SSI taps into e-commerce, fixes price range for IPO

MANILA, Philippines - Tantoco-owned SSI Group Inc., the largest specialty retailer in the Philippines, is venturing into e-commerce next month in a move seen to further boost accessibility of its products to customers.

SSI president Anthony T. Huang, said the company is set to launch next month an e-commerce website called SSIlive.com.ph.

The platform will allow SSI to sell its imported luxury brands that the company retails through electronic channels.

Huang said SSI plans to take advantage of the growing popularity of e-commerce as a trading platform in the country.

“While e-commerce is still relatively small at this point in time in the country, it is one of those industries that once it reaches its inflection point it will just keep on growing. With our brand portfolio, naturally, it makes sense for us to start giving our customers the option to either buy from us through our physical stores or buy from us online,” he said.

“We want to really grow with our customers evolving lifestyles. If e-commerce is part of that, then we want to be there,” he added.

As the leading specialty store retailer in the country, SSI at present operates103 international brands which includes Hermès, Prada, Gucci, Burberry, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap, Old Navy, Zara, Stradivarius, Bershka, Aeropostale, Samsonite, Nine West, Payless Shoe Source, Beauty Bar, Marks and Spencer, Pottery Barn and TWG, among others.

It has presence in 68 major malls across the country through 655 specialty stores.

Once the new platform becomes available, Huang said SSI would become the only e-commerce player in the country that can allow consumers to do their shopping either through stores or through the website.

“We’re probably starting with 20 brands and we will progressively add to that roster as we move along. We’re going to do a soft launch first next month and by the first quarter of next year we’ll do a formal launch,” he said.

Huang said some of the products that would initially be available through the website include its beauty brands, footwear brands, home furnishing, and food offerings.

“Our target market for SSIlive.com.ph is purely the domestic market. Our target are our customers who not only live within the vicinity of our stores but also customers who likewise live outside Metro Manila or live outside the key cities in the Philippines that frequent our stores when they are in those key cities. So now, we have the option for them to buy online and for the products be shipped to them,” he said.

SSI is tapping a regional firm called aCommerce to run the back-end operations of the e-commerce platform.

aCommerce is a provider of end-to-end e-commerce solutions for start-ups, retailers, brands and manufacturers in Southeast Asia.

Aside from making its presence felt online through the e-commerce venture, SSI intends to continue beefing up its physical outlets as well for the remaining months of the years and next year.

SSI is eyeing to end the year with a total of 740 specialty stores, with another 100 to 115 more stores targeted to be opened next year.

SSI, the fourth company to be listed on the local bourse this year, has set the price range of its maiden share sale at P7 to P7.50 each.

With the price range set, SSI is looking to raise between P6.96 billion and P7.45 billion.

“The basis of the valuation was set following consultations with our underwriters and after having discussions with large institutional investors and we feel it’s a reasonable valuation that is in line with the valuations from other comparable companies,” said Marti A. Atienza, SSI vice president, during the Manila leg of its roadshow.

Atienza said SSI would hold a roadshow in Singapore, Hong Kong and London as well.

SSI intends to sell 864.23 million primary and secondary shares, with an over-allotment option of up to 129.63 million shares.

Offer period is on Oct. 27 to Oct. 31, with listing on the Philippine Stock Exchange set on Nov. 7.

SSI intends to use the proceeds from its initial public offering (IPO) to fund capital spending for business expansion as well as cut down debt.

The company said it is not worried that its IPO would come in a time when global and local stock markets have been on a downtrend.

“We’re naturally hoping that things would stabilize in the next couple of weeks.Taking into account the fundamentals in the Philippines today, there’s really no reason for any downtrend for this point in time. We’ll be fortunate that things will stabilize in the next few weeks,” Huang said.