MANILA, Philippines – Local fashion companies Bayo and Unica Hija are merging their businesses as they face increased competition from foreign brands.
“Bayo and Unica Hija have entered into an agreement to merge their businesses in a strategic bid to increase operational efficiency, accelerate customer and product expansion and price their offers more competitively,” read a joint statement released by the two.
The companies said they tapped merchandise provider Power Fashion Inc. to produce ready-to-wear clothes for them.
But they said they will keep both their brands, clothing line-ups and retail networks because they cater to different segments of the market.
The move will reduce their operational costs and help them grow market share in the Philippines where foreign brands such as Forever 21 and Uniqlo have been expanding aggressively.
Power Fashion said it will increase production capacity to meet demand.
It said it will invest in more factory space, generating more jobs. – Cecilia Cabiao, Rappler.com