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Philippine Business Magazine: Volume 10 No. 5 - Enterprise

Soft Pets
Endangered animals made into pets by Blue Fur
By Anne Ruth de la Cruz

It started as a project for one of their marketing classes at the Ateneo de Manila University. Oliver Bautista, Eric Jugueta and Alex Queseng decided at the very last minute that they would be manufacturing stuffed toys.

They really wanted to open a restaurant. “But we had problems looking for a supplier.” Since the deadline was fast approaching, they decided to manufacture stuffed toys instead. To make it unique, they made not only your ordinary teddy bears but endangered animal stuffed toys as well.

They decided to go full blast with the manufacturing of these stuffed toys in their senior year. Their products sold so well in a fair that is organized annually by Ateneo to provide a venue for the students’ business projects. After graduation, the three went into the business full time.

With P30,000 in their pockets, Bautista, Jugueta and Queseng formally started Blue Fur in May 1999. Since they did not have their own facilities to manufacture the stuffed toys, they subcontracted their orders.

Bautista was tapped to be in charge of the finances while Queseng was in charge of marketing. Designing the toys fell into the hands of Jugueta. But it was everyone’s job to look for possible clients for their growing business.
“When we were starting out, we would always encounter cash flow problems,” Bautista said. “We were also wasting a lot of money in overtime expenses even we did not have to do overtime.”

In spite of the problems, they were able to open a small stall in Robinsons Galleria in May 2000. The venture, however, only lasted for a few months because of the rash of bombings that rocked Metro Manila and other parts of the country. They continued, though, to sell some of their products in Gift Gate outlets and regularly participated in bazaars.

A stroke of luck came their way not long after when one of Blue Fur’s subcontractors offered to sell his factory at almost half of its original price. “We thought that it was a good buy so we decided to take the risk,” he said. “Now that we have our own factory, we would be able to lower our production costs.”

Blue Fur currently has 25 regular employees. The number goes up to 60 if there are rush jobs. When they were just starting out with the factory, Bautista said they found it awkward dealing with their employees because most of them were twice their age. So while they maintain close relationships with them, they still keep their distance to ensure professionalism at work.

As for their designs, Jugueta said they make it a point to be as original as possible. He looks through the latest magazines, books, and goes to the malls to look at what the latest styles are. “We do not copy the designs of toys that are already in the market unless we have a specific order from a client,” Jugueta said. “And we make sure that we use the best materials available in the market.”

Their latest and most famous client was President Gloria Macapagal Arroyo who asked Blue Fur to manufacture stuffed toys as giveaways for her granddaughter’s baptismal party. Blue Fur’s best buys are soccer balls, teddy bears, baby bottles, and the breed that started it all – endangered animals.

Blue Fur’s future plans include re-opening their own stall in one of the malls in Metro Manila. And with a growing clientele, they are hoping to do so before the end of the year.



 
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