Chapter 1

The Problem and Its Background

Introduction
According to MMDA, one of the most industrialize city in Metro Manila is the
City of Marikina, "Home of the largest shoe". Also known as the shoe capital of the
Philippines. Marikina was given the title the "Shoe Capital of the Philippines",
because of its notable shoe industry. Shoemakers in the city recently finished creating
the world's largest pair of shoes and it was only recently that the Guinness Book of
Records recognized this feat. Marikina is the biggest manufacturer of quality shoes in
the Philippines. It is also the Philippines' largest worldwide exporter of leather shoes
that tagged Marikina as the Shoe Capital of the Philippines. Hundreds of footwear
establishments are located throughout the city, generating thousands of jobs and city
financial resources that continue to make the shoe and leather industry the top
livelihood in the city. By the 2000s, the Marikina shoe industry was affected by
competition from Chinese manufacturers.
For decades, the Marikina shoe industry has been considered as a vital part of
Philippine economy, providing employment opportunities to approximately 300,000
workers and generating almost 65% of the citys total revenue. During the 1950s to
the 1970s the Marikina shoe industry was responsible for almost 80% of the shoe
production in the Philippines, and enjoyed a prestigious share of the Asian market for
footwear, especially in the 1960s when Marikinas craftsmanship was considered
second only to Japan. However, policies of trade liberalization, coupled with
aggressive competition from other Asian countries led to the gradual deterioration of
the industry. The relentless importation of cheap shoes and other footwear products

offered products offered stiff competition in the local market and has resulted in the
widespread loss of livelihood for many residents, as manufacturers and shoe factories
closed shop.
In fact, research shows that the number of registered shoemakers in Marikina
has drastically declined over the years, from 722 in 1991 to 632 in 1993. By 1994,
Marikinas six major shoe manufacturers were already producing shoes not for local
consumption but for international brands such as Reebok, Nike, Sketchers and LA
Gear. By 2003, there were only major shoe manufacturers left, namely Stefano
Manufacturing and Trident International Trading Corporation. Latest figures from the
Board of Investments (BOI) show that as of 2009, approximately 24 registered firms
exist, majority of which can be classified as micro, small to medium-sized enterprises
owned by families or under sole- proprietorship. A substantial number of unregistered
shoemakers also existed in the city at various times, though these have probably
closed shop due to their precarious economic standing. Given such a dismal situation,
the National Economic Protectionism Association (NEPA) recognizes the pressing
need to revitalize the industry for the benefit of Marikina shoe industry manage to
earn a 200 million in exports alone.
At present, the shoe industry has become a pride of the country and a boost to
the growth of its economy. The city also now boasts of hosting other big companies,
multinationals and local, as well as leading exporting firms. Numerous banks, land
development firms, residential realty, business center, industrial centers, commercial
centers,

information

and

communication

technology

centers,

hotels

and

condominiums is also boasts the city that Marikina rapidly into a highly urbanized
city in a short time. Marikina City today is a multi-awarded metropolitan city, often

cited for its vibrant economy, a highly-skilled and literate work force, an involved and
enlightened business community, environmental awareness, people discipline and a
responsive local government that puts a premium on governance, sustainable urban
development and public service.
Marikina City is very popular all over the world when it comes to high quality
shoe products but why the demand of their shoes decreases and the employment of
residence living in the place were affected. As a tourism student conducting this study
it is important to know and be knowledgeable in the issues like this because it is a part
of the tourism industry in the Philippines. The researchers choose to undertake this
study because before and after President Rodrigo Duterte proclaimed as the new
president of the Philippines, the shoe that he always wear becomes in trend and it is
all made in Marikina City. After a shoemaker give him a free shoe that is worth P
3,000.00 P 6,000.00 many customers wants to order a shoe like that. It gives the
Marikina shoe-makers and vendors a hope to rise the demand of their shoe-products.
If there were one thing that can be completely analogous to the Philippines in
terms of prestige and economic standing, it would be the shoe industry of Marikina.
Since its humble beginnings after World War II, Marikina has always been the pride
of the Philippines when it comes to producing world-class leather shoes. It is safe to
say that at that time, every Filipino aspired to have a pair of shoes that came from the
shoe capital of the Philippines. This paper examines how the shoe industry in
Marikina City affects the employment of the local residence living in the said place.

Background of the Study

The Marikina shoe industry can trace its root back to 1800s when a well-to-do
landowner Don Laureano Guevara brought back a pair of imported shoes from
England and instructed his workers Tiburcio Eustaquio, Ambrocio Sta. Ines and
Gervacio Carlos to replicate them. After the trios success, Guevarra ensured the
propagation of the shoe industry by teaching other locals the craft of shoemaking.
Because of his invaluable contribution to the birth of the Marikina shoe industry, Don
Laureano Guevarra also known as Kapitan Moy, would go down in history as the
founder of the Marikina shoe industry. By 1935, the industry has flourished to the
extent of producing 260,078 pairs of ladies shoes and 86,692 pairs of mens shoes.
Over the years, the industry enjoyed steady growth and even became one of the chief
exporters of footwear to the United States, Europe, Australia, Hong Kong and Japan.
By the 1960s, the Marikina shoe industry was responsible for 80% of shoe
production in the Philippines.
The production of shoes in Marikina are largely limited to small micro, small
to medium-sized enterprises owned by families or under sole proprietorship. Research
shows that production is often a labor-intensive process, with low productivity
aggravated by outdated equipment and technology used. Because the local leather and
tannery industry is currently grappling with obsolete machinery, low work
productivity and inefficiency, the majority of leather and other raw materials
necessary for shoe production are often sourced abroad. Thus, many manufacturers
need high capitalization for operations. Because of the absence of a comprehensive
research and development program, manufacturers are unable to upgrade their designs

and equipment, leaving them incapable to compete with international product

standards and quality control.
One of the major challenges in developing the Marikina shoe industry lies in
the sourcing of shoe components and accessories. Because the Philippines lacks a
modernized tanning infrastructure that has the capacity to process leather hides,
approximately 80% of shoe components such as shoe lasts, heels, counters and top
lifts are imported from other countries. As such, shoe manufacturers are often prey to
exorbitant tariffs and smuggling of shoe components. There is also an absence of
product quality standards for shoe components and accessories.

The manpower is low because of the seasonal nature of shoe production in

Marikina, there is a shortage in new labor entrants to the industry, with majority of the
workers mostly coming from the older generation. The average employment level
ranges from 20-60 workers per company, with wages ranging from P250-P350 a day.
There is a pressing need to enhance worker productivity and efficiency. Even though
many local manufacturers opt to produce womens shoes owing to the quicker fashion
cycle of womens footwear as compared to men there are no specific markets catered
by the industry. There has been no identified target markets and product categories
implemented industry wide. There is also a pressing need to develop marketing and
promotional efforts among domestic and international markets. The influx of cheap
imported shoes from Asian countries such as China and Vietnam has exacerbated the
situation.
There is a scarcity of credit and financing opportunities for local shoe
manufacturers. Despite the problems and issues confronting the Marikina shoe
5

industry, the future still remains bright. With a major retooling in the industrys
operational methods in place, the revitalization of the industry is possible. In
particular, there is an urgent need to address one of the primary factors hindering the
development of the Marikina shoe industry the lack of credit and finance
opportunities to new and existing shoe manufacturers. The lack of capital is one of the
reasons why manufacturers are unable to upgrade their facilities, train their workers,
develop marketing strategies and make production and distribution more efficient and
expedient.
The establishment of cooperatives of local shoe manufacturers will not only
help unite a highly-divisive industry that will aid in formulating a vision and longterm perspective of the shoe industry but can also strengthen the link between shoe
manufacturers and government support agencies and mechanisms. Not only will the
government provide much-needed financial support for the development of the
industry, it can also serve as the industrys main client, specifically in providing
quality footwear for government employees and men in uniform, i.e. combat boots
and work shoes for soldiers and policemen. This way, the industry is ensured with a
steady supply of orders and clients.

Statement of the Problem

This study aims to understand the rise and fall of shoe industry in Marikina
and how does it affect the employment of the local residents.
More specifically, this study seeks the following questions:
1. What is the relevance of participants profile to the present study in terms
of:
1.1.
1.2.
1.3.
1.4.

Age
Gender
Civil Status
Years in Marikina

2. What are the shoe attributes in terms of style, color, material, comfort, and
durability that you consider before purchasing a product? Are these
attributes contributed to the quality of shoes made in Marikina?
3. What are the factors that make the demand of the shoe products in
Marikina City decline?
4. Is there any significant on the assessment of the shoe makers/employees
and consumers on the following attributes and factors?

Objectives of the Study

The researchers of this study will gather information from the people in
Marikina City in order to get information that will come up below:
1. To give a catching study where residents get interested about the issue of
booming and the slowly dying of the shoe products in Marikina City.
2. To produce information on how the shoe industry in Marikina City affects
the lives of local people.
3. To collect the opinions of local people in Marikina about the citys main
business in the way of survey.

Hypothesis

This study will test the null hypothesis that there is no significant difference
on the assessment of the shoe makers/employees and consumers on the following
attribute and factors.

Significance of the Study

This study arrived to analyze how Marikina shoe industry affects the demand
for tourist and how it affects its service industry. Doing this study, it will benefit the
following group of individuals or people.
To the City of Marikina This study is important to all people living in their
city. To let them know what their residents and how other people give importance
about the shoe industry in their place and also to make their people have more interest
to work and willing to establish a business to the industry of shoe capital of the
Philippines.
To the Tourism Students of STI College Global City This study is important
to gain love and motivation to the course theyve chosen. To make them realize that
there is a world class shoe product in City of Marikina. Someday, if they graduated
and work as a tour guide or any related tourism jobs they should promote to the tourist
that there is a world class shoe products in the Philippines.
To the Professors This study will help professors to have a deeper
understanding about the shoe industry in Marikina. They have the rights to give good
and accurate information to students.
To the Researchers of STI College Global City This study will help the
researchers to enhance their knowledge as tourism students, to know more
information about the contribution of Marikina shoe industry to our economy.
To the Future Researchers This study presented may be used as reference
data in conducting new researches or in testing the validity of other related findings. It

10

will serve as their guide regarding their performance and knowledge about importance
research activities.
Scopes and Limitations
It is a best known as the shoe capital of the Philippines. During its heyday,
most of the shoes manufactured in the Philippines were made here. Known for its
undeniable craftsmanship, Marikina shoes are still revered as the classic shoe-wellmade and finely crafted. The researches will conduct a study that will cover the local
residents that work in the shoe industry in Marikina City. The study started first
semester of year 2016 from June to October.
The shoe industry in Marikina City affects the local residence that has a
related work in shoe-production. In this study the researchers will have to know facts
on how the respondents affected to the rising and falling of the shoe industry in their
place. It also helps the researchers to know the majority cause of being undemand of
their shoe products.
The study will not cover the non-residents of Marikina City and will only have
up to 70 respondents. This study features only for the local residence of Marikina City
that is working in the field of shoe industry, only for shoemakers, employees and
consumers. The respondents must 20 to 60 years old only.
This year the researchers were all excited to visit the place of Marikina City as
a student of Bachelor of Science in Tourism Management, it can enhance their selfconfidence in doing a survey. It is also a part of tourism industry to know if the
products that are demand to each place can affect the employment of the local
residence whos working in the same field.

11

Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
12

This chapter reviews foreign and local literature that concerns on the work
related stress affecting the performance of teachers. It presents and describes foreign
and local studies in support to this research. It also includes theoretical and conceptual
frameworks and synthesis.

Local Literature
Marikina Shoe Industry
The beginning of the Marikina Shoe Industry can be attributed to the
initiatives of Laureano Guevara. He served as a municipal captain of Marikina and
was lovingly called Kapitan Moy. Through his desire to create employment
opportunities to the young men in town who do not know any useful trade, he was
able to pioneer the shoe-making industry in Marikina. He wanted to create and
produce shoes that the common people can afford since during that time only the
well-off has the ability to purchase shoes. He was able to learn how to create a shoe
through trial and error. With the help of Tiburcio Eustaquio, assisted by Ambrocio Sta.
Ines and Gervacio Carlos, Guevara examined an imported shoe he bought during one
of his trips to Manila. He scrutinized the different parts of the shoe and studied how
they were put together. Through constant experiment and trial and error, he eventually
learned and mastered the art of shoemaking. The very first pair he created was given
and offered to Fr. Jose Zamora, parish priest of Marikina and it was sold at P2.50
(http://www.nhi.gov.ph/).
Kapitan Moy opened his very own shoe shop in 1881 and from there
introduced shoemaking in Marikina. His skills and know-how in shoemaking was
13

then passed on to some trusted assistants (http://www.nhi.gov.ph/). Furthermore,

Kapitan Moy envisioned and planned to make shoemaking as a source of livelihood
for the whole town and so he made sure that other Marikeos learn the new skills
right away (http://www.marikina.gov.ph/). The determination of Kapitan Moy to learn
shoemaking and his generosity with his knowledge opened a lot of opportunities to
the people of Marikina.
Marikina eventually became well-known for its shoes but during that time,
Manila was still the more revered market for shoes. In order for Marikina to penetrate
the industry and level up with Manila, Marikeos had to deal with the Chinese
merchants who dominate the shoemaking industry because of their abundant raw
materials from China and their established stores in Manila. Marikeos had to create a
partnership with these Chinese merchants but it was not without trouble because the
merchants tend to manipulate and influence the price of the shoes made by the
Marikeos and the raw materials bought from them (http://www.marikina.gov.ph/).
Marikeos eventually resisted and they formed a union called Oras Na
which was organized by Mayor Wenceslao de la Paz. They intended to obstruct the
distribution of the finished shoes to the Chinese merchants. But the Chinese
merchants were not an easy opponent to let down especially with the large amount of
money they have. The Chinese continued to dominate the shoe industry for quite a
long time (http://www.marikina.gov.ph/).
A shoe trade fair project in 1965 revived the Marikina shoe industry, giving
the Marikeos a chance to be their own merchandisers. It gave them enormous sales a
long list of orders. Thousands flocked and supported this project which upholds the
Marikinas

claim

as

the

Shoe

Capital

of

the

Philippines
14

(http://www.marikina.gov.ph/). The trade fair was held again the following year and
was continued for the next 14 years until it became impractical for the Marikeos who
started to compete and open their own stores in Cubao, Caloocan, Pasay City and
Makati (http://www.marikina.gov.ph/).
The shoe trade fair influenced other people to engage into fairs and this led to
the emergence of different Marikina shoe fairs all around the metro, not only limited
to Marikina. The Marikina Shoe Trade Fair continued not until 1979 when they
decided to focus and venture out into the exporting industry. They decided to try
exporting snakeskin shoes and handbags to the US. The demand for the snakeskin
products increased drastically, stretching the production capacity of Marikina shoe
manufacturers to the limit. Eventually, snakeskin became limited and so they had to
import the raw materials from nearby countries. Deterioration of the products quality
also became noticeable because of the pressure to meet shipping deadlines and thus
resulted to rejects (http://www.marikina.gov.ph/).
Prior to the big shoe trade fair in 1965, Marikina has already earned its title as
the shoe capital of the Philippines during 1935. Marikina has been producing 260,000
pairs of ladies shoes and 86,000 pairs of mens shoes with 139 shoe factories around
the town (Dela Cruz, 2003)
During 1970s and 1980s, after the shoe fair event in 1965, the Marikina shoe
industry boomed and importation became limited to high-end brands. In 1990s,
Marikina shoe manufacturers faced a tough competition with the products from China
because of the easy and cheap importation in the country since importation as
liberalized in 1986. (Dela Cruz, 2003)
One of the proofs that Marikina is doing the best they could do to retrieve the
15

ailing industry is by the events that they are holding for the promotion of Marikina
Shoes. According to Dr. Loreto A. Santos, Markina handled a symposium aimed at
strengthening the partnership and the local government that was held in order to
revitalize the shoe industry in the city (http://Ph.News.Yahoo.Com/Marikina-AilingShoe-Industry-Tackled-084957885.html, Aug. 25, 2012). Moreover, the Caravan
promotes Marikina Shoes. The caravan helps promote the product in our neighboring
cities like Malabon, Navotas, Caloocan, Valenzuela, Quezon City, Pasig, Taguig,
Muntinlupa, San Juan, Manila, Pasay, Paraaque, Mandaluyong, Las Pias, Makati
and Pateros town in order to let them know that the quality of shoes that Marikina is
making could compete to the quality of shoes that they buying from the department
stores, especially those imported brands.
With these kinds of promotions, the demand of shoes could get higher
percentage of consumers and the city will be able to be endorsed not only by
Marikeos but also by other consumers who tried using it and was pleased with the
product, even though they are not from Marikina.
The Rise and Fall of Manufacturing in Marikina
Marikina was once a bustling industrial town, the first to develop an industrial
zone (http://www.marikina.gov.ph/), inaugurated in 1957. The zone, covering 261 ha
in the northeastern part of Marikina, ushered in a period of steady industrial growth
that lasted until the first half of the 1970s, followed in the l980s by the establishment
of a number of export-oriented footwear companies. This proved to be the heyday of
local manufacturing which sadly was not sustained beyond this time as shown in
Figure 1.

16

Figure 1. Number of establishment in all manufacturing industries, Marikina,

2004-2008
(Source: Business Permit and Licensing Data in Figure 5, December 2009)
Aside from its shoe industry, Marikina became home to a number of large
manufacturing companies (Santos, dela Paz, & Cordervilla, 2002), including Manila
Bay Spinning Mills, a manufacturer of yarns, polyester, rayon, acrylic, etc.; Goya, a
producer of chocolate bars and candies; BF Goodrich (which later became Sime
Darby), a maker of radial tires; Noritake Porcelana, then the countrys leading
producer of porcelain plates, saucers, cups, and drinking glasses; Purefoods, a major
producer of canned foods; Fortune Tobacco, the largest manufacturer of cigarettes in
the Philippines and ARMSCOR, a gun and munitions manufacturer. It also attracted
hat makers from Lucban, Quezon who used Marikina as an export platform to Europe
and other countries.

The Recession of Manufacturing

According to Santos, dela Paz, & Cordervilla (2002), found the following:
The footwear industry in its entiretyincluding shoes, sandals, slipper, and
17

related product lines which for many years was the principal industry of
Marikina, experienced a significant decline between 1998 and 2002 in the face
of global competition and especially the rise of China as an export
manufacturing base.
During this time, the number of manufacturing shops for shoes alone dropped
from 450 to 296 down by 34 per cent over a five-year period. There was a
further drop in number to 237 in 2001, reaching its lowest point within an 11year period in 2008.
A similar downturnboth in terms of number of registered businesses as well
as available jobshas been experienced by other industries: garments (47 per
cent) decline, furniture (41 per cent), and iron/motor works (53 per cent).
Overall, over the same five-year period, Marikinas manufacturing heart was
sliced by almost 24 per centfrom 1,097 firms in 1998 to only 836 in 2002.
Similar trends have been observed in other parts of the country, indicating a
failure of the Philippines to prepare and to remain competitive in a period of
increasing international trade competition (p.17).

Unfortunately, Marikinas industrial growth was not sustained for a number of

interrelated reasons, cited in ILO, entitled Arresting stagnation and building a base
for the future tripartism in Marikina City by Ofreneo, Marasigan, and Basa, (2005):
1.

The Philippine government industrial dispersal programme pushed locators in

the Marikina industrial zone to relocate to the countryside given the incentives to
do so. An industrial dispersal programme of the national government was
implemented in the 1970s aimed at encouraging industries to locate in the countryside
by giving them maximum investment incentives to relocate while limiting the
incentives extended to firms based in urban centers. This policy had the unfortunate
consequence of undermining the towns ability to keep existing and attract new
industrial investors since Marikina had been integrated in the new NCR or
Metropolitan Manila in 1974. The result of this change was that a number of 26

2.

The Philippine import-substituting industries (ISI) established and developed in the

1950s 1970s to replace imported finished products by producing them at home under
18

a regime of high tariff protection were unable to adjust under the era of liberalization
and globalization that began during the l980s and which has accelerated since that
time. Those industries that were unable to modernize and remain competitive or
which had no market niches to exploit easily fell by the wayside when tariffs were
brought down and import restrictions were lifted under the World Bank-supervised
structural adjustment programme of the l980s1990s.
3. The Philippine debt crisis of the mid nineteen-eighties further complicated the
situation of ISI industries as it triggered a rise in the cost of domestic
borrowings, a devaluation of the peso and curtailed the governments ability to
provide efficient and reasonably-priced infrastructure, power, and other
utilities. Thus, with the rising costs of doing business, most of the factories
that set up in Marikina in the l950s1970s, with the exception of only a few
large companies, relocated, downsized, or closed down entirely in the l980s
and l990s. The biggest casualty was UTex, at the time the countrys biggest
textile mill.
4. The trend in industry shifted from industrial production to trading and retailing
and this exacerbated the decline. Since its closure in l993, the UTex complex
has been transformed into the Riverside Mall, a reflection of this trend in
industry that has shifted from industrial production to trading and retailing as
the Philippines has grown its service economy. This holds true not only for
businesses in Marikina but in most localities in the country where price has
become the ultimate determinant of consumer purchasing decisions and where
there were no locally established brands capable of extracting a higher selling
price in the volume market.

19

5. The industrial unrest that followed the lifting of martial law hit the town in the
crisis decade of the l980s and was another factor that arrested industrial
growth. Although not properly chronicled, anecdotally, many in Marikina
reminisce that the 1980s was a red decade, when the number of strikes,
industrial mass actions and protest rallies in the city (as was the case in many
industrial towns in Rizal and Metro Manila) conducted by both moderate and
militant unions increased in number and reached record levels when compared
across historical periods (p. 17-18).

Foreign Literature
The Philippines shoe industry can be drawn back for well over a century
(Ibon Databak, 1986). The larger part of the industry has always been focused in
Marikina City in the Northeast of the Metro Manila, where it commences the spatial
and functional form of a traditional marshallian industry district. The production of
the industry today consists for the most part of inexpensive shoes fabricated in both
leather and synthetic materials for the domestic market. Yet, Philippines has never
been in the ranks of the worlds largest shoe-producing countries, and in Southeast
Asia alone, it trails far behind China, Vietnam, Taiwan, Indonesia, and Thailand, in
terms of both employment and output. Likewise, the industry has been subject to
robust competition over the last decade or as producers from other countries (above
all China) has penetrated deeply into domestic markets in the Philippines while
concurrently hindering out many export for Filipino manufacturers. Presently, the
industry is in great disorder, and its future is extremely ambiguous (Scott, 2005).

20

Local Studies
Lourdes S. Tamayo, in her unpublished masters thesis in 1995, entitled The
Status, Management Practices and Problems of the Shoe Industry in Marikina, Metro
Manila she said that Marikina and the word shoes are terms that are inextricably
linked to each other and are inseparable. A mention of one evokes association of the
other because the town of Marikina after times labeled as the Shoe Capital of the
Philippines, and the thousands and thousands of shoes sold in more popular
department stores throughout the country are made in Marikina. There are even
reports that shoes produced in the area have found their way in the big department
stores in the United States of America and in several countries in Europe.
Joel Q. Tanchuco, in his unpublished study, entitled Liberalization and the
Value Chain Upgrading Imperative: the Case of the Marikina Footwear Industry,
concluded that the footwear manufacturing is customarily associated with Marikina.
During its peak in the 1970s, the most discriminating consumers in major fashion
cities around the world then desired the provinces footwear. It was a time when its
workshops and craftsmen would be very busy churning out seemingly endless pairs of
footwear, which would be known for outstanding quality and design. The decline of
the national footwear industry was however, to quickly come with trade liberalization
(http://www.dlsu.edu.ph/research/centers/aki/_pdf/_concludedProjects/_volumeI/Tanc
huco.pdf).
Foreign Studies
A study made by Kayser (2008), entitled The Brazilian Shoe Industry and the
Chinese Competition in International Markets, conclude that the Brazilian shoe
industry has enormous potential and holds an important position in the international
21

market. The Chinese competition is a threat that is perceived differently in different

markets; however, Brazilian exporters have shown that there are possible methods to
avoid or surpass it. The quality and design of Brazilian shoes are characteristics that
give them a leading position in many markets, and are perceived as their main
advantage. Individual decisions are very important for their success in international
markets; however, the industrys organization into clusters and governmental
decisions that should benefit producers and exporters both appear to be determinant to
the performance of the Brazilian shoe industry
Lopes (2014), concluded in her study, entitled Felmini, the Success of a
Portuguese Footwear Company in the Italian Market, The Portuguese and Italian
footwear industry are considered as top leaders in the production of footwear for the
upper market segment. To achieve this position, factors as high quality, innovation,
technology and rapid response time were vital. But these characteristics are only
possible due to a network system of companies, located in specialized areas that
agglomerate footwear manufactures, related firms and services, and industry
associations that Michael Porter defines as clusters. Both Portuguese and Italian
footwear companies used to work as subcontractors for international brands.
However, the liberalization of the world trade changed the competitive environment
of the sector and proved that the basis of their competitiveness wasnt sustainable
anymore. When competition is based on prices, firms with higher costs have to find
new sources of differentiation to survive in the market.

SYNTHESIS
The shoe industry in Marikina has been strong until the foreign investors came
22

along the country and empowers this industry, especially China. For the previous
years, Marikina is on good terms in terms of its industry, Marikina serve nationwide
and sometimes international, although Marikina never ranked as the worlds largest
shoe producing countries. Nevertheless in our country, we are number one.
The shoe industry has confronted an extreme rivalry between other Asian
countries that cause the obstructive of our export opportunities. With these, the
industry goes down instantaneously especially when China materials came along,
which is very cheap but also very low in quality

THEORETICAL FRAMEWORK
The Lancasters theory of consumer choice (1966) postulates that consumption
decisions are determined by the utility that is derived from the attributes of a good.
Because consumers often link attributes to consequences of purchasing or consuming
products (Akpoyomare, Adeosun, & Ganiyu, 2012), marketers differentiate and set its
product apart from competitors based on a specific attributes (Belch & Belch, 2001).
According to Aaker, Batra, and Myers, (1992) an important attribute is one
that offers an important benefit towards the satisfaction of consumer needs. Aaker
(1991) adds that because most product attributes provide consumer benefits, there is
usually a one-to-one comparative between brands. Kotler (2002) explains that the
most prominent attributes or features of a product to the consumer do not necessarily
always imply that they are the most important ones. Manufacturers must view product
attributes from consumers point, understand their specific needs to reduce the lost
opportunity to sell or raise the level of customer satisfaction. Therefore, identification
23

of those important factors will help the shoe-making companies to tailor their
marketing and manufacturing strategies to take advantage of these influences in a way
that will satisfy both the consumers and marketers.
Based on this theoretical framework, the makers of the shoe industry in
Marikina should be able to specifically know the needs of the consumers, in what
ways they can improve their product in terms of quality and in affordable price.

CONCEPTUAL FRAMEWORK
INPUT
Current ways and
practices of shoe
industry in
Marikina: -Reasons
for decreasing sales
- Reasons for not
purchasing

PROCESS
Data Analysis: The
data will then
retrieve, tallied,
tabulated, process,
presented, analyzed
and interpreted
based on the Survey.

OUTPUT
Findings will be
used to provide
recommendations/
Improvements for
marketable shoe
industry in Marikina
and uplift their shoe
quality compared to
imported shoes.

Figure 2. Conceptual Framework of the Study

The input for this study refers to the current ways and practices of shoe
industry in Markina, which specifically focus on the reasons for decreasing of sales
and not purchasing its own product. These ways will be used to further understand
the background of the process in relation to shoe industry in Marikina. The pursuit for
understanding will be done through the process stage, wherein data analysis on the

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current ways of the respondents in terms of the reasons would be evaluated. The last
is output stage, wherein it will produce recommendations/improvements for
marketable shoe industry based on the findings and that would also include
recommendations to uplift their shoe product compared to imported shoes.
This research intends to develop more understanding about the typical
practices, particularly those who are involved in the shoe industry of Marikina. The
framework states that by studying the ways and practices, it will help the shoe
industry of Markina in developing a more customized and effective programs to gain
back more of marketable shares and better livelihood for the Marikeos.

References:
Akpoyomare, O. B., Adeosun, L. P., & Ganiyu, R. A. (2012). The influence of product
attributes on consumer purchase decision in the Nigerian food and beverages industry:
Astudy of Lagos Metropolis. American Journal of Business and Management, 1(4),
196201.

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Kayser, P. A. (2008). The Brazilian Shoe Industry and the Chinese Competition in
International Markets. Unpublished Thesis
Kotler, P. (2002). Marketing management (11th ed.). Upper Saddle River, NJ: Pearson
Education.
Lancaster, K. (1966). A new approach to consumer theory. Journal of Political
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Lopes, L.F. (2014). Felmini, the Success of a Portuguese Footwear Company in the
Italian Market. Unpublished Thesis

Tanchuco, J. Q. (2012). Linearization and the Value Chain Upgrading Imperative: The
Case of the Marikina Footwear Industry.
http://www.dlsu.edu.ph/research/centers/aki/_pdf/_concludedProjects/_volumeI/Tanch
uco.pdf
Online
http://dx.doi.org/10.1086/259131
Marikina's Ailing Shoe Industry Tackled. Yahoo News (Via Manila Bulletin),
Http://Ph.News.Yahoo.Com/Marikina-Ailing-Shoe-Industry-Tackled084957885.Html, Aug. 25, 2012.
http://www.marikina.gov.ph/

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