2ND QUARTER 2018
Local News
IKEA to open first
Philippine store at SM
Mall of Asia
Global furniture retailer IKEA will
reportedly open its first store in the
Philippines in 2020 that will be located
at one of the country’s biggest shopping
malls—SM Mall of Asia, which is
operated by SM Prime Holdings Inc.
IKEA Southeast Asia Managing Director Christian
Rojkjaer confirmed this to Inside Retail magazine.
“What happens in Malaysia and the Philippines
is that we go in and… we must create the best
shopping destinations in that country either alone
or with somebody else.”
“Of course, not everybody in the Philippines can
afford us today, but we will work on that and adapt
our range and become better and better to become
Lazada ahead in PH
e-commerce market
The e-commerce market has continued
to spur growth in the local scene, with
online marketplace Lazada
leading the game last year.
According to a report of Malaysia-
based iPrice Group, the local
e-commerce market remained
its strong momentum last year
amid the increasing internet and
smartphone penetration in the
country. The industry amassed 34 million users in
2017, it said.
For the last quarter of 2017, Lazada defeated other
e-commerce players, posting 25% growth to 82.9
million monthly visits online.
This was “10 times bigger” than its “strongest
competitor” mobile shopping platform Shopee,
which only recorded 8.57 million monthly visits.
Open up, local
governments told
To ensure that economic
gains are felt in the grassroots,
local officials were urged to
open up their localities to
outside investors.
National Economic and Development
Authority (Neda) Director General
Ernesto Pernia said that for
PHILIPPINE RETAILING
BOI approves 2 online
retailers
The Board of Investments (BOI) has
pre-qualified Zalora Shopping and CJO
Shopping Co. Ltd., the first two online
retailers to be registered under the
country’s domestic retail trade law.
something for many more people,” he added.
IKEA, which operates through a franchise system, is
one of the world’s biggest franchisers and furniture
retailers with 415 stores in 49 countries. So far, the BOI has already registered a total of
25 foreign retailers which created 29,000 jobs
since 2000. BOI Director for legal and compliance
services Marjorie O. Ramos-Samaniego, said both
firms were subjected to the current rules under the
Republic Act 8762 or the Domestic Retail Act of 2000.
The law requires minimum capital requirement of
$2.5 million.
IKEA will be the latest addition to the SM Group’s
growing international brands that already include
Forever21, Crate & Barrel, Uniqlo, Ace Hardware,
Alfamart and Watsons, among others. Since they have no physical stores, the online
retailers’ warehouses will count as their store
where under the law a retailer is required to invest
$830,000 per store.
(Philippine Star, 04/07/2018) In February, 2017, the Ayala Group Acquired
49-percent stake in BF Jade E-Service Philippines,
which owns and operates Zalora Philippines, the
country’s largest online fashion platform offering a
wide range of fashion and lifestyle products.
“So let’s see what is going to happen [in the
Philippines], but the first one will be with SM.”
Shopee beat fashion e-commerce player Zalora in
the same period. Lazada also emerged as the most
followed online platform on social media giants
Facebook, Twitter, and Instagram.
The group’s strong performance last year was
also buoyed by its major campaign “The Online
Revolution,”
generating
a
total of $250 million gross
merchandise volume.
Given its boosted presence
in the Southeast Asia region,
global
e-commerce
giant
Alibaba Group decided to raise
its stake to Lazada through an
additional investment of $2
billion last month, bringing its total ownership to
83% from the initial 51%.
Last year, Zalora said it was investing in a new
warehouse that is five times bigger than its existing
facility in Carmona, Cavite to accommodate more
volume on strong orders from online shoppers.
CJ O Shopping Co., Ltd operates as an online
shopping company based in South Korea which
provides various shopping channels, such as TV
home, T-commerce, Internet, and mobile shopping,
as well as catalogue and e-Catalog services
internationally. The company offers various product
lines, including fashion, luxury goods, beauty,
household appliances, jewelry, kitchen, household
goods, and travel and baby products.
(Manila Bulletin, 03/10/2018)
iPrice Group expressed optimism that the country
will continue to witness the sector growth, noting
a study from Google and Temasek which stated that
by 2025, the Philippine e-commerce is projected to
be worth $19 billion.
(Manila Times, 04/08/2018)
provinces to spur economic growth, these
shouldn’t hinder outside investors from doing
business. to investors. Go said that business owners have
encountered towns and provinces unfriendly to
other business players.
“They need to open up if they want
better progress and see modernization
of the town,” said Pernia He’s
disappointed by Tagbilaran City, which
has barred the entry of shopping mall
giants. Since President Rodrigo Duterte’s win in the 2016
elections, his economic managers have been vocal
about developing the countryside—urging players
from various industries to relocate in other
promising rural areas to create more jobs and
decongest highly urbanized areas.
Robert Go, PRA Cebu-Chapter
president, also raised the concern of
retailers that there are some towns
and provinces that are not friendly Pernia told the business community of Cebu that
now is the best time to invest as the country is
experiencing stellar growth.
(Sunstar, 4/23/2018)
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