Shift in consumer preference a challenge to local retailers

CEBU, Philippines - Although the retail industry seems to have a promising future ahead, specifically in Cebu, retailers brace for tougher challenges considering the fast changing consumer preferences.

Because of this, the Philippine Retailers Association (PRA-Cebu) is trying to cushion the possible effects of the new retail environment, by holding a one-day PRA regional conference in Cebu on June 29 (2011) at the Radisson Blu Hotel that will bring together successful and renowned retailers and experts in the country today.

PRA-Cebu president Melanie Ng said that the conference dubbed “Next Level Retailing: Discover, Differentiate, Deliver,” expects to gather at least 300 retailers from all over the country, particularly in Cebu, and neighboring provinces in Visayas and Mindanao.

“The times are challenging [for retail], although the prospects are rosier now, we have to equip ourselves with the new approaches, learning from the experts and successful retailers,” said Ng in a press conference.

Learning innovative ways in retailing, as well as adopting ways how to differentiate with other players is one of the key approaches in order to stay in the business. “We are now entering into the next level retailing landscape. We have to keep a brisk with the new trends and changing buying attitude of the consumers.”

According to Ng, this event is part of PRA-Cebu’s thrust to sustain the booming retail industry here, and help the new retail entrepreneurs to succeed, amid a very competitive environment.

Retail experts such as the president and chief executive officer (CEO) flourishing garment brand “Folded & Hung), Ronald Pineda, is expected to talk about the “Best Practices for Next Level Retailing,” while keynote speech will be addressed by President and CEO of Robinsons Land Corporation Frederick Go.

In general, Ng said the Cebu retail industry is looking at a modest growth in the coming next quarters, although retailers noted a slight decline of its second quarter performance compared to the same period of last year.

She said last year’s second quarter performance posted a tremendous growth because of the high election spending.

Moreover, towards the end of the first semester this year, the Cebu retail sector also felt a slight effect of the Japan calamity, considering that most of the big export employers here are Japanese firms.

However, the decline is surprisingly offset by the active entry of investments in Cebu, particularly in the Business Process Outsourcing (BPO), real estate sector, as well as the continued growth of the Overseas Filipino Workers (OFWs) remittances.

Ng warned Cebuano retail players to “stay aware” of what’s happening, as the Cebu retail market is becoming more sophisticated, prompting high-end and world-renowned and signature brands to open up shops here.

In general, Ng said the Cebu retail industry is expecting a good 2011 growth, compared to 2010 performance.