One Town, One Product (OTOP) Philippines is a priority stimulus program for Micro and Small and Medium-scale enterprises (MSMEs) as government’s customized intervention to drive inclusive local economic growth. The program enables localities and communities to determine, develop, support, and promote products or services rooted in its local culture and competitive advantage. As their own ‘pride-of-place,’ these are offerings where they can be the best at or best renowned for.
OTOP is an international program that originated from Japan’s One Village, One Product. Its various versions and iterations in numerous countries are proofs that it is a viable branding and stimulus program for MSMEs. Here in the Philippines, it has been in existence since 2002. This was further powered through the promulgation of Executive Order 176 by then President Gloria Macapagal-Arroyo in February 2003. After a decade and a half of combined gains and challenges, OTOP remains to be a strategic tool that provides an ecosystem of assistance from local government units, national government agencies, and the private sector. It is now transitioning to a convergent effort to its next phase of execution in the form of OTOP Next Gen.
WHAT IS OTOP NEXT GEN?
OTOP Next Gen is DTI’s program to LEVEL UP these products and services. Building from the gains of OTOP first generation, this initiative aims to offer a package of public-private assistance in order for MSMEs with minimum viable products to come up with new or better offerings with significant improvement and innovation in the areas of quality, product development, design, standards compliance, marketability, production capability, and brand development, among others.
OTOP Next Gen also embarks on the technological upgrade of production processes and design to help ensure sustainability of supply, by combining various elements, re-engineering design or process; or building more advanced skills and capabilities. This is where close collaboration with the Department of Science and Technology and the Department of Agriculture will play a pivotal role to catapult our MSMEs on the road to innovation-led growth.
OTOP Next Gen monitors, tracks and facilitates the journey of its OTOPreneurs in their collective and individual journey along the MSME pathway. The goal of the program is to graduate the MSMEs along each stage of the pathway while simultaneously facilitating new entrants into the program.
OTOP Next Gen focuses and builds on SMEs with minimum viable products. MSMEs that are just starting out will have to be enabled and assisted through the other programs of DTI. In keeping with DTI’s various thrusts and priorities, OTOP Next Gen aligns support to the identified priority industries of DTI and of the Philippine Development Plan.
OTOP Next Gen transitions from being a 1st gen seal of assistance to that of being a premium seal of excellence. It is a guarantee that the brand or product has met minimum standards in the various criteria including the processing of the needed certifications (e.g. FDA, HACCP, etc).
In an effort to support the OTOP products gain market acceptability and improve market penetration, OTOP Philippines embarks on efforts to launch distribution platforms such as OTOP Philippines stores and engages in both local and international trade shows and institutional accounts targeted marketing. It provides a pool of products for Go Lokal!, and other pasalubong centers while building on existing channels such as Tindahang Pinoy, among others. Partners such as the Department of Tourism, National Commission on Culture and the Arts and the Department of Interior and Local Government will be engaged.
WHAT PRODUCTS ARE COVERED?
Food, Home, Fashion, and Agri-based products are the main covered products in the program. These are the specific inclusions: processed food and beverage, delicacies, agri-processing (coffee, coconut oil, cacao, etc.), food supplements, packaged culinary dishes, agricultural produce including seafood (preserved and processed), industrial products, home (furniture, décor, houseware), fashion, garments and textiles, accessories, gifts and souvenir items, personal care and cosmetics and services (hilot, etc.)
Owing to the specific nature of the interventions identified for the program, some areas and products/services are no longer covered under OTOP such as: tourism spots or activities, experiences (zip lining, nature trek, etc), electronics, creative outputs (film, music, etc) and all other products coming from large enterprises There are other DTI programs which can provide the needed assistance and interventions for these.
The program is composed of 4 phases for 2017: SAT, Service, Showcase, and Sell, Sell, Sell. A similar iteration is expected for 2018 with expected variations on interventions, assistance, and marketing efforts.
INTERVENTIONS AND ASSISTANCE
OTOP Philippines is part of an ecosystem of current local entrepreneurship programs intended as a branding and marketing platform. It offers a comprehensive assistance package through a convergence of services from local government units (LGUs), national government agencies (NCCA, Design Center of the Philippines, Philippine Trade Training Center, etc), and the private sector with the end of mind of alleviating poverty and promoting profitable goods and services thereby developing MSMEs, creating jobs, and stimulating both local and international trade. This includes:
- Product Development
- Design Services and Intervention
- Technology Updating
- Brand Equity and Development
- Intellectual Property Assistance
- Standards Development and Compliance
- Access to Finance
- Marketing Platforms and Promotion
2017 serves as a transition year for OTOP Philippines as it transitions to OTOP Next Gen. With a budget of Php 149M spread across the sixteen (16) regions, OTOP is poised to deliver on its goal to build innovative and competitive OTOPreneurs and products. This year, DTI hopes to assist a total of 9,000 MSMEs and to come up with 2,700 newly developed or improved products all under the OTOP program.
OTOP Philippines is a convergent program involving DTI and other agencies of government. At DTI, the program is managed by the Regional Operations Group under the leadership of Undersecretary Zenaida C. Maglaya.
Landline: +63 2 751 3307