February 1, 2008 | 12:00am
As most Manila-based businesses deem Cebu as a potential test market for their products because of the sophisticated type of buyers here, a local furnishing retailer thinks otherwise saying Manila is a tougher market to penetrate.
“Manila will always be the best battlefield because it has a bigger and competitive market,” said Cebu Progress Commercial general manager Willy C. Uy in an interview.
Uy said that for Cebuano entrepreneurs to become the best in the Philippines, Manila will be the best test market for them and their products. But to successfully operate in a bigger market like Manila, he said that there is a need to establish several branches.
“Manila is a big pool that is almost 10 times bigger than Cebu with many players so you should operate many stores to tap as many consumers as you can,” Uy stressed.
For about 15 years, Cebu Progress was able to establish existence in metropolitan Manila having two branches located in Quezon City and Mandaluyong. He said that in his experience, strong determination and will is very helpful considering that there are a lot of risks associated with operating a business especially when you are not in your home base.
He added that to become successful especially in the furniture industry, players should adopt to the ever-changing market situation and the needs of the market you are serving.
“Furniture business may look easy but it’s hard because of the problem on overhead cost. The market is also fickle because it changes so fast, what you have now changes easily tomorrow,” he discussed.
Uy also said that Manila can be categorized as a “dangerous swimming pool” or a tough playing field considering a number of Cebuano entrepreneurs who ventured in Manila and eventually closed shop unable to sustain operation and withstand pressures of competition.
“What is good for Central Visayas may not be good for Manila and vice versa so there is a need to understand the cultural mix of the market. Always understand changes and adjust to it. Be an innovator and lead the pack,” Uy shared.
But compared to Manila, he said that Cebu is a highly competitive market because of its dense population as consumers can easily compare prizes of one store outfit from another because in Manila, consumers have a hard time to canvass as the stores are far from each other.
And realizing the need to enhance their market positioning in their home-base because of a growing demand due to Cebu’s vibrant construction and real estate sectors, Cebu Progress expanded its operation in the city with a newly opened branch at the Imus road.
The three-story Imus showroom across the DECS office showcases latest and varied furniture designs from abroad, said Uy. The showroom is patterned after American model showrooms which has ample vast display spaces and located in a quiet but convenient area with a huge parking.
“The reason for the expansion is positioning and market exposure. We want to strengthen our hold of the Cebu market as our home-base before we intensify our operation elsewhere,” said Uy.
So far, Cebu Progress plans to concentrate on their Central Visayas market but is still very much looking forward for their Manila market which they have slowly been able to penetrate.
Cebu Progress Commercial is the oldest home and office furnishing store in town which started operation after the war around 1948.
