Identifies common practices to be aware of when selling in this market, e.g., whether all sales material need to be in the local language.
Last Published: 7/18/2019

Understanding the local business culture will help U.S. suppliers gain and maintain market leadership. 

U.S. businesses should conduct due diligence before selecting local distributors, agents, or representatives, as these are crucial market linkages.  In this regard, CS Philippines assists U.S. exporters in finding representatives overseas through its various services which include International Market Check (IMC), International Partner Search (IPS), Gold Key Service (GKS), Single Company Promotion (SCP) and International Company Profile (ICP) reports.  Companies desiring to conduct more detailed due diligence may wish to avail of legal or consulting services.  After careful selection of partners, U.S. suppliers should be prepared to work closely with their local representatives.

U.S. suppliers are encouraged to visit the Philippines on a regular basis to familiarize themselves with and understand the latest market trends and developments, show support for their local representatives, and to pay courtesy calls on major accounts.  Meanwhile, local representatives are expected to make regular sales calls to customers and update U.S. firms about recent industry trends and developments.  This will help in identifying sales leads and other business opportunities.

Other important tools for initiating market entry, increasing product awareness, and maintaining industry prominence include the development of training programs for customers and distributors; advertising and product promotional support; and participation in trade fairs, exhibitions, and product seminars.  CS Philippines offers low-cost, customized business facilitation services to assist U.S. companies, particularly those that are new to market.  More information is available at: http://www.export.gov/philippines/servicesforu.s.companies/index.asp

In many instances, strong relationships of mutual trust with Philippine clients are the key to clinching a sale.  An overly aggressive demeanor may not be appropriate when doing business in the Philippines, and even less so in settling sales or payment disputes.  Local firms will appreciate partners who are aware of the nuances of local business culture.

More often than not, there is a vague distinction between social and business contacts.  As such, referrals from prominent members of social, political, and business circles can prove to be very useful in facilitating introductions.  It is also critical to follow-up on initial sales calls. Several follow-up efforts may be needed before an actual order is placed.

U.S. firms may also work with their local partners in liaising with relevant professional, industry and trade associations/organizations, as well as business chambers such as the American Chamber of Commerce of the Philippines (http://www.amchamphilippines.com/) and U.S.-ASEAN Business Council  https://www.usasean.org/countries/philippines). Organizations such as these often serve as advocates for industry-specific issues and concerns.  Moreover, many of these organizations hold regular events such as trade shows, conferences, or conventions, which feature the latest products and technologies and are often a useful venue for networking and business matchmaking.

English is the main language used for trade and sales correspondence in the Philippines.  Sales literature (for example, product brochures, catalogs, and advertisements) and instructions on product use, installation, and labeling are generally written in English.  In some instances, instructions or product advertising should be translated into Filipino/Tagalog or the regional/provincial dialect (as in the case of pesticides and other agricultural products) to achieve wider reach and impact. For imported items, price quotations in dollars are acceptable, but a Philippine peso equivalent should also be noted.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.