C1
Business
SUNDAY, DECEMBER 11, 2016 Ray S. Eñano, Editor / Roderick dela Cruz, Issue Editor business@thestandard.com.ph
YOUNG ZALORA CEO CHANGES FASHION RETAIL By Othel V. Campos
A
32-YEAR-OLD executive is driving the growth of electronic commerce in the Philippines, encouraging millennials to shop for fashion items through their smartphones. Paulo Campos III, the Princeton University-educated co-founder and
managing director of Zalora Philippines, says his company is scaling up operations to keep up with the frenetic activities during the holiday season. “The market is accelerating this year compared to last year and even faster than the last time we talked. Christmas is drawing more and more customers to shop online,” Campos says in a news briefing. “Sales momentum started to pick-up as early as October, a few weeks earlier than last year. And the peaks and highs are even higher than last year. But I can tell you in December we’re averaging more than double the traffic last year, or more than 100 percent,” says Campos, while announcing Zalora’s biggest sales event—12.12 Online Fever—a four-day campaign that starts midnight of Dec. 12 across Southeast Asia. Zalora Philippines, which is supported by Germany’s Rocket Internet GmBh, is Asia’s leading online fashion retailer. Campos helped establish Zalora Philippines in January 2012 when he was 28, after working for The Boston Consulting Group in Singapore and Ayala Land Inc. Campos graduated magna cum laude with a Bachelor of Arts Degree from Princeton University in 2005. He also has an MBA degree from Harvard Business School. Campos says this year’s cyber sales event offers exclusive deals on more than 200 fashion and beauty brands across six markets, including the Philippines, Singapore, Malaysia, Hong Kong, Taiwan and Indonesia. Campos says 12.12 Online Fever is a region-wide sales event that aims to drive the e-commerce industry across the region, bringing to consumers some of the best deals that encourage online purchases and convert traditional shoppers into e-consumers. He observes that buyers have been spending more time on the net, especially when the holiday season peaks. From browsing an average of 10 minutes in previous years, consum-
ers are now spending 13 to 14 minutes per browse on the net “which maybe small from a consumer point of view but big for us already.” “The more they spend time visiting our site, the more they get engaged, the more they tend to make a purchase,” he says. “More engagement, I think, is because of more brands [and] better assortment [of products]. They are more coming to the website and the figure is doubling.” Globally, Zalora has seen an increase in new customers by 32 percent. With most of the major brands now housed in Zalora, the company is focused on deepening engagements with brands and with customers. “We are always adding more brands, but at this rate we got almost the big ones. Now we’re going deeper as we are shifting our focus to deepening the engagement with customers. We will be doing other brands, as well. Those big names that haven’t signed up up with us, we intend to convince them more,” Campos says. “The thing about big brands is that they create incremental demand. In fashion, it’s all in the brand. Our progress this year, why we move from strength to strength, is because we’ve proven that our brand profile is one of the best in the online world,” says Campos. As sales grow brisk, operations are also expected to keep up with the volume. Zalora is beefing up its delivery system, hiring more riders on top of the current fleet of 400. Zalora is pro-active, he says, as it moves to determine fashion trends, globally and on the regional scale. It also helps consumers arrive at a decision via the shopper’s price comparison. Cyber shopping has changed the mindset of Filipino consumers, he says. In 2016, the Philippines reached the average global e-commerce penetration rate. A study by an independent research company in Singapore shows that about 46 percent of Filipinos now have access to the internet, while 29 percent of Filipinos have experienced online shopping.
Scan this icon to view the PDF
ONLINE RETAILER.
Zalora Philippines co-founder and managing director Paulo Campos III
TECH TRENDS IN 2017 LOCAL cloud services and data center pioneer IP Converge Data Services Inc. predicts the top ICT trends that will dominate the Philippines next year. IPC director for product management and marketing Niño Valmonte says the integration of various digital tools and solutions in the workplace will continue to lead as increasing trends and the benefits that go with them emerge. “The adoption of digital tools which started in 2016 extends to 2017 and beyond, as Filipinos become more digitally reliant not only in their personal lives but at work as well,” Valmonte says. With office space generally becoming smaller and smaller, and the traffic situation worsening over time, SMEs and large enterprises are now starting to look at the possibility of implementing “work-at-home” or “work-from-anywhere” options. “With almost everyone having devices and Internet connection at home or on the go, the option of telecommuting is viable for employees who want to stay productive,” says Valmonte. The support of telecommuting has increasingly found support even from the government as the Department of Information and Communications Technology recently suggested this option during the 1st DICT Summit in November. With the proliferation of various SaaS (software-as-a-service) business applications available today, companies can maintain and even increase productivity anytime and anywhere. The future of telecommuting is seen to be clearer in light with high smartphone penetration rate which is expected to reach 70 percent by 2018, and general price reduction of other mobile devices becoming prevalent in the market. Online chat apps allow teams to both collaborate in open forums or just casually talk or catch up in private messages. This saves precious time and effort since employees need only to type on their PCs or even in their mobile phones anytime and anywhere. “Being a social people, we Turn to C2
WELCH’S LAUNCHES NEW CAMPAIGN IN PH
Welch’s marketing representative Erika Rodriguez
WELCH’S, a leading brand for bottled fruit juices, has been a part of the dinner table for over 140 years. The brand is named after its founder, Dr. Thomas Bramwell Welch, who decided to serve grape juice instead of wine to his fellow parishioners in Vineland, New Jersey back in 1869. Welch’s has since been popularly known for its grape juice variant that’s made with 100-percent grapes, particularly of Concord grapes that give it a distinct bold taste. These grapes are grown and harvested by about 1,000 family-farmer owners in vineyards found across the United States and Canada. For these families, farming is not just their source of livelihood but a way of life. The anecdote also encapsulates what the brand has become synonymous and what has endured to this day – the company’s desire to bring
goodness to people and places. In the Philippines, families have enjoyed the freshness of Welch’s juices for the past 20 years. “Filipinos give value to the presence of their families more than anything,” says Erika Ro driguez, Welch’s marketing representative in the Philippines. “This value resonates with Welch’s thrust on family and tradition as we are a family-farmer owned organization.” In line with the brand’s global vision, Welch’s Philippines has embarked on a new campaign called “Share What’s Good.” The campaign aims to start a movement that’s all about sharing the goodness of intimate moments and celebrations made even more special by Welch’s great-tasting fruit juices and sparkling beverages. “Welch’s believes in the magic of ‘kitchen table’ moments and has
been helping families enjoy them for generations. In the time it takes to drink a glass of juice or share a sandwich, a special moment can happen. It’s all about sharing those special moments that occur each day with family, friends, and loved ones – whether it’s at home or on the go,” says Erika. Goodness not only refers to the taste and refreshing quality of Welch’s products. The campaign also aims to highlight the health benefits of drinking Welch’s grape juice. The entire Concord grape is pressed into the juice so every glass contains a concentrated amount of polyphenols, a natural plant nutrient, that plays a key role in supporting a healthy heart. Welch’s also presents a convenient and easier way of making healthier choices for family since Welch’s 100-percent Grape Juice Turn to C2