MANILA, Philippines - When engaging in business of any kind, the traditional mindset has been to battle against competitors and engage them in all-out war. This way of thinking has been a cornerstone of capitalism and economics for so long that to think otherwise would be close to sacrilegious. However, this is a different time and what passed off as gospel in the past needs to be reassessed. In an increasingly global market with open borders and lowered tariffs, engaging in direct competition with foreign brands might not be the most ideal scenario for any Filipino-originated brand.
To that end, the Philippine Marketing Association (PMA) is advocating for an attitude of synergy and cooperation, turning the old paradigm on its head. Referring to the Asian Free Trade Agreement (AFTA) that will go into full effect in 2015, current PMA president Yayu Javier notes that, “the mission of this Asean Economic Cooperation is to bring together the best of each country, its people, resources, companies, and make the Asean region more globally competitive. This becomes then a strategic opportunity for PMA to take on this role for the marketing industry and provide the opportunities where companies can match against its strength, work with other countries on how to synergize and create a competitive offering to the global market.”
At the first ever Asian Marketing Congress that will be held on July 17-18, 2014 at the Philippine International Convention Center (PICC), marketers from around the world will be on hand to discuss the implications of the increasingly global nature of the market.
“The very purpose of the ASEAN Integration is to remove the barriers and allow the free flow of goods, services and talents while monitoring and regulating quality and fair practices,” Javier notes before adding, “the PMA will support this purpose through its various programs and the Asian Marketing Congress is one such program.”
“Local brands have the distinct advantage of understanding the local market, consumer behaviors, trade practices, government regulations and industry regulations,” Javier says. “Foreign brands, on the other hand, provide a new perspective, approach and (if they are multinational brands), they would have the quality benchmarks, standardized processes and cross-borders experience. The merging of different cultures and practices promote innovation, improvement of processes, and sharing of best practices.”
In explaining why the PMA advocates for this shift to the more cooperative model between brands/products across borders, Javier says, “Learning to collaborate with competition will provide faster growth of the companies leveraging on each one’s strength while still protecting their own trade secrets.”
She also proudly talks of the following success stories that were born locally: “There are several Filipino brands that have become global and excelled in foreign markets such as Bench, Oishi, Jollibee, San Miguel, Max’s, Goldilocks, Figaro, Ginger Snaps, and many more.” These are examples of Philippine brands that took on the challenge of going beyond our shores but with a focus on synergy, they were able to make inroads in new markets abroad. “Tying up with local companies can increase a Filipino company’s chances of being successful as it can then quickly immerse itself with the culture and local market conditions,” she says.
As for cases of foreign brands that have made headway in the Philippines, Uniqlo and Forever 21 entered the local market through a strategic venture with retail giant SM. They did so to leverage on SM’s retail expertise and wide geographic coverage while allowing them to enter and expand their market in a shorter period of time. In just a few months of operation, the third largest convenience store in Japan, Family Mart, has opened several outlets in the Philippines through a partnership with the Ayala and Rustan’s group by utilizing the expertise of the Tantoco family in the retail business.
These examples have encouraged the PMA to promote the synergy over competition mindset when engaging with foreign brands and products. And this is just one of several topics that will be discussed in depth at the first ever Asian Marketing Congress.