sales bracket to
the higher sales bracket. There were years when the movement was from higher bracket
to the lower bracket. For instance in 2005, the three respondents from the highest sales
bracket moved down to the lower sales bracket.
Table 6. Distribution of respondents by volume sold
YEAR AND NUMBER OF RETAILERS
SALES (pesos)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
20,000-40,000
3
5
7
11
9
13
13
7
24
19
41,000-60,000
4
4
4
3
13
12
9
17
6
9
61,000-80,000
1
0
1
3
0
4
7
7
2
6
TOTAL
8
9
12
17
22
29
29
31
32
34
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
19
Table 7 presents the volume of sales per year. The result shows that total sales of
the industry had been increasing through the years but on the other hand the average sales
per firm had decreased from 2001 to 2010. This implies that the increase in total sales
was contributed by the new entrants and not from an increase sale per firm.
Problems Encountered by the Retailers
Table 8 presents the problems met by the retailers. The result shows that of them
majority (71.4%) had problems regarding the presence of many competitors. About 63%
Table 7. Volume of sales per year
YEAR
NUMBER OF
TOTAL SALES
AVERAGE SALES
RESPONDENTS
2001
8
360,000
45,000
2002
9
350.000
38,889
2003
12
480,000
40,000
2004
17
690,000
40,588
2005
22
920,000
41,818
2006
29
1,270,000
43,793
2007
29
1,330,000
45,862
2008
31
1,550,000
50,000
2009
32
1,160,000
36,250
2010
34
1,440,000
42,353
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
20
mentioned they had problem on the high cost of raw materials (62.9%) while 57% met
problem on the seasonal demand for their products. About 26% mentioned the location of
their business as a problem because their stalls are found at the back of other stalls selling
similar items thus customers drop by these other stalls before they go to them. Some said
their problem is the design of their products which they could not come up with new
designs. Eleven percent said they had problem on lack of skilled laborers two and one of
them had problem regarding unavailability of resources and decrease in demand for their
product, respectively.
Table 8. Problems encountered by the retailers
PROBLEMS
FREQUENCY
PERCENTAGE
Many competitors
25
71.4
High cost of materials
22
62.9
Seasonal demand for products
20
57.1
Location of business
9
25.7
Knitted products’ designs
8
22.9
Lack of skilled laborers
4
11.4
Resources unavailability
2
5.7
Decrease market demand
1
2.9
*Multiple Responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Sources of Raw Materials and Kinds
of Products Produced by Knitters
All of the knitters used threads that are locally made. They prefer to use locally
made threads because according to some knitters it is more durable than imported
threads. They all buy their raw materials from the four suppliers in Baguio City.
As shown in Table 9, majority of the respondents produced bags (77.8%) and
clothing (77.8%) like sweatshirt, jacket and sleeveless which retailers preferred most.
This is because knitted clothings are salable all year round. The small items produced by
majority of the knitters were cell phone holders (66.7%), pouch (72.2%), and purse
(50%). Other knitters also produced the following products: wallet, bonnets, and mittens.
Table 9. Products produced by knitters
DESCRIPTION
FREQUENCY
PERCENTAGE
Products Produced
Bags
14
77.8
Purses
9
50
Wallet
6
33.3
Cell phone holder
12
66.7
Pouch
13
72.2
Clothing
14
77.8
Bonnet
2
11.1
Mittens
3
16.7
*Multiple responses
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Mode of Purchase of Raw Materials
All the knitters purchased raw materials or threads not in bulk for some reasons
that they don’t have enough cash to purchase in bulk and also knitters select the desired
colors for their design.
Marketing Practices
As shown in Table 10, 72.2% of the knitter respondents delivered their products
to the retailers. About 39% of them are letting the retailers pick-up the products from the
storage area. This shows that knitters adopt different marketing practices.
Volume of Production
Table 11 shows how many pieces of knitted products a knitter can produce within
one month considering the sizes. Purses, cell phone holder and mittens are considered as
small size. Wallet, pouch and bonnets belong to medium size. Bags and clothing are
considered as big size, this classification is adopted only in this study.
Small size. As shown in Table 11, 66.7% of the knitters could knit 20 to 30 pieces
per month and 22.2% of them could knit 30 to 40 pieces. Two or 11.1% of the knitters
could produce only 10 to 20 pieces a month. These are the knitters who are just starting to
knit.
Medium size. Also Table 11 shows that nine (50%) of the respondents could
produced around 20 to 30 pieces a month. Eight (44.4%) said that they could knit 10 to
20 pieces within a month and one (5.6%) also said that she could knit as many as 30 to 40
pieces per month.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 10. Mode of delivering products to the buyers
MARKETING PRACTICES
FREQUENCY
PERCENTAGE
Delivered
13
72.2
Picked-up
7
38.9
*Multiple Responses
Table 11. Volume of production of knitters per month by sizes
DESCRIPTION
FREQUENCY
PERCENTAGE
Small Size
10 – 20
2
11.1
20 – 30
12
66.7
30 - 40
4
22.2
TOTAL
18
100
Medium size
10 – 20
8
44.4
20 – 30
9
50
30 – 40
1
5.6
TOTAL
18
100
Big size
10 – 20
12
66.7
20 – 30
5
27.7
30 - 40
1
5.6
TOTAL
18
100
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Big size. Most (66.7%) of the knitters could knit 10 to 20 per month ,five
(27.8%)could knit 20 to 30 pieces a month and one (5.5%) of them could knit 30 to 40
pieces within a month.
Market Outlet of Knitters
Table 12 shows that there are four (22.2%) respondents supplied retailers in
Metro Manila. However, all of them distributed their products to the retailers within
Baguio City.
Volume of Sales per Year
Table 13 shows the distribution of respondents and shows also how many new
entrants are there in one year. In 2001, there were three knitters who started their business
and two of them having a sales ranging from Php 20,000 to Php 40,000, the other ones
sale is ranging from Php 41,000 to Php 60,000. In the following year, one of the knitter’s
sales moved to higher bracket, from Php 20,000 to Php 40,000 it moved to Php 41,000 to
Php 60,000. From the year 2003 to 2009, new entrants were observed. The table shows
that there were changes also in the distribution of respondents in the different sales
bracket. In the year 2005 to 2009, most of the knitters sales fall under Php 20,000 to Php
40,000 which most new entrants were observed also. This findings show that new
entrants of knitters could be a possible reason for the sales of old knitters to increase or
decrease. In 2010, majority of the knitter’s sales fall under Php 41,000 to Php 60,000 and
two of them reached Php 81,000 to Php 100,000.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 12. Market outlet of knitters
RECEIVERS
FREQUENCY
PERCENTAGE
Retailers within Baguio
18
100
Retailers within Metro Manila
4
22.2
*Multiple Responses
Table 13. Distribution of respondents by volume sold
SALES (pesos)
YEAR AND NUMBER OF KNITTERS
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
20,000-40,000
2
1
2
1
5
5
7
7
13
2
41,000-60,000
1
2
3
3
4
6
5
7
3
11
61,000-80,000
3
1
2
3
3
2
3
81,000-100,000
2
TOTAL
3
3
5
7
10
13
15
17
18
18
Table 14 presents the volume of sales per year. The same table shows that there
was continues increased in the total sales from the year 2001 to 2010 except for 2009. It
was observed that average sales are not proportional to the total sales. This implies that
average sales were affected by the number of new entrants and volume of their sales. An
example for this is in the year 2009, most of the knitter’s sales fall under Php 30,000.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 14. Volume of sales per year
NUMBER OF
TOTAL SALES
AVERAGE SALES
YEAR
RESPONDENTS
2001
3
110,000
36,667
2002
3
130,000
43,333
2003
5
210.000
42,000
2004
7
390,000
55,714
2005
10
420,000
42,000
2006
13
590,000
45,385
2007
15
670,000
44,667
2008
17
770,000
45,294
2009
18
680,000
37,778
2010
18
1,000,000
55,556
Sources of Materials of Supplier
All the four suppliers of raw materials buy their supplies from wholesalers in
Metro Manila. They buy thread in bulk and sell them in retail form to the knitters.
Marketing Practices of Suppliers
From Table 15, one (25%) of the supplier respondents delivered their thread to the
knitters if they buy in bulk otherwise the knitters are the ones who go to their store and
pick up the thread. As found earlier, the knitters buy their thread in small quantity and so
they pick up the thread when they buy. One of the suppliers delivered threads to knitters
in Loakan who are not part of the study but this are knitters who knit products for export.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 15. Marketing practices of suppliers of raw materials
PRACTICES
FREQUENCY
PERCENTAGE
Delivered
1
25
Picked -up
4
100
*Multiple Responses
Mode of Payment
As to mode of payment, Table 16 shows that two of the suppliers allow the
knitters to buy on credit. However, the suppliers give them on credit if they have a
established relationship with the knitters and that they could trust them.
Volume of Sales per Year
Tables 17 and 18 present the distribution of respondents and the volume of sales
per year, respectively. It is presented in Table17 that only one supplier started operating
from the year 2004 having a sales between Php 61,000 to Php 80,000. During the
succeeding years until 2008, there were new entrants in the industry. The same table
shows that there were changes in the distribution of respondents in the different sales
bracket. From the year 2007 to 2009, there was an increase in the number of respondents
in the lowest sales bracket. Only in the year 2010 where all the suppliers sales ranged
from Php 41,000 to Php 60,000. This implies that all the respondents from the lower sales
bracket moved to the higher sales bracket.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Table 16. Mode of payment of knitters to the suppliers
MODE OF PAYMENT
FREQUENCY
PERCENTAGE
Credit
2
50
Cash
4
100
*Multiple Responses
Table 17. Distribution of respondents by volume sold
YEAR AND NUMBER OF SUPPLIERS
SALES
(pesos)
2004
2005
2006
2007
2008
2009
2010
20,000-40,000
1
3
2
3
0
40,000-60,000
1
1
2
1
4
60,000-80,000
1
1
TOTAL
1
2
2
3
4
4
4
As shown in Table 18, continues decrease or increase in the total sales and
average sales are not observed from the first year to the last year. This implies that
volume of sales has the greater effect in the average sales. The number of respondents
could also affect the average sales but not that much.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study was conducted to describe the status of knitting industry in Mines
View, Botanical Garden and Pacdal. It is specifically to describe the profile of
entrepreneurs of the and the business, determine the practices of the entrepreneurs in
buying and selling knitted products, determine how the firms position their products in
the market, who their costumers or buyers, determine the volume of sales, and identify
the problems encountered by the entrepreneurs of knitting industry.
The respondents of the study, as presented by the owners or managers, were
interviewed using survey questionnaire.
Knitting industry in Mines View, Botanical Garden and Pacdal is dominated by
females and most of them are 30 years old and above. Most of them are also married and
did not finish their studies.
Almost all of the respondents solely owned their business for six years and above.
Most of the firm’s costumers or buyers are foreign tourist and local tourist.
Entrepreneurs usually used their products in piece and purchased in dozen to
minimized cost. Entrepreneurs put their business in tourist spots and in other places
frequented by tourist and visitors, the also prefer public places where many people used
to go.
Respondent’s biggest problems are many competitors, high cost of materials and
seasonal demand for products.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Conclusions
Based on the findings, the following conclusions are made:
1. Most of the entrepreneurs are females, 30 years old and above, and married.
2. Almost all knitting industries are sole proprietorship and have been in operation
for six years and above.
3. Knitted products are sold in pieces and purchased in dozens.
4. Particular places were chosen as they are essentially tourist destination where
most of the firm’s costumers are local tourist and tourist.
5. The three major problems encountered by the retailers are many competitors,
high cost of materials, and demand for products are seasonal.
Recommendations
In line with the finding of the study, the following recommendations are
forwarded:
1. Each enterprise should study the people as to their needs, wants and also their
behavior, and then identify whom they must offer each kind of their products.
2. Knitters must design new style and innovate some of their old designs to catch
more customers.
3. Knitters must consider retailers in other places as their target market not only
around Baguio City. In this case, knitters must ensure attractive styling and good service.
4. For other knitters, they should make their own product brand so that their
products are differentiated from their competitors.
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
LITERATURE CITED
DRAKE, M.1992. Craft in Therapy and Rehabilitation. Book Promotion and Service
Ltd., Pp. 67-68.
HIATT, J. 1988. The Principles of Knitting. A Division of Simon and Schuster
Inc., Pp. xi-xiii.
FARONDA, G. and A. SAN PEDRO. 2000. Australian Fashion News. Afn
Australian Publishing Corp. Volume 7.
FARONDA, G. and A. SAN PEDRO. 2000. Australian Fashion News. Afn
Australian Publishing Corp. Volume 11.
MULLER, F. 2000. Art and Fashion. Thames and Hudson Ltd, London. Pp. 4-6.
SOLIMEN, F. 2010. Profile of Knitting Industry in Baguio City and Suburbs
(Unpublished). Benguet State University. Pp. 1-2.
UDALE, J. 2008. Textiles and Fashion. AVA Publishing. Pp. 76-78.
APPENDIX A
Survey Questionnaire
(Retailers)
1. Status of knitting industry
A. Profile of the entrepreneurs
Name :( optional) _______________________________
Age: _____ Sex: __________ Civil Status: ___________
Educational Attainment: ___________________________________
B. Profile of the business
Name of the business enterprise: ______________________________
Form of business ownership:
( ) Cooperative
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
( ) Corporation
( ) Partnership
( ) Sole proprietorship
( ) Others (please specify) _________________________
Business capital:
( ) 20,000-50,000
( ) 51,000-80,000
( ) 81,000-110,000
( ) Others (please specify) _________________________
Number of years in operation:
( ) ≤ 5
( ) 6-10
( ) 11-15
( ) others (please specify) __________________________
2. What are your practices in buying and selling?
A. Mode of purchase employed
( ) Per piece
( ) Per dozen
( ) Others (please specify) __________________________
B. Mode of selling employed
( ) Per piece
( ) Per dozen
( ) Others (please specify) __________________________
Do you knit your own product and directly sell it?
( ) yes ( ) no
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
(If NO, please fill up the following)
In case you purchase the products you sell, what are your agreements with your supplier?
( ) all products must be paid in full amount upon delivery
( ) products delivered could be paid in partial amount
( ) down payment is required before delivering the products
( ) payments could be in terms of credit
( ) Others (please specify) ____________________________
Which is more advantageous to you? Why?
( ) knit your own product and directly sell
Reasons: ___________________________________________________________
( ) buy products from outside knitters
Reasons: ___________________________________________________________
( ) buy the raw materials and let others knit for the firm.
Reasons: ___________________________________________________________
( ) others (please specify) _______________________________________
3. Who are your costumers or buyers?
( ) local tourist
( ) foreign tourist
( ) walk in
( ) others (please specify) _____________________________
4. Volume of sales
YEAR/
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
PESOS
20,000 - 40,000
40,000 - 60,000
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
60,000 - 80,000
80,000 -100,000
Others _____________
5. What are the problems you encountered?
( ) Location of the business
( ) Availability of the resources
( ) High cost of materials
( ) Designs of knitted products
( ) Lack of permanent skilled laborers
( ) Too many competitors
( ) Decrease market demand
( ) Demand for the product is seasonal
( ) Others (please specify) _____________________________
How do you cope up with your problems?
___________________________________________________________________
_____________________________________________________________________
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
APPENDIX B
Survey Questionnaire
(Knitters)
1. Status of knitting industry
A. Profile of the entrepreneurs
Name :( optional) _______________________________
Age: _____ Sex: __________ Civil Status: ___________
Educational Attainment: ___________________________________
B. Profile of the business
Name of the business enterprise: ______________________________
Form of business ownership:
( ) Cooperative
( ) Corporation
( ) Partnership
( ) Sole proprietorship
( ) Others (please specify) _________________________
Business capital:
( ) 20,000-50,000
( ) 51,000-80,000
( ) 81,000-110,000
( ) Others (please specify) _________________________
Number of years in operation:
( ) 5
( ) 6-10
( ) 11-15
( ) others (please specify) __________________________
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
2. Sources of raw materials
( ) within the country (Please specify)______________________________
( ) outside the country (Please specify)______________________________
3. Products produced
( ) bags
( ) purses
( ) wallets
( ) cell phone holder
( ) pouch
( ) clothing
( ) others (please specify) ______________________________
4. Mode of purchase of raw materials
( ) per piece
( ) per dozen
( ) others (please specify) _______________________________
5. Marketing practices
( ) delivery
( ) pick-up
( ) others (please specify) _______________________________
6. Volume of production per product
Smal size
( ) 10-20 per month
( ) 20-30 per month
( ) 30-40 per month
( ) others (please specify) _________________________________
Medium size
( ) 10-20 per month
( ) 20-30 per month
( ) 30-40 per month
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
( ) others (please specify) _________________________________
Big size
( ) 10-20 per month
( ) 20-30 per month
( ) 30-40 per month
( ) others (please specify) _________________________________
7. To whom do you supply your products?
( ) retailers within Baguio
( ) Metro Manila
( ) others (please specify) ____________________________________
8. Volume of sales
YEAR/
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
PESOS
20,000 - 40,000
40,000 - 60,000
60,000 - 80,000
80,000 -100,000
Others _____________
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
APPENDIX C
Survey Questionnaire
(Suppliers of Raw Materials)
1. Status of knitting industry
A. Profile of the entrepreneurs
Name :( optional) _______________________________
Age: _____ Sex: __________ Civil Status: ___________
Educational Attainment: ___________________________________
B. Profile of the business
Name of the business enterprise: ______________________________
Form of business ownership:
( ) Cooperative
( ) Corporation
( ) Partnership
( ) Sole proprietorship
( ) Others (please specify) _________________________
Business capital:
( ) 20,000-50,000
( ) 51,000-80,000
( ) 81,000-110,000
( ) Others (please specify) _________________________
Number of years in operation:
( ) ≤ 5
( ) 6-10
( ) 11-15
( ) others (please specify) __________________________
2. Sources of materials
( ) own produce
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
( ) buy from other areas
Please specify the place_______________________________________
3. Marketing practices
( ) deliver
( ) pick-up
( ) others (please specify) ________________________________
4. Mode of payment
( ) consignment
( ) cash on delivery
( ) others (please specify) ________________________________
5. Volume of sales
YEAR
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
PESOS
20,000 - 40,000
40,000 - 60,000
60,000 - 80,000
80,000 -100,000
Others _____________
THANK YOU VERY MUCH! ! !
Benchmark Study of Knitting Industry in Baguio City. JOY S. BOTAY. APRIL 2011
Document Outline
- Benchmark Study of Knitting Industry in Baguio City
- BIBLIOGRAPHY
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSIONS
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED