Retailers urge global Pinoys to patronize local brands

CEBU, Philippines - While some local retail players do not have enough capitalization to establish their respective brands abroad in the backdrop of global market penetration goal, the Philippine Retailers Association (PRA-Cebu) urged the global Filipino community to bring local brands to the international arena.

PRA-Cebu president Jun Yap said that one of the effective channels for local retailers to enter the international market is to encourage Overseas Filipino Workers (OFWs) to patronize Filipino brands in other countries.

Aside from the online marketing channel, Filipinos are considered as most effective ambassadors to strengthen Philippine brands overseas.

Although some big Filipino brands like Jollibee, Penshoppe and Bench, among others have already successfully conquered the international market, Yap said those smaller retail brands still have to gather enough capitalization in order to make physical presence abroad.

The Philippines, however, he said, is a good starting point for the local retailers to succeed and make it to the global market, due to its dynamic retail consumers and growing tourism sector, but further push and promotion for local brands should be started, while retail giants and stronger brands are now looking at Asia as their main driver for growth.

Yap said one of the strategies being considered by local retailers is to invite OFWs to franchise local brands and open up stores in a state where they reside or work.

Most local brands, he said, are now offering franchise systems and that this could be an opportunity of OFWs to start off businesses abroad.

Likewise, despite the global threat on retail marketing, Yap said local entrepreneurs are also seeing opportunities in this development, as they are also getting exclusive franchise for international brands in their entry to the Philippines.

“The way we do business now is different from the past. Consumers are more global now. We also have to think global,” said Yap.

On the other hand, before a brand could be successful in the international market, it has to strengthen its hold in the Philippine market first to protect its home-ground from being swallowed by the international retail giants, Yap told.

Those that have passion and make retailing a serious business, are deemed to fight the globalization issue, including the upcoming integration of the ASEAN market two years from now.

“We are more of entrepreneurs than businessmen. Cebuanos specifically find ways amid challenges, and even make a crisis an opportunity,” he said.

The PRA-Cebu held its 7th Regional Retail Conference yesterday, wherein the discussions focused more on going back to basic principles in retailing amid servicing the more complex retail generation.

Yap added that in any sector, challenges and issues are inevitable, but what holds the players in pursuing to succeed and fight the “Goliaths” is to be more focused and never go away from the basic principles in retailing.

Cebu retail market in the recent years have experienced all time high performance, proven by the increased of shopping malls constructed and opened, as well as entry of signature and more established international brands in Cebu.

Despite this development, Yap said local brands have continued to enjoy growth, although within thinner margins. /JMD (FREEMAN)