BusinessMirror September 15, 2019

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ROTARY CLUB OF MANILA JOURNALISM AWARDS

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2018 EJAP JOURNALISM AWARDS

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DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

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Sunday, September 15, 2019 Vol. 14 No. 340

P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK

MALLS FACE CHALLENGES FROM FAST-RISING GLOBAL E-COMMERCE ERA

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By Roderick L. Abad | Contributor

HE so-called malling phenomenon remains stronger than ever in the Philippines, proof of which being the continuous development of various shopping centers across the country that offer more retail spaces for merchants and a wider range of experiences to customers. E-commerce on the rise

AGAINST all odds, e-commerce keeps on flourishing in this country as it is projected to increase its contribution to the economy by 50 percent in the next three years. “With an impressive annual growth rate of 12 percent, the ecommerce revenue in the Philippines is expected to reach $1.3 billion by 2022,” Anchanto Country Head for the Philippines Abhimanyu Kashikar said of the industry forecast from research group Statista. This is indicative of how lucrative this market is in Southeast Asia, wherein retail sales are seen to almost double to $1.38 trillion in 2025 from $720 billion last year. But as the heat begins to turn up in the region amid exponentially growing customer expectations, businesses need to move ahead in a market that is inherently fragmented, and still a long way from being what can be called as “mature.” “That being said, it is now imperative for all businesses to implement an innovative, scalable and robust technological solution that will not only streamline their backend operations, but also allow them to connect with other ecosystem players,” Kashikar stressed.

KCHUNGTW | DREAMSTIME.COM

For majority of Filipinos today, malls are popular “all-in-one” destinations that not only provide shopping, dining and entertainment but also offer community events, access to government and utility services, and even spaces allotted for worship. Despite this favorable market reception, local sellers still face some challenges to make a mark in this fragmented market. These include the rise of e-commerce, changing consumer tastes, increased competition and other developments in both the retail landscapes here and abroad. With this in mind, they are encouraged to pursue innovations in their physical and online stores to not only scale up their revenue massively, but also to bring the overall buying experience of their clients to a new level. “The global shift in consumer behavior puts pressure on retailers around the world to rethink their customers’ journey and experience in their online and offline stores,” said Aptos Inc. Vice President for Retail Innovation Nikki Baird at the recent National Retail Conference and Expo (NRCE). “In response to this, brands are embracing digital and behavioral innovations to deepen customer relationships, provide in-store services, use stores as fulfillment centers, harness rich customer data, host in-store events, and offer store-only exclusives,” she added.

‘Technology jungle’

GIVEN the upbeat outlook on the e-commerce sector, the importance Continued on A2

In markets gone mad, investors find rare comfort in data science By Liz Capo McCormick & Anchalee Worrachate

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Bloomberg News

HE Phillips Curve is in doubt, the bond market is distorted and a tweet from President Donald Trump can shift the trajectory of global markets in a matter of seconds.

In a world where traditional touchstones of fund strategies are being challenged by unprecedented economic-policy uncertainty, investors are seeking information not tapped before or better ways to sift through it. Some are stepping up the use of machine-learning to capture market sentiment on everything from the trade war to recessions. Whether these strategies are more effective than conventional methods remains to be seen, but they’re already paying off for some funds.

In a Bleecker Street loft in downtown Manhattan, Vasant Dhar, the founder of a $400-million hedge fund and a pioneer of Artificial Intelligence (AI) investing, finds his computer-driven trading is just the thing for the Trump era. He uses a program that captures not just securities prices, economic data and news sentiment but also market fears—studying patterns of volatility. In Boston, Eaton Vance Corp. has a four-person data science team studying anonymous credit-card

PESO EXCHANGE RATES n US 52.0010

spending information, customer sentiment from social media and exchange traded fund (ETF) flows on top of the fundamental work of its equity portfolio managers. “At times, the market has been behaving like a naïve schizophrenic that puts all faith in only the most recent trade tweet,” said Eddie Perkin, chief equity investment officer at Eaton Vance. “As humans, we know we have intellectual biases that can lead us to flawed decisionmaking such as reacting to false signals from the market. We have built our investment processes to address this and help keep us out of trouble.” The approach has helped Eaton Vance’s Small-Cap Fund gain 22 percent year-to-date, almost double the Russell 2000 Index’s 11.6-percent increase. A lot that markets relied on in the past has been turned on its head. The challenge to the Phillips curve— the notion of a trade-off between Continued on A2

THE sun rises on Wall Street near the New York Stock Exchange on December 27, 2018. JOHN TAGGART/BLOOMBERG

n JAPAN 0.4811 n UK 64.1484 n HK 6.6464 n CHINA 7.3077 n SINGAPORE 37.8217 n AUSTRALIA 35.7039 n EU 57.5391 n SAUDI ARABIA 13.8621

Source: BSP (September 13, 2019 )


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