MANILA, Philippines - Japanese conglomerate Itochu Corp. is planning on new business ventures in the Philippines due to better economic prospects.
Consumer-related businesses are attractive for the Japanese conglomerate given the growing population, a company executive said.
“We are looking at consumer-related businesses like convenience stores or business process outsourcing (BPO) business,” said Itochu Manila general manager Kenichi Hisatomi.
Hisatomi said the Itochu can bring in convenience stores or Internet related businesses to the Philippines.
For this, Itochu is looking at bringing their expertise in the consumer business through a local partner that knows the market.
Itochu started as a linen retailer in 1858 before becoming a trading giant in Japan. It is now a global conglomerate with more than 150 offices in 85 countries.
For the consumer business, Itochu owns and operates its convenience store network FamilyMart.
“Population is growing with a very young people who can spend money on merchandise or the Internet. We can do same business model as in Japan,” Hisatomi said.
The growing consumer spending poses growth prospects for the Japanese conglomerate.
So far, Itochu is into the liquefied petroleum gas (LPG) business through Isla LPG Corp. under a joint venture with the Delgados’ Citadel Holdings Inc.
In September, Pilipinas Shell Petroleum Corp. announced that it will sell its LPG business to Isla LPG Corp. in line with the multinational oil firm’s strategy to concentrate its global downstream operations into larger markets.
Itochu is also the exclusive distributor of Dole’s Philippine bananas to Japan. The Japanese conglomerate will commission an ethanol plant in the province of Isabela in June.