Retailers told to give convenience, out-of-ordinary experience to buyers

Sun.Star Cebu <> Tuesday, July 7, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

THESE days, shopping is no longer about the stores but about stories and experiences, said global marketing and advertising firm JWT.

JWT Manila chief executive officer Jos Ortega urged retailers to let their customers experience beyond the ordinary.

He cited several examples, including Apple that provided units that customers can try.

“(But) first, you must know your brand story. And be authentic.

Customers won’t be fooled. If they are, they won’t visit you again. Engage your clients and deliver your message,” Ortega said.

He urged retailers to strengthen their front lines since the employees are crucial in carrying out the store’s brand story.

Ortega was in Cebu for the 3rd Cebu Regional Retail Conference where he spoke about design techniques for the retail sector.

In the same event, Marge Martinez, The Nielsen Company (Philippines) Inc. associate director for retailer services, advised retailers to make a good and lasting impression on both regular and new shoppers.

“The struggling economy has a significant impact on how and where people shop. Now is not the time to cut corners on factors that will negatively impact shopping experience. Treat every shopper like it’s their first time in your store,” said Martinez.

The Nielsen Company (Philippines) Inc. has found that several retailers across the world are innovating by putting up in-store clinics, and stressing health and wellness messaging in store layouts, product assortment and advertising.

Martinez also pointed out that shoppers, who want convenience, are calling for malls to offer everything under one roof and for retailers to continuously replenish their products.

She noted that in response, commercial malls are expanding; community malls are combining supermarket, gym and health center and boutiques in their premises;
bakeries are putting up seats within their areas to encourage shoppers to eat; and convenience stores are offering more than just groceries.

She also observed that regional supermarkets are understanding local needs and creating modern wet markets while traditional store owners are upgrading their stores to become independent mini-marts or groceries.

“Some big players are going to smaller store formats in order to grow faster in the race for good locations and reach more consumers,” Martinez said.

Filed under: Business, Employment, Entrepreneurship, Retail, Small and Medium Enterprises

‘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

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

Chamber launches yearlong show featuring Cebuano entrepreneurs

Sun.Star Cebu <> Friday, June 19, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

THE Cebu Chamber of Commerce and Industry (CCCI) launched a year-long program geared at inspiring the entrepreneurial spirit of Cebuanos.

Dubbed as People (People Enhancing Opportunities, Propelling Leadership Excellence), the program will feature established and new entrepreneurs from the province.

“They are role models who (have) asserted a degree of leadership in the community. Others are coming from the grassroots, operating successfully their small-time businesses,” said Mila Espina, one of chairpersons of People.

During its launch last Wednesday at SM City Cebu, People showcased stories of Eva de los Santos of T-shirt brand Lokal, Bunny Pages of Pages Holdings Inc. and Ester Basata, a manicurist for 36 years.

One of the activities of the Cebu Business Month (CBM), People will run from July this year to May 2010 and will be participated in by at least 12 Cebu-based schools.
During the launch, de los Santos urged the public to keep a positive attitude and to keep working hard to achieve their dreams.

Lokal was established in 1992. It now has three retail outlets in Cebu.

Pages, on the other hand, told would-be entrepreneurs to do what they want to do and maintain a positive outlook.

Pages Holdings Inc. owns and operates various businesses, including Mooon Cafe, My Playroom, Bright Academy and Thirsty.

Basata, a widow from Mandaue City, provides manicure, pedicure and massage services to more than 10 regular clients a day.

“You must know how to take care of your customers and provide the best quality service to them so that they will keep coming back to you,” she said in Cebuano.

The second episode of People will be featured today at the Cebu International Convention Center.

Filed under: Business, Employment, Entrepreneurship

CCCI showcases 100 entrepreneurs during exhibit to inspire start-ups

Sun.Star Cebu <> Monday, June 15, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

TO inspire the youth, as well as provide mentors to existing and would-be entrepreneurs, the Cebu Chamber of Commerce and Industry (CCCI) opened the “Trails of Success” exhibit at SM City Cebu last Friday.

The exhibit, which is part of the Cebu Business Month (CBM) 2009 celebration, features “inspiring” stories of 100 Cebuano
entrepreneurs. Exhibit panels of 70 of the featured entrepreneurs are located at SM while the rest are at Ayala Center Cebu.

The exhibit will run for two weeks.

“This has never been done before in Cebu. We want to find ways to inspire, empower and challenge the people who want to start, continue or take their businesses to the next level,” said CBM entrepreneurship chairperson Kate Dychangco-Anzani.

CCCI and the CBM team selected the 100 successful businessmen and women according to the growth in their businesses, profitability, popularity and sustainability, among others.

Anzani said the entrepreneurs featured share some common traits—patience, perseverance and hard work. They belong to the furniture, financial services, cargo forwarding, shipping, real estate, food, pharmaceuticals, web-based business, tourism, education, fashion accessories and trade industries.

Anzani said the CBM entrepreneurship committee will work with the Entrepreneur Magazine to come up with a coffee table book that will contain the stories of all the entrepreneurs featured in the “Trails of Success” exhibit.

Meanwhile, the CBM entrepreneurship committee will hold a “Meet the Business Icons” forum on Thursday at the Marco Polo Plaza Cebu.

Business icons during the forum are George Tan Yang of Golden Arches Development Corp. (McDonald’s Philippines), Justin Uy of dried mango producer Profood International Corp. and Dr. Alfonso Uy, president of trading firm La Filipina Uy Gongco Corp.

Filed under: Business, Entrepreneurship

Construction materials suppliers report ‘steady’ sales amid crisis

Sun.Star Cebu <> Tuesday, June 9, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

DESPITE the economic slowdown, several construction industry players have remained optimistic as other sectors continue to post gains and end-users remain interested in home improvement.

Representatives of Hardwares Consolidated Inc. (HCI) admitted that the global financial situation has prompted investors and homebuilders to put on hold construction and expansion plans since last year.

However, this did not hinder construction suppliers from promoting their products, such as participating in the recently-concluded 17th Construction Show Cebu (CebuCon) and coming up with inventory sales to perk up the market, said HCI past president Charles Kenneth Co.

“Suppliers nowadays are hungry for business. They are coming up with ways to attract the market and achieve good margins,” he told reporters last week.

Other suppliers are tapping the real estate industry that reported a continuous rise in the number of projects, including condominiums, subdivisions and commercial buildings, he added.

Finishing work

He observed that sales of materials needed during the final phase of building construction remain “steady” as there are many structures that are in the process of being completed.

But he said there is a drop in sales of steel since “not many big structures are being started (this year).”

Without giving figures, he said the prices of steel and cement have dropped.

Co is urging homebuilders who have the financial resources to push through with their home improvement plans.

He said that the good number of attendees during the four-day CebuCon at SM City Trade Hall is an indicator that the public is still interested in being updated with what is new concerning building or renovating houses.

In a separate interview during the 17th CebuCon, Worldwide Home Depot owner and president Francisco Ong said the company experienced stable growth in sales as it continues to tap homebuilders, investors and developers.

“Every year, we participate in the CebuCon as a way of telling the public that we are still here to serve them,” he said.

The company has four outlets—Worldwide Home Depot South in N. Bacalso Ave., Cebu City; Worldwide Interiors Factory Outlet in Sacris Road, Mandaue City; Worldwide Home Depot Carcar; and The Tile Shop in A.S. Fortuna, Mandaue
City—catering to the Visayas and Mindanao regions.

Another exhibitor, GT Stone Works, is planning to penetrate the high-end residential homeowners market, as well as restaurants.

GT Stone Works, a Manila-based company, is involved in the manufacture of wall claddings and concrete stamping system, as well as turf works.

GT Stone Works Cebu showroom manager Ca-therine Lim said the company’s “eco-friendly” products are a better alternative
to natural stone finishes.

GT Works’ sales in Cebu has been growing since it set up a Cebu showroom two years ago, she said.

Filed under: Business, Construction/Building, Entrepreneurship, Real Estate

Filipino-owned export firm stays on course amid crisis

Sun.Star Cebu <> Friday, June 5, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

AFTER experiencing internal problems involving management and logistics, a homegrown export company that manufactures marine furniture is now enjoying a growing number of orders from shipbuilders.

Cebu Marine Furnishing Industries Inc. (CMFII) continues to tap the domestic market and is starting to expand its client base to shipbuilders in the United States.

CMFII general manager and factory operation head Gil S. Hilayo Jr. attributed the company’s growth to aggressive marketing and its efforts to streamline production processes.

“We don’t want to lose our market because of lack of efficient client-management system in the past. Being a Filipino company producing furniture for big shipbuilding companies across the world, we have to do more, especially in terms of quality, to get the attention of more potential international clients,” he told Sun.Star Cebu.

CMFII started as a backyard furniture business of the Hilayos before a Japanese shipbuilding company—Tsuneishi Forestry Construction Co. Ltd.—proposed a joint venture. Under the joint venture, T & H Furnishing Industries Inc. started operations in November 1995.

But conflict arose between the Hilayos and the Japanese management team hired by Tsuneishi, which led to end of the joint venture last April.

Hilayo said that his family saw the potential of exporting marine furniture and decided to continue the business, which employs around 150 workers.

Last May, the company—now known as CMFII—was registered with the Securities and Exchange Commission and with the Philippine Economic Zone Authority as an economic zone export enterprise. Its 2,000-square-meter plant is located at the Mactan Economic Zone 2.

CMFII makes custom-built furniture—tables, chairs, sofas, beds, navigation desks, wardrobe and medicine boxes—for ships. Its clients include Tsuneishi Shipbuilding Co. Ltd. (Japan), Tsuneishi Heavy Industries (Cebu) Inc., Samsung Heavy Industries Co. Ltd. in Korea and FBMA Marine Inc., which manufactures fastcraft vessels in Balamban, Cebu.

Using imported raw materials from Europe, it also manufactures steel furniture, as well as curtains and upholstery. It also
undertakes the outfitting works of ships that will be built by Sub-See Philippines Inc. at the Cebu Yacht Club.

This year, it will be working on more than 30 orders from US, Europe and other parts of Asia.

The company’s former investor is now its distributor in Asia while Norac Marine Furniture A/S is its distributor in Europe.

“We will also be tapping the local market, including inter-island shipping companies,” Hilayo said.

Since shipbuilders have reported declining orders, CMFII—whose closest competitors are based in China—is eyeing companies that are engaged in maintaining and refurnishing existing ships.

Filed under: Business, Employment, Entrepreneurship, Export Sector, Tourism