PRA_Newsletter-02nd_Quarter_2012.indd 1
6/20/2012 4:17:11 PM
OFFICIAL PUBLICATION OF THE PHILIPPINE RETAILERS ASSOCIATION
2nd Quarter 2012
21st NRCE: Shopping. It’s More Fun in the Philippines. Industry experts to share insights on elevating customer experience.
retail suppliers and service providers. The 2-day conference and exhibit is attended by over 800 retail owners, suppliers, CEOs, and top level executives. Each year, NRCE invites experts from the retail industry and other related sectors to cover relevant aspects of retailing. Chief among the bevy of topics at this year’s NRCE are strategies for driving growth and customer engagement. Amid the global buzz surrounding initial public offerings (IPO), this year’s plenary sessions will include the use of an IPO as a tool for retail business growth. Successfully engaging new generation shoppers will be well-covered in this event as other topics as boosting customer experience using store design and licensing opportunities for retailers are presented by field experts. Coming on the heels of two successful
NRCEs which zeroed in on Asian brands, this year’s gathering moves forward with talks on personalized branding and transforming employees into brand ambassadors. Participants will also gain more insights on the competitive edge of socially responsible businesses and the retailers’ role in advocating a sustainable lifestyle. There will be two panel discussions each day at NRCE. On the conference’s first day, the morning panel discussion will delve into digital marketing and online commerce. The afternoon panel discussion, on the other hand, is entitled “Global Brands in Local Shores: How Local Brands Can Compete and Succeed vis-à-vis International Brands.” The roundtable on the conference’s second day will feature luminaries from retail and property development. Entitled “Retail Entertainment: Creating a New
DOT Chief topbills 21st NRCE Coca Cola CEO to keynote retail conference
and the private sector. Retailing, a twin industry of tourism, is expected to benefit from a robust tourism industry. As such, the sector continues to improve its products, services and systems to ensure a “more fun” overall Philippine travel experience. The 21st NRCE, a flagship program of the Philippine Retailers Association, aims to provide knowledge in anticipation of the expected results of the high visitor output of the tourism campaign. This year’s NRCE will also be highlighted by insights from Coca Cola Philippines CEO William Schultz who will be this year’s keynote speaker. Mr Schultz is expected to share information on how Coca Cola became the brand icon that it is today and how it aims to continue to bring happiness to Filipino consumers through its “100 Years of Happiness” campaign. The Conference will also feature a powerhouse of local and interna-
2
tional speakers including America’s Next Top Model producer Michael Carandang, Philippine Stock Exchange President Hans B. Sicat, and My Shelter Foundation Executive Director Illac Diaz. Also expected to share important information are Redgoodss Ltd (Hong Kong) director Terry Waterhouse, QBian (Singapore) lead consultant Tan Bing Houw, Echostore president Jeannie Javelosa and Rustan Supercenters Inc. vice president for marketing Frances Yu. A meeting of minds is expected in the panel discussion featuring digital marketing and online commerce experts from Multiply, Sulit.com and Zalora, and facilitated by Digital Commerce expert Ms. Janette Toral. How local brands have successfully competed vis-à-vis global brands will be the highlight of discussion among successful local retailers. Invited speakers for this panel are Francis Flores of Greenwich and JohnLu Koa of French Baker.
Level of Customer Experience,” the morning panel discussion explores how shopping and leisure are intertwined. The conference’s last panel discussion is set to put participants in a hopeful, forward-thinking mood. Entitled “The New Turks of Retailing,” the last panel will feature the young entrepreneurs behind today’s hottest brands and franchises. The 21st NRCE is proudly presented by PLDT Alpha Enterprise, SM Department Store, Hewlett Packard, Robinsons Malls, Araneta Center, Ayala Malls, Meralco, IBM Philippines, DHL Supply Chain Phils., Inc., Festival Supermall, Wilcon Depot, Celine, ForMe, The Philippine Star, BusinessWorld, ABS CBN, Schutzen, Mobext, Inc., Crossover 105.1., Entrepreneur, Focalcast, Q Creatives, Cylix Technologies, Mediamagnet, Catalyst Media, Infinite Grafix, Travel Club, APL Logistics, Avolution, Live Media, Starmall and Bayantel.
Duty Free COO/PRA Director elected to APTRA Board DUTY Free Philippines COO and PRA director Lorenzo C. Formoso was recently elected as director of the Asia Pacific Travel Retail Association (APTRA). APTRA is the association of retailers, brand suppliers, travel retail landlords, and national associations in the Asia Pacific region which are in the duty free, tax free or travel retail sector. Mr. Formoso was elected with three other new APTRA board members: the Edrington Group regional director Asia travel-retail Ryan Hill, Furla head of travel-retail Gerry Munday, Pernod Ricard USA CFO Thiboult de Poutier de Sone. The election of the newest board members comes at a time when the APTRA intensifies its advocacy campaign. Mr. Formoso joined the PRA board in 2011. As a board member of the PRA and the APTRA, he brings with him valuable insights gained from running the operations of DFP, the world’s 4th largest duty free facility. As one of the pioneers of DFP, he is responsible for setting up its organizational and operational structure during its start up operations in 1987. He also designed and implemented marketing programs that increased customer awareness and customer count leading to increase in sales. Lorenzo Formoso is a graduate of Bachelor of Science in Industrial Management Engineering minor in Chemical Engineering from the De La Salle University.
OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW! www.philretailers.com
PRA_Newsletter-02nd_Quarter_2012.indd 2
6/20/2012 4:17:12 PM
OFFICIAL PUBLICATION OF THE PHILIPPINE RETAILERS ASSOCIATION
2nd Quarter 2012
PRA honors long-time members The Philippine Retailers Association recognized the association’s longtime members during its first quarter general membership meeting for 2012. In exclusive rites held at the Crowne Plaza, the PRA expressed its gratitude to companies that have q REGULAR • Abenson, Inc. • Almon Marina • Artwork, Inc. • Automatic Center • Bench • Blims Fine Furniture • Broadway Gems • Cabrelli • California Clothing Inc. • Celine Marketing Corp. • Central Books (Alemar’s/Gibson’s) • Centropell Marketing Corp. • Cinderella Marketing Corp. • Citistores Inc. • Citimart Shop • Collins International Trading
• • • • • • • • • • • • • • • • •
been partners of the PRA for 15 years and more. A total of 79 companies have been in the PRA’s roster of members for more than 15 years. They include Automatic Center, Central Books, Cinderella, Manel’s Leathergoods Inc., Robinson’s, SM Retail Inc., Sportshouse International
Crossings Department Stores Duty Free Philippines Ever Gotesco Fil-Pacific Apparel Corp. Gift Gate, Inc. Goodwill Trading Co., Inc. HBC Inc. Interior Crafts Islands Souvenirs, Inc. Just Jewels K Servico Trade Inc. Kameraworld Inc. Le Donne Levi Strass & Co Philippines Liberty Commercial Corp. Lincloz Trading Corp. Luci Holdings, Inc.
• • • • • • • • • • • • • • • • •
Lyncor, Inc. Manel’s Leathergoods Marithe & Francois Girbaud Mercury Drug Corp. Merriam &Webster Bookstore, Inc. Miladay Jewels Inc. National Book Store Inc. One Philippine Silver Corp. Otto Shoes Penshoppe (Golden ABC Inc.) Pioneer Stationers Inc. Primadonna Primer Group of Companies Prince Warehouse Club, Inc. Robinson’s Rustan Commercial Corp. San Jose Kitchen Cabinets Mftg.
• • • • • • • • • • • • • • • •
Leisure Inc. and Toby’s Sports. As the roster of members grows, PRA acknowledges the pivotal role that these members played in making the PRA the biggest and most trusted industry association that it is today. “PRA recognizes that its strength relies on its membership and thus we feel that it is important to pay tribute to our members who have been part of the association as it grew into what it is today,” PRA Secretary General Evelyn Balmeo-Salire said.
Sarabia Optical Shoppes Manila, Inc. SM Retail Inc Sportshouse Int’l Leisure, Incl. TFB Inc. Tesoro’s Marketing Corp. The Expressions Company The Fabric Warehouse The Landmark Corp Time Depot, Inc. Times Trading Co., Inc. Toby’s Sports Tri Js Marketing Willi Hahn Enterprises YKL Color Laboratory Zenco Sales Inc.
q ASSOCIATE • Araneta Center Inc. • Ayala Land, Inc. • Burlington Industries Phils, Inc. • DBA Harisson Plaza • New Farmers Plaza, Inc. • Philippine Amalgamated Supermarkets Association • Rehaus, Inc. • Shangri-La Plaza • Sonia Santiago Olivares & Associates • Sta. Lucia East Grand Mall • Star Mall (Manuela Corp.) • Sycip Gorres Velayo • Wonder Book Corp.
PRA Stages Retail Excellence Seminar Series PRA recently rolled out the 2nd quarter leg of the Retail Excellence Seminar Series, a monthly Seminar/workshop which aims to help upgrade the skills and competencies of local retailers. In April, PRA partnered with People Ignite to present “The 3s Towards Customer Intimacy“. This seminar provided collaborative insights and ideas on how retailers and businessmen in general can go through the experience of surviving, sustaining, and stretching their business specially in challenging times. People’s Ignite’s JV Wong and Nancy Mendiola facilitated the seminar. In May, PRA partnered with Vinculum Ltd. for the conduct of “Nuts and Bolts of an Online Store and Local Success Factors for E-commerce”, a seminar also held in cooperation with Digital Commerce Association of the Philippines (DCOM), which tackled key components of the e-commerce ecosystem and best practices from the frontend to backend system. The one-day seminar featured a presentation by Vinculum’s President/CEO Venkat Nott and Vice President for Retail Solutions Piyush Madan on Master Data management systems, and e-commerce platforms. This was supported by presenta-
Retail advisor Darrel Wisbey
tions by Cashcash Pinoy CEO Frederick Levy, Shopinas.com CEO and President Shiela Lina, and NetBooster Asia Regional Director, Crisela Magpayao-Cervantes.
The 3rd offering was the “Merchandise Buying: Tools for Maximum Sales and Profit” which featured retail advisor/expert Darrell Wisbey, representing Impact Retailing, who provided attendees with a step-by-step guide to understanding, planning, implementing and maintaining the Merchandising Buying standards in a retail store in order to maximize profitability. He also pointed out common mistakes by retailers that result to lost sales and profit. For details, pls contact Stephanie Velasco at 687-4180 to 81 or email through philretailers@gmail.com.
(From left) Evelyn Balmeo-Salire, PRA Secretary General; Frederick Levy, Cashcash Pinoy CEO; Stephanie Velasco, PRA Project Manager; Vipul Triphati, Vinculum Business Development Manager; Hans Eric Chua, Blueblade Technologies President; Shiela Lina, Shopinas.com CEO and President; Venkat Nott, Vinculum CEO; and Piyush Madan, Vinculum Vice President for Retail Solutions.
OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW!
3
www.philretailers.com PRA_Newsletter-02nd_Quarter_2012.indd 3
6/20/2012 4:17:13 PM
Local Industry News OFFICIAL PUBLICATION OF THE PHILIPPINE RETAILERS ASSOCIATION
2nd Quarter 2012
SM to build world’s largest mall THE groundbreaking of what will become the world’s largest freestanding shopping complex has taken place in the northern Chinese port city of Tianjin. The developer is Philippine-based SM Group, the largest retail mall operator in that country. Commercial space covering 530,000sqm - that’s equal to 74 football fields - will be within the reach of shoppers from Beijing: just 30 minutes away by high-speed train or 90 minutes by car. The centre will be located within the Tianjin Economic Development Area (TEDA). Three oval-shaped structures will be linked together by a central ring. Three of SM’s existing malls are among the 10 largest in the world, according to the news agency Xinhua. The Tianjin Shopping Center will be one third larger than its 407,000sqm SM Mall of Asia in Metro Manila. At the end of this year the Philippine company is expected to own 46 malls covering an area of 6.3 million sqm. The pro-
jected rate of new openings will be one per year, “with increased momentum by 2014,” according to SM Prime president Hans Sy, on the company’s website. In a statement, the government of the Tianjin Binhai New Area, says that the company has invested US$476 million into the construction project. According to press reports, the Tianjin mall will be the heaviest investment by SM in China. Already operating SM malls are localised in Xiamen,
Robinsons mall, hotel to open in Butuan City in 2013 ROBINSONS Land Corp. is expanding in Mindanao and is building a new shopping mall in Butuan City with a 100-room budget hotel on its top floors. Construction of Robinsons Place Butuan with Go Hotel in Butuan has started and it is expected to be completed by the third quarter of 2013. The five-story building, which will contain both the mall and the budget hotel, will have a gross floor area of 45,300 square meters. Situated at the major thoroughfare of J. C. Aquino Avenue in Barangay (village) Bayanihan, Robinsons Place Butuan is RLC’s fourth mall in the region. It is envisioned to be the premiere shopping mall in
4
Agusan del Norte. It will feature popular shops and restaurants, a wide array of service establishments, a food court featuring the dishes of the region, and four digital cinemas including the first 3D cinema in the province. Atop the shopping mall building will be the budget Go Hotel, RLC’s value hotel chain that now has five branches across the country. The Go Hotel Butuan’s 100 rooms will all be equipped with amenities such as Windsor beds, rainshowers, flat-screen TV and WiFi connection.
Jinjiang (Fujian), Chengdu, and Suzhou. Other projects are underway in Chongqing, Xinxiang and Zibo (Shandong). SM Prime Holdings is the parent company of the SM Group. It reports a growth of 15 per cent in 2011, up from 7.90 billion pesos (US$183.91 million) to 9.10 billion pesos (US$211.85 million). This is partly a result of an increased capacity in the Philippines, along with growth in same-store rental. (InsideRetail.Asia, 3/26/2012)
Register Now!
21 National st
Retail Conference and Stores Asia Expo August 9 – 10, 2012 SMX Convention Center, Pasay City
(Philippine Daily Inquirer, 5/23/2012)
OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW! www.philretailers.com
PRA_Newsletter-02nd_Quarter_2012.indd 4
6/20/2012 4:17:16 PM
Local Industry News OFFICIAL PUBLICATION OF THE PHILIPPINE RETAILERS ASSOCIATION
2nd Quarter 2012
ALI ties up with Rustan’s affiliate for retail venture
Fresh from bagging a deal to develop the 60-hectare Plastics City in Valenzuela, property giant Ayala Land Inc. (ALI) is now boosting its commercial portfolio through a retail venture with the Tantoco family of the Rustan’s Group.
“ALI entered into a joint venture agreement with Specialty Investments Inc. (SII) to pursue opportunities in the Philippine retail sector,” ALI said in a disclosure to the Philippine Stock Exchange. “The partnership with SII will enable ALI to support its mixed-use developments and, at the same time, grow its recurring income portfolio,” it added. SII is a wholly-owned subsidiary of Stores Specialists Inc., one of the largest retail companies in the Philippines. ALI is still exploring the possibility of operating retail shops in its malls, said Jorge Miguel T. Marco, head of corporate communications of ALI. SSI owns exclusive rights to sell, distribute and market in the country a variety of brands from around the world.
The Madrid Protocol offers the advantage of simplicity as companies or entities can file their application in their home country and seek protection in one, some or all Madrid-member countries. This eliminates the need to hire a local agent in countries where the trademark protection is sought therefore cutting down filing costs. A single fee is also required to be paid in the applicant’s home currency. As it offers a more cost-efficient way
as of June 13, 2012 (*** dates are subject to change) JUNE
6-7 26 28 Early, SSI executive vice-president Anthony T. Huang said the company will launch three new luxury brands this year. SSI, the company behind Zara, Prada, Lacoste and Debenhams in the Philippines, has already completed talks with brand owners to launch new luxury goods in the Philippines. SSI was created in 1987 to acquire, manage and develop exclusively the world’s top lifestyle brands. It claims to have the largest and choicest luxury upmarket fashion lifestyle portfolio through 72 brands and more than 250 free standing shops and boutique shops totaling over 250,000 square feet of retail space. ALI, for its part, is one of the largest real estate conglomerates in the Philippines, with over eight decades of experience in the propertydevelopment sector.
PHL accedes to Madrid Protocol PHILIPPINE trademark owners can expect a faster and more affordable registration here and abroad as the Philippines accedes to the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks or the Madrid Protocol.
PRA CALENDAR OF EVENTS 2012
of registering and protecting intellectual property of local business players, the protocol also encourages foreign businesses to expand in the Philippines with the ease of protecting their marks in the country. To date there are 85 contracting parties to the protocol including United States, Australia, China, the European Union, France, Germany, Japan, the United Kingdom, Singapore, China and Vietnam . As of press time, the Intellectual Property Office of the Philippines (IPOPHL) is conducting public consultations on the Philippine Madrid Protocol Regulations and related fees. The agency said it will begin accepting applications filed via the Madrid Protocol by July 25, 2012. For more information about the Madrid Protocol visit http://www.wipo.int/madrid/en/ members/ or www.ipophil.gov.ph.
28
20 Retail Careers, I.T. and Services Jobs Fair (Trinoma) Q2 General Membership Meeting th
Shopper Insighting Seminar (Trade Dynamics) Customer Service Blueprint Seminar (Cagayan de Oro City) (IBM) JULY
4
Loss Prevention Strategies Seminar (Davao) (HP) AUGUST
9-10
21st National Retail Conference and Stores Asia Expo 2012 (SMX Convention Center, Pasay City) SEPTEMBER
13-14 18 27
Retail Careers, I.T. and Services Jobs Fair (Glorietta) Q3 General Membership Meeting * Retail Marketing Seminar (Trade Dynamics) OCTOBER
25
Branding the Store! Retail Branding! Seminar (Trade Dynamics)
For inquiries, please get in touch with Lorelei Acosta for NRCE (philretailers@yahoo.com), Em Sicatin for Regional Roadshow (storesasiaexpo@yahoo. com), Vicente Mallapre for Jobfair (prajobfair@ gmail.com) and Stephanie Velasco for seminars (philretailers@gmail.com) or call 687-4180 to 81.
The Philippine Retailers Association condoles with the family of
DON BENITO LIM
Chairman of Automatic Center, PRA Council of Advisers and 2008 Outstanding Filipino Retailers Diamond Awardee as “Father of Appliance Retailing” who joined his Creator on June 9, 2012. He will be missed.
OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW!
5
www.philretailers.com PRA_Newsletter-02nd_Quarter_2012.indd 5
6/20/2012 4:17:16 PM
Local Industry News OFFICIAL PUBLICATION OF THE PHILIPPINE RETAILERS ASSOCIATION
2nd Quarter 2012
Jollibee enters JV for Singapore expansion THE Philippines’ leading fastfood chain, Jollibee is set to bring its iconic Chickenjoy, Jolly Spaghetti and Yum Burger to Singaporeans and Filipinos in Singapore. This came as a result of a joint venture entered into by Jollibee through its wholly owned unit Golden Plate Pte Ltd and Beeworks Inc. Under the agreement, the parties will open Jollibee stores in Singapore which will be 60% owned by Golden Plate and 40% by Beeworks. While the Jollibee unit will have full management control of the company, Beeworks which has extensive business experience in the retail and hospitality sector, will be tasked to establish the Jollibee brand in Singapore. The company built from the joint venture will have an initial funding of $1 million. Jollibee has 79 stores around the world: 26 in the U.S., 32 in Vietnam, 11 in Bru-
nei, 7 in Jeddah and 1 each in Hong Kong, Qatar and Kuwait. It also operates Yonghe King and Hong Zhuang Yuan in China, as well as Jollibee, Red Ribbon, Chowking in the Middle East and Southeast Asia. In the Philippines, 2,004 stores are operated by the company: Jollibee (752 ), Chowking (381), Greenwich (204), Red Ribbon (207), Mang Inasal (436) and Burger King (24). (Manila Bulletin, 5/16/2012)
Megaworld aims to post double-digit growth Megaworld Corp. expects to post double-digit profit growth by yearend as revenues from residential sales and retail leases reportedly remain strong. “With or without the crisis, we are looking at double-digit growth in net income. We have two main sources: residential sales and retail, both of which continue to be strong and are doing well now,” Kingson U. Sian, Megaworld senior vice-president and executive director, told reporters at a briefing following the firm’s annual stockholders’ meeting.
6
Initial groundwork has already been laid for two mixed-use developments in Taguig City that will feature residential and retail components, Mr. Sian said. The company is also bullish on its retail business following the completion of its Lucky China Town Mall in Cityplace, a 2.5-hectare residential and shopping district in Binondo, Manila. “Wherever we have a community, we will have a retail presence. Our retail [sector] has been growing nicely, and we like retail in particular because it gives you a base of recurring income,” Mr. Sian said, adding that Megaworld was aiming for roughly P5 billion in retail revenues this year from P3.8 billion last year. (BusinessWorld, 6/15/2012)
PHL tops as an investment site The Philippines got favorable ratings in terms of competitiveness advantage on business environment and emerged to be the most competitive investment destination for businesses in manufacturing and other services sectors among seven Asian economies, the latest Japan External Trade Organization (JETRO) survey on Japanese-affiliated firms in Asia and Oceania showed. The country bested China, Malaysia, Thailand, India, Viet Nam, Indonesia, and Myanmar in most categories. Department of Trade and Industry-Trade and Industry Promotion Group (DTI-TIPG) Undersecretary Cristino L. Panlilio said the report includes the Philippines’ competency in labor pool, with the country having the cheapest rates in labor, rentals, and land prices. “The implication of this project is that even in Asia, we are now very competitive. In fact, we are the most competitive when it comes to those factors of business or investment decision making,” Panlilio said. The Philippines appeared to have enough labor supply, including available executives, which positively marked the lowest rating of 3.2% in terms of difficulty in recruiting general staff. On problems in skyrocketing payroll costs, the Philippines registered the lowest rating of 18.2%, marking positive results compared to other Asian countries. The country’s edge in labor force’s English proficiency registered 37.9% rating, indicating that there is no major problem when it comes to workers’ competency. The difficulty in quality control for the manufacturing sector marked 26.7%, the lowest so far among other Asian countries, proving that manufacturing firms have minimal problems on quality control. Another factor for competitiveness indicator is the reasonable salary, showing 5.3% base-up rate for 2011-2012. (DTI Update)
OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW! www.philretailers.com
PRA_Newsletter-02nd_Quarter_2012.indd 6
6/20/2012 4:17:16 PM
PRA_Newsletter-02nd_Quarter_2012.indd 7
6/20/2012 4:17:23 PM
Eavesdropping In The World Of Retailing OFFICIAL PUBLICATION OF THE PHILIPPINE RETAILERS ASSOCIATION
8
2nd Quarter 2012
OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW! www.philretailers.com
PRA_Newsletter-02nd_Quarter_2012.indd 8
6/20/2012 4:17:24 PM