While 2011 proved to be a challenging year for most sectors in the retail industry, leaders remain optimistic that 2012 would be better with the continued promotion of Cebu as an attractive investment destination.
Top officials of the Philippine Retailers Association Cebu Chapter said lower purchasing power of the consumers brought about by the economic crisis in the United States and Europe affected business.
Nevertheless, PRA Cebu chapter chairman Jay Aldeguer and president Melanie Ng said the retail industry still experienced about 7 percent to 10 percent growth this year because of the retailers ability to improve and sustain their market share.
“This year has been very challenging for the local retail market but I must say that the retailers have responded positively. Despite the challenges, Cebuano retailers put in a lot of resources, technologically, financially and product wise, to improve their various brands and businesses. This again goes to show the resilient nature of the Cebuano entrepreneur,” Ng said.
Ng said the food and the beauty and wellness sectors did well in 2011.
Jane Ong of Leona’s Bakeshop said retailers in the bakery sector are showing many new concepts.
“The market has become choosy and demanding, so we will have to continue to be more innovative to keep our customers,” said Ong.
Jonathan Ho of Mandaue Foam, Inc. said they are promoting local products to make people more aware of the presence of quality local furniture.
“Most of what we have now that are sold in the department stores are made in China or other countries. We’d like people to see that we also have good quality products that are competitively priced here,” Ho said.
The retail sector growth has been spurred by the the business process outsourcing (BPO) industry in Cebu as well as affordable air fares that encouraged travel and tourism.
Budget airlines have helped increase the number of domestic arrivals in Cebu. Foreign tourists are also continuously coming to Cebu.
The retail industry has also had many new entrants in the Cebu market as seen in new brands of clothing lines, electronics and gadget brands.
The significant growth in gadgets and electronics is attributed to the growing popularity of social networking sites like Facebook and Twitter.
“Cebu is a very attractive place to invest. We are investor-friendly. Other than having a reliable supply of human resource, setting up a new business in Cebu has proven to be cost effective for outsourcing companies. This has proven to heavily aid the growth of the retail industry in Cebu,” Ng said.
Next year will be a more promising year, according to Ng and Aldeguer. Their optimism is based on the increasing number of BPOs, malls, hotels opening and flights.
“With these we can expect an increase in retail growth next year. Retailers will, however, have to make sure that we respond to market needs and wants. We have to make sure we offer the right product at the right price in order to be effective,” said Ng.
According to Aldeguer, e restored confidence in the market is partly due to the advocacy of the administration and local government units to do things the right way. This has given the market the boost that it needs to aid and promote a positive economy.
PRA national chairman Bernie Liu of Golden ABC said that 2012 will be exciting for the country and all it’s industries.
“At the macro level, Asia is the newest. Within ten to 20 years, Asia will be the growth region dominated by China and India. Everyone’s looking at Asia and we are in the middle of these new markets. It is both a challenge and a curse,” said Liu.
“It is a challenge and a blessing as the middle class is expected to expand more. And curse because we are not the only one looking at Asia, so we are competing with everyone. It’s an opportunity for local brands to level up, the market is already aware of the global trend,” Liu added.
To compete, one has to know one’s customers well and offer what the customers want.
“You cannot be everything to everyone. Focus on a market in order to compete,” said Liu.