Philippine Retailing (3rd and 4th Quarter 2012)

PRA_Newsletter-03rd_Quarter_2012.indd 1 10/11/2012 4:08:36 PM

Official PublicatiOn Of the PhiliPPine RetaileRs assOciatiOn 3rd and 4th Quarters 2012

2 OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW!www.philretailers.com www.philretailers.com

The Department of Trade and Industry (DTI) has called on supermarket retailers to help ensure availability of stocks during calamities.

In separate letters to PRA, the DTI, through Atty. Victorio Dimagiba, Director of DTI’s Bureau of Trade Regulation and Consumer Protection, sought PRA’s support to ask supermarket members to set up dedicated centers for wholesale purchases for relief operations and to automatically waive penalty charges for late deliveries during times of calamities.

This proposal, a brainchild of Secretary Domingo, aspires to prevent stock outs during calamities and ensure sufficient supply for relief operations.

These moves seek to address the price and supply problems when natural disasters strike. This came in the heels of the widespread floods brought about by the long drawn monsoon rains..

SIx cities in Metro Manila have already enacted ordinances that will ban the use of plastics in their localities. These cities include Muntinlupa,

Quezon City, Makati, Las Pinas, Pasay and Pasig.Early this year, Muntinlupa approved Ordinance No.

10-109 or Ordinance Prohibiting the Use of Plastic Bags on Dry Goods, regulating Its Utilization on Wet Goods and Prohibiting the Use of Styrofoam/Styrophor in the City of Muntinlupa and Prescribing the Penalties Thereof. The move was said to have lessened flooding in the area.

Around the same time, Las Pinas also imposed similar regulations under Ordinance No. 1036-11 and tasked its Anti-Plastik Pulis to ensure that the ban is strictly enforced. In Pasig City Ordinance No 9, Series of 2010 was implemented in the same period.

Before the close of the year, more cities are ex-pected to follow suit and eliminate carryout plastics in their localities.

Quezon City is expected to fully implement its Plastic Bag Ordinance this October. Under this ordi-nance, retailers are directed to charge shoppers P2.00 for every plastic issued at the point of sale. The fee will only be waived for customers who bring clean, dry and folded used plastic bag of any type, brand or size in exchange for a new plastic bag.

In Makati, Mayor Jejomar Erwin Binay officially banned the use of plastics by department stores, super-markets, restaurants and other establishments through Executive Order No. 007 series of 2012. The EO gives establishments until end of the year to dispose of their plastic inventory before the plastic ban is fully implemented in 2013. Binay also formed the Plastic Monitoring Task Force that will go around supermar-kets, public markets, malls, fastfood stores, canteens, and similar establishments in Makati.

Meanwhile, Pasay City will gradually impose the plastic ban to give businessmen time to make the necessary adjustments. City Ordinance 4647 which was approved in September last year was introduced by Vice Mayor Marlon Pesebre. It prohibits supermar-kets and wet markets from issuing “non-compostable plastic carryout bags” to consumers but allows them to charge customers a “reasonable amount for each recyclable paper and reusable bag provided”.

In Marikina Mayor Del de Guzman signed an Ordinance which will remove the use of single-use plastics by November.

Meanwhile, Manila is inching closer to removing plastics in its locality after 31 councilors voted for the passage of City Ordinance No. 7393 that bans “the use of any form of plastic bags on dry goods and regulat-ing its utilization on wet goods, as well as the use of polystyrene and similar materials as containers for food, goods and other products.”

The Metro Manila Development Authority is push-ing for a Metrowide ban by 2013.

The 5th leg of the Philippine Retailers Association’s Retail Excellence Series delved into the psychology of shoppers. Dubbed “In the Shopper’s Mind! Shopper Insighting” the seminar bridged the perennial challenge of

attracting shoppers without sacrificing profit margins. Conducted in partnership with Trade Dynamics, the one-day seminar sought to

improve retailers’ understanding of their shoppers and aligning their products and services to the desire of the buyers.

Among the insights shared by Miguel Soterio, Managing Director of Trade Dy-namics, during the seminar were shopper profiling, the definition and role of shopper insighting in business, understand the shopper’s “Life Context”, identifying shopper needs in context and identifying the shopper’s controllable and uncontrollable factors.

More Metro Manila cities to enact plastic ban, regulation

Supermarkets called on to ensure stock availability during calamities

Shopper psychology tackled at PRA seminar

Retail Luminaries Converge at 21st NRCEraised the awareness of NRCE attendees on various efforts that create jobs, enhance the quality of life and sustains the environment.

Over the years, the NRCE has served as the venue for productive networking and a vital source of updates on the latest developments in the local and international retail scene.

“We are proud that this event continues to serve the needs of our industry,” said PRA President Frederick D. Go. “Let’s all work together, united in our goal, of mak-ing our country, The Philippines, a top of mind choice for shopping in the Asia pacific region,” he urged the attendees.

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Despite the monsoon rains...


www.philretailers.com


3OUR ONLY BUSINESS IS HELPING YOUR BUSINESS GROW!www.philretailers.com

News In PhotosPRA PARtneRs with toweRs wAtson foR Q2 GeneRAl MeMbeRshiP MeetinG. Speakers from Towers Watson shared their study on the importance of increasing employee engagement across organizations during PRA’s Q2 General Membership meeting in June. More than 100 members and guests gained valuable insights on “The Power of Engagement” which featured Towers Watsons’ Growth Leader Ging Igual and Consulting Spe-cialist in the Talent and Rewards Seg-ment and Organizational Surveys and Insights champion Lucien Cepeda. The Q2 GMM was sponsored by IBM Phils. which shared insights on its Global CMO Study through country manager Joaquin Arambulo.

PRA concludes 2012 RetAil cAReeRs, it & seRvices JobfAiRs. PRA held its last jobfair for 2012 at Glorietta in Makati City . The last leg of the jobfair drew the biggest number of retail exhibitors for the year. Among the top retailers who were part of the career exhibition were Bench, Primer Group of Companies, Automatic Center, Blims, Celine, Shopwise and Stores Specialists. Now on its 6th year, the Retail Careers, IT & Services Jobfair is the biggest retail industry job fair in the country. The event aims to help retailers source quality manpower for their business and expansion plans. Retail accounts for 20% of the total workforce in the country.

PRA secRetARy GeneRAl At 2012 AsAe.PRA Secretary General Evelyn Salire attended the 2012 American Society of Association Executives (ASAE) annual meeting in Dallas, Texas in August. The ASAE is the only convention for professional association executives which tackles the latest trends and developments in association manage-ment. While there she joined the panel on “Global Association Manage-ment Perspectives - Asia”. Salire was joined in the panel by other profes-sional association executives from Hongkong, Korea and Australia. Photo shows Salire (3rd from right) with fellow panelists and ASAE executives.

RetAil best PRActices seRies 2012 held in cdo, dAvAo THE Philippine Retailers Association conducted two (2) regional seminars on Customer Service Blueprint and Loss Prevention Strategies in line with the PRA’s thrust of helping upgrade the competencies of regional retailers. In Cagayan de Oro, some 110 retailers from CDO and Reg. X benefitted from the wealth of information shared by trainor Len Sedilla when she tackled “Creating a Customer Service Blueprint for the Retail, Services and Hospitality Industries.” The seminar, sponsored by IBM was held at the Pearlmont Inn in Cagayan de Oro City in June. In Davao City, trainor Jun dela Cruz shared practical tips and information on “Loss Prevention Strategies for the Retail and Service Industries”. Sponsored by HP, the seminar held at Royal Mandaya Hotel, was attended by some 120 retailers from Davao City and Reg. XI.

cAGAyAn de oRo

dAvAo




Local Industry News

MEMbERS of the PRA still have time to par-ticipate in ConservePhil after TUV announced that the program will be extended until 2013. ConservePhil is a public-private program that aims to support and equip the retail sector with adequate knowledge and capacity in the energy and resource efficiency fields.

ConservePhil was launched to PRA members in 2011 .Reports show that energy consumption of retailers

account for 35-55% of their total operating costs. Hence a program such as this will be very beneficial to retail-ers to help them better manage their energy costs. A joint undertaking of TUV Rheinland, a leading provider of technical services worldwide; ASSIST, an international ca-pacity building organization and GTZ, a German company involved in international cooperation for sustainable de-velopment, the program aims to equip Philippine retailers with skills and knowhow that will allow them to manage their energy consumption which will eventually cut down their operating expenses. This will be done by providing participants free access to programs and materials such as CEO forums, awareness trainings, e-learning toolkit, online portal, energy audit, and direct technical assistance.

The program is offered free to members of PRA. Lim-ited slots are still available. Interested parties can contact Ms. Pinky Villacrusis and Mr. Alexander Go at 812 TUVR (8887) or e-mail [email protected] and [email protected].

PSE conducts seminar for retailersThE Philippine Stock Exchange (PSE) sees the Philippine retail industry opening up to public listing.

While majority of retail companies in the Philippines remain family-owned, more and more retailers are now seeing the benefits of public listing. This was observed by representatives of PSE after its Head of Marketing Services Department, Jose Antonio Vilar, delivered a speech at the 21st National Retail Conference (NRCE)in August.

IN response to a clamor for more information on the subject of IPO, PSE conducted a seminar exclusive to PRA members to explain the processes and requirements of going public. Industry experts tackled various aspects of public listing including SEC requirements on listing applications. Featured speakers were Atty Jose Marie Fabella of Fabella & Fabella Law Office, Michael Arcatomy Guarin of Manabat Sanagustin Co. and Jesus Mariano Ocampo.

In 2011, the OFR launched the Foreign Retail Brand category to recognize Filipino companies who are successfully managing foreign brands in the country. Krispy Kreme and Watsons were declared the first awardees of the category.

Another highlight of the OFR is the President’s Award. Now on its eighth year, the President’s Award has recognized the stalwarts of Philippine retail: Mr. Henry Sy, Mr. Fernando Zobel de Ayala, Mr. Jorge L. Araneta, Ms. Soccoro “Nanay Coring” Ramos, Mr. John Gokongwei, Jr., Amb. Bienvenido R. Tantoco Sr. and Mariano Que.

The 2012 OFR awardees and the newest President’s awardee will be announced in exclusive rites in December.

PRA, DTI launch Search for Outstanding Filipino Retailers and Shopping Centers of the Year 2012

PRA, in partnership with the Department of Trade and Industry recently launched the Search for Outstanding Filipino Retailers and Shopping Centers of the Year (OFR) awards. Now on its 16th year, the OFR recognizes the country’s retailers who have epitomized the model of a successful retailer in terms of growth and good ethical practices. The annual search also encourages local retailers to adopt world-class standards and practices to be globally competitive. Meanwhile, the Shopping Centers of the Year award recognizes exceptional business practices implemented by local shopping mall operators that allow them to sustain their growth.

ConservePhil program extended





Local Industry News

G-STAR Raw or G-Star, a luxury street wear made by denim spe-cialists, finally opened its first store in the Philippine at the Upper Ground Floor of bonifacio high Street in Taguig, Metro Manila.

The Primer Group of Companies, Asia’s next retail giant, is the exclusive dis-tributor of G-Star Raw in the Philippines.

From its conception in 1989, G-Star has been known for its innovative and cut-ting edge style in the world of denim. Pushing the boundaries of the denim material, continuous experimentation and product development have led to a strong following worldwide.

G-Star franchise stores are flagships that present the complete men’s, women’s and accessory collection in an environment that conveys the philosophy, design aesthetic and raw authenticity of the G-Star brand.

(Sun.Star Davao, 8/13/2012)

OFFICERS from Meralco SME Partners, a special team brought together to support small and medium size enterprises (SMEs), including top officers from the Institute of Integrated Electrical Engineers of the Philippines (IIEE), the Society of Philippine Electrotechnical Constructors and Suppliers Inc. (SPECS), the Philippine Contractors Accreditation board (PCAb), and other industry leaders recently witnessed the inaugural induction of Accredited Meralco Contractors (AMC) at the Meralco Multipurpose hall.

AMC, is an accreditation and training program that institutionalizes Meralco’s best-practices among energy service providers, contractors, developers and designers.

Accredited Meralco Contractors can help SMEs:Get quicker electricity connection – AMCs alert

Meralco of upcoming SME projects months ahead of time which allows preparation of Meralco facilities and equipment so businesses can open on schedule.

Avoid costly delays – Because of timely information provided by AMCs, Meralco can advise SMEs of the preparations needed to ensure compliance with safety standards before constructing their establishments and even before filling out an application form for Meralco service. This saves SMEs from costly delays and costly rework from failing to meet electrical standards.

Better plan business expansion – As SMEs grow Meralco and its AMCs will be on hand to assist them in planning and completing their expansion projects.

Contractors who are selected in the AMC program are also provided continuing training from Meralco which include sharing of industry best practices to help accredited contractors achieve their full potential. Prompted by the positive response the AMC program has received from SMEs, a similar program will soon be instituted by Meralco specifically for residential customers. The newly inducted accredited Meralco contractors were “capped” by Meralco senior executives with hardhats emblazoned with the Meralco AMC seal. This was not only symbolic of their commitment to excellence in their fields of expertise and of maintaining high service standards, but also of their inclusion in a select group of contractors who bear the power utility’s seal of approval.

To find the right AMC contractor for your business, a complete listing is available at the Meralco website at www.meralco.com/ph/AMC.

PENShOPPE is planning to roll out stores across southeast Asia before expanding further afield internationally.

Indonesia is its first destination market, with its first stores scheduled to open in December at Central Park Mall in Jakarta and Mall@Alam Sutera in Tangerang.

Penshoppe owner Golden ABC has signed MAP Group of Indonesia to build 150-store network across Indonesia over 10 years.

Indonesia is an attractive market for Penshoppe due to its population that is nearly three times bigger than that of the Philippines, said Golden ABC president Bernie Liu.

Penshoppe, positioned at the value end of the market, operates 300 stores in the Philippines and 12 overseas in Bahrain, Saudi Arabia and the UAE. It also plans to open its first store in Dubai next month.

Penshoppe is the first Asian brand that would be operated by MAP Group, which has a portfolio of more than 100 international brands including Debenhams, Topman, Topshop, Massimo Dutti, Lacoste and Zara.

Asian brands are just as good as the Western brands. If they have the capability and desire to elevate their standards to become one of the best in the world, then they should be treated equal to Western brands,” said Agus Gozali, president of MAP Group’s PT Prima Mode Indonesia.

Golden ABC also owns brands Oxygen, ForMe, Tyler, Memo and Regatta.(InsideRetail.Asia, 9/19/2012)

G-Star Raw in the Philippines

Meralco launches accredited contractors program to help sMesPenshoppe Gears Up

for Asian Expansion


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Operations Commercial Business Grp.dot sec. RAMon JiMenez JR.

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co-founder and director

MichAel cARAndAnGAmerica’s Next Top Model Executive

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williAM schultzCoca-Cola Bottlers Phils Inc President

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williAM schultzCoca-Cola Bottlers Phils Inc President


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kevin tAnMegaworld Corporation Commercial

Division Head and First Vice President

shielA MAnGilATNS Philippines

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SVP for Investor Relations

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Vice President for Marketing

Global brands in local shores panel discussionDigital Marketing and Online commerce panel discussion

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New turks of retailing panel discussionoPeninG of exPo




Local Industry News

bENCh Group brings two pow-erhouse brands into the Philip-pines with its acquisition of Cotton On and American Eagle Outfitters franchises.

In September, popular Australian brand Cotton On formally opened its first Philippine store in SM Mall of Asia in Pasay. Shoppers in SM Megamall and Bonifacio High Street will also catch the brand with its store openings in these areas in September.

Cotton On has 950 stores worldwide including New Zealand, China, Singapore,

Hong Kong, Malaysia, Thailand, South Af-rica, Germany, the United Arab Emirates and the United States.

Cotton On provides fast, affordable and trendy fashion pieces to shoppers. Merchan-dise for both men and ladies are updated weekly providing diverse choices suited for

today’s consumers. The retail giant also addresses the fashion require-ments of various shopper categories with lines under Cotton On includ-ing Cotton On Body, Cotton On Kids and Rubi shoes.

Early next year, American Eagle Outfitters (AEO) will land in local shores. AEO, known for its

affordable and fashion forward clothing and accessories, has over 900 stores in the US and retail outlets in Canada, Puerto Rico, Egypt, Lebanon, United Arab Emirates, Kuwait, Jor-dan, Morocco, Saudi Arabia, Israel, Russia, Japan, Hong Kong and Poland.

SIx 7-Eleven stores were opened in Caltex retail stations in July.

7-Eleven stores were opened in Cebu. “As Cebu’s economy progresses, we

want to grow alongside Cebu by providing its market with safe, clean and fuel efficient products,” said Chevron Retail District Man-ager for VisMin Larry Tiglao, according to a Philippine newspaper, the Sun Star.

According to CPI, “the synergy between the two brands is expected to boost fuel and consumer sales as patrons of the two popular brands enjoy the benefit of getting their fuels and consumer products all in the same location.” CPI and PSC forged their partnership in 2009.

Tiglao said the partnership between CPI and Philippine Seven Corp. (PSC), local franchisor of the popular 7-Eleven conve-nience store chain, will benefit the retail and marketing initiatives of both global brands.

CPI has a strong network of 800 Caltex retail stations nationwide. Tiglao announced the company will be adding one or two retail stations in Cebu this year and three to five additional retail stations by 2013.

Philippine Seven was incorporated in 1982, acquiring the operating license for 7-Eleven stores in the Philippines from Texas-based 7-Eleven, Inc.

(Franchise Herald, 7/26/2012)

QUIzNOS is the latest entrant into the Philippines’ fast food market, opening its first restaurant at Parkade One at bonifacio high St in Taguig City.

The American quick service restaurant, known for its subs, is operated by Filipino partner ACA Group, which also brought Johnny Rockets to the Philippines.

“The partnership underlines Quiznos’ commitment to expanding and strengthening our brand equity, and making our mark in the Philippine market. We are confident that

ACA Group will be able to communicate the unique offerings of Quiznos to Filipinos,” said Lee Vala, international chief develop-ment officer for Quiznos.

ACA Group is now preparing to open another outlet at Greenbelt 3 in Makati, and plans to have 250 outlets trading in five years.

“With the strength of the Quiznos brand, we know Filipino consumers will come out in droves to experience Quiznos’ chef-inspired tastes and world-class service and operations,” said Amable Aguiluz, CEO of ACA Group.

Denver-based Quiznos said it plans to open 400 more outlets overseas by 2020.

(InsideRetail.Asia, 9/26/2012)

Bench brings Popular Clothing Brands to Philippines

Quiznos invades Philippines

7-Eleven, Caltex Partner for Expansion

(as of October 2012)

sM PRiMe hOldings:1) SM Lanang Premiere (Davao)2) SM City General Santos 3) SM City San Fernando (Pampanga) 4) SM City Consolacion (Cebu)

RObinsOns land cORPORatiOn:1. Robinsons Calasiao (Pampanga)2. Robinsons Place Palawan 3. Robinsons Magnolia (Quezon City)

ayala land inc:1. Harbor Point (Subic)

eastwOOd Malls: 1. Lucky Chinatown (Binondo)

new Mall OPenings





Local Industry News

ThE real estate arm of Philippine conglomerate Ayala Corp. said Tues-day it planned to create another major business district in Manila after cast-ing the highest bid for a government property.

Ayala Land offered 24.33 billion pesos ($579 million), more than two other real estate firms, for the Food Terminal industrial estate, the company and government officials said.

The 74-hectare (183-acre) property is located near major govern-ment highways and will become “the southern gateway” to Manila, Ayala Land said.

The company will develop the area in a manner similar to the upscale housing, office, hotel and shopping mall projects it has set up in other parts of the capital and across the country, Ayala Land spokes-man Jorge Marco said.

“It’s going to be another business district and it will have all our product lines: residential, retail, office and hotels,” he said.

Ayala Land’s bid exceeded the floor price of 10.2 bil-lion pesos for the property, said Melinda Cortez, market-ing chief of the government’s privatisation office.

She described it as the biggest government privatisa-tion effort in years.

However the government’s economic ministers must still study the bid for 60 days to see if it meets all financial and legal qualifications before declaring Ayala Land the winner, Cortez added.

The estate, formerly a major government food processing facility, is now an industrial estate where warehouses, offices and stores are already operating.

The Philippine government tried to sell off the facility in 2009 but failed to attract enough bidders.

(AFP, 8/ 14/2012)

GOkONGwEI-led Robinsons Land Corp. re-cently opened its 32nd shopping mall in the country–a four–level retail complex located along Aurora boulevard corner Doña M. he-mady Avenue.

Robinsons Magnolia is part of the property develop-ment at RLC’s four-tower Magnolia Residences in that area where the iconic Magnolia Ice Cream House once stood.

This new shopping complex is RLC’s 3rd shopping mall in Quezon City and the 8th in Metro Manila. This mall has a gross floor area of 108,000 square meters, of which 42,000 square meters are leasable.

“We promise to bring a brand new shopping experience in Robinsons Magnolia which will house several top brands and retailers and restaurant and food formats,” said Arlene Magtibay, RLC general manager for commercial centers division.

The shopping mall is anchored by Robinsons Department Store, Robinsons Supermarket, True Value and Robinsons Ap-pliances. It has four Cinemas (including 3-D Cinema), a food court, and parking capacity for over 1,000 cars.

(Philippine Daily Inquirer, 8/132012)

SM plans on spending $63 million pesos--about $1.5 billion USD--to build a slew of shopping malls and residential structures in China.

SM Prime Holdings, the largest retail developer in the Phillippines, will build four to five malls a year, for three years, according to a report by the South China Morning Post.

New malls in China will also extend its revenue base beyond the 108 million population in the Philippines to the world’s fastest-growing major economy.

Essentially, the growing opportunities in China and Hong Kong will help the influx of cash into Philippines too, since many Filipinos work in China and Hong Kong, sending most of their salary back home.

Other developers are joining suit. CapitaLand, Southeast Asia’s biggest property firm, said last week that its retail unit was building its first shopping centre in Qingdao, adding to its 58 malls in China, of which 15 are under development.

“We want to still acquire more shopping mall projects,” CEO Liew Mun Leong told the Post. “That will be a large part of our appetite.”

The plan for SM Prime is to focus on lower middle class cities such as Zibo--areas that are not as affluent as, say, Beijing. The company plans to open a mall in Chongqing by the end of this year.

(irealtytimes.com, 8/9/2012)

Ayala Land to Build New Business District

SM to build 18 malls in China as economy grows

Robinsons opens 32nd mall in PH




Eavesdropping In The World Of Retailing

ThIS year’s edition of the Retail Asia Top 500 Retailers Ranking reported commendable performances by the top 500 retailers in the region who clocked US$959 billion worth of sales in 2011, up 11% from the previous year.

According to Euromonitor’s retailing mar-ket research, China finally overtook Japan to emerge as the most influential retail market in the top 500 ranking, taking 138 out of 500 spots, and contributing to 28% of the total

sales across the region in 2011. Japan, which was ranked no. 2, took 129 out of 500 spots but still contributed a robust 26% of total sales in the region.

“According to Euromonitor Internation-al’s retailing research, China was one of the fastest growing retail markets in value terms in 2011” explains Geok Leng Loo, the Head of Research at Euromonitor International Asia Pacific. “However, Chinese consumers were not only spending in their own market, and a number of retailers around the world highlighted the benefits of these consum-

ers on their sales performance.” she added. “Hong Kong and Japan are two examples of countries that benefited from the high num-ber of Chinese visitors.”

In the latest edition, Euromonitor pro-vided a preview into the most successful retail formats in the region, with convenience stores leading the way with US$9,929 of sales per square meter. While traditional brick and mor-tar stores remain well established in the region, internet retailing is the next frontier leading retailers in the region are actively exploring.

(Yahoo News, 9/16/2012)

Reliance builds first MallONE of India’s biggest retail players, Reliance Industries, is moving into the shopping centre industry, building its own mall in South Delhi.

The move is aimed at optimising the power of its retail brands by playing land-lord and tenant for its brands.

A company official said Reliance will use the land Mukesh Ambani won in a Delhi Development Authority bid for around Rs400 crore (around US$80 million) back in 2007 to construct a 720,000 sqft commercial complex at Alaknanda.

It will use two-fifths of the retailing space to house brands owned by Reliance Retail (a subsidiary arm of Reliance Industries). The mall will have three basement levels along with sufficient parking space to accommodate more than 1000 cars and 700 motorcycles and six stories above ground.

The company will spend 200 to 250 crore (US$40 million to US$45 million) for construction with completion scheduled for the end of 2014.

Reliance Industries was on a buying spree some years back and procured land in about 150 cities in India with the intention of con-structing shopping complexes and malls. Its real estate projects include Reliance Corporate Park in Navi Mumbai that serves to be con-vention center and a hospital in Mumbai.

It is presently building 4 million sqft of retail space in North India and has attained more than 20 sites in Delhi, which can be used for the construction of malls.

(InsideRetail.Asia, 10/09/2012)

Daily deals site Groupon has officially launched its first retail concept store in Singapore that could pave the way for more around the world.

The Groupon Shop allows customers to redeem lifestyle products and has a showroom for them to test some of the products sold. It includes facilities for them to buy, print and redeem their coupons on the spot.

The shop has been in operation since May and the company says it has seen “promising initial results”.

Karl Chong, CEO Of Groupon Singapore, said the offline store allows the company to

reach out to customers more conveniently and to deliver greater customer service.

Chong said the idea for a brick-and-mortar store was proposed by the Groupon Singapore team as local customers preferred to obtain goods as soon as they have purchased it.

The Groupon Shop will be used as a guide for other global Groupon operations if it is successful, he added. The company will be monitoring the traffic of the shop and the number of new users who have signed up at the store to determine if other countries should have the same concept, Chong said.

(ZDNet.com, 4/4/2012)

ThAI-based juice and beverages manufacturer, Tipco Foods, is looking to double its revenue contributions from its ASEAN markets over the next two years, as it aims to brings its Tipco brand of fruit juices to the Southeast Asian region.

Looking to tap on the ASEAN Economic Community (AEC) which comes into effect in 2015, the group’s new managing director, Ekaphol Pongstabhon, said the company has set its sights on two of the region’s largest markets in terms of population, the Philippines and Indonesia.

“What we want to do is send the right product and the right message into these countries. To achieve that, we need to understand the consum-

ers and the market mechanism itself. We have been conducting market research in cooperation with our distributors in those countries to assess insights into consumer (behavior) and see what room is available in the market place,” he said.

With close to two decades of canned fruit and fruit juice experience in Thailand, a category that accounted for about 70% of the group’s Bt5-billion (US$159 million) in sales last year, Tipco has already posted a 15% sales growth in its first half of this year over the same period in 2011. This year, the group has set aside Bt200 million for its marketing initiatives overseas as it looks to boost brand awareness in the region and increase its overseas contribution to 20%.

(Retail Asia, 8/2012)

Asia’s Top 500 Retailers Clocked US$959 Billion in Sales in 2011

Tipco eyes ASEAN to boost brand awareness and revenue

Groupon launches world’s first offline store in Singapore





Eavesdropping In The World Of Retailing

INDIA’S government has again changed direction on Foreign Direct Investment in retailing, clearing the way for 51 per cent overseas ownership in multi-brand retail stores.

India changes FDI rules... again

Six global retailers apply for 51% control of India ops

India has received six proposals from global single-brand retailers seeking permission to own 51% of their opera-tions in the country, the commerce ministry said on Monday.

Retailers who have applied to the government include apparel maker Tommy Hilfiger Group, clothing retailer Brooks Brother Group, Italian jewellery brand Damiani International, French fashion brand Promod SAS, Fapa Co. Ltd and NA Pali Europe SARL, which is a unit of sportwear retailer Quiksilver Inc.

Many of these retailers are already present in the country via licensing and joint-venture partnerships with Indian retailers.

The government has not taken a decision on these proposals, the ministry said in a statement.

Recently an application by Zara owner Inditex S.A. to sell a more upscale brand through a joint venture with Tata Group’s retail arm, Trent Ltd, was rejected by the Foreign Investment Promotion Board (FIPB).

In January, India allowed foreign single-brand retailers to set up wholly owned operations in India, but a requirement that companies source 30% from small local firms has discouraged retailers from applying for full ownership.

Only Ikea and Pavers, a British shoe chain, have applied so far hoping to bank in on rising middle-class incomes and an expanding appetite for global brands and lifestyles.

(livemint.com, 8/14/2012)

The decision has been met with both praise and criticism and represents the third change of policy in less than a year.

Shoppers will be the biggest winners, analysts argue, benefitting from world class service and competitive prices.

The change is also likely to benefit the real

estate sector where developers were finding it difficult to tenant space in mall developments.

Analysts say the economy in general will gain momentum from the injection of foreign invest-ment and skills, improved supply chain manage-ment, better logistics and warehousing facilities, and potentially higher returns to farmers.

A foreign retailer needs to invest a mini-mum of US$100 million to take advantage of the new rule and half of that must be invested in infrastructure.

But opponents fear the move will harm India’s small-scale industries and manufacturers who could be forced out of the market, with jobs lost to cheaper production sites like China.

Large international retailers like Walmart and Tesco, which already have stores in India through collaborations with local retailers, will welcomed the move, which they have lobbied aggressively for some years.

Allowing 51 per cent FDI in multi-brand retail may attract between US$2 and $3 billion in foreign investment during the next two years, estimates management consulting firm Tecnova.

(Inside Retail Asia, 9/18/2012)


Philippine Retailing (3rd and 4th Quarter 2012)

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