CEBU, Philippines - The retail giants’ invasion of Cebu and other parts of the region is hurting local retailers, thus a retail leader calls for an immediate “overhaul of business culture.”
Philippine Retailers Association (PRA-Cebu) president Robert L. Go made this call yesterday during the organization’s General Membership Meeting held at the Bayfront Hotel.
Although this call is not new to the retail players, Go said local retailers have to make actions right now, before it’s too late.
“The ASEAN integration is now in effect. Homegrown retailers are challenged by the entry of retail giants such as H&M, Uniqlo, Forever 21, and Zara. Even the local hardware scene is invaded by Manila biggies not to mention the proliferation of big box supermarkets in every corner, in every barangay,” said Go, who owns the Prince Warehouse Club chain of stores in Visayas and Mindanao.
With this retail landscape transformation, Go urged local retailers to “know their capability, upgrade their skills and marketing efforts, merchandize selection, costing, pricing, quality, graphics, loyalty program, customer service, availability, strategy and they must constantly improve their status in the market.”
Finding niche and nurturing strength as local retail players should be maximized in this “hurting” times, Go said adding that part of implementing “operational correction” or adjustment is to emulate how some local players managed to protect their market grip and, in fact, conquered the international market.
“The likes of Penshoppe and Bench which upgraded themselves to even become international without waiting for the influx of big brands. We should emulate how they upgrade and step up,” Go said implying that the fight is not only in the fashion/garment sector, but across retail segments like general merchandise, food, technology and gadget distribution, among others.
In addition to what Go said, an intensive study of the changing preference and buying psyche of the local market, specifically the new breed of consumer spectrum should be done outrightly, along with other necessary programs and investments in order to stay afloat.
Local retailers had been warned against the threatening effects of the ASEAN integration, and now some of these effects are slowly hurting local businesses. But it cannot also be denied that there are sectors that are benefiting from the opportunities brought about by the integration.
“We are no longer the sick man of Asia. We are already the favorite of the world and since everyone wants a pie from us now is the time to shape up,” Go concluded. (FREEMAN)