Industry players foresee sustained demand for tiles

Sun.Star Cebu <> Thursday, July 9, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

RESPONDING to customers’ clamor for housing solutions, Cebu Oversea Hardware Co. Inc. inked a pact with Malaysia-based tile manufacturing company White Horse Malaysia last week to distribute the latter’s products in the Philippines.

“The demand for tiles in the local market will always be there because houses are being built. It is just a matter of buying the cheapest, the mid-range or the expensive one. The purpose of distributing White Horse is to offer the public European quality products at affordable prices,” said Michael Co, chief executive officer of Cebu Home and Builders Centre.

Cebu Oversea Hardware owns and operates Cebu Home and Builders Centre, a one-stop shop of building materials. It also owns and manages other furnishing and finishing stores, including Expo Tile and Bath and Home Improvement Center, Living ‘n Style, The Home Depot, and Better Living Tile and Bath Center.

Cebu Oversea Hardware will be the sole Philippine distributor of White Horse Malaysia tiles.

Cebu Home and Builders Centre general manager James Co added that the company is also trying to create a demand for White Horse tiles among home builders and
home- owners by providing virtual solutions.

Virtual showroom

In collaboration with Cebu Oversea Hardware, White Horse is setting up a “virtual showroom” showcasing panels of tile samples and the “Just Click” computer software that will allow customers to see different design concepts of tile samples.

The virtual showroom, equipped with a design program called “I-Designer,” will also enable customers to design their rooms on the computer and have them printed out on the spot.

Lawrence Lim, White Horse Malaysia regional manager for overseas branches, said the exclusive value-added service is available at no extra cost to the customer.

This virtual showroom will be set up at The Home Depot outlets in Metro Manila and at the Expo Tile and Bath and Home Improvement Center in Parkmall, Mandaue City.

White Horse products will also be available in these stores and other stores under Cebu Oversea Hardware. They will be distributed to key cities in the Visayas and Mindanao.

White Horse plants in Taiwan, Malaysia, and Vietnam produce a combined 60 million square meters of tiles per annum.

It plans to put up a new manufacturing plant in the Asia-Pacific to meet the growing demand for tiles. The Philippines, with its growing population and high preference for quality products, is being considered as a potential site for White Horse’s manufacturing operations.

Filed under: Business, Construction/Building, Export Sector, Real Estate, Retail

Wholesaler opens retail store for home finishing, furnishing

Sun.Star Cebu <> Wednesday, July 8, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

A WHOLESALE distributor of home furnishing and finishing products in the Visayas and Mindanao has put up a new store in Highway Maguikay, Mandaue City to cater to the growing construction industry in Cebu.

Home Options Inc. will formally open today Savers Home Depot, a 2,100-square-meter retail store that displays various home products, including tiles, lighting, water faucets and vanities.

“As the company grows, we see big opportunities in Cebu where the construction business is growing,” Home Options Inc. president Kendrick Sulay told Sun.Star Cebu.

He said the company invested around P20 million on the store, including its stocks.

There are plans to put up more Savers Home Depot stores in the northern part of Cebu.

“The south, where there is a very big market, is already congested, and there are many competitors located there.

The market for construction in the north, on the other hand, is growing,” Sulay said.

He remains optimistic amid the global financial crisis that is affecting consumer spending, saying the market is still very big and there is still room for more suppliers and distributors.

Apart from plans of expanding to the north, Savers Home Depot will also partner with developers and homeowners associations.

Savers Home Depot, Sulay said, is being positioned to target classes B and C and “a little of class A.”

The store’s “boutique” layout was created to attract more customers and give them home design ideas.

“When a customer comes in, he will immediately see our products, like lights and furnishings imported from China and Malaysia, among others,” Sulay said.

Another part of the store is the Do-It-Yourself (D.I.Y) section that Sulay plans to expand, depending on the market response.

Savers Home Depot soft-opened last June 20. Its mother company, Home Options Inc., started in March 2005 and continues to distribute home-related products on a wholesale basis outside Cebu.

Filed under: Business, Construction/Building, Real Estate, Retail, Small and Medium Enterprises

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

SM wants another mall

Sun.Star Cebu <> Monday, July 6, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

A SECOND SM mall for Cebu by 2011.

SM Prime Holdings Inc. (SMPHI) president Hans Sy made the disclosure, adding that the company is in the middle of negotiations for the possible acquisition of three separate properties in Cebu where the company plans to build one more mall.

“I should say (there will be) good news toward the third quarter (this year). By then, we should be closing some deals, although (we) cannot promise you that we will be able to acquire all three properties,” Sy told a press conference Friday.

At first, he declined to reveal the location of the three properties, but he admitted later that one of the sites is the South Road Properties (SRP), the 300-hectare reclamation project of the Cebu City Government.

“It would be very ideal to close all three. I wish I could take all three. If I can, I would. Hopefully, it would include the SRP. That is how bullish we are with Cebu. We already acquired a new site in Davao and General Santos, so why not (also) look at Cebu when it is among the best in the Visayas and Mindanao,” Sy said.

2011 opening

Once it closes a deal, SMPHI will immediately start construction and open a new mall “within 18 to 30 months.”

If it closes all three deals, SMPHI will simultaneously build three SM mall branches and open them by 2011.

For each development, SMPHI will implement a “formula” of starting on an area of 80,000 to 85,000 square meters before upgrading it into a mall occupying 200,000 square meters—about the same size as SM City Cebu.

“Definitely, we have to have at least a second mall in Cebu.

The locations we have identified are very ideal and have the (potential) for expansion,” Sy said.

He believes that Cebu is ready for more malls, saying there is enough market despite the global financial crisis.

In 2007, Sy disclosed plans of building two future malls in Cebu—each expected to cost P1 billion—once SMPHI has found land for the projects and after the completion of the SM City Cebu Northwing.

Offer

In October last year, the Cebu Investment Promotions Center, the marketing arm of the SRP, disclosed that SMPHI made an offer to buy a 20-hectare parcel of land at SRP for a mixed-use development project.

Meanwhile, SMPHI will open this year a supercenter in Las Piñas and a shopping center in Cavite, bringing the total number of SM malls nationwide to 36.

Next year, the company targets to open four malls, all in Luzon. Construction of SM malls in Davao and General Santos is underway. The malls are expected to be completed by 2011.

SMPHI also has three malls in China—Chengdu, Jinjiang and Xiamen—and will be putting up the fourth in Suzhou, China next year.

“Our main focus is still the Philippines. There is still room for growth here. China is our growth story five years from now.

We are, little by little, building our brand name there,” said Sy who attended the inauguration of China Bank Cebu Business Center last Friday.

With so much competition in China, he said SMPHI’s strategy is to enter into third-tiered cities where most of the residents are not familiar with shopping malls.

Sy also disclosed that SMPHI has brought the equipment that will introduce Imax (Image Maximum) cinema technology in Cebu.

The company is renovating Cinema 4 at SM City to house the equipment.

When asked for updates on the planned convention center of SM Investment Corp. (SMIC), Sy said the company is still focused on finishing the Radisson Hotel—an SMIC property that will be managed by international hotel management chain Radisson—located beside SM City Cebu mall at the North Reclamation Area, Cebu City. The hotel will soft-open in November this year.

SMIC, he said, is still studying ways to come up with enough parking slots for the three-story convention center that is planned to rise on an 8,000-square meter area next to Radisson Hotel and SM City Cebu mall.

Filed under: Business, Construction/Building, Employment, Fun/Entertainment, Retail

‘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

Fast food chain posts sales hike

Sun.Star Cebu <> Thursday, June 25, 2009

BY NANCY R. CUDIS, Sun.Star Staff Reporter

DESPITE the global economic slowdown, McDonald’s outlets in the country are experiencing positive growth and increasing sales.

This was disclosed by George Tan Yang, chairman of Golden Arches Development Corp., which brought the international fast food chain brand to the Philippines in 1981.

Yang told a press conference last week that McDonald’s accommodated a growing number of customers who used to dine in sit-down casual restaurants.

Yang, however, declined to give growth figures for McDonald’s Philippines.

Golden Arches is the Philippine franchisee of American fast food chain McDonald’s. There are about 300 McDonald’s outlets in the country. The company is eyeing to build around 15 more this year.

“We have not really experienced any downturn. We are experiencing growth in crisis as some sit-down restaurants are experiencing a decline (in sales and visitors).

Overall, we have positive growth,” said Yang, who was one of the featured entrepreneurs in the recently-concluded Meet the Business Icons organized by the Cebu Chamber of Commerce and Industry for the Cebu Business Month.

The global financial crisis, Yang observed, has made consumers prudent and caused them shift to fast food.

Still, he said, Golden Arches continues to maintain the quality of food and services of all McDonald’s outlets in the country to ensure customer satisfaction.

Yang said that with the continued growth in sales, getting investors to build more McDonald’s outlets in the country would not be a problem. He admitted, though, that the problem may be in finding suitable sites for the new outlets.

Asked for his advice to existing and would-be entrepreneurs amid the crisis, Yang said: “Go back to the basics. Serve your customers the right way and give them the best products and services. Be consistent with your service. Wait and better days will come.”

Filed under: Business, Employment, Retail