5 RETAIL NEWS CAPSULE
PHILIPPINE RETAILING
MSMEs urged to protect intellectual property amid pandemic
Micro , small and medium enterprises ( MSMEs ) with protected intellectual property ( IP ) and positive branding strategies have defied store closures and revenue losses that marked the first pandemic year , according to industry stakeholders .
“ Through e-commerce , MSMEs can reach out to more potential consumers not only within the country but also within international markets . E-commerce not only became a means for businesses to keep afloat during the pandemic but , in some cases , even helped MSMEs expand their markets ,” Department of Trade and Industry ’ s ( DTI ) Special Concerns and Trade Promotions Group Undersecretary Abdulgani Macatoman said in a statement . However , Macatoman acknowledged that with opportunity comes risks , particularly that of unfair competition from copycats once creations and products of MSMEs are out in the open .
Latest estimates by the Organisation for Economic Co-operation and Development show that imported fake goods are at USD509 billion as of 2016 , about 3.3 percent of total trade that year . Figures are expected to have spiked due to coronavirus disease 2019 ( Covid-19 ) and the accelerated e-commerce adoption .
In the Philippines alone , IPOPHL reported counterfeiting and piracy reports and complaints surging to 121 in 2020 , surpassing the 100 reports and complaints that IPOPHL received from 2016 to 2019 which even took into account all types of infringement .
Source : PNA
Photo from : www . pna . gov . ph
The Senate ratified the Bicameral Conference Committee report on a measure that seeks to lower the minimum investment hurdle for foreign retailers to P25 million .
Senators approved the Bicameral Conference Committee report on the conflicting provisions of Senate Bill No . 1840 and House Bill No . 59 , which amends the 20-year-old Retail Trade Liberalization Act . This is one of the three priority economic measures being pushed by the government and foreign business groups .
The House of Representatives has yet to ratify the bicameral report . Once approved , it will be sent to Malacanang for President Rodrigo R . Duterteís signature .
“ IP stands as a protective guard to the activities in the e-commerce arena … As such , IP protection must be at the forefront of MSME business strategies more than ever ,” Macatoman added .
As companies reexamine where to best steer their efforts and spending in the new normal , experts underscored how IP registration and enforcement are some areas that can help them grow faster and realize their long-term ambitions .
“ We need to make sure that there ' s an IP protection budget for companies who are bigger and even for MSMEs like me ,” Carissa Cruz-Evangelista , founder-chairman of Philippine Fashion Coalition , said in a recent IP forum . She said IP protection is crucial especially for those venturing into different markets through e-commerce , which she encouraged MSMEs to pursue amid exploding growth in online trade .
A report by the United Nations Conference on Trade and Development ( UNCTAD ) published on May 3 showed that Covid-19-induced movement restrictions increased online retail sales ’ share to total retail sales from 16 percent to 19 percent in 2020 , with UNCTAD calling it a “ dramatic rise .”
In 2019 , global e-commerce sales jumped to USD26.7 trillion , up 4 percent from 2018 .
Lazada chief operating officer Carlos Barrera said “ over the course of the last year , we ' ve had hundreds of thousands of MSMEs ( transition to e-commerce ) and we consistently see that those who are serious about IP , the ones who focus not just on selling and ( giving ) discounts , but the ones who focus on building a brand , delighting their customers , having very strong social media presence , having very clear branding ... those really do much better .”
Sherill Quintana , president of Philippine Franchising Association , echoed this , saying that at the height of the pandemic , those who were able to put extra effort in building their brands through the years , “ they are the top-of-mind ."
Senate ratifies bicam on retail trade
Under the reconciled version , the minimum paid-up capital requirement for foreign retailers was set at P25 million or around $ 500,000 , with a per store requirement of P10 million . This is lower than existing lawís minimum paid-up requirement of $ 2.5 million or P125 million for foreign retailers . The House version originally proposed lowering the minimum paid-up capital requirement to P10 million , while Senate version had approved a P50-million requirement .
Source : Business World Photo from : www . mb . com . ph