Chinese toy retailer tests Cebu as Visayas gateway

CEBU, Philippines — Chinese collectible toy retailer POP MART International Group Ltd. is using Cebu as a test case for its next phase of Philippine expansion, showcasing how the country’s second-largest urban economy is increasingly attracting international brands seeking growth beyond Metro Manila.

The Beijing-based company opened its first Visayas pop-up store at Ayala Center Cebu early this month, with operations scheduled through December, as it gauges consumer demand in one of the Philippines’ fastest-growing regional markets.

The move reflects a broader trend among foreign retailers that are looking to Cebu as a barometer of consumer spending strength outside the capital, despite a global backdrop marked by economic uncertainty, trade tensions and uneven consumption growth.

“We see Cebu as a gateway to the broader Visayas market,” said Marilyn Villamayor, POP MART’s country head. The company is assessing the market’s potential after establishing stores in Metro Manila, including locations at SM Megamall, SM Aura and SM North EDSA.

For Cebu, the arrival of another international lifestyle retailer serves as an indicator of the province’s growing purchasing power and its emergence as a priority destination for consumer-facing investments.

Retail executives increasingly cite the Cebu’s expanding middle-income population, recovering tourism sector and robust business-process outsourcing industry as factors supporting discretionary spending.

Those economic drivers have helped position Cebu as one of the country’s most resilient consumer markets. Tourism arrivals have continued to recover, while the BPO sector remains a major source of employment and household income, creating a steady base of consumers for premium and non-essential products.

The interest from retailers comes as mall operators in Cebu continue to diversify their tenant mix, adding experience-driven and lifestyle-oriented concepts aimed at younger consumers.

International brands are increasingly viewing regional cities as growth engines at a time when competition in Metro Manila has intensified and retail space has become more saturated.

POP MART, known for its “blind-box” retail concept featuring collectible designer toys, is among the latest companies to test that thesis. The format, which allows customers to purchase sealed boxes containing randomly selected figures, has gained popularity across Asia through social media engagement, fan communities and collaborations tied to pop culture trends.

The Cebu pop-up features “CryBaby”, one of the company’s best-known character franchises. The retailer is betting that strong collector communities and rising demand for character-driven merchandise extend beyond the capital.

The expansion mirrors a wider Southeast Asian strategy by POP MART, where collectibles have proven relatively resilient even as consumers in some markets moderate spending on other discretionary goods.

The company has expanded aggressively across the Philippines over the past year, opening a permanent store in Quezon City and strengthening its presence in Metro Manila through additional outlets and refreshed retail concepts.

More broadly, Cebu’s ability to attract brands such as POP MART highlights the changing geography of Philippine consumption. Rather than focusing exclusively on Metro Manila, retailers are increasingly targeting regional growth centers where rising incomes, favorable demographics and expanding urban populations are creating new pockets of demand.

As global companies search for growth in an uncertain economic environment, Cebu is emerging as a key measure of consumer confidence outside the capital — and an increasingly important destination for international retail investment. — (FREEMAN)