Local retailers seek help from DTI

CEBU, Philippines – Cebu retailers are seeking for assistance from the Department of Trade and Industry in their call for protection to thrive in a very tough retail environment.

“We are talking with DTI to study a possible protection clause similar to the anti-trust law of USA, or a non-discriminatory protection law for SME companies such as the boutiques located in malls,” said Philippine Retailers Association (PRA-Cebu) president Robert Go.

Go said this appeal is similar to the resolution sought from the local government units for mall investors to take in numbers of locally registered retailers at certain discount rate below regional or international brands while locations or zoning should also include local or home grown players but half of the rate of international brands as a protective effort to locals.

Mayors on the other hand should not sign mall permits if 20 percent of tenants do not include locally registered tenants provided with discounted rates.

“We at PRA are studying how the LGUs and DTI can help encourage SMEs to rise against these very challenging times especially the influx of more foreign brands under the ASEAN integration.”

Meanwhile, an action plan is now being crafted by the DTI Central Visayas office here to address some concerns faced by the local retail sector players to ward-off the anticipated negative effects of the ASEAN integration.

DTI-7 regional director Asteria Caberte announced under the government's industry roadmap strategy that the local retail trade is being seriously given attention, as it is one of the sectors that is likely to be affected by the Asean Economic Community.

Caberte said a multi-agency team led by DTI will be actively mobilized to intensify an information campaign on laws implemented to protect the sector.

There is also a plan to regulate the high cost of displaying products in a department store or supermarket to favor the local producers, wholesalers, or retailers,

A tripartite council will also be formed to further identify the concerns of the industry, identify the loopholes to address problems, among other issues, Caberte said.

Strong implementation on strict compliance of  Product Standard or Import Commodity Clearance system will be closely monitored.

Also, Caberte said the agency, together with partner private sector players, like the banks and financial institutions will be linked with the local retail stakeholders in order to lessen, if not eradicate the perceived difficulties in availing of credit especially from the banks.

Strengthening the value chain in the retail sector, via establishing a "Big brother, Small brother" concept will likewise be implemented, as well as encourage retailers to adopt productivity base incentives.

According to Go, a wider and greater move in prioritizing to address the concern of retailers will be discussed between the players and the government.

Simultaneously, PRA-Cebu will pursue its advocacy to work with LGUs specifically within Metro Cebu to help home grown retail players thrive in the challenging environment, Go said.