CEBU, Philippines - The sales performance of gadget and technology retail sector in Cebu has slowed down in the first seven months of this year and is expected to dive further as consumer’s buying habits change.
Junrex Cellphones and Accessories, Cebu’s largest retailer of gadgets and technology accessories, reported a rough estimate of eight percent drop of sales, based on the company’s review from January to July 2015, said Junrex president and chief executive officer Jun Yap in an interview.
Yap, who operates 18 Junrex stores in Cebu, points out the changing buying habits of customers. In the past, consumers would readily dump their old phones in favor of a new model with attractive aesthetics and features. This time they are no longer attracted to the outer beauty of a phone or any other gadget. Buyers now are more sophisticated and meticulous when it comes to specifications. They have become more techie in deciding what to buy.
“Consumers are smarter now. Most are already using smartphones. What they are looking for now are newer capabilities, if there’s none, they’d rather not change their phones or gadgets,” Yap said.
With the introduction of more apps, a phone or gadget with bigger memory capacity will surely help sustain sales. However, Yap said telecommucations companies’ inability to catch up with users’ higher requirements for connectivity will cause the sales of gadget and technology to slow down some more.
Junrex, has been in the business for 20 years. It used to have 30 outlets in and outside of Cebu. But because of market softening, Yap said the company had to implement a “right-sizing” system to cut down operational expenses.
The company had to close its out-of-town shops and focus more on the Cebu territory, Yap said.
Junrex carries 10 brands namely Samsung, LG, Huawei, Star Mobile, Happy Mobile, Oppo, MyPhone, Acer, Cherry Mobile and Lenovo. Of these brands, Samsung is the biggest sales contributor for Junrex. (FREEMAN)