GOLDEN ABC, Inc., a retailer known for its Penshoppe brand, has tapped TXT Retail, a subsidiary of solutions company Aptos, Inc., for end-to-end retail solutions.
In a statement, TXT Retail said it will now take over the handling of Golden ABC’s merchandise financial planning, open to buy, assortment planning, forecasting allocation and replenishment to product life cycle management.
“We were looking for a solution vendor that could support us at every phase of the merchandise life cycle, from concept to customer. With its end-to-end retail solution and deep process understanding, we found in TXT Retail a best match to our requirements and a strategic partner to support our journey,” Golden ABC Vice President for Operations Division Jefferson de Leon was quoted as saying in the statement.
Aside from Penshoppe, Golden ABC is known for clothing brands Oxygen, ForMe, Memo, Regatta and Tyler.
Among Aptos’ clients are brands such as Adidas, Lacoste, Cath Kidston, Louis Vuitton, Michael Kors and Sephora.
TXT Retail said its partnership with Golden ABC puts them in charge of all of its products and online and physical stores all over Asia. It said it will use the “TXT AgileFit deployment methodology,” a preconfigured solution framework that allows its clients to speed up deployment.
“Golden ABC will manage with TXT Retail the full spectrum of its planning and PLM processes, from design, product development and sourcing to merchandise financial planning and open-to-buy and localizing assortments, taking into account market and channel-specific requirements and events,” it said.
Aside from the Philippines, Golden ABC is also present in Indonesia, Cambodia, Vietnam, Myanmar, Hong Kong, Malaysia, Taiwan, Singapore, Thailand, Brunei, Macau, Bahrain and the Kingdom of Saudi Arabia.
Mr. De Leon said tapping TXT Retail is important in providing the company with personalization and speed now that they are seeing a strong growth in the country and abroad. — Denise A. Valdez
TRUFFLE, deemed as one of the most luxurious and expensive food in the world, finds its way to Newport Mall with truffle-lovers getting the rare chance to taste an array of specialties made with this culinary gem hailed by many as the “diamond in the kitchen.”
Running until Sept. 30, the truffle festival features truffle-infused treats concocted by the renowned chefs of participating Newport Mall and Resorts World Manila restaurants.
Diners can start the day with a hearty brunch at Parmigiano Ristorante Pizzeria, and order the fettuccine ai funghi porcini salsiccia e tartufo and filetto di carne con tartufo. Fresh, handmade fettuccine is laden with wild mushroom varieties covered in truffle cream sauce, topped with Italian sausage, sliced black truffles, and freshly-shaved parmigiano reggiano.
The sizzling black truffle bulalo steak at LUMU Filipino Kitchen demonstrates how truffles can add depth to traditional Pinoy comfort food. A sizzling steak plate featuring a generous cut of fork-tender beef shank with the marrow intact is swimming in truffle-infused gravy, and topped with potato allumettes and garlic crisps that altogether create a sinfully rich viand.
Guests who want their truffle meal with rice will appreciate the garlic crab with truffled mushroom rice at The Red Crab Alimango House.
Given the truffle’s popularity in Italian cuisine, guests may have their fill of the flavor with Italianni’s array of four truffle-infused dishes: Italian truffle fries, truffle mushroom pizza, truffle mushroom risotto, and truffle chicken and mushroom.
Meanwhile, Impressions, RWM’s signature French fine dining outlet, delivers a truffle trifecta in its set menu of cold angel hair pasta with black truffle ponzu and caviar; mixed mushroom soup with black truffle duck liver ravioli; and Chilean seabass with black truffles, carrot risotto, herb salsa, and soy sauce cloud.
For truffle-rich snack options, guests can visit UCC and order black and white truffle fries— crisp potato wedges made more flavorful and edgy with black truffle bits, truffle oil, and parmesan cheese. For a truly satisfying snack, opt for the truffle mushroom pasta—linguine pasta, cooked al dente and tossed in white truffle oil, infused with mixed mushrooms, and finished with shredded parmesan cheese, with garlic bread served on the side. For those looking forward to an avant-garde dining experience, the truffle ramen at Mr. Kurosawa is an option.
For more information, call the Megaworld Lifestyle Malls Concierge at 709-0888, 709-9888 or 09178380111, or Resorts World Manila at 836-6333 and 908-8833 or visit megaworld-lifestylemalls.com.
HP INC., the largest maker of personal computers, is making a big push into the manufacturing industry with its first printer that can churn out 3D metal parts.
HP is unveiling the Metal Jet printer, and some early customers, at a manufacturing trade show in Chicago on Monday. Engineering firm GKN Plc is using the printers in its factories to produce parts for companies including Volkswagen AG, one of the biggest automakers. GKN makes more than 3 billion components a year and expects to print millions of production-grade HP Metal Jet parts for customers as early as next year, HP said in a statement.
“We are in the midst of a digital industrial revolution that is transforming the $12 trillion manufacturing industry,” HP Chief Executive Officer Dion Weisler said. “HP has helped lead this transformation by pioneering the 3-D mass production of plastic parts and we are now doubling down with HP Metal Jet.”
Since its split from Hewlett Packard Enterprise Co., HP has redoubled efforts to expand beyond its core PC and paper printer businesses. 3D printing is a big part of this plan. The new steel-printing machine could open up new opportunities in the automotive, industrial and medical-equipment fields. Metal parts manufacturer Parmatech Corp. has also signed on as a partner.
Printers that make three-dimensional metal objects already exist, but HP said Metal Jet can produce a lot more parts at “significantly” lower cost than existing machines.
Technology like HP Metal Jet lets manufacturers produce parts without first having to build the factory tools that are traditionally needed, according to Martin Goede, head of technology planning and development for the Volkswagen brand. “By reducing the cycle time for the production of parts, we can realize a higher volume of mass production very quickly.”
Stephen Nigro, HP’s president of 3D printing, was more cautious than his boss Weisler, saying it will be at least five to 10 years before the unit generated a material share of HP’s sales, which topped $50 billion last year.
The reason for the caution is that even at early-adopter Volkswagen, use of the printer will be reserved for specialty parts on certain models, and not for the highest-selling vehicles. Volkswagen will start out with cosmetic pieces, having partner GKN use the printers to make customized car key rings and nameplates that drivers can put on their trunk lid or door. For its next generation of cars, Volkswagen plans to use printed mirror mounts and gearshift knobs, and continues to evaluate other use-cases for HP’s machines.
“The sweet spot of 3D printing technologies is not in giant numbers in vehicles like the Golf,” said Sven Crull, Volkswagen’s head of design for new manufacturing technologies. “There’s a better use case in more specialty parts for vehicles with volume of 50,000 to half a million.”
That underscores the challenge of making the Metal Jet printer ubiquitous: At very high volume, other manufacturing methods are more economical. Still, Nigro said it’s one of HP’s best shots to bolster its future.
“We needed to come up with a disruptive or winning technology,” he said. “We need to have a vision that’s not just compelling today, but in the future.” — Bloomberg
THE ALCANTARA’S 105-megawatt (MW) coal-fired power plant in Zamboanga City has attracted proposals from five global companies, including three from China, that are keen to handle the engineering, procurement and construction (EPC) component of the project.
In a statement on Wednesday, the power group of Alsons Consolidated Resources, Inc. (ACR) identified the companies as Dongfang Electric International Corp.; Jurong Engineering Ltd.; Northeast No. 1 Electric Power Construction Co., Ltd. (NEPC 1); Shandong Electric Power Construction Co.; and ThyssenKrupp Industries India Pvt. Ltd.
Archimedes B. Donato, project manager of the proposed power plant San Ramon Power, Inc. (SRPI), said he was satisfied with the proposals submitted by the five “reputable firms” with extensive international experience.
“The people of Zamboanga City and nearby areas can look forward to a state-of-the-art baseload power plant right here in the city to provide safe, reliable and affordable electricity,” he said.
The Alsons group described Dongfang as based in Chengdu, while NEPC 1 is a wholly owned subsidiary of China Energy Engineering Group; and Shandong is a unit of Power Construction Corporation of China.
It said Jurong is based in Singapore while Thyssenkrupp, a unit of Germany’s thyssenkrupp AG, is based in Pune, India.
Joseph C. Nocos, Alsons’ vice-president for project development, said the group is committed to bring the project to completion.
“These bid submissions are a testimony to the keen interest the SRPI project has generated and are a vote of confidence to the future of Zamboanga City,” he said.
Alsons described its power group as “Mindanao’s first and most experienced independent power producer.” It operates four power facilities in the island with a total generating capacity of 363 MW. They serve cities such as Cagayan de Oro, Davao, Iligan, General Santos and Zamboanga.
Alsons’ power group is also entering the renewable energy sphere through run-of-river hydroelectric power projects with a total capacity potential of more than 145 MW. These projects are in Negros Occidental, Sarangani, Davao Oriental, Zamboanga del Norte, the two Agusan provinces, and Surigao del Sur. — Victor V. Saulon
FOR MOST of his life Yen Wei-shun was on the wrong side of the law, but the former Taiwan gangster says he is making up for lost time by churning out noodles for the needy.
His family has run a noodle stall, tucked away in a bustling traditional market in New Taipei City, for decades. Now, Mr. Yen, 40, is working alongside his mother to make free bowls of noodles for customers who cannot afford a meal.
His venture has caught the attention of local media and a video of his life, made by a Shanghai-based online outlet, has been viewed hundreds of thousands of times on YouTube.
His gangster life started young—at 15 he was convicted of manslaughter after fatally wounding a man in a group fight and jailed for four-and-a-half years, he says.
But after his release, Mr. Yen continued his involvement and found himself in court again eight years ago on illegal gun possession charges.
He got away with a suspended sentence, something he considered a “second chance at life from heaven.”
“This case was like a wake-up call for me. I have come to realize I must cherish what I have from now on—my family and freedom,” he told AFP.
His family’s cooking cart is loaded with steaming pots of broth and noodles. Bowls of noodles with pork, shrimp and cabbage sell for Tw$80 ($2.60) to regular customers. But they can also give an extra Tw$75 to pay for a bowl for someone who cannot afford it.
Mr. Yen says he gives away 600-700 free bowls a month, mostly paid for by donors, making up any shortfall himself. He has served 40,000 bowls of free noodles since he started the initiative over four years ago and offers delivery services to residents with physical disabilities.
Those asking for free food are usually elderly or jobless young people, Mr. Yen said. He does other charity work and has also visited prisons to talk about his experiences.
One of the regulars at the noodle stall is a 62-year-old ex-gangster estranged from his family, who Mr. Yen says serves as a constant reminder not to go down the old path: “I see many old gangsters who end up like him. I feel very sad and realize how much time I’ve wasted already.”
Support from his family and appreciation from people Mr. Yen has helped are keeping him on the right course, he added. “In my old gang days I felt like I was always walking a tightrope because I could meet enemy gangsters anytime. But now I meet people who are happy to see me.” — AFP
By Melissa Luz T. Lopez, Senior Reporter
TERM DEPOSITS saw tepid demand yesterday to mark a second straight week of settling below offer, while yields maintained their ascent across all tenors.
Banks only wanted to place P93.128 billion under term deposits offered by the Bangko Sentral ng Pilipinas (BSP) this week, well below the P100-billion offering and the P95.302 billion worth of tenders put up a week ago.
Only the two-week tenor was met with substantial demand while the one-week and one-month instruments were barely filled.
Market players wanted to place P38.001 billion under the seven-day term on Wednesday, recovering from last week’s P31.958 billion although still below the P40 billion which the central bank wanted to sell.
They also asked for wider margins for these placements as yields averaged 4.3744%. This rose from 4.3218% fetched last week, and came from a range of 4.25-4.5%.
On the other hand, banks crowded the 14-day deposits as they betted as much as P44.949 billion, rising from P42.674 billion the prior week to gobble up the P40 billion on the auction block.
Rates fetched for these two-week papers also saw a modest climb compared to other tenors, moving to a 4.4224% average from 4.4123% the prior week. This came ahead of the BSP’s next rate-setting meeting scheduled Sept. 27.
In contrast, bets for the 28-day instruments plummeted to P10.178 billion, barely half the P20.67 billion bids posted during the Sept. 5 exercise. The BSP even had to reject some offers and only accepted bids worth P9.678 billion, versus the P20 billion up for the taking yesterday.
As a result, returns sought by banks climbed to 4.4824% against the 4.4515% average accepted yield a week ago.
The term deposit facility (TDF) stands as the central bank’s primary tool to capture excess money supply in the financial system. The weekly auctions of short-term papers are meant to signal the direction of market and interbank rates, with the BSP targeting to bring market rates within the 3.5-4.5% range.
The Monetary Board has raised benchmark rates by a total of 100 basis points (bp) since May in an attempt to temper surging commodity prices.
Market players expect another rate hike from the BSP this month, with some betting that another aggressive 50bp increase will be announced following the faster-than-expected 6.4% inflation rate recorded in August.
Inflation has averaged 4.8% for the first eight months, well beyond the 2-4% target band set by the central bank.
BSP Governor Nestor A. Espenilla, Jr. said that policy makers will “take strong immediate action” to manage inflation expectations as well as excessive swings in the peso-dollar trading in order to maintain price stability, with a note that an emergency meeting ahead of the scheduled review is an option for now.
Due to weakening demand, the BSP has cut next week’s TDF auction volume to P70 billion. It will continue offering P40 billion for the seven-day term, but just P20 billion for the 14-day tenor, down from P40 billion previously, and P10 billion for the 28-day deposits, only half of this week’s P20-billion program.
SHANGHAI — Wondering if you have a sex addiction? Have a question about the US-China trade war’s likely impact? Or about whether to buy a house? China’s online question-and-answer mavens like Gu Zhongyi are there for you.
Gu, a nutritionist, is among hundreds of thousands of “experts” who sell their advice in thriving Chinese internet forums where they serve as web-based agony aunts.
Chinese often have nowhere else to turn — the Communist government’s controls on information, especially on sensitive topics like the trade war and sex, makes some information hard to come by, and consulting professionals in person costs too much for many people.
Around 10,000 questions per day were asked last year via “Wenda” (“Q & A”), a function on dominant Chinese social media platform Weibo where financial, health and professional experts — often self-appointed — earn money with each response.
Gu quit his nutritionist job at a top Beijing hospital last year to focus on Wenda, establishing himself as a go-to guy for masses of young mothers with questions on nutrition for their babies.
“I think it is more meaningful to do a job that can impact more people. Wenda is a win-win,” said Gu, who supplements his online income writing pay-for-access articles, and also books.
Many Wenda pundits are credentialed experts, but many more become authorities merely by drawing enough of a following.
They set a rate, typically between 100-200 yuan ($15-$30) per question, answering those of their choosing.
More money comes in via “snooping,” in which other users pay one yuan each to view answers to previously asked questions.
Fuelled by China’s ubiquitous use of mobile-phone payments, snooping of hot topics can bring in tens of thousands of yuan per answer, which is split between the asker, the expert and Weibo.
“You need to find the time to go to a hospital or to buy a book. But the time and money you spend on it are costly. But I can just give the answers to you,” Gu said. SEX, TRADE, AND HOUSING
One of Wenda’s more popular experts is “Queen C-Cup,” whose identity and qualifications are unknown but who has established herself as an oracle on sex, with more than six million followers.
Open discussion of sex is still frowned upon in China, and Queen C-Cup has complained of being harassed online.
But Wenda grants a degree of anonymity to those asking questions, who seek Queen C-Cup’s advice on everything from jazzing up one’s sex life to grappling with domestic violence or the anguish of forced marriages.
Her fees range up to several hundred yuan and her answers are heavily snooped.
Wenda is becoming an important part of China’s knowledge economy, Beijing-based internet research company Sootoo Institute said in a recent report.
The number of people willing to pay for knowledge on Wenda or use other forms of paid content or articles doubled in 2017 to nearly 188 million people, it said.
The dragged-out US-China trade tussle has spurred a wave of questions, especially because China’s government — ever wary of potential social instability — has largely stifled discussion of the dispute’s impact.
“Is there any way China and the US may reconcile? How will we ordinary folks be affected?” — one Wenda user asked recently, while countless others seek advice like whether to stock up now on certain goods.
China’s rising housing prices are another top subject that has minted countless “experts,” including Wang Sicong.
An investor and son of a top Chinese business tycoon, Wang was recently asked — for a fee of 10,000 yuan — whether young urban residents should use their parents’ savings to buy homes.
The answer — renting may be a better choice, Wang said — was snooped nearly one million times. — AFP
THE PRIVATE SECTOR investment arm of the World Bank has extended a $40-million long-term loan facility to Fullerton Healthcare Corporation Limited, which is expanding its health care business in the Philippines.
In a statement, the company said its local subsidiaries — Fullerton Health Philippines Holdings Corporation and Fullerton Health Philippines Pte Ltd. — have secured the loan from International Finance Corp. (IFC).
Fullerton Health said the loan will “help improve the provision of affordable, quality health care in the Philippines and enhance efficiencies in the health maintenance organization market through increased integration between the financing and provision of health care.”
In May, the company entered the Philippines via the purchase of a 60% stake in the Intellicare Group. The group comprises three firms — health maintenance organization (HMO) Asalus Corp.; Avega Managed Care, Inc., which provides third party administration services to corporate clients; and Aventus Medical Care, Inc. which operates a network of outpatient and mobile clinics.
“Garnering the support of IFC as a long-term financing partner is a strong testament of what we have achieved thus far in the health care sector across Asia Pacific, and validates our strategic partnership with the Intellicare Group to deliver a holistic approach to managed health care in the Philippines,” Tam Chee Chong, Fullerton Health chief financial officer, was quoted as saying in the statement.
Fullerton Health said the loan will support the expansion of Intellicare in the Philippines.
“The expanding network will further help Intellicare increase training opportunities for health professionals in the Philippines, improving the skill level in this sector, and subsequently create jobs. IFC’s support will also include sharing of best practices within different areas of operations, including facilitating introductions within IFC’s network of health care clients,” the company said.
Vivek Pathak, IFC director for East Asia and the Pacific, said Fullerton Health’s projects will help benefit the Philippines, where there is a gap in health insurance coverage.
“High quality affordable health care is critical to the long-term sustainable development of Philippines… Growth of Intellicare and other companies in this segment will help reduce low and middle-income households’ reliance on out-of-pocket payments to fund health care expenses,” Mr. Pathak said.
IFC, a member of the World Bank Group, has already invested over $3 billion to support more than 100 private sector companies in the Philippines since 1962.
ONE OF Australia’s most well-known pubs, located in the country’s remote outback thousands of miles from major cities, is on the market for the first time in decades and attracting local and international interest.
The 134-year-old Birdsville Hotel is the sole watering hole for the town of Birdsville—population: 140—and having a drink there has become a must-do for the tourists who make the trek to the town for its centuries-old annual horse races and thriving music festival.
Owner David Brook—whose family has lived in Birdsville since the late 1880s—said the property agents told him there had been “interest from afar” by people wanting to invest in or manage the pub, which is more than 600 kilometers from the nearest big town.
For Mr. Brook, who bought the pub in 1979, and whose grandmother owned the hotel between 1920–46, the pub’s isolation is its chief selling point.
“When you explain to them that you can have a (race) meeting and get 6,000 and have a music festival… and get 9,000 for the weekend in a town where there’s only one pub, you can work out that it’s not a bad business,” he said.
The pub, with its sandstone walls, dusty cowboy hats hanging from the ceiling and country music blasting from speakers, is being marketed as “a true Aussie icon” where “everyone wants to say they’ve had a beer.”
The tavern has 27 guest rooms, and includes an aviation fuel supply business with small planes and helicopters carrying tourists taking off and landing just across the road.
While other pubs around Australia have modernized and added gambling machines to boost income, Mr. Brook has kept the decor simple and focused on offering good service and food.
More recently, Birdsville has been boosted by the Big Red Bash, a three-day music festival in the Simpson Desert held annually since 2013 and known as the “most remote concert on the planet.”
“I hope that it can be kept as just a modest, good business,” Mr. Brook said. “An investor who is prepared to spend money and make sure that it provides good service, sometimes at the expense—a little bit—of profit.
“You can have a big, shiny (pub) in the city that makes a lot of money, or you can have something special out here that you’re proud to own.” — AFP
BANK OF MAKATI (A Savings Bank), Inc. (BMI) has exceeded its target loan growth for the year driven by strong demand for motorcycle loans.
In an interview, BMI President Luis M. Chua said the savings bank has surpassed its target loan growth for this year by 20%.
“We have grown our loan portfolio. Short of saying we have surpassed our target for 2018 by 20%,” Mr. Chua told BusinessWorld at the sidelines of Chamber of Thrift Banks meeting on Friday.
He added that the spike in the bank’s loan growth this year was driven by motorcycle loans, which comprise the bulk of its lending portfolio, as demand for these vehicles expand amid growing traffic problems in key cities as well as rising fuel prices.
“The higher fuel prices would enhance purchasing of motorcycles because the fuel consumption of motorcycles is far lower than that of the automobile,” he said.
Fuel prices continue to climb this year due to higher global rates and the excise tax under the new Tax Reform on Acceleration and Inclusion law which was enacted this year.
Mr. Chua added that demand for motorcycle financing is growing for both retail and business segments.
“[Our retail clients would be] those people who shifted to motorcycles simply because they want to avoid traffic and it will be cheaper and more efficient for them,” the bank president said.
On the business segment, more firms are looking into using motorcycles for better mobility versus cars.
“You have seen the emergence of Foodpanda and Lalamove. All of them are geared towards using motorcycles.”
BMI netted P507 million in the first quarter supported by loans for motorcycles and small businesses.
The lender was originally established as a rural bank in 1956. It was bought by the Ongtengco family, owner of motorcycle dealer Motortrade, in 2001 and became a savings bank in 2015.
BMI currently has 62 branches as well as 703 Motortrade branches which serve as collection agents. — Karl Angelo N. Vidal
THE BRITISH COUNCIL Philippines is now offering computer-delivered International English Language Testing System (IELTS), in addition to the paper-based test.
In a statement, the British Council Philippines said individuals who take the computer-delivered IELTS will take the listening, reading, and writing sections on a computer, instead of a paper exam.
The paper-based and computer-delivered IELTS are the same in terms of content, scoring, level of difficulty and test format.
The speaking test will still be conducted by a trained IELTS examiner.
The British Council Philippines said the computer-delivered IELTS offers more test date options throughout the week, and faster delivery of test results.
“Results will be sent to test takers 5-7 calendar days after completion of the test for computer-delivered IELTS, compared with the paper-based IELTS which is 13 calendar days after the completion of the test,” the British Council Philippines said.
With computer-delivered IELTS, test takers can do all the sections, including the speaking test, in one day.
On the other hand, the speaking test is typically scheduled two to three days before the paper-based exam.
Only designated British Council IELTS test centers are allowed to administer the computer-delivered IELTS “to ensure the integrity of the test is maintained, and leaks are prevented,” it said.
The British Council Philippines said it is working to increase the number of computer-delivered IELTS this year. At present, only one session is available per day in a limited number of test centers.
The paper-based IELTS tests are scheduled once a week.
The cost for both computer-delivered and paper-based IELTS is the same.
IELTS assess the language ability of people who want to study, work or emigrate to where English is the language of communication. It is jointly owned by the British Council, IDP: IELTS Australia and Cambridge Assessment English.
The British Council Philippines has a Learning Hub where test takers can take advantage of resources to prepare them for the IELTS. It has a library with IELTS materials, as well as conducts IELTS orientation, writing workshops and information sessions. — CRAG
UPS Pulse of the Online Shopper showed Asian shoppers are the least satisfied with online shopping experience.
By Denise A. Valdez
CUSTOMERS IN Asia are less satisfied with online shopping compared to those in other regions, a study organized by logistics company United Parcel Service (UPS) shows.
“UPS Pulse of the Online Shopper,” which surveyed more than 18,000 online shoppers around the world (3,200 of which are from China, Hong Kong and Japan), took a closer look at the shopping habits of online customers from pre-purchase to post-delivery.
The study found 57% of Asian shoppers surveyed were satisfied with their online shopping experience, compared to other shoppers in the United States (85% were satisfied), Europe (81%), Canada (77%), Mexico (87%) and Brazil (88%).
In an interview with BusinessWorld, UPS Philippines Managing Director Chris J. Buono said for Filipinos the online shopping experience is influenced by factors such as the speed of delivery, access to bank accounts and affinity for mall shopping.
“People want things faster here. If you’re ordering a lot, say from the US or Europe, the transit time to come over from the US could be up to four or five days. And people will want stuff faster,” he said.
“Customers are definitely getting more demanding from the experience — so the store concept online, and the check out process, and returns process. They want that to be fast, they want it to be easy. They don’t want to wait a long time. And that’s really kind of demanding both to shippers and logistics companies to ensure that we make that process as seamless and as easy as possible,” he added.
Mr. Buono noted one of the challenges for online retailers in the Philippines is the fact that the Philippines is still largely a cash-based society.
“The number of Filipinos that actually have bank accounts and the actual number of Filipinos that actually have credit cards is pretty low, it’s about 20%. And that obviously impacts people’s ability to shop online,” he said.
Data from the Bangko Sentral ng Pilipinas’ 2017 Financial Inclusion Survey showed only 15.9 million Filipinos, or one fourth of the country’s adult population, have access to bank accounts.
The lack of a credit card or bank account is discouraging shoppers from making online purchases. For some shoppers, they may look at products online, but actually buy them in physical stores where they can pay in cash.
“From a government, private perspective, the ability for having a payment system where people can use cash to purchase online, or say bill it to their phones, things like that, the more that Filipinos are able to get credit cards or bank accounts, you’re going to see a rise in the amount of online shopping,” Mr. Buono said.
The mall culture in the Philippines also makes it unlikely for online shops to replace physical stores.
“I don’t think (online shopping) will ever replace the experience of going to the mall. I think that’s a cultural thing that we see, where on Sundays, you go out, you go to the mall, you have lunch and you’re browsing around the store,” he said.
The UPS Philippines executive noted there is a growth in shoppers who purchase from both online and offline stores.
“You’re seeing people are still going to actual stores and malls to do their shopping, but you are also seeing the demands are higher when it comes to looking online for stuff versus actually shopping at a physical store. So they’ll actively compare from different channels online as to what physical stores may have,” Mr. Buono said.
The UPS study also showed for customers in Asia, 83% use an online platform to either search or purchase a product. While only 37% complete their shopping solely online — meaning they search for and purchase products through the online platform — only 17% choose to rely purely on an in-store experience for their purchases.
“With consumers shopping both online and in-store, it’s important for retailers to provide a seamless experience regardless of the channel,” it said.
In the long run, Mr. Buono said companies must pay attention to developing the overall online shopping experience for customers if they want to sustain growth.
Among the things customers pay attention to, according to Mr. Buono, are: “the ability to do stuff like filtering out products that people want, making the check out process easier for consumers itself, the returns process, and even just the pleasantness of the website itself.”
“Customers are only going to get more savvy with regards to the type of stuff they buy online versus what they buy in the stores… As you keep surpassing or exceeding a customer’s expectation, which is what we embark to do every single day, then that expectation is gonna stay there,” he added.
