PRA-Cebu taps CCCI to strengthen retail biz

CEBU, Philippines - The Philippine Retailers Association (PRA-Cebu) is set to join hands with the Cebu Chamber of Commerce and Industry (CCCI) in reinforcing opportunities for retail businesses to expand regionally and take advantage of the opportunities in franchising in the retail sector.

In an interview, PRA-Cebu president Jun Yap said that apart from strengthening the market hold and security among retailers, PRA-Cebu is joining and supporting programs together with other organizations in increasing the reach to other countries of Cebuano retail businesses or capitalizing on the strong interest of international brands entering the Philippines to get local franchise.

In fact, members of PRA-Cebu will be joining a trade mission to be hosted by the national PRA to explore Turkey in the third quarter of this year.

“We would like to know the retail environment outside the Philippines,” said Yap, expressing confidence that Filipino retailers have great opportunities to expand retail businesses outside of the country.

He said that while retail sector in Cebu, or the Philippines in general, is performing very well despite the stiffer competition, retail players here are also preparing to grab opportunities in handling exclusive franchise offers for international brands.

“This is one avenue for retailers that expand their businesses. A lot of international brands are coming in. This is a good opportunity for us,” said Yap.

Earlier, the Philippine Trade and Investment Center (PTIC) urged Filipino retailers, franchisors and exporters to consider Asia, or in particular Indonesia, as a potentially lucrative market for retail goods.

PTIC commercial attache Alma Argayoso said that following the Penshoppe opening of stores in Jakarta, the leading lifestyle retailer in Indonesia PT Mitro Adiperkasa (MAP) expressed interest to possibly export more products from the Philippines.

The MAP group is the company behind the success of famous lifestyle brands in Indonesia such as Sogo, Seibu, Debenhams, Zara, Marks and Spencer.

Yap, on the other hand, believes that retailers have a lot of options in terms of expansion, either to strengthen their brands locally or regionally, or to take advantage of the Philippines’ good retail market in getting exclusive franchise deals with international brands.

Cebu, for instance, is continually attracting more international brands, even signature brands, to take advantage of the growing sophisticated market and increased purchasing power of Cebuanos.

Based on National Economic and Development Authority (NEDA) figures, the purchasing power among Filipino consumers have increased significantly as noted in 2011.

NEDA record indicated that the availability of high-paying jobs specifically offered by the outsourcing sector and the increased confidence of the consumer market on the country’s economy have fueled the growth of the retail sector and improved the level of purchasing power  among Filipinos, including the Cebuano market. /JMD (FREEMAN)