The booming construction and automotive sectors in the region have prompted a multinational power tools company, Bosch, to open an outlet in Cebu.
“Our decision to setup a business hub here 85 years after we opened in Manila was prompted by the positive growth we saw in the market. We expect to grow and expand further given the very positive business climate in the country as confirmed by the recent investment rating,” said Martine Hayes, Bosch Southeast Asia president.
Hayes was referring to Bosch 25 square-meter- shop at Lopez Jaena Street in Mandaue City.
He said that the Southeast Asian region which the Philippines is part of is the fastest growing region for their brand with the country being one of the biggest market to tap with a population base of at least 90 million.
Joseph Hong, managing director of Bosch Philippines, said they first introduced their brand in the country in 1928 and had since built up a strong distribution network of dealers in the area.
“We currently have at least seven dealers here for the power tools alone which have at least 20 shops spread across Cebu,”said Willian Go, sales director for Power Tools.
He also cited the reason for opening an outlet in Cebu.
“With the many construction activities and evidently more car dealerships opening in Cebu fueled by the expanding middle income segment here means more disposable income to spend on cars and homes. With this, we think it is even more relevant for us to finally open a hub that will cater not only to Cebu but to other areas in the region,” Hong said.
real estate growth
Last year, commercial, office and residential components of the real estate market all registered a positive growth that translates to more construction activities, which is a rich market for Bosch power tools.
About 80,000 square meters of office space was added to Cebu last year, according to Cebu Real Estate Market Update by Colliers International.
There are also 16 malls now in Cebu with over 600,000 square meters of space and more are currently being constructed across Cebu.
Aside from the construction industry, Hong said they were also looking into booming sectors like the automotive industry.
Sangjo Park, country sales director for Bosch, said early this year they opened two outlets serving automotive industry in Cebu—Bosch Car Service Workshop and Bosch Diesel Service.
“The domestic demand for automotive products is expected to remain robust this year because of the expansion of the middle income market which are now buying cars,” said Park.
Based on the figures from the Chamber of Automotive Manufacturers of the Philippines, sales for automotive products registered an 11 percent growth last year or 156,659 car units sold last year compared to only 141,170 in 2011.
As of first quarter this year, sales has also already poseted a 29.3 percent growth or 41,702 units sold.
Bosch, a North American company, has four business divisions which includes consumer goods, automotive technology, industrial technology and energy and building technology and is available in 150 countries worldwide.