Why do local brands cost more? Here's what the industry says
Supporting local businesses is important, but products from some of these brands don't come cheap.
An X user recently went viral when he wrote about some of the tell-tale signs that a brand has "overpriced" items. "Overpricing indicators sa local brands: (1) conyo 'yung may ari, (2) 'yung name ng shop is a deep Filipino word (hiraya, maligaya, etc.)," it read.
The post garnered mixed reactions from social media users as they shared their sentiments on the matter.
Someone cited a local brand's offering as an example, uploading a picture of its set with four mulberry scrunchies and four cotton headbands worth more than P11,000. "11k just for scrunchies and headbands?" an X user replied to the post. On the same thread, another user shared a photo of scrunchies that can be bought online for only P9 each.
"It's hard to support a local brand [with prices] ranging from P1,000 [above]. Mas mura pa mag-Shein or H&M or Shopee. No shade to these local brands, but it's expensive, knowing the current state of our economy, and not all masses can buy a shirt worth P1,200," an Internet user wrote.
"I've been complaining about this. Parang nagiging luxury na ang atake," another one commented. "How will Filipinos support local when it’s not even affordable para sa normal na mamamayan?"
For an X user, the real issue is "they're using the Filipino culture and names to make a brand and sell it with an outrageous price. They want their target market to be Filipinos but the price can't even justify the quality of the product, they just put up a price thinking we all afford it."
However, there were some who stood in defense of these brands and reasoned that there are several factors that affect their pricing.
"Local brands tend to have [a smaller] budget for products. Kaya mas mahal, kasi 'di sila nakakabili and nakaka-produce in bulk. Bigger brands can sell for cheaper, kasi bulk production. Local brands can’t do that. Kaya mas mahal 'yung local brands," one user wrote.
Why do locally sourced and produced brands cost more?
In a statement sent to PhilSTAR L!fe, the Department of Science and Technology's Philippine Textile Research Institute explained that the higher pricing of local brands "often stems from several structural realities within our value chain."
"Unlike large-scale international manufacturers that benefit from economies of scale, many Philippine-based enterprises—especially micro, small, and medium enterprises—operate on smaller production runs, with higher costs for raw materials, labor, and technology adoption," it said.
The PTRI also noted that local brands often make use of traditional and indigenous materials, handloom weaving, and natural dyes, which "are labor-intensive and preserve cultural heritage."
"These are not just products; they are embodiments of craftsmanship, sustainability, and innovation," it added
Cedie Lopez Vargas, one of the founders of ArteFino, told L!fe that Filipino products are perceived as pricey as she observed that "there isn't much local production."
"There's not too much of a textile industry," she pointed out. "There's this [advent] of much cheaper textiles from other Southeast Asian countries, or China even, so there's no motivation to create your own industry if it's difficult to compete."
Vargas added that there's an advent of foreign textiles in the country that cost less. "That's what a lot of people adopt to be able to come up with better pricing on the clothes. If we use local fibers, it is not mechanized."
Camille Villanueva, a slow fashion designer, explained that textile production in the country is priced more because "it takes a longer time and higher skill" to complete them.
Vargas echoed this, noting that using piña is expensive. "The process is painstaking, painful, and low value in terms of labor cost. It takes so long, and nobody wants to do it anymore because it's not paid very well."
"Transportation costs as well are a factor. Most handwoven textiles are made by tribes or communities who are far from cities," added Villanueva.
Farah Abu, a designer of statement earrings and accessories, told L!fe that pricing is shaped by factors such as materials, labor, product development, and other operational costs.
"I think the question shouldn't be whether something is priced low or high, but rather whether it's fairly priced," she said. "Fair pricing allows artisans to not only sustain their craft, but thrive with dignity. If we don't price our work fairly, how can we keep supporting the people who make it possible? Fair pricing means they can keep doing what they love, innovate, and pass their knowledge on with pride."
Can local brands lower their prices?
For Villanueva, lowering the cost of "good quality local textiles" would also mean lowering fees for skilled workers, which she said are not many.
"If you're talking about all the indigenous textiles that come from the north to the south, those are handloomed. That’s somebody's blood, sweat, and tears. It's not a machine," Vargas added.
If textiles were "highly mechanized" with nobody at the loom, costs could probably be lowered, she said. "Nobody's there anymore, so you don't have to pay that person, and it can run as fast as you want to."
For Abu, it's "not just about whether a market can afford something, but also about the people behind the product—the weavers, artisans, and beaders who pour their heart and soul into every detail."
Joana Gube of local accessories brand Heyjow echoed this, saying buying local is an act of love that contributes to local communities. "Filipino design has an unreplicable blend of culture, style, and story. That’s something you won’t find in mass-market imports."
Abu, however, acknowledged that not everyone has the budget to spend on premium local items, which is "perfectly okay." She said, "Just because someone cannot afford it, it doesn't mean they cannot appreciate it."
"There are so many ways to celebrate Filipino artistry—from telling our stories to supporting when the time is right. In the end, it's really about celebrating our craft—with or without a price tag," she pointed out.
Vargas and Villanueva agreed that locally produced products can be made more affordable with help from the government.
"[The government] can have programs that aid weaving communities for improving their skills and living conditions, and have incentives for their skills. When it’s more efficient, the production will be greater, lowering the costs," Villanueva said.
"These are observations only: Other Southeast Asian countries are able to come up with much more reasonably priced textiles [because] there is government subsidy. [The PTRI] is doing a valiant job, trying to create an industry where there isn't any yet, using all sustainable and natural fibers that are grown here. It will take a while," she added. (with reports from Ayie Licsi)
