‘Find opportunities,’ traders told

Sun.Star Cebu <> Friday, July 3, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

A MARKET research provider advised local suppliers and retailers to identify opportunities amid consumer trends resulting from the global financial crisis.

According to The Nielsen Company (Philippines) Inc., this will enable them to generate business growth as more consumers are driven to cope with the economic crunch through saving and looking for value-for-money items with ease.

At the same time, Filipino consumers still desire for better quality of living by seeking innovations related to health and the environment.

Marge Martinez, associate director for retailer services of The Nielsen Company (Philippines) Inc., presented this information in last Wednesday’s 3rd Cebu Regional Retail Conference at Parklane Hotel.

She said consumers today are reducing spending, purchasing the basic necessities, are becoming more sensitive to prices and promotions and are preferring to shop in areas that are convenient and accessible.

In a recent study, The Nielsen Company (Philippines) Inc. found out that the Filipino shoppers’ average spending declined but their budget on fresh food remains as is.

It was also noted that the decline in spending is seen among middle income consumers.

However, this trend in downsizing to a smaller basket in consumers is not happening in urbanized areas, specifically in
Metro Manila, Central Visayas and Southern Mindanao.

This could be attributed to the areas’ higher salary brackets.

Martinez said that while supermarkets remain to be where shoppers spend most of their money, the economic pressure is causing several of them to shift to more accessible trade outlets.

“Consumers buy only what is needed on a “when needed” basis as they make more shopping trips to make comparisons on prices, among others,” she said.

The same study by The Nielsen Company (Philippines) Inc. shows that convenience, low prices and accessibility are the top factors that shoppers look for in a supermarket.

Price-sensitive

It also indicates that three-fourths of the shoppers are price-sensitive, especially those from Visayas, Northern Mindanao and Southern Luzon.

“Most shoppers know the prices of most items they purchase and are aware when prices change. They are also more sensitive to unit price,” Martinez said.

The financial crisis has also prompted consumers to give up first the indulgence products, including alcoholic drinks, carbonated soft drinks, chocolate, salty snack food and ice cream.

Martinez said promotions will likely be more successful if done for brands of preference while new brands must have a
“compelling reason” for trial as shoppers tend to be loyal to their brands and be selective on the new ones.

At the same time, more consumers are either staying home or going only to their favorite restaurants, but out-of-home consumption is lesser.

Apart from the financial crisis, the key demographic trends have also gradually affected lifestyle and shopping preferences.

Martinez explained that in the country, the household size is shrinking, the population of those who are 60 years old and above is increasing, and there are higher incomes in better job segments, such as the business process outsourcing companies’ workforce.

She said that a “strong partnership” between suppliers and retailers must pave the way for a better understanding of these consumer trends to continue generating growth.

Filed under: Business, Entrepreneurship, Real Estate, Retail

CCCI awardees stress importance of hard work in success of business

Sun.Star Cebu <> Thursday, July 2, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

BEING inspired and being able to inspire were among the traits shared by the six local entrepreneurs who were honored during the 14th Annual Grand Chamber Awards Tuesday night.

The top award—Entrepreneur of the Year—was handed to Profood International Corp. president Justin Uy who was described during the awards night as a “self-made business icon.”

When he was 12, Uy started selling cigarettes to vendors on consignment. Shortly after, he he ventured into shell craft and later opened an egg and poultry business.

He enabled Profoods to achieve further growth amid economic and financial difficulties, and positioned the company as leading producer and exporter of processed fruit products.

“I am here partly because of my brother and sisters. I think my greatest success is to get 11 of us to work together. That is something I am very proud of,” said Uy who received the award from Gov. Gwendolyn Garcia, Rep. Raul del Mar (Cebu City south) and Cebu Chamber of Commerce and Industry (CCCI) president Samuel Chioson.

In a separate video message, Uy said the secret of being a successful entrepreneur is hard work. “There is no replacement for it,” he added.

The other awardees—Hyundai Cebu president Edward Onglatco as the Young Entrepreneur of the Year; San Remigio Beach Club president Antonio Ynoc as the Countryside Entrepreneur of the Year; CNT Lechon proprietors Norman and Catherine Quijada as Small Business Entrepreneurs of the Year; 33 point 3 Exports Inc. president Jenifer Cruz as the Socially Responsible Entrepreneur of the Year; and Royal Oaks International School president as the Emerging Entrepreneur of the Year—shared his views about the importance of hard work and perseverance.

The CCCI picked its awardees based on social responsibility, personal integrity, their businesses’ strategic direction, entrepreneurial spirit and the financial performance of their companies.

The Grand Chamber Awards, which was culmination of the Cebu Business Month 2009 of the CCCI, also included four special citations.

The Cebu Investment Promotions Center (CIPC) received a special citation for promoting Cebu to foreign direct investors.

According CCCI, CIPC is the “driver of investment opportunities in Cebu, the provider of business research and data…(and) the developer and trendsetter of economic thrust and direction.”

Cebu Mitsumi, Inc. got a special citation for employment generation and for being the top employer in Cebu. The electronic parts manufacturer had 8,393 workers as of March and contributes at least P40 million a month to the local economy.

A special citation for exemplary commitment to Cebu was given to Lexmark Research and Development Corp. for bringing its research and development operations to Cebu.

The company was also lauded for having “greatly contributed (and for being a) catalyst (in propelling) Cebu’s information and technology toward global competitiveness.”

British Armour Manufacturing International Inc. also received a special citation for exemplary contribution to innovation and technology. The company has more than 30 years of expertise in armoring and providing protection to guarantee ballistic safety with high quality design.

Grand Chamber Awards 2009 chair Alice Woolbright Fernandez said in a statement that the award’s goal was to provide “more than our usual dose of inspiration in today’s crucial and fragile economy.”

Filed under: Business, Employment, Export Sector, Retail, Small and Medium Enterprises

Liberal trade, WTO bring opportunities to Cebu firm

Sun.Star Cebu <> Thursday, July 2, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

AN international freight forwarding company maintains a positive outlook amid the global economic crunch that is affecting the country’s export industry.

Global Carrier Philippines Inc. managing director Camel de Pio-Salvador said there is a “big future” in the forwarding industry with the liberalization of trade among countries under the World Trade Organization.

She cited the lowering of trade barriers and the establishment of free trade agreements that prompt countries to remove tariffs on imports.

But she admitted that Global Carrier has experienced a “slight decline” in terms of volume of shipment. “We never experienced zero” even as the country begins to feel the effects of the global financial crisis, she said.

“The (forwarding) industry is relatively okay. It’s a continuing business,” she said.

She expressed hope that there will be more investors in the import and export industry.

De Pio-Salvador raised the need for establishing linkages with industry stakeholders in other parts of the world.

Last June 11 to 14, de Pio-Salvador attended the 6th Annual Sino-International Freight Forwarders Conference at Asia World Expo in Hong Kong. The event, organized jointly by the China International Freight Forwarders Association and World Cargo Alliance, provided a venue for top independent international logistics companies to network and explore opportunities for business growth.

It was attended by 1,500 delegates from 140 countries and regions. Global Carrier Philippines Inc. was the only Cebu-based company present.

“Through the conference, we were matched with other forwarders (with whom we) created contacts. At the same time, we were able to check the top (export and import) products in their locations,” de Pio-Salvador said.

Incorporated in 1994, Global Carrier Philippines Inc. offers comprehensive cargo services. It also caters to expatriates and consultants in the mining, cement manufacturing and energy generation sectors.

Filed under: Business, Export Sector, Small and Medium Enterprises

DOT eyes Israeli tourists

Sun.Star Cebu <> Wednesday, July 1, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

APART from searching for new and emerging tourist markets, the Department of Tourism (DOT) is reviving links with countries whose residents used to frequent the Philippine’s tourist destinations.

Besides the Middle East, the DOT has also set its sights on Israel where many residents are fond of sports and adventure activities.

This year, the DOT hopes to see a 40-percent growth in visitor arrivals from Israel. The agency is also hoping that Israel will become the Philippines’ top tourist markets next year.

“According to them (Israelis), they kept coming to the Philippines 10 years ago. As the years went by, their arrival figures declined. We don’t know why,” said Tourism Undersecretary for Tourism Planning and Promotions Eduardo Jarque Jr.

But he said the country needs to implement marketing and promotional programs in Israel to persuade more Israelis to visit adventure and eco-tourism destinations in the Philippines.

More traffic

In a visit to Cebu in May last year, Israel Ambassador to the Philippines Zvi Aviner Vapni said the two countries have the capabilities to increase tourist traffic both ways, but lack the awareness of each other’s potentials.

Currently, the Philippines is competing with Thailand and Malaysia, which are also offering adventure and eco-tourism packages to attract more Israeli travelers.

“(At present) Israel’s numbers (in terms of arrivals to the Philippines) are not great; we are not talking of the same numbers as China and India. But the quality of travelers is there. Israelis are good spenders and we have the potential to provide them with value-for-money adventure packages,” said Jarque.

He added that DOT expects an increase in Israeli tourists after the airing of hit reality show “Survivor”—which featured Caramoan, Camarines Sur—in Israel in October this year.

Jarque said Israeli travelers would come in groups and would likely spend about a week in a tourist destination. DOT is also eyeing Israelis who want to go on vacation after their mandatory military service training.

Jarque said the DOT is in talks with 12 tour operators based in Israel to develop new products for the Israeli tourism market. The DOT is organizing a familiarization tour for the tour operators this year.

The DOT is also coordinating with Philippine Ambassador to Israel Petronila Garcia to make the trip of Israeli tourists to the Philippines more efficient.

Jarque accompanied Tourism Secretary Joseph Ace Durano during the unveiling of the Open Doors monument at the Rishon Lezion Memorial Park in Israel last June 21. The historical landmark recognizes the Philippines for its support to the European Jews who sought refuge from the Holocaust in the 1930s.

Filed under: Business, Tourism

Flour millers lament low demand, entry of smuggled variety in RP

Sun.Star Cebu <> Wednesday, July 1, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

ALTHOUGH food is a necessity, consumption of baked products has been dampened by the global economic slowdown.

Philippine Foremost Milling Corp., the country’s second largest flour miller, reported that its sales have declined as Filipino consumers start experiencing the effect of the global financial crisis.

Dr. Alfonso Uy, president of Philippine Foremost Milling Corp., lamented that the effect of the crisis has been aggravated by the entry of smuggled flour into the country.

Uy blamed the declining demand for flour on high prices. He said wheat from the United States has caused the price of flour to go up. Wheat is the main ingredient of
flour.

Last year, demand for flour fell around 20 percent industry-wide. Another five-percent drop is expected this year, Uy said.

He said production of the flour milling industry is contracting. Flour millers in the country used two million tons of wheat three years ago but processed only 1.8 tons in 2007 and 1.5 tons last year.

Weak demand has caused prices of flour to drop since third quarter last year.

“(But) the commodity market is picking up again. (So) there is no chance for flour prices to go down some more,” Uy said.

While the market is yet to fully recover, Philippine Foremost Milling Corp. is maintaining a baking school and “going out of its way” to encourage the public to use more flour products.

Uy was in Cebu last June 18 as one of the featured entrepreneurs in the Meet the Business Icons, one of the highlights of the Cebu Chamber of Commerce and Industry-Cebu Business Month 2009.

Filed under: Business, Employment, Entrepreneurship, Export Sector

Investing in IT good for firms

Sun.Star Cebu <> Wednesday, July 1, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

INFORMATION technology (IT) players urged companies to invest in more efficient IT infrastructure that will boost productivity and enable them to stay competitive.

Cebu Educational Development Foundation for IT (Cedf-it) executive director Bonifacio Belen said IT should be considered a “driver of growth” and the assembly line for further innovation.

While IT in companies has progressed from management information system to business support system, Belen observed that many business owners still provide a meager budget and attention to IT infrastructure.

Lope Doromal Jr., IBM Innovation Network-Philippines client technical adviser and chief technologist, raised the need for businesses to cope with the demands of today’s “smarter planet,” which is characterized by an “instrumented, interconnected and intelligent” market that is heavily exposed to communication gadgets, Internet and new information.

“Is your business in the position today to serve in a smarter planet?” he asked participants in the IBM Business Reality Summit at Cebu City Marriott Hotel last week.

“Building a Smart Pla-net” is a campaign launched by IBM late last year.

Doromal advised businesses to consider four key areas—new intelligence or information; smart work or flexible and dynamic business process; dynamic infrastructure; and eco-friendly systems—to cope with the demands of the market.

Evenard Marquez, IBM Philippines technical solution architect for integrated communications, said IBM offers solutions to help companies cut costs, improve IT performance, and thrive in this new, smarter planet.

He said that IBM also offers an assessment methodology that will evaluate the current IT system of a company and identify cost savings before carrying out solutions that would support a dynamic IT infrastructure.

Chestnut Andaya, IBM Philippines country manager for general business, observed that a growing number of businesses are being drawn into using IT to cope with the effects of the global financial crisis.

In Cebu, the bulk of IBM costumers are engaged in manufacturing, retail and utilities. IBM has been present in Cebu since 1974.

Filed under: Business, IT/Computers/Software Development

Loan relief for jobless

Sun.Star Cebu <> Tuesday, June 30, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

THE Home Development Mutual Fund (Pag-Ibig Fund) will implement a housing loan restructuring program that will allow members who have lost their jobs to “hold on” to their houses and lots.

Pag-Ibig Fund has made the offer under its Socialized and Low-Cost Housing Loan Restructuring and Penalty Condonation Program.

Victoria dela Peña, department manager of Pag-ibig Fund-Mandaue Branch, said the program will assure displaced workers that their properties acquired through Pag-Ibig Fund will not be foreclosed immediately if they go on default due to financial difficulties.

A borrower is considered in default when he fails to pay three consecutive monthly amortizations.

Dela Peña said defaults are inevitable among some Pag-Ibig Fund borrowers, especially in the face of the global financial crisis, since their priority would be food and education for their children.

“Once a borrower is in default, his loan would already be due and demandable but we give him until the ninth month before we initiate foreclosure proceedings. He is given a long period to fulfill his payments,” she said in an interview last week.

Default

The Pag-Ibig Fund, in its website, said the new restructuring program will cover delinquent accounts with at least three months of unpaid amortization payments as of March 16, 2009. It will be implemented within 18 months from the effectivity of the program’s guidelines, which were approved on March 30.

Dela Peña hoped the time stated in the guidelines would be enough for member-borrowers to find another job so that they would be able to continue paying their loans.

“If the borrower really has a hard time paying his monthly amortizations after the sixth month or so, we would advise him to sell his property so that Pag-Ibig would still consider him a good account. By the time his finances improve, he can easily avail another housing loan through Pag-Ibig,” she said.

Pag-Ibig’s restructuring program, mandated under Republic Act 9507 or the Socialized and Low-Cost Housing Loan Restructuring Act of 2008, aims “to provide relief to delinquent borrowers in this time of financial crisis through condonation of accumulated penalties and a portion of accumulated interest.”

RA 9507 became effective last March 16 after President Arroyo signed it.

Under Pag-Ibig’s restructuring process, principal terms and conditions of the original loan are modified in accordance with an agreement, setting forth a new plan of payment on a periodic basis.

Dela Peña said that unlike previous restructuring programs of Pag-Ibig, this new program does not require any down payment or processing fee.

Without giving figures, dela Peña said several Pag-Ibig borrowers—including displaced overseas and local workers—are already in default due to lack of financial
resources.

Still, in the first four months of the year, she noted that the Visayas group of Pag-Ibig Fund is collecting up to 95 percent of the loans, manifesting “high collection efficiency.”

Filed under: Business, Employment