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Philippine Retailing Magazine 2019 Q3
retailing PHILIPPINE WWW.PHILRETAILERS.COM
3rd QUARTER 2019
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NRCE 2019
What Went Down on Retail Industry's Biggest Event?
Special Column Going online in the Philippines
3 4 6 8 10 11 12 13 20 22 24 21 25 Surfing the digital transformation tsunami in retail industry Top retail stakeholders reimagine retail The sustainability game-changers Retail News Capsules Bright prospects for grocery in the Philippines The retail chicken or egg conundrum Retail Spotlight: Spreading the sweet scent of success Retail Spotlight: Technology at the forefront The power shift in retail PRA Members’ Corner The A to Z-ap of Mobile Loyalty Program Special Column: Going online in the Philippines PRA in motion
Letter from the EDITOR-IN-CHIEF
As a dynamic industry, retail has been constantly changing to keep up with the needs and trends of the times. In line with this, and as our own version of “reinventing” retail, we have transformed our quarterly newsletter into a full-blown magazine, starting with this third quarter issue, to give you more relevant and timely content that you can consume to further elevate your business.
Moreover, we would like the Philippine Retailing magazine to become a platform where our members can share their challenges, struggles, and best practices that they eventually turned into success stories. These, to serve as inspiration to other companies—even beyond retail.
Apparently, there are no available magazines purely dedicated to retail in the local scene, and many other magazine publications around Asia have stopped publication. But we know how important it is to have a platform where we can share insights and stories around the industry to further usher in development, thus, we felt that the time is ripe to reformat the old newsletter into a magazine—which will still be available in print and in digital version --- to reach more and the right people within and beyond the industry.
However, this would not be complete without YOU as our subject and inspiration to create and curate these contents. Thus, we call for your participation to share your story, place an ad, or contribute your thoughts on what makes retail an exciting --- albeit challenging --- arena. Let's make the NEW Philippine Retailing -- a real magazine for retailers, by retailers, and of retailers.
Join us in this new journey!
Evelyn Balmeo-Salire
PHILIPPINE RETAILING EDITORIAL TEAM
The Philippine Retailing is the o cial quarterly publication of the Philippine Retailers Association with o ce at 2607/2610 Jollibee Plaza F. Ortigas Jr. Road (formerly Emerald Ave.) Ortigas Center, Pasig City, Philippines
Telephone Nos.: (632) 8687-4985, 8687-4180, 8687-4181 Fax No.: (632) 8636-0825. For questions, comments, suggestions, contributions or ad placements email us at: ebbs@philretailers.com or communications@philretailers.com
Evelyn Balmeo-Salire Editor-in-Chief
Paul Payongayong Graphic Designer
In an age when Digital Transformation has easily and deliberately seeped through people’s lives—from the way we communicate, buy things, and manage our daily activities, it is not surprising that many things we see in sci-fi films today will soon be available in the near future.
In the midst of these fast-paced innovations, technology evangelist and former managing director of the world’s biggest fashion company Inditex (Zara, etc.), Mr. Jesus Vega, shared some insights on what strategies retailers can implement in this fourth industrial revolution.
Vega is one of the most sought-after speakers for international conferences and is an independent advisor for several companies in retail, fashion and business strategy. He recently served as keynote speaker at the 26th National Retail Conference and Stores Asia Expo.
Vega
Vega shared how companies should value data more than ever. “Stores should not merely be about selling products. The store should also be able collect data.”
“We have to collect data, analyze them and from there, we can communicate with the customers and provide exactly what they want”, he said.
“For so many years, we in retail didn’t use that data so much, but now we have the technology. And if we don’t profit from it, we have a problem.”
“What customers need is to be treated di erently according to the variables that are important for them.”
This is especially true in an era when technology is common, but people long for human interaction and products they feel aimed and customized for them.
“..But a channel to provide customer experience. Retail exists to provide customers at least a minute of happiness. Retailers need to find a way to customize products, as well as messages and advertising based on the data collected from a particular customer.”
To thrive and survive, Vega also suggests that industries need to merge. For instance, Santander Café, the biggest cafeteria in Chile, with locations in Spain, Portugal, Argentina, Brazil and UK as well, o ers their clients not only bank services, but also serves as a co-working space and co ee shop.
A restaurant which sells every furniture piece in their store is also one way that industries or niches in the industry can merge or overlap. On the other hand, Alibaba in China is revolutionizing the most mundane part of shopping in the mall—the toilet.
The e-commerce company, which eventually ventured into oine retail, has installed smart mirrors in female restrooms to make the wait in queue a bit smoother.
They can try various make up shades while in the ladies’ room, and if they like something, they can buy the products
through a vending machine—which is also a smart mirror.
“Artificial Intelligence will provide many tools”
Vega also stressed that artificial intelligence or AI to provide so many tools for retailers, including collection of data and interacting with customers. For instance, bots which talk to customers in a manner that is almost human have the ability to communicate depending on our moods, which makes people feel more connected.
“Millennials feel more comfortable speaking with bots than human because they don’t feel evaluated and gauged, as opposed to typical conversation with other humans.”
Vega also reminded retailers that they are not competing with robots, rather with companies who can use technology better. “However, companies should also have a clear o er to the customers, instead of trying to do everything.”
“Also, retailers should remember that technology will not replace people. The most important key for our business in the past, present, and future will still be people. It’s not a matter of technology. I see a lot of companies doing huge investments in technology, but not doing huge investment in people working with the company.”
“The role of our people will change in the future. It is changing now. The stores will not need so many people, but we will need to be better. We will need to be di erent,” according to him.
“Every peso you invest in technology, think of your people first because they will be the di erence.”
TOP RETAIL STAKEHOLDERS REIMAGINE RETAIL
More than 800 retailers composed of CEOs, presidents, and top-level executives listened to some of the newest insights and freshest ideas from global retail experts at the 26th National Retail Conference and Stores Asia Expo (NRCE) last August 15-16 at the SMX Convention Center, Pasay City.
With the theme “Retail Reimagined” the 26th NRCE gathered the best in retail business, market research and intelligence, and technology and innovation to create a hub of knowledge in a two-day event and give practical tips to attendees on how they can reimagine their respective retail businesses.
There is a paradigm shift in a pace that has never occurred in history. Whatever the trend today, may be outdated in the next few weeks or months. So, it is imperative that we always try to be on the lookout for something new, but at the same time, these “new” additions should be relevant to the people we serve, Philippine Retailers Association (PRA) President Rosemarie Ong said.
“Having witnessed both the beauty of genuine care and technology in providing excellent service and experience for the customer, I realized how wonderful the potential of combining the Filipino brand of service and global innovation. This will help our industry flourish and become more powerful,” she added.
PRA is the recognized trade association of retailers and retail suppliers in the country that organizes the NRCE annually.
Global tech evangelist on today’s retail state
Technology Evangelist Jesus Vega opened the NRCE 26th edition with emphasis on the importance of collecting and analyzing data to give customers personalized and customized experiences. He said that retailers should treat consumers as friends and give them unique treatment according to their needs.
PLDT Alpha First Vice President and Head Vic Tria talked about the retail practices of the next generation; while Amazon Web Services Head of Digital Innovation Jaspal Johl shared the journey of innovation in the company, with the goal of easing some pain points for the customers.
Geislermaclang Founder and Chief Communications O cer Amor Maclang shared the importance of preparing in advanced for crisis; while Amazon Web Services Partner Segment Lead for Cognitive CX (ASEAN) Simon Burke talked about innovating Customer Experience; and Tofugear Retail Analyst Ti any Lung shared some tips how the local retailers can become the next top retailer in the country.
From local to global: the metamorphosis of Regatta
Golden ABC Chief Marketing O cer Alice Liu shared the inspiring transformation of Regatta as a homegrown brand to now a global modern leisurewear brand.
Trend Specialist from WGSN Charlie Clark opened the second day with a talk on the things that consumers look from retailers today. She also said that building trust and having a stand on important issue including climate change are important to draw consumers to your brand.
Mintel (Singapore) Elysha Young talked about some of the forward-looking retailers across Asia, while Zebra Technologies Retail Solutions Marketing Lead George Pepes talked about empowering the frontliners to provide patrons ease and excellent customer experience while in store.
Nikki Baird, the Vice President for Retail Innovation at Aptos gave real life samples of digital strategies in the stores while US-Certified Neuroscience Coach Ben Ampil talked about the importance of using neuroscience in learning about the preferences of customers.
Nielsen Company Executive Director for Shopper Insights Lead Lou-Ann Navalta, focused on the upcoming generation of consumers—the Gen Z, who she said are visual creatures, artistic, and are always online, but crave authenticity. Malherbe Design Sales Director for APAC Region Christophe Renoul talked about di erent strategies retailers can do in store to improve engagement and sales, while Checkpoint Systems Vice President & Managing Director Mark Gentle shared the importance of Data and RFID in retail.
Lively panel discussions with business leaders and influencers
The Day 1 ended with a lively discussion with next generation leaders Cristalle Belo-Pitt of Belo Essentials, Toby Claudio of Toby’s Sports, Xandra Ramos-Padilla of National Book Store, Hans Sy, Jr. of SM-EDD, and Sam Gregory Lim of Blims Furniture, with Prof. Enrique Soriano III as the moderator. They shared how they started getting involved in the business and how they discuss business matters within the family.
The Day 2 panel discussion on the other hand o ered audience tips on what brands should remember when engaging with influencers for their marketing. Panelists include some of the country’s top vloggers and bloggers such as Joyce Pring, Jako De Leon, Rod Magaru, Dems Angeles, and Kaycee Enerva, with Blogapalooza CEO Ace Gapuz as the moderator.
Side-by-side the main stage event is the breakout session dubbed as Retail Spotlight which featured topics specialized on Supermarket and Digital transformation for Day 1 and Day 2 respectively.
Fresh retail tech featured at the Stores Asia Expo
To complement the conference, the Stores Asia Expo featured "tools for global retailing" from exhibitors o ering products and solutions for the retail industry such as Retail Solutions, E-Commerce & M-Commerce, Shop Fittings & Store Design, Artificial Intelligence, Digital Marketing, Commercial and Real Estate Developers, Web Developers, Non-traditional Advertising, Financial Services, Storage and Distribution, Market Research, HR Solutions, and Billboard Locations among others.
The Stores Asia Expo, which is the biggest in the Philippines and is one of the longest running retail suppliers’ expo in Asia, has drawn more than 3,000 visitors and decision makers from the retail and related industries.
Talks on the latest innovations in retail also took place at the Retail Learning Lab inside the Expo Hall.
The Sustainability Game-changers:
Are you ready too?
With more people becoming aware of the environmental implications of their actions and consumption, a lot of consumers are now leaning towards companies and brands who have taken action, no matter how small their stance is in reducing wastes—especially single use plastic and straws.
More and more people are prudent in choosing the brands they patronize and engage with. According to The Pulse of the Fashion Industry report published by Global Fashion Agenda, Boston Consulting Group and Sustainable Apparel Coalition, 75% of consumers surveyed view sustainability as extremely or very important. In result, more than a third of consumers report they have already switched from their preferred brand to another because it credibly stands for positive environmental and/or social practices, while more than 50% of consumers plan to switch brands in the future if another brand acts more environmentally and socially friendly than their preferred one.
Moreover, in terms of responsibility on moving forward to a more sustainable world, Kantar TNS reported in their survey of 1, 260 people, 63% are concerned about the quantity of packaging they buy, but believe that manufacturers hold the accountability of lessening the packaging, 22% from younger and 48% from older generation (65 and up) think that the role is for the manufacturers.
So, what are global brands doing in terms of acting on these environmental issues? And are you already doing this within your company or plan to do so? Read on to learn some of the latest actions taken:
Adidas
One of the largest sportswear manufacturers in the world, Adidas, targets to produce 11 million pairs of shoes made from recycled ocean plastic. The plastic waste materials used for the shoes are collected by their partner organizations in partnership with Parley
for the Oceans, a community of creators, thinkers, and leaders who aim to address major threats towards the oceans.
Aside from this, Adidas is also committed to using only recycled polyester materials for their products by 2024. Half of their 900 million items are made of polyester.
Inditex (Zara)
Biggest fashion retail brand Zara has also pledged to use only sustainable fabrics in all their collections by 2025. In an effort to lessen waste and energy usage, all of their cotton, linen, and polyester used will be organic, sustainably-sourced or recycled.
The first batch of their green collection is released recently, called Edited, is composed of denim pieces which are sustainably-made and are customizable.
Aside from creating sustainable items, the company also promised to utilize renewable energy for 80% of its power needs by the same deadline and aims to cut out all single plastics from all customer sales by 2023.
Fast Retailing (UNIQLO)
Japanese fast fashion brand Uniqlo has also committed to jump into the bandwagon as its parent company Fast Retailing announced that they will reduce single-use plastic bags by 85% next year, which is equal to 7, 800 tons of plastic.
As replacement, the company will introduce eco-friendly paper shopping bags and will rethink product packaging. The move has been initially rolled out this month in 12 markets including Japan and eventually to all its 3, 500 stores worldwide.
Burberry
Tagged as the leading luxury fashion brand by 2018 Dow Jones Sustainability Index, Burberry continues to strengthen its sustainability efforts as it launched this year a new collection crafted from recycled waste. The fashion brand reinvented their classic car coat using ECONYL® regenerated nylon. This collection is part of their move to become carbon neutral by 2022.
ALDI
Steering away a bit from the fashion brands, it is also interesting to see that discount supermarket chain ALDI is making their own effort to become plastic-free, considering that food packaging in supermarkets make up a huge portion of plastic wastes. In March this year, they announced that were testing plastic-free packaging in some of their Scottish stores, and hope to become completely sustainable by 2025 by making their packaging reusable, recyclable or compostable.
Initially, they will reduce by 15% the packaging of ALDI own brands. By next year, they aim to implement an initiative to make private-label product packaging easier for customers to reuse and to include How2Recycle label on all ALDI-exclusive consumable packaging.
These are just of the global companies who are committed to reduce their wastes and energy use, and as consumers clamor for sustainability and conscious business practices from brands, it is time to rethink business practices and see how as a brand you can impact positively on the environment and lives of the customers.
Image source: Zara
Do you have a sustainability effort within the company or any one-of-a-kind initiatives that you want to share with the retailing community? Send us your story or pitch us a topic, so we can feature you. Email communications@philretailers.com to learn more.
Image source: Burberry
Image source: Uniqlo
References: https://www.adweek.com/brand-marketing/adidas-r amps-up-sustainability-efforts/
https://hypebae.com/2019/8/zara-sustainable-cotto n-customizable-edited-capsule-collection-recycled-de nim-hoodie
https://hypebeast.com/2019/7/uniqlo-fast-retailingends-plastic-bags-sustainability-2020-program?utm_ source=email&utm_medium=social&utm_campaign= share+buttons https://retailinasia.com/in-sectors/burberry-launche s-sustainable-capsule-collection/
South Korean online shoppers still see brick-and-mortar as crucial
The study conducted by DMC Media, a South Korean media, also found out that many shop during work hours, and not during lunch breaks or before they go to bed as previous belief by many.
Among consumers with shopping experience in the last six months, 73.2% collected shopping information at oine stores, ranking second after mobile shopping (81%). About three in four consumers use oine stores rather than the web, indicating shoppers still have a
desire to look at products before they buy.
About three in four consumers use oine stores rather than the web, indicating shoppers still have a desire to look at products before they buy. When choosing an online shopping mall, consumers consider the price (29.4%) and product quality (23.4%). Coupons are a factor for 9.4% of consumers.
Inside Retail Asia, Korean Bizwire, 8/22/2019
Image source: www.thrillist.com
Global athleisure wear market expected to post strong growth this year
Consumer desire for a multifunctional wardrobe is set to continue driving the global athleisure wear market, according to data and analytics research group GlobalData.
Over the last two years, the athleisure trend has risen as demand for comfort, performance and style has driven the need for a multifunctional wardrobe. 68% of consumers who purchased sports clothing for exercise also wore such items for eating out or shopping. The firm forecasts that the global athleisure wear market will rise 9% this year and will continue to outperform the total clothing and footwear market beyond their 2023 forecast period.
In the UK, 20% of consumers purchased sports clothing specifically for leisure activities and free time, not to exercise in. The sustainability movement will continue to support the desire for a multifunctional wardrobe as consumers are purchasing more consciously and reducing spend on fast fashion.
Moreover, increasing consumer appetite for comfort has also fueled sales of activewear and trainers with brands utilizing their technical expertise in ensuring products o er freedom of movement, aid temperature and sweat control, shape the body and provide support.
Eco-group urges gov’t to intensify crackdown on establishments selling unlabeled, mislabeled toys
Environmental group EcoWaste Coalition has made the call to the government after the long-delayed Implementing Rules and Regulations (IRR) of Republic Act 10620, or the Toy and Game Safety Labeling Act of 2013 finally took e ect.
The group discovered that unlabeled and mislabeled toys are being bought by the consumers depriving them with “an essential tool to ascertain which toys are suitable and safe for children to play with’’. This was unraveled after EcoWaste examined 27 toys for compliance to Rule 1 of RA 10620’s IRR regarding the general labeling requirements for toys and games manufactured locally or internationally that are imported, exported, donated, distributed and sold in the Philippines.
As stipulated in Rule 1 of the IRR, the following information are required in toy and game labels: license to operate (LTO) number issued by the FDA; age grading; cautionary statements/warnings; instructional literature; manufacturer’s marking; and item, model, stock-keeping unit (SKU) number.
Manila Bulletin, 8/6/2019
DTI sees e-commerce share to GDP rising to 50% by 2022
As more micro, small and medium enterprises (MSMEs) and internet users engage in e-commerce, the Department of Trade and Industry (DTI) is seeking to double the contribution of electronic commerce to the country’s economy by 2022.
DTI Secretary Ramon Lopez cited other neighboring countries which are already doing all payments and even small transactions in the mobile phones. He also sees 100,000 MSMEs engaging in e-commerce in the next three years, noting that over 30,000 sari-sari stores (community stores) in the barangay level have capabilities for e-wallet loading and transferring of funds.
In 2016, the DTI launched the E-Commerce Roadmap 2016-2020, a five-year initiative to spur E-commerce growth in the country.
IGD: BRIGHT PROSPECTS FOR GROCERY IN THE PHILIPPINES With the Philippines forecast to have one of the strongest GDP growth rates in Asia over the next few years, Jiong-Jiong Yu, Senior Retail Analyst at IGD Asia, examines what this will mean for the country’s grocery market
IGD expects the grocery retail market in the Philippines to see strong nominal growth towards 2023, aided by relatively low inflation, stronger disposable incomes boosting consumption and increasingly urbanised lifestyles. Positive outlook
The Philippine grocery retail market is expected to see a 10.2% CAGR over the next four years, reaching US$82 billion by 2023, driven by a booming population, strong domestic consumption and a buoyant economy. The government is expected to continue the reform progress and create a better environment for businesses. Domestic retailers lead the way
SM Retail, Puregold, Robinsons and Philippines Seven Corp account for a large proportion of the country’s modern trade and they have shown consistently strong growth. They all have clear ambitions to expand their business further and open more stores to cover wider geographic areas.
SM Retail – SM Retail will continue to draw on the synergy between retail and other businesses of the SM Investment group, such as property and banking, to scale up its retail operation. After forging a partnership with Indonesian retailer Alfamart in 2014, SM will put a strong focus on bringing the successful neighbourhood supermarket model to the Philippines. The retailer has also identified regions in the south of the country as key growth opportunities, and the development of malls and department stores is underway. SM has built an in-house data analytics team to draw insight from shoppers’ transaction data so that stores can develop tailored offers.
Puregold – Puregold plans to capture higher growth in the Visayas and Mindanao through new store openings. The retailer taps into the traditional trade customer base by championing the cause of sari-sari store owners, with a range of initiatives to support and engage with its trade customers. Puregold has consolidated its Puregold Junior and Extra banners under one Puregold brand, creating a stronger unified brand image. It also returned its 70% stake in PG Lawson to Lawson, to focus on the Puregold brand and support for sari-sari stores. Puregold was the first grocery retailer in the Philippines to launch its own mobile app and an online grocery service, gaining first-mover advantage ahead of its competitors.
Robinsons – Robinsons has a broad retail portfolio and is seeking ways to bring this together. It will continue focusing on its community malls format Robinsons Townville. The acquisition of Rustan’s from Dairy Farm in 2018 propelled Robinsons to be the third-largest retailer in the Philippines, as well as adding hypermarkets to the portfolio. The retailer has also recognised the potential of ecommerce and will look to increase its online sales, as well as seeing the value in its Reward Loyalty programme, which has more than one million members.
Philippine Seven Corp – The longest-standing and largest player in modern convenience in the Philippines, 7-Eleven aims to maintain its lead by continuing to open new stores. It is targeting 3,000 and more stores nationwide by 2020. It has been expanding in the Visayas and Mindanao and is now revisiting Metro Manila and nearby cities, taking over prime locations. Franchise is a key route to growth, accounting for around 57% of stores. The retailer sets itself apart from competitors by innovating its offer, with 24-hour openings, over-the-counter medications and new food-to-go products.
Metro Retail Store Group – As the largest retailer in the Visayas region, Metro Retail has seen robust growth in the past few years. The retailer continues to expand its
footprint outside this region and is looking to harness opportunities presented by other highly populated and fast-growing areas such as Quezon City and Metro Manila. Convenience remains hot property
Filipino shoppers are demanding more convenience in their grocery shopping and as a result, convenience is the fastest growing physical store channel. The number of c-stores in the country has more than doubled in the past five years and will continue to expand after a flurry of pan-Asian convenience store retailers entered the country. 7-Eleven and Alfamart continue to drive this part of the market, bringing in more convenience banners.
This trend is being driven by the rising number of business process outsourcing (BPO), or call centres. These are centred mainly in urban areas, operate 24 hours a day and tend to employ young people with disposable income, who want to shop for their groceries as conveniently as possible.
Supermarkets are the largest modern trade channel Supermarkets account for more than half of modern trade sales today and are forecast to increase their share to 63% by 2023 as retailers expand rapidly beyond Metro Manila. Find more insights at IGD Asia: https://asia.igd.com/about/free-content
Jiong-Jiong Yu, Senior Retail Analyst at IGD Jiong-Jiong provides insight on retailer strategies and industry trends in China, South Korea, the Philippines, Taiwan and Bangladesh, as well as leading IGD’s innovation and drugstore workstreams in Asia. She has worked with both retailers and manufacturers in the last 10 years on shopper insight, growth strategy and category management projects. Her background is in management consulting, with experience in qualitative and quantitative research gained at GfK and dunnhumby.
The Retail Chicken or the Egg Conundrum
The age old question of “which comes rst the chicken or the egg?” can be applied to life in retail and is expressed as “which comes rst the pro t or the customer?”.
by Darrell Wisbey MARKET WATCH
Darrell is a chief mentor and retail advisor who has 30 years of retail experience and has built a reputation for being a leader who interprets the market accurately, de ne strategic direction, and deliver success by motivating, developing and inspiring teams to achieve continual improvement
When I
commenced
retail in the 70’s the strongest principles
known and understood were “know your customer” and “deliver customer service excellence”.
As young retailers we were taught that if all decisions made were based on the customer needs, (Merchandise team), and providing customer service excellence, (Store Operations), there would be two critical outcomes: 1. Loyal customers and 2. Sustainable Pro t. Image source: www.colo-law.com
Retail observers today could be excused for believing there is a con ict between “ideological beliefs and practical performance delivery”. Whilst it is fact that shoppers will be motivated to spend their money in the retailer that best meets their needs and delivers product and services within their preferred environment, it is possible that the business managers are driven by a di erent operating concern and that is maximizing pro ts immediately.
An alarming retail trend that would at least appear to contrast with “the customer comes rst” mentality is the move in retail today into more and more “self-serve” practices. The reality of “ideological beliefs”.
The phrase “saying is easier than doing” is relevant in retail. In previous reports we considered the impact of time in retail which has continued to drive the need to deliver bigger and faster results. Owners, shareholders and the executive, now more than ever before, demand nancial results faster.
The increase in sophistication and application of technology has further increased the speed of performance with performance data available to everyone at the same time 24/7 and this results in greater pressure to deliver immediate pro t results. Increased competition in players and formats have also impacted on business decisions as failure to make immediate changes within the business can result in loss of customer tra c, sales, pro t and market-share.
comes rst” philosophy will longer term deliver the strongest business foundation for sustainable success.
The reality of “practical performance”.
Shareholders invest to receive nancial rewards from dividends and unit price growth. It is not hard to understand shareholders are driven by scal reality with little – if any – emotional connection to the customer experience despite themselves being consumers.
Owners and operators of retail organizations whilst able to talk about the philosophy of the business are primarily motivated to generate the highest levels of ROI. Speed of change is again a big in uencer on a retailer’s ability to stay committed to the philosophical business beliefs. Retail change is faster than ever before, and competitor activity and customer behavior demand a retailer responds “now” or risk the loss of market-share, customer visit frequency and spend value. Diminishing Loyalty.
Loyalty as experienced in the past does not exist today as customers are retail savvy, know there is increased retail choice and are motivated by, best price, biggest savings, product availability, ease of shopping and service satisfaction. Failure to keep the customer satis ed will result in a change of customer destination.
Phase 1 of self-serve is customer selecting product without assistance.
Supermarkets and mass merchants have self-serve product selection and this is today accepted by the customer as being preferable to being “harassed” by overzealous service sta . The self-serve trend, particularly in price sensitive commodity formats, is to move further into the “do it yourself” environment. The question here is why is the retailer moving this way and how does it impact on the business and the customer?
Phase 2 in self-serve is the customer completes their own transaction.
The latest move is for the customer to complete their own “check-out” process. It is hard to raise an acceptable argument this is for the value of customer service. You only have to stand in the self-checkout locations to hear the negative comments: why do I have to do the work for them? … how do young people and students nd casual work if there are no more checkout operators? …. why do I pay the same price for the same item in the same store when I now perform more of the retail tasks?
Conclusion for the Chicken (profit) and the Egg (customer) conundrum.
A possible conclusion is there is no “ rst” and that this is a conundrum because both are dependent upon each other: without pro t the retailer fails and equally, without customers the retailer fails so, the biggest challenge for the retailer is to ensure all initiatives to increase pro t that are obvious to the customer and/or impact upon the customer experience are equally o set by initiatives that improve the level of shopping satisfaction in experience, e ciency and excitement.
So, I will return to the initial retail mantras: “knowing the customer” and “deliver service excellence” as it can be argued they are just as relevant today as they were when back in the 70’s.
Customer Service is the same, but it is also different.
Just as eggs can be prepared with di erent cooking techniques and produce a dish that looks and tastes di erent, they are all still eggs. The same thinking needs to be applied to determining what constitutes customer service excellence in the retail world today. Both retail formats and customer behaviors are very di erent today than in the past and will inevitably be di erent again in the future. Whilst di erent they will all still be de ned as customer service.
The chicken or the egg challenge in retail. Given consumers think, expect and behave di erently today, in a world that is time critical and where technology puts so much decision making in our hands 24/7, the challenge for the retailer is to identify and implement shopping experiences that satisfy the meaning of “customer service excellence” in the world of retail today. If the balance of change is seen as a cold-blooded assault on taking from the customer to increase retailer pro t then today’s shopper will become cynical, more transient and less loyal. Retailers to be ready to lead the market tomorrow need to break the de nition of current customer service techniques and align the new de nition and implementation of service such to excite, encourage and exceed customer expectations.
with Acquasuisse’s founder John Chung SPREADING THE SWEET SCENT OF SUCCESS
It is not hard to miss an Acquasuisse perfume bar in malls as it features an interesting concept of semi-automated bottle dispensers filled with trendy and imported fragrances, offered in affordable prices and variety of quantities, based on customers’ needs. The first ever brand to offer such concept, Acquasuisse was founded by John Chung, who wanted to bring his knowledge and love for fragrances to the world. Their family was already in the fragrance business way back, but when he came onboard the company, he thought of becoming a retailer instead of a distributor, and to even expand and give others the chance to put up their own business as well by opening franchising opportunities for the brand. Their perfumes, which are at par with designer perfume brands, are made from fragrance oils from Switzerland, with concentration of eau de parfum that offer distinct scents that last longer. John Chung shares some of his insights in managing Acquasuisse, including the challenges he faced to make the business flourish. Philippine Retailing: Can you share with us how you started with your business? Why did you decide to venture into fragrances/perfumes? I started working for our company in 1996. My parents’ business is supplying raw materials for the personal care and household industry. Since, we were already supplying fragrance oils as raw material and we were also contract manufacturing for other brands, I decided to come up with my own brand of perfume kiosk last 2007, which is the refilling perfume bar concept Acquasuisse. PR: you opened for franchising and even opened opportunities for investors abroad, how did this affect the growth of the company? We went into franchising in 2008 and it really helped us expand fast. Right now, we have around 65 branches nationwide. PR: What makes Aquasuisse unique in the perfume business niche? We try to make our quality better than our competitors by using high quality fragrance oils with high concentration, targeting mid B and upper C market. We also have a unique concept of refilling the perfume. We were the first to introduce the perfume bar concept in the Philippines.
PR: As a family business, what are the pros and cons of working with the family? What role do you play in the business? I have a younger sister who helps me with finance and operations of the store and my younger brother is in-charge of sourcing packaging materials. I handle the brand and business development side. We all work together to grow the business. The pro of working with family members is the flexibility in decision making.
PR: What are the biggest challenges you have faced in managing the company and how did you overcome this? Back when I started working for our company in 1996, our company experienced a very bad financial crisis. We lost everything — the house, cars, buildings etc. But with the help of family members and friends, we were able to survive the problem.
PR: What lessons did you gain through time in handling the business? I learned that in business, we would definitely experience failures but when that happens, giving up is never an option.
PR: What would you say is the biggest/most important investment you have put into the company? I would say it is on product development and our people.
PR: What will you say are major milestones of the company in more than a decade of operation? We tried opening our first international branch in California last year.
PR: How are you adopting to digital transformation and/or changing consumers needs and trends? How do you keep the company relevant in the market? We try to innovate and build our own mobile app to cater to more customers in the digital world.
PR: Why did you decide to join PRA, and so far, what benefits does the company get by becoming a member? Joining PRA is important for us to keep us updated and connected with the industry. We are happy that PRA helps us in promoting our business in many ways.
*Share your success story with us! if you have an inspiring story on how you started your business, or an employee who has served as inspiration within the company or the retailing community, we’d love to publish them on the Philippine Retailing magazine. Email your pitch at communications@philretailers.com and let’s share beautiful, inspiring stories to the retailing community.
2019 PRA PRESIDENT’S AWARDEE “Pillar of Brand Globalization” Mr. Tony Tan Caktiong Founder and Chairman of Jollibee Foods Corporation
SPECIAL AWARD: PLATINUM AWARDEE MA. ALEGRIA S. LIMJOCO
MOST PROMISING RETAILER OF THE YEAR COMMONWEALTH PH
SHOPPING CENTER OF THE YEAR (MEDIUM) MEGAWORLD UPTOWN MALL
SPECIAL AWARD: PLATINUM AWARDEE ROBERTO S. CLAUDIO
REGIONAL RETAILER OF THE YEAR METRO RETAIL SALES GROUP INC. (VISAYAS)
SHOPPING CENTER OF THE YEAR (SMALL) SM CENTER LAS PIÑAS
PRESENTED BY:
RETAILER OF THE YEAR PENSHOPPE
SHOPPING CENTER OF THE YEAR (LARGE) SM MEGAMALL
SUPERMARKET OF THE YEAR ROBINSONS SUPERMARKET
Jesus Vega Vic Tria Jaspal Johl
Amor Maclang Simon Burke
Tiffany Lung Panel Day 1
Alice Liu George Pepes Nikki Baird
Ben Ampil Lou-Ann Navalta Christophe Renoul
Mark Gentle Panel Day 2
Charlie Clark Elysha Young
The BIGGEST and MOST IMPORTANT Retail Industry Event in the Philippines The BIGGEST and MOST IMPORTANT Retail Industry Event in the Philippines
26 TH NATIONAL RETAIL CONFERE 26 TH NATIONAL RETAIL CONFERENC
RETAIL REIMAGINED RETAIL REIMAGINED
Patrick Cua Claire Boscq-Scott Dr. Elinor Roquel Rene Meily Jerry Rapes
CE AND STORES ASIA EXPO 2019 AND STORES ASIA EXPO 2019
REIMAGINED REIMAGINED
RETAIL REIMAGINED
AUG 15-16
PLATINUM SPONSORS
GOLD SPONSORS
OFFICIAL PARTNERS
PLDT ENTERPRISE WILCON DEPOT INC. GLOBE BUSINESS
ROBINSONS MALLS UNILAB, INC. PENSHOPPE
OFFICIAL LOGISTICS PARTNER ENTREGO
OFFICIAL NEWSPAPER THE PHILIPPINE STAR
SPONSORS
OFFICIAL MEDIA PARTNER BUSINESSWORLD
OFFICIAL RADIO PARTNER DZRH
ZEBRA TECHNOLOGIES
ETP INTERNATIONAL
SPONSORS CONTRACT SIGNING
July 25, 2019 | EDSA Shangri-La, Manila
BENCH
ARANETA CENTER
OFFICIAL AIRLINE TURKISH AIRLINES
THE SM STORE
BRONZE SPONSOR
OFFICIAL BRAND CONSULTANTS SPRINGTIME DESIGN LIMITED
ALLHOME
SPORTSHOUSE
MEGAWORLD
AYALA MALLS
OFFICIAL IT CONSULTANT VASAVAH CONSULTANCY
OFFICIAL SOCIAL MEDIA PARTNER IMANILA
MERCURY DRUG VIDA NUTRISCIENCE
SPONSORS
EXPO SPONSORS
ZILINGO
SESSION SPONSOR
MEDIA PARTNERS
POWERPLANT MALL
RICH GRAPHIX BRAND
CHATBOT.PH
BLOGAPALOOZA INC.
DELTA AIRLINES
HERITAGE MULTI-OFFICE PRODUCTS
UNITED NEON
THE MANILA TIMES
INNITY PHILIPPINES
Back in 1993, prior to the birth of JIMAC, five Filipino IT businessmen got together. They felt that there is a need for a new type of software that would be able to handle the technological challenges in retail industry.
Conceived from the dream of these five visionaries, JIMAC INCORPORATED today continues to grow and offer different solutions for varied needs including retail, fine dining, and pharmacy among others. The Philippine Retailing talked with JIMAC Chairman and President Mr. Danilo Tan to learn more how the sole Filipino company that develops their own POS technology, has grown from its humble beginnings to become one of the recognized POS providers in the country.
What would you say are the major milestones for the company?
One of the major milestones for JIMAC Incorporated, I would say was when we were selected by major malls such as SM Malls, Robinsonʼs Malls, and Ayala Malls, among others, as their accredited Point of Sale provider for all their tenants. It was also a big leap for us, when we were able to expand outside the local scene, to ASEAN market including Malaysia, Indonesia and Singapore.
What are the biggest challenges of the company and how did you overcome these?
Staying relevant in this day and age is one of the challenges that every IT company faces—and so is JIMAC. With new products and features being released faster than ever, the technology industry is constantly evolving. All these changes are exciting, especially for the innovative companies behind todayʼs latest technologies. However, itʼs also incredibly challenging to keep up with cutting-edge competitors. To keep up, we make sure that we are always up-to-date with the current trends to support the needs of various industries.
We read that you develop your own products and you have you own engineers to do these? Can you share with us the process, and what advantages do you get from this strategy?
Our process can be compared with a blank space/ paper. Our customer can write and explain their current process and needs on it. Based on this, we will analyze, process, and adjust to provide solutions customized for their needs. We believe that each client has different customized systems with different needs and processes, and the advantage of this is that we can do business with a wide range of clients from different industries because we offer customization software solutions.
Best of all, since we create our own program, it grows with us. We own the code and features and we can continue to upgrade and perform maintenance as much or as little as we want. Lastly, we can adjust our software to every customer need and tweak to work with new process and innovation trends.
Tell us some innovations you have applied in the company, especially in response to digital transformation in retail and the society in general?
We have used mobile and tablet POS, cloud technology and self-service ordering system. We also have upcoming new innovations that weʼre still working on and weʼve partnered with different companies to make it possible. We believe that innovation in this industry is inevitable in the competition so weʼre always thinking ahead on how to innovate our system to make the company stay relevant and continue to lead in the industry.
You have recently joined the 26th NRCE, as an exhibitor at the Stores Asia Expo, and have been a regular exhibitor in the event, share with us the experience and how does this help the business?
Joining Stores Asia Expo as an exhibitor gave us an opportunity to increase peopleʼs awareness of our brand. It allows us to get in touch with our target audience, and is a perfect opportunity for us to showcase our brand, boost our businessʼ image, communicate our key message to the right market, and draw attention to our business.
Gaining more knowledge in our industry is also one of the benefits we get from joining. This is because we meet relevant people and businesses in the field, so we were able to see what everyone is up to and which trends are growing. Basically, it allows us to see how the industry is shifting and helps us gain knowledge of new products and resources which helps us in making business decisions.
As a long-time PRA member, what would you say are the biggest benefits you get by being a member of the trade organization?
Being a PRA member gave us the full benefits to know more about our target market in the retail industry. Itʼs “who you know matters”, PRA is filled with potential contacts, clients and partners. Also, being able to build a long-term relationships and partnerships to the members that are mutually-beneficial including sharing of ideas, strengthening ties, and making connections that would not be possible without the association.
The power
shift in retail:
How retailers must respond to the changing power dynamic with their customer By Zaki Hassan, Regional VP, Aptos
In retailing days of the past, customers had access to a limited range of products, often sold in just select locations. Control lay with the retailer, from availability to pricing. Today, control has shifted to consumers. They have a myriad of products they can shop, online or in store, domestically or internationally. Connected to the internet and social media, shoppers can instantly look at multiple products, prices and reviews, leaving retailers chasing trends rather than dictating them.
This is no more apparent than in Fashion retailing, where consumers see the latest styles online and expect them to be on sale almost immediately.
The challenges of demand-driven fashion The threat of online on traditional brick and mortar retailing is well documented, still e-commerce is not the only cause of the offline retailers’ struggles. The real challenge for retailers is that they struggle to be all things to all people – the store with the best price, the most variety, the fastest fulfilment. While these are worthy ambitions, retailers are risking chasing an unattainable goal. Attempting to be all of these things means they risk losing out on the simple staples of retail; for the customer it’s experience, for the retailer it’s profitability. So how should they respond?
Knowing your customers is crucial For retailers today, it is key to understand their customers better: Who are they? What do they want? What are their habits? With this objetive in mind, many industry leaders have become adept in capturing data from different sources (e-commerce systems, CRM tools, social media portals), exploring this huge amount of information through dedicated analytical tools.
Future success demands that retailers collect data from multiple sources, have the technological ability to analyse the data and create insights, and finally have skilled employees who can validate that the recommendations fit the market and consumer climate. Once they have this actionable insight, retailers must be nimble and progressive, accepting that they must make changes faster than before.
Going Online in the Philippines
I was fortunate to be invited at the E-Commerce CEO Forum a few months ago to share new trends on the online market in the country. Let me share some of the data I shared during the event, which was attended by some of the most-forward looking speakers and companies across Asia and the globe. The Philippine Online Shopping Landscape
Image source: www.8rbtna.com.com
We have an interesting state in terms of online engagement and actual online shopping. The Philippines has some of the most active online users in Asia, particularly for online research and social media activities. As a result, many consumers are now also making their purchases online.
According to Datareportal survey, there are 76 million internet users and active social media users in the country. We spend an average of 10 hours and 2 minutes browsing the internet and 4 hours and 12 minutes on social media. Most of the time, Filipinos go online to search for products or visit online stores.
While online shopping is fast becoming popular in the country, it still has not dominated retail sales. Currently, online shopping comprises just about 2% of the total retail sales in the country, and lags behind compared to its Southeast Asian neighbors. But is expected to grow by 5-7% in the next few years.
There are at least 37.7 million e-commerce users in the country in 2018 from the 30.2 million estimated in 2016. The number is expected to grow to 53.8 million by 2022.
In terms of sales, Statista said that the Philippine e-commerce market revenue grew to $840 million or about P44 trillion in 2018 from $688 million or about P36 trillion in 2017. Revenue is expected to grow about 10.5% annually. Retailers Going Digital
For those planning to venture into online retailing, Datareportal notes that the country's largest segment is travel and accommodation at $3.54 billion, followed by electronics and media, which garnered $234 million, followed by fashion and beauty products with $203 million, and furniture and appliances with $148 million earnings in 2018.
With the growing preference of the consumers to shop online, we need to think of new ways how we can continue to be relevant to the consumers—whether online or offline.
Wilcon for instance, may be late in the online store caravan, but we have finally decided to venture into online shopping and launched the Wilcon online store (https://shop.wilcon.com.ph/) early this year to deliver better product offering and customer satisfaction and service. BOPIS Or Deliver
The online store offers two modes of getting your purchased items: BOPIS and Via Delivery. BOPIS or “buy online, pick up in store,” allows you to still examine the products at a Wilcon branch near you. Not all of our 35,000 active SKUS of Wilcon products will not be available online, and we are introducing a few thousand SKUs online and will focus on Wilcon exclusive and private label brands.
Moving forward, any brands can start their online journey by planning ahead, and here are some tips I want to share in any development project you want to take on:
by Rosemarie Ong
President, Philippine Retailers Association & SEVP-COO, Wilcon Depot
Whether online or offline, always think: Customer First
With the influx of a large quantity of innovations, retailers may get excited about new strategies, but you must ask yourself first if this will benefit your customers and will make your business operations more efficient—thereby benefiting them.
We cannot stress customer centricity even more at this time, when they have the information at their fingertips. So, whether you want to go online, focus on your digital campaigns, etc. as always, it is about the consumer. Know your customer and anticipate their needs
Moreover, with the Filipino consumers
being a top mobile user across Asia, we should leverage on technology to learn more about the digital imprints. Social media is one of the most powerful tools you can use to reach and understand your customers.
This time, it’s not about getting or collecting the data anymore. If you have data, you have to use this to learn more about what your customers want and need. Be proactive. Experience is everything
Give your consumers a good experience because they are willing to pay for it. At a time when consumers have limitless shopping choices, both offline and online, experiences are the new currency. Consumers want more than just to shop for what they need – they want to discover new products, be entertained, and even engage with the community and friends.
Good customer service that shows extra care and kindness to the customers is what makes people come back to your store. In terms of online, great customer experience can be translated to efficient delivery service and flexible payment terms.
In this dynamic industry, with disruptions coming from all corners, it is important to always have a collaborative and innovative mindset. whether you are an offline or online retailer, remember that excellent customer experience and service is the key to drive people to your store and keep them. You do not need to focus on your competitor, rather learn to anticipate the needs of your customer, and to sum it all, a very timely quote I read says: “Your competitor will not kill you, the future will.”
21
MERCURY DRUG CONDUCTS BLOOD DONATION DRIVE
For the third year in a row, Mercury Drug held its blood donation drive on 15 August, 2019 in honor of its founder, Dr. Mariano Que.
Last year, almost 2,000 employees participated in this noble cause that coincided with the birthday of Dr. Que, donating a total of 651 liters. The collected blood was then distributed to more than 60 hospitals and Philippine Red Cross chapters in Luzon, Visayas and Mindanao.
This year’s blood drive aimed to surpass the previous donations – 532 liters in 2017 and 651 in 2018 – by promoting to employees the many health benefits of donating blood such as getting a free health checkup (as each donation will be tested for more than 10 di erent tests for infectious diseases), reducing harmful blood iron overload, reducing the risk of heart disease, keeping the liver healthy, burning of calories, and producing new blood cells that in turn will help maintain good health, to name a few.
This life-saving social responsibility program of Mercury Drug with the theme “Saving lives through blood donation” is one of the company’s way to continue the legacy of Dr. Que in “helping keep the nation healthy.”
WILCON DEPOT OPENS SECOND OUTLET IN ANTIPOLO CITY
The Philippines' leading home improvement and construction supply retailer, Wilcon Depot, opened their second store in Antipolo City last July 26.
With the company’s commitment to establish its stores to key cities and localities in the country, the opening of its newest store in Antipolo city is another fulfillment to provide more homeowners and builders in the city the sustainable, innovative, and high-quality home improvement products that Wilcon o ers. This is the third Wilcon store in the province and 38th provincial branch nationwide.
The opening ceremony was led by (L-R): Pacific Paints (Boysen) Philippines President Willy Ongsue; Evergreen Manufacturing Corp President Jerry Tiu; Wilcon Depot Founder and Chairman Emeritus William Belo; Wilcon Depot President and CEO Lorraine Belo-Cincochan; Antipolo City - 2nd district Hon. Congresswoman Resureccion Acop, MD; Antipolo City - 1st
District Hon. Congressman Roberto Puno; Representing Gov. Ynares, his daughter Nina Ynares; Rizal Province Hon. Vice Governor Reynaldo San Juan, Jr.; Mariwasa Siam Ceramics President Jakkrit Suwansilp; Matimco Inc. President Charlie Liu; San Isidro, Antipolo Hon. Vice Mayor Josefina G. Gatlabayan, San Isidro, Antipolo Hon. City Counsel Susan Say; Rain or Shine's PBA Player Maverick Ahanmisi.
“The launch of Wilcon Depot San Isidro serves as our way of showing our gratitude and appreciation to the province of Rizal for continuously supporting Wilcon in the past ten years. We are excited and proud to be one of the first movers of this ever-progressive province. Our opening is a fulfillment of a vision we have which is to provide an accessible and e cient way for more Rizaleños in renovating and decorating their homes,” said Wilcon Depot President and CEO Lorraine Belo-Cincochan.
MEGAWORLD LIFESTYLE MALLS UNVEILS DYNAMIC, CUSTOMIZABLE LOGO
Lifestyle malls pioneer Megaworld Lifestyle Malls has launched a newly-designed logo intended to future-proof the brand and cater to a new generation of mall-goers. Megaworld Lifestyle Malls, which has 17 lifestyle malls in its current portfolio, becomes the first mall developer in the country to use a modern customizable logo.
The updated logo follows the release of a modernized and more streamlined Megaworld corporate logo, which was unveiled recently in line with the company’s 30th anniversary. It features various design elements that veer away from traditional logo conventions. The new logo brings various playful design elements that visualize Megaworld Lifestyle Malls as a happy and fun brand in line with company’s vision of making happiness a lifestyle.
“We want to make visually impactful changes to our logo as we look to establish a stronger brand identity and to better reflect Megaworld Lifestyle Malls’ strength as a pioneer and developer of lifestyle destinations that are unique in design and character,” says Kevin Tan, Chief Strategy O cer, Megaworld.
Megaworld Lifestyle Malls currently has 17 lifestyle malls across the country including Eastwood Mall, Eastwood Citywalk and The Clubhouse at Temple Drive in Quezon City; Lucky Chinatown in Binondo, Manila; Uptown Bonifacio, Forbes Town and Venice Grand Canal in Fort Bonifacio, Taguig City; Newport Mall at Resorts World Manila in Pasay City; Three Central, Paseo Center and San Lorenzo Place in Makati City; California Garden Square in Mandaluyong City; The Village Square Alabang in Las Piñas City, Twin Lakes Shopping Village in Laurel, Batangas; Southwoods Mall in Binan, Laguna; Mactan Alfresco in Lapu-Lapu City, Cebu; and Festive Walk Mall in Mandurriao, Iloilo City.
WELCOME NEW MEMBERS!
AllCard Inc. Started in 2001 as a distributor of instant issuance card printers, AllCard today produces millions of cards a year for every possible requirement such as: financial, identification, health, membership, loyalty and discount, transportation, security access, and more. The company also hosts and licenses various card management systems.
Bagosphere Ph Inc. BagoSphere exists to help growing companies bridge the skill-gap and develop purpose-driven employees. From design-to-delivery, they help companies scale up human-centered training that empowers workers to breakthrough their self-beliefs and help them attain today’s most important digital and socio-emotional skills.
Cloudian Inc. Cloudian is a cloud-first, Software-as-a-Service (SaaS) solutions provider focused on providing small and mid-sized companies with modern and innovative business software. The company provides and delivers ERP, CRM, HRIS and Corporate Performance Management (CPM) solutions through its active partnerships with some of the world’s leading cloud software vendors.
DCPay Philippines Inc. (DBA.Coins.Ph) Coins is one of Southeast Asia’s fastest-growing fintech companies that enables anyone, including those without a bank account, to easily access financial services directly from their phone. Licensed by the Bangko Sentral ng Pilipinas, they offer electronic money, remittances, and virtual currency and exchange services, operating through over 33,000 partner locations.
Entrego Fulfillment Solutions Entrego was born in 2013 as Zalora Philippines' in-house logistics platform to meet the pressing needs of the e-commerce company. In 2017, the company emerged as an independent company, offering technology driven tailored logistics solutions to empower business performance for clients across different industries.
Innovantage Inc. (Aiah) Innovantage is a software startup that seeks to create product ecosystems through Assistive Intelligence™. The company utilizes RPA or Robotic Process Automation, a form of computerized business process reengineering technology where computer bots are designed and configured to perform tasks normally done by humans.
Itch Creatives Itch is a full-service advertising agency that provides a variety of advertising, design, and digital work for brands and organizations. The company focuses on good spectrum of clients from different segments, coming in with different needs, energies, and creative challenges.
Logic Information Systems For over 20 years, Logic Information Systems has been dedicated in helping retailers achieve their unique vision of success. They take a consumer-centric approach to streamlining operations, empowering retailers to deliver world-class customer experiences through strategic advisory, systems integration, and managed service.
Posible Expresspay (Portable Negosyo) Portable Negosyo’s mission is to offer affordable, legitimate, and easy to operate business ideas suited to SME owners who are looking to add new services to their establishments and to individuals who are looking to start a new business on their own for extra income opportunity.
Premier Value Provider Inc. Premier Value Provider is the only implicit market research provider in the Philippines. They give clients a deeper understanding of consumers' psyche and intelligent business and market insights, with the help of their team of practitioners and organizational and market research scientists.
Ptech People & Technology Ptech People & Technology is an IT outsourcing company that specializes on IT infrastructure and IT operation. Through the years they have worked with various companies including software businesses, telecommunication companies, business process outsourcing, healthcare, logistics firm, fast-food restaurants, and retail banking, among others.
Snapcart Insights Inc. Snapcart operates a mobile application that gives shoppers cashback for scanning their receipts while they collect massive amount of purchase data, analyze and offer to brands on a real time basis with shopper rich information.
TalkPush Talkpush is a recruitment automation platform that leverages the power of messaging and social media. Their solution consists of a recruitment chatbot and application management tool, which conducts interviews and allows recruiters to evaluate and hire candidates faster than ever before.
Thakral One Inc. Thakral One is a technology consulting and services company focused on core business applications, banking solutions, digital technologies and data analytics. They draw on specialized functional, technical and industry experts and their data scientists to design methodologies, optimize processes and infuse global know-how into each unique engagement.
Vinculum Philippines Inc. Vinculum is a SaaS product company helping brands to easily scale across sales channels globally. They help brands in 25 sub-categories including fashion, health and beauty, cosmetics, and FMCG to create content once and push it to multiple global sales channels and manage orders, inventory and fulfillment on a real-time basis.
Zebra Technologies Asia Pacific Pte Ltd. With decades of industry experience, Zebra Technologies designs with front-line users and workplaces in mind to empower those on the front line in retail, healthcare, transportation and logistics, and other industries to achieve a performance edge that translates to delighted customers and superior business results.
The A to Z-ap of Mobile Loyalty Program
In this column, we go straight to the source of innovation and ask their 5W’s: Who, What, Why, Where, and When to get to the driving force behind an innovation and a better understanding on its application in our digital journey.
by Frances Barsana 5WS WITH KICKSTART
Frances Barsana helps companies in their digital transformation journey by connecting them with the most innovative technology startups in the market. She helps build strategic and commercial partnerships between best-in-class tech startups and top1000 corporations in the Philippines and in Southeast Asia.
Who (Name, Designation, Function)
Dustin Cheng, Co-Founder and CEO, serial entrepreneur. Prior to ZAP, I bootstrapped a group-buying website called Deal Dozen. It was the trend back in 2011, shoppers could get 50% off on restaurant, spa, and travel vouchers online. It was a great experience for me and my co-founders, but we recognized it was a saturated industry prone to market fatigue. Eventually, we sold the company to Singapore-based Asia Deal Group in 2013, and started ZAP.
Why (why did you invent this, problem are you solving)
We built ZAP because of what we learned from running Deal Dozen: thousands of retailers would run these voucher deals, get mobbed by customers, and then nothing. The promise of discounting in exchange for marketing never truly materialized - customers barely returned, and the retailer would have zero data. They were operating blind, and we felt there’s got to be a better way of helping merchants engage with their customers in a more meaningful way.
Sure, retailers had data from POS transactions. However, these transactions did not have a face to them. No name, number, no customer data. You knew you sold 100 blue jeans, but who bought them?
This was when we realized that there was a huge gap in the offline retail world. While e-commerce stores can track every click on every page, view abandoned carts, analyze Customer Lifetime Value, non-returning customers, and a plethora of other data points per transaction, offline retailers had very little data. This was what we set out to change.
What (Brand, Product, What did you build)
We asked ourselves: what is the best way to connect the customer to the transaction? How do we ensure that the experience is 10x better for the business owner, the customer, and everyone else involved in every single transaction? Our solution: a mobile-based loyalty program that captures customer behavior in real-time.
We started out by understanding the profiles of customers and how they engage or behave on-premise. In parallel, we understood that merchants need to deliver a frictionless store experience to customers. Ultimately, we created in 2013 the first mobile-number based loyalty program in the Philippines. Your mobile phone is now your loyalty card. With ZAP, we envisioned customers no longer experiencing the hassles that come with carrying a loyalty card or downloading an app as a requirement to enjoying customer incentives.
As for the merchants, they are now able to tie a specific POS transaction to a specific customer by using the mobile number as customer ID -- now, you will know who your customers are, how many times they’ve been to your store, what items they purchased, and send a satisfaction survey as well. Now you know which customer has bought a pair of blue jeans store within a year, or a pair of blue jeans every other month from your store. ZAP allows this level of customer insighting for merchants because our technology solution integrates with any POS seamlessly, most of the time with zero customization needed from the POS provider. They don’t even know we’re there!
Every ZAP-accredited merchant will be provided with an analytics and promotions dashboard that shows customer transactions from all the stores in real time. Merchants can also segment their customers by spending category, frequency of visit, and items most purchased, which gives them context when creating personalized marketing campaigns. Understandably, time is gold for merchants so ZAP’s automated re-marketing tool, which is designed to be a “set and forget solution,” allows store personnel to do more: create a campaign, set the parameters, and bucket customers into the appropriate campaign for automated re-marketing. And because conversions are now tracked and measured via ZAP, marketing teams can extract ROI for each campaign.
Basically, ZAP helps eliminate guess-timates for customer relationship management.
Where (in, or to what situation, position, direction, circumstances, or respect, where does this plan lead)
Our goal is to help all merchants do business better. We do this by providing them with tools to that extend their offline businesses to online. Through ZAP, business owners can expect to capture every interaction from the moment the customer steps into your door, to the moment they come back.
When (when you use xxx you will xxx)
When you use ZAP as a merchant, it’s like looking at customers differently for the first time. Customer data that you had no way of accessing before is now at your fingertips. Customer data that used to take weeks to gather now takes seconds.
ALLIANCE SOFTWARE INC.
Free additional 1 month for a 12-month subscription of Alliance WebPOS--a web-based point of sales system (POS) using Software as a Service (SaaS) architecture to provide centralized hosting allowing you fast and easy access anytime, anywhere.
March 2020
This is exclusive only to PRA members in good standing (updated in their annual dues) and active in participating the organization’s events.
AUDIOWAV MEDIA INC.
AVANZA INC.
DIEBOLD NIXDORF
30-DAY FREE SERVICE trial of WAVFlow Proprietary Music with Branded station ID/messaging (valued at Php 800.00/month)
30-DAY FREE SERVICE trial of WAVSight Digital Menu board or Digital Signage (valued at Php 1,000.00/month)
15-DAY FREE SERVICE trial of WAVScent With corresponding value: Small (60 sq.m & below) - Php 2,000.00/month Medium (61 to 150 sq.m) - Php 8,000.00/month Large (151 to 250 sq.m) - Php 12,000.00/month Pay only 11 months for a 12-month service subscription for items 1 to 3
Avail 10% discount on one-time purchase of WAVControl (audio and video hardware)
*FREE SERVICE for items 1 to 4 worth Php 7,600 to 27,600 (Value based on store size)
Save as much as Php 50,000 from exclusive discounted set-up fee for Loyalty Mobile and Web App to establish digitized customer and CRM loyalty with QR codes, E- Wallet, Points, and your own mobile app, from Php 150,000 to Php 100,000 only.
Discounted monthly fee of Php 5,000 from Php 6,000 on a more flexible quarterly payments instead of annual payment.
*The subscription fee is based on a standard app without customizations.
VALID UNTIL:
March 2021
VALID UNTIL:
March 2020
Special DISCOUNTED Price for a complete POS Hardware
VALID UNTIL:
November 2019
GROWVITE
Save up to Php 36,000.00 per month for your contracting services requirements
Total of 5 Hours HR related consultation with the company’s seasoned Human Resource Manager. Valued at Php 5,000.00
FREE Orientation on DOLE’s legitimate contracting and best practices. Maximum of 5 attendees of your company’s supervisors and/or managers. Valued: Php 5,000.00
TELEEYE PHILIPPINES INC.
Free 4-hour/halfday Check-up visit and consultative discussion with CCTV Experts (valued at P2,800.00)
Special Promo packages for complete CCTV system designed to suit your needs, plus get Php 1,000 discount voucher for the first purchase with minimum purchase of P15,000.00
VALID UNTIL:
March 2020
VALID UNTIL:
May 2021
PHIL GPS RETAIL GATE
PICTURE BOOKS
HERITAGE
Avail a GPS Tracking device for only P3,499 with features: - 24/7 real-time tracking - nationwide coverage - internal backup battery - route history and playback - Available on iOS and Android devices FREE SUBSCRIPTION on the first year and Php 1,000 per year thereafter
· FREE INSTALLATION within Metro Manila · One-year standard warranty
· FREE Two weeks trial *Prices are VAT Exclusive
Exclusive 40% discount for the first branch on the first month with a minimum 3-month subscription of the EAGLEi Technology --an AI Vision system for retail analytics allowing retailers to gather insights on in-store consumer-behavior to gain competitive intelligence through video feeds, by collecting and processing data on consumer traffic volume, density and conversion, and dwell time.
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jun 27
47TH RETAILEX SEMINAR SERIES: The Neuroscience of Consumer Behavior Discovery Suites Ortigas
US Certified Neuroscience Coach Ben Ampil gave a comprehensive introduction to the workings of the brain to help attendees understand consumption behavior and help them provide unforgettable shopping experience for customers, and increase retail profitability.
oct
29
49th RETAIL EXCELLENCE SEMINAR SERIES 2ND CRM AND LOYALTY WORKSHOP “Creating and Leveraging Loyalty CRM Programs: Data Driven Decisions for Retail Marketing, Operations and Brand Experience”
nov
07 3rd week 50th RETAIL EXCELLENCE SEMINAR SERIES BEST PRACTICES IN STORE ATMOSPHERICS: Contemporary In-Store Retail Strategies to Influence Shoppers' Buying Behaviour Q3 GENERAL MEMBERSHIP MEETING
15
REGIONAL ROADSHOW SEMINAR: CAGAYAN DE ORO CITY Jun dela Cruz, Jr. (Loss Prevention and Retail Security Consultant In partnership with DTI Region 10 Sponsored by: SAP Philippines
26
REGIONAL ROADSHOW SEMINAR: NAGA CITY
dec
jul 25
Q2 GENERAL MEMBERSHIP MEETING EDSA Shangri-la
Kantar Worldpanel Philippines New Business Development Director Ms. Lourdes Deocareza (L) talked about the top FMCG brands in Asia and how retailers can leverage on these, while SGV & Co Principal Stephanie Nava (R) shared the global trends in taxation and new customs policy during the PRA Q2 GMM. New members also took oath to be officially
jul 29
PRA CEBU CHAPTER SEMINAR ON RETAIL Bayfront Hotel
PRA Cebu Chapter conducted a one-day mini MBA seminar workshop on Retail with Mr. Francis Dela Cruz as the moderator. The seminar was attended by different business owners, as well as second and third generations business leaders, managers, and decision makers in Central Visayas.
jul 31
48TH RETAILEX SEMINAR SERIES: Design Thinking for Retail Discovery Suites Ortigas
Participants learned how to understand and apply concepts of Design Thinking tools to innovation projects as well as carry out prototyping of a proposed innovation concept thru an interactive discussion and group workshop.
