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Rates of T-bills, bonds to climb

RATES of government securities on offer this week will likely climb anew amid weak demand as investors await possible policy tightening moves from the local and US central banks.
The Bureau of the Treasury (BTr) is offering P15 billion worth of Treasury bills (T-bills) today. Broken down, the Treasury plans to raise P4 billion through the three-month debt, P5 billion through the six-month papers, and another P6 billion in one-year T-bills.
The government will also auction off P15 billion in reissued seven-year Treasury bonds (T-bond) with a remaining life of six years and five months tomorrow .
Bond traders interviewed before the weekend said the T-bills on offer today will likely fetch higher yields from last week’s auction.
“For the [T-]bills, the rates will climb by around 10-20 basis points (bps) still on weak demand across-the-board,” the trader said in a phone interview.
The Treasury opted for a partial award of the T-bills last week, borrowing P7 billion out of the P15-billion program as it rejected all bids for the 91-day tenor due to higher returns wanted by investors.
Yields on the 182- and 364-day papers stood at 5.6072% and 6.256%, respectively.
For the seven-year bonds, the trader said it may fetch an average rate of 8-8.25%.
The government made a partial award of the reissued seven-year debt on Sept. 25, borrowing just P5.73 billion versus the P15-billion program.
The bonds, which carry a 5.75% coupon, fetched an average rate of 7.085%, up 110.9 bps from the 5.976% recorded on June 13.
At the secondary market on Friday, the three-month and six-month papers were quoted at 4.8339% and 5.6072%, respectively.
Meanwhile, the one-year and seven-year papers fetched 6.2589% and 7.9342%, respectively.
“Still, investors are awaiting the possible rate hike of the BSP (Bangko Sentral ng Pilipinas) as well as in the US,” the trader added.
Monetary Board (MB) Member Felipe M. Medalla said on Tuesday that the central bank “may take a pause” from further rate hikes should inflation momentum show signs of easing. However, he did not discount the possibility that commodity prices could still pick up faster.
The BSP also said on Friday that the pace of price increases could “revert more quickly” below 4% given the monetary policy tightening of the central bank as well as the measures implemented by the Executive.
The central bank has raised rates by a total of 150 bps since May as inflation maintained its ascent since the start of the year brought by surging oil prices and food supply issues exacerbated by the new taxes.
Meanwhile, the US Federal Reserve indicated in its September meeting minutes that it would stay on the course of gradual rate hikes amid “sustained economic expansion, strong labor market conditions and inflation near two percent over the medium term.”
Another trader said the expected rate hikes from the Fed may temper the improvement in bids, although it will be “negated by the recent statements from MB members.”
“I think bids will somewhat improve given the better [consumer price index] expectations for last quarter,” the second trader said in a text message on Friday, noting that he cannot provide any range for the average rate of the T-bonds on offer “given the unpredictability of the BTr.”
“One day, they say their cash position is good, then suddenly awards bonds 20-40 bps higher than the previous auction,” the trader added.
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion in T-bonds. — Karl Angelo N. Vidal

Japan’s Aeon to sell TADECO bananas under agri best-practices label

DAVAO CITY — Japanese retail group Aeon Co. Ltd. is including Philippine bananas sourced from Tagum Agricultural Development Company, Inc. (TADECO) for a special product line recognizing companies with Global Good Agricultural Practice (GAP) Certification.
TADECO President and Chief Executive Officer Alexander N. Valoria said the company obtained its GAP certification in November 2013, and has since been able to retain the certification.
“The benefit to TADECO will be over time as more of the market and consumers become aware of the Global GAP Certification and its advantages. Over time, we will see the marker and consumers will be demanding it,” Mr. Valoria told BusinessWorld.
He noted that TADECO, the flagship firm of the Floirendo-owned Anflo Management and Investment Corp, is the only company-wide Global GAP-certified banana company in the Philippines.
Mr. Valoria said the certification allows them to charge a premium for its products.
By next month, he added, a Web site will be launched listing products with Global GAP Number (GGN) labels to allow consumers to check where the product was made and by whom.
A Global GAP seal indicates that a company has complied with worldwide standards on food safety and sustainability, environmental protection, and worker occupational safety and health.
Aeon has a network of shopping malls, supermarkets, convenience stores, and specialty shops across Japan, China and Southeast Asia.
TADECO, the country’s biggest Cavendish banana producer and exporter, has a projected production volume this year of 32.6 million 13-kilogram boxes, which is about 10% lower than in 2017 due to unfavorable weather.
“It is still a very high production yield,” Mr. Valoria said. — Maya M. Padillo

Tech giant Google set to open 1st operations center in Philippines

By Zsarlene B. Chua, Reporter
TECH giant Google LLC is opening its first operations center in the Philippines, which will provide support for its users and customers in the United States, Australia, New Zealand, United Kingdom, as well as the Philippines.
A Google spokesperson said the company has traditionally relied on operations teams to provide customer support, and used third party suppliers.
“This worked well when we were smaller [but] like other companies, we now see the need to build out our customer support center,” the Google spokesperson told BusinessWorld.
Google follows the example of investment bank JPMorgan Chase & Co. which operates a Global Service Center in the Philippines.
The tech giant’s operations center, which is scheduled to open by the first half of 2019, seeks to employ a core team of “about 40 people.”
The Google spokesperson said the company expects to “hire increasingly by hundreds and then thousands as we build it out.”
The operations team, which Google calls operations specialists, will provide support ranging from troubleshooting issues to advertiser assistance for its products including YouTube ads, Google Pay, Google Wallet, Google Hardware and Google Maps, among others. Google Pay and Wallet are services available outside Philippines.
The Google spokesperson said the Philippines was chosen as the location of its first operations center because the company believes they “can find the best talent for the work that need to be done” here.

Back to the ’90s


NEW FACES behind the runway and more meditative fashions took control during the Panasonic Manila Fashion Fest’s ninth season. These are some of the designers who caught BusinessWorld’s eye as we sat front row during the fashion event.
Jaz Cerezo placed red piping on what appeared to be black men’s suiting on women which harkened back to the early days of Yves Saint-Laurent, when he released his Le Smoking. Catsuits echoing elements of masculine dressing, such as lapels, appeared on the runway. The collection mixes elements of power dressing, but then near the end of the show, the designer placed in a black, red, and purple spangled jumpsuit, reminiscent of the sleepwear trend from a few years back. This was accompanied by pieces like what appeared to be midnight blue shirtdresses, wraparounds, and kimonos, ending with a collection of gowns with orchids printed on them.
Rob Ortega’s collection felt like some of the newer creations of Calvin Klein, one of the kings of 1990s fashion. For this collection, we saw a resurrection of ’90s trends, as is the wont today. We saw dresses printed with snakeskin patterns, a lime green dress that was last seen on a dance floor in the ’90s, and a Juliet-sleeved lasercut dress that might have been worn by a teenage witch. Steph Tan showed off a feminine collection with marabou feathers, of all things, on an ice blue dress, accompanied by pieces such as blue lace dresses with an overlay in the shape of thick green vines. More feathers appeared in places like hemlines, such as in a pink and fuchsia dress, and the rest of the collection featured strong pinks accompanied with red outfits. A more memorable piece was a pink sequined dress with a red train with a flounce that appeared like rose petals. Finally, the collection had pieces that featured old Hollywood glamor, such as in a midnight blue dress speckled with pink.
Mark Tamayo’s collection was a respite from the glamorous lines that came before, opening with a rusty russet tartan jacket over a textured skirt. The prints used were reminiscent of the checks used up north (as in Ilocos and Baguio), and the effect was almost comforting. The palette was reminiscent of the earth and the harvest, in soft browns and earthy blues.
Dak Bonite’s collection was greeted with loud dance music and cheers, thanks to two hot pink outfits. One of them was a pantsuit that from a distance appeared like macrame, worn by a model holding hands with a girl in a dress of the same material. This designer uses a lot of brights, in orange, a red that looked like a popular lipstick, and went luxe in materials like satin. The final dress for this collection was a big metallic pink wedding dress that looked like Drew Barrymore’s first prom dress in Never Been Kissed.
Bessie Besana’s more ladylike designs followed Dak Bonite’s fun, bouncy show, featuring whites and pinks; sheer and lace on pleated outfits that would be perfect for meeting a prospective mother-in-law. Lucia Josephine’s collection, in the same palette, was spotted with details such as lasercut windows on hemlines and flounces. She told BusinessWorld that her collection was inspired by women who were not given as much credit: think Zelda Fitzgerald (F. Scott Fitzgerald’s equally talented and long-suffering wife), and Ada Lovelace (a mathematician and aristocrat who helped invent precursors to the computer). A memorable dress was a big pink creation with 500 inches of tulle, inspired by astrophysicist Jocelyn Bell (with a skirt shaped like, well, a bell, reminiscent of a creation by Balaneciaga back in the 1950s).
Chrisnick’s collection, meanwhile, was unapologetically glamorous, sporting velour and velvet in dresses that were sprinkled with crystal chains, reminiscent of runway fashions in the mid 1990s.
Miyama Uno, a brand from Japan, showed off printed chiffon scraps sewn together to create coats or skirts, resulting in a look that’s definitely avant-garde: it’s reminiscent of the Derelicte collection from Zoolander. That collection wanted to parody the excesses of the fashion world, but this seemed to actually work, looking beautiful instead of condescending.
John Magsaysay presented his brand called Magi, named after the wise men of old. He took wise to a new level with a line of male athletic and streetwear inspired by Pythagoras and the Greeks (through patterns that echo the Pythagorean theorem and constellations). The color palette, meanwhile, was dark and serious, the designer saying that it was inspired by colors used in heraldry.
Ministry of Silk, a brand from Laos, opened with an opera aria and showed off gowns cut in the silhouette of traditional costumes from Laos. As we can glean from the brand’s name, all of the outfits were in silk, and treated in such a way that championed traditional techniques, resulting in a texture and finish that is rough but refined. — Joseph L. Garcia

Bank economists flag upside inflation risks

By Melissa Luz T. Lopez, Senior Reporter
BANK ECONOMISTS expect inflation to remain elevated during the last three months of 2018, with some noting that prices may surge faster by yearend.
The latest survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed a median inflation forecast of 6% from October-December, which if realized will compare to the 6.2% average in the third quarter.
Two out of 26 banks who gave their fourth-quarter estimates even said that prices of basic goods will rise by an average of 7.3% and 7.5%, which is well above the current peak.
Inflation hit a fresh nine-year high at 6.7% in September, which brought the nine-month tally to five percent. The central bank said inflation may have already peaked last month.
For the full year, the median forecast stood at 5.2%, matching the BSP’s estimate to settle well above the 2-4% target band. This estimate is also higher than the 4.5% forecast during the second quarter report released in July.
“Analysts noted that risks to inflation in 2018 remain tilted to the upside,” the central bank said. In particular, the bank economists noted that volatile global oil prices, the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) law, a weakening peso, and rising prices of food due to bad weather and supply issues are driving costs up.
Other factors adding to price pressures include higher utility rates, rising wages and transport fares, strong domestic demand in time for the upcoming Christmas season and upcoming elections, delayed implementation of the state’s mitigating measures to combat inflation, higher infrastructure spending, as well as a global trade war.
Higher inflation expectations are also contributing to overall price movements, the survey bared.
Some relief is expected from the expected approval of the rice tariffication bill, the government’s subsidies for higher fuel costs for jeepney drivers, unconditional cash transfers to 10 million poor Filipinos, and slower global growth.
The series of rate hikes from the BSP — worth a total of 150 basis points since May — should also temper inflation expectations in the long run.
SLOWER NEXT YEAR
The bank analysts grew more sanguine for the next two years as they gave lower median forecasts of 4.2% for 2019 and 3.8% in 2020.
“Meanwhile, inflation is anticipated to moderate in 2019 and 2020 as the impact of TRAIN tapers off, global oil prices stabilize, and the government implements mitigating measures to temper inflation,” the BSP said. “However, analysts are also watchful of potential inflationary pressures from a possible RR (reserve requirement) reduction and the implementation of Package 2 of the TRAIN law.”
Monetary Board Member Felipe M. Medalla said last week that the central bank “may take a pause” from further rate hikes should inflation momentum show signs of easing. He added that the passage of the rice tariffication law — which would remove import quotas and allow private firms to import the crop as needed — would ensure that inflation will return to target by 2019.
Relaxing import rules would also boost supply in the market, which economic managers said could bring down rice prices by P4-7 per kilogram next year.
Economic managers have also recommended the suspension of the fresh P2 per liter excise tax on fuel as world crude prices hover at the $80 per barrel level during the past few weeks.
NOT ENOUGH
In a separate report, HSBC noted that the move to suspend fuel excise tax increase next year will not be enough to temper inflation.
“We don’t expect the suspension of excise taxes on oil by itself to have a significant impact on reducing headline inflation. If current oil prices persist until 2019, pump prices domestically should remain elevated even without the additional excise taxes,” HSBC economist Noelan Arbis said in a report published over the weekend.
“The government’s early announcement, however, could help curb inflation expectations and prevent (or at least limit) the broad-based rise in prices that we saw earlier this year, when the first tranche of taxes was introduced.”
Still, Mr. Arbis noted that inflation “has become the Duterte Administration’s top priority” given the host of measures it took to rein in consumer prices. In particular, stabilizing food prices is “the key to reducing inflation in the near term.”
HSBC expects rice tariffication bringing inflation down by 0.4%, versus the central bank’s 0.7% estimate for 2019.
On the flipside, HSBC said this will mean wider budget and current account deficits. Around P40-billion taxes will be foregone given the suspension of the fresh round of fuel excise tax increase, which HSBC said will add 0.2% to the fiscal gap relative to gross domestic product. This, in turn, could push borrowings higher to plug the gap.

Davao summit to roll out apps for farmers, halal

DAVAO CITY — A mobile application that will help farmers connect directly with buyers will be one of the new technologies that will be introduced during the 2018 LivEx, an innovation summit organized by ICT-Davao, Inc., to be held here on Oct. 22.
Samuel R. Matunog, president of ICT-Davao, the umbrella organization of information and communication technology groups in the Davao Region, said Simon Wong, founder of BigDex PLT based in Sarawak, Malaysia, will be presenting the OneFarm app, which would allow growers to bypass middlemen in the marketing process.
Mr. Matunog said the target is to come to an agreement for the app to be used at the Davao Food and Trade Terminal, part of the planned 25-hectare Davao Food Complex (DFC), which is expected to be operational this month.
“We are facilitating discussions with the city (government) and Simon Wong on the possibility of the food terminal to use this OneFarm app,” he said.
The terminal, funded by the city government, is intended to serve as a wholesale hub for farmers from the city and the provinces of Davao del Sur and Davao Occidental.
Another company that will participate in the summit is Brunei’s Suhbee Co., which will present a platform that will allow micro, small, and medium enterprises (MSMEs) to promote their products.
Suhbee Co. President Pg Sarimah Pg Hj Latiff will also lead a mentoring session for MSMEs on halal certification in Brunei.
Several mobile applications for the healthcare industry will also be presented at the event.
Mr. Matunog said the 2018 LivEx will have various segments and tracks, including technology-enabled social enterprises and e-commerce platforms, financing, branding, and marketing. — Maya M. Padillo

Buskowitz installs solar PV system in San Carlos building

By Victor V. Saulon, Sub-editor
SOLAR ENERGY developer Buskowitz on Saturday launched a 1.1-megawatt (MW) system on the rooftop of a commercial building in San Carlos City, Pangasinan, the largest installation so far for the company that previously powered the rooftop of several local gasoline stations.
“Clean, renewable, and sustainable energy is what is going to drive the Philippines forward both in terms of the economy and the protection of the environment, and Buskowitz is really glad to have been involved in such a great project in Pangasinan that not only benefits its environment, but also hopefully encourages other businesses and individuals to make the switch for themselves,” said James Carlos Buskowitz, chairman and chief executive officer of Buskowitz Finance, Inc., in a statement.
The solar photovoltaic (PV) system at San Carlos Town Center took the company three months of installation work, including a setback caused by Typhoon Ompong. Buskowitz described the project as the first and largest commercial solar PV system in the region.
Ahead of the launch, Mr. Buskowitz said in an interview that the company’s installations were focused on the rooftop of gasoline stations, the latest of which is a 10-kilowatt system for one of Petron Corp.’s retail units.
“Ideally, we’d like to do several or potentially all of the Petron stations. We’re doing a very similar model for Shell,” he said.
The company had put up solar PV systems on six gasoline stations of Pilipinas Shell Petroleum Corp., which is aggressively trying to do a national roll-out to have all its stations solar-powered, he said.
“We’re one of the few accredited contractors with Shell. I think there are a total of five or seven at the moment. Basically, we’re looking at a thousand gas stations that could be solarized within the next year or two years,” Mr. Buskowitz said.
“It’s very likely that Petron would follow suit. The gas station we’re doing for Petron now is a franchise though, so it’s probably more difficult with Petron because it’s several franchisees, but not impossible,” he added.
Mr. Buskowitz said his company is keen on cornering Petron-owned gasoline stations, which has the biggest network in the country.
Petron, with its refining capacity of 268,000 barrels a day, produces a full range of fuels and petrochemicals. It has more than 3,000 service stations where it sells gasoline and diesel. Shell has 1,044 retail stations as of May this year after opening 66 last year. It hopes to open 200 to 300 more stores.
“At the moment we are basically just looking to get our foot on the door and say hey we’ve done Petron station, we’ve done Shell stations and eventually we could partner with Petron and do all their stations as well,” Mr. Buskowitz said.
Aside from the business aspect, he points to the environmental impact of the solar PV system installation.
For San Carlos Town Center, for instance, the installation of at least 4,000 solar panels will produce the same amount of electricity to power 184 homes for one year. It will also save 1.3 million pounds of coal from being burned, or the equivalent of 138,428 gallons of gasoline, the company said.

Trend Watch

HERE ARE some of the trends to look out for next year, as presented in Manila Fashion Fest’s runway.
1. Big on Sleeves: The trend adds dimension to many an outfit, and gives it structure. More elaborate sleeves are achieved by designers with materials like tulle, or else with a focus on silhouette and structure.
2. Marabou Feathers: We saw this on a lot of collections, with the light, bright feathers lending movement and a tremble to hemlines and necklines.
3. Flow and Verve: Trailing sleeves and trains were seen a lot on the runway, and if you’re willing to accept a little bit of dust on your clothing for floor-sweeping dramatic entrances, then by all means, enjoy.
4. Silhouettes of the Past: Fashion seems to move slowly these days, and any new excitement is provided not by innovation, but wise retrospection. It’s surprising that some designers decided to go way back, and included themes of Victorian and Edwardian dressing in their designs.
5. Pink and white: The dainty color combination actually speaks to the strength of a woman, telling the wearer that she does not need to hide her femininity, and instead be proud of it. The combination works best with a soft white and a dusty pink. — JLG

Peso to move sideways on mixed leads

THE PESO will likely move sideways against the dollar this week amid mixed economic and political signals abroad.
On Friday, the local unit closed the session at P53.70 versus the greenback, stronger by 26.5 centavos than the previous close, supported by cues from succeeding rate hikes from the local central bank coupled with big fund inflows.
It also strengthened week on week from the P54.13-per-dollar finish last Oct. 12.
Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines, said the dollar might move sideways with a downward bias amid mixed signals and ahead of a possible softer economic growth in the United States for the third quarter.
For the first four days of the week, Mr. Dumalagan said the greenback might just move sideways, as “encouraging geopolitical developments” abroad might temper the likely mixed-to-soft data on services and manufacturing reports from the United States and the euro zone, citing positive developments in Italy-EU as well as US-China relations.
“These positive developments could improve investors’ risk appetite, tempering dollar appreciation resulting from the likely remarks of US Fed officials,” Mr. Dumalagan said.
However, a foreign exchange trader on Friday flagged the risk sentiment among investors which may affect currencies in emerging markets.
“Problems in Saudi Arabia could somewhat affect bullishness. There could be a risk aversion and eventually affect emerging market currencies such as ours,” the trader said in a phone interview last Friday.
“If there is no more flow and if risk sours, we can easily just trade weaker as well,” the trader added.
For Friday, Mr. Dumalagan said the dollar might lose its appeal against a basket of currencies on the back of likely hawkish tone of the policy meeting of the European Central Bank (ECB) as well as caution ahead of a possible third-quarter gross domestic product growth slowdown in the US.
“The ECB is expected to affirm its hawkish view of some tightening moves ahead… which could weaken the dollar against the euro and perhaps other currencies,” he said.
For this week, Mr. Dumalagan expects the peso to trade between P53.50 and P54.10, while the trader gave a P53.55-P53.90 range. — Karl Angelo N. Vidal

DA to expand MAV imports of chipping potatoes

THE Department of Agriculture (DA) will implement a unilateral minimum access volume (MAV) on chipping potatoes at 25,000 metric tons (MT) starting Oct. 25 which would bring down tariff rates to 3% from 40% within that volume.
Jerry S. Viernes, Jr., a member of the DA’s MAV Secretariat, told BusinessWorld: “If you are to import those raw materials, it will cost the local manufacturers 40%, which is why they prefer to import finished product, which is charged 0% to 7%.”
A 0% to 7% tariff applies to imported goods from ASEAN-member countries.
According to an Administrative Circular published on Oct 10, the department cited the need to create an MAV that reflects the current importation requirements of potato chip manufacturers to ensure the continued economic viability of food manufacturing. The order takes effect after 15 days of publication.
The previous MAV for fresh and chilled potatoes was at 1,150 MT which is significantly lower than the 26,000 MT requirement of manufacturers per annum.
According to the circular, the high cost of importing raw material puts potato chip manufacturers in danger of closing.
“We consulted farmers in Baguio, Bukidnon and Davao del Sur, who agreed to lower tariffs in exchange for aid,” Mr. Viernes said.
According to Mr. Viernes, P0.25 will go to the Potato Industry Development Program for every kilogram of chipping potatoes imported. He said however that farmers will not be at a disadvantage because their produce serves a different market.
Imported chipping potato varieties include Pike, Lady Rosetta, Atlantic, Dakota Pearl, which are not available from farmers here due to unfavorable soil and weather conditions in the Philippines.
The circular prevents potato chip manufacturers or processors availing of the MAV from selling on the unprocessed potatoes on the domestic market, under penalty of disqualification from the MAV scheme.
To apply for the MAV license, the applicant must be a registered potato chip manufacturer and must have imported at least 50 MT within two years prior to the filing of an application.
The MAV is valid for one year renewable annually, subject to review by the MAV Management Committee and modification based on volume of actual production and compliance with the terms of the program. — Reicelene Joy N. Ignacio

Megaworld eyes P700 million from Cavite condo project

MEGAWORLD Corp. expects to generate around P700 million in sales from its first residential condominium inside its Maple Grove township in General Trias, Cavite.
In a statement, Megaworld said The Verdin at Maple Grove will incorporate environmental sustainability features, as Maple Gove is touted to be Cavite’s “green” central business district.
The 10-storey condominium will have 140 units, ranging from studios of up to 32 square meters (sq.m.), one-bedroom units up to 51 sq.m., and two-bedroom units up to 79 sq.m. Some units will have a lanai with a view of the parks and the township.
Among The Verdin’s environment-friendly features are the “Sustainability Wall” at the main lobby; solar-powered outlets at the outdoor amenity deck; use of energy-generating equipment and machines in the outdoor fitness area; and the use of recycled and indigenous materials for the pool deck and the playground.
The Verdin will also have a two-floor podium parking with commercial spaces at the ground level.
Megaworld targets to complete The Verdin by 2023.
“Maple Grove will become a sanctuary of urban countryside and sustainable lifestyle. A huge part of the master plan will be Makati-inspired where green parks and interconnected streets are surrounded by malls, office buildings and residential towers. The Verdin at Maple Grove will be at the center of it all,” Rachelle I. Peñaflorida, vice-president for sales and marketing of Megaworld, was quoted as saying in the statement.
Last year, the property developer unveiled plans for a 35-hectare “Makati-inspired” business district within Maple Grove. Megaworld said the Maple Grove commercial district, which has 363 prime lots, is nearly sold out. — Vincent Mariel P. Galang

Skechers banks on ’90s nostalgia with new colorways for chunky sneaker


AMERICAN footwear company, Skechers continues to bank on the current nostalgia for the 1990s as it releases new colorways for its classic chunky sneaker D’Lites line, with one harkening back to the original black and white style which started it all for the brand.
“In the ’90s D’Lites were really made for dads, but once celebrities like Christina [Aguilera] and Britney [Spears] began wearing them, it kind of shifted the perception that it’s not just a sneaker for dads,” Joseph Asong, head of communications at Skechers Philippines, told BusinessWorld during the launch on Oct. 4 at Yes Please in Bonifacio Global City, Taguig.
And now, the dad sneaker trend is back with luxury houses like Balenciaga and Prada coming out with their own versions for the runway. Skechers is riding on the wave with nine new colorways, ranging from the classic black and white in the “Biggest Fan,” to a more trendy and colorful metallic in “Runway Ready,” and a pink one with embroidery with “Bright Blossoms.”
The new styles are priced between P3,590 to P3,890.
The new colors follow the May release of the “Sweet Monster” limited edition line which featured a more minimalist design in two colorways: a more muted black and white and a blush pink variant.
The release of the new D’Lites styles was also done to introduce the brand’s newest — and first Filipina — ambassador, actress Nadine Lustre.
“She has a very dynamic personality. She’s not afraid to try new things and venture into other things… and I think she represents Skechers very well because we’re very versatile — we have so many shoes,” Mr. Asong said of Ms. Lustre.
He added that since “almost 80%” of the Skechers market is female, it makes sense that they continue to cater to their strongest market segment.
“She’s our first Filipina ambassador in the 20 years Skechers has been in the Philippines. Now is the perfect time to have her represent the brand because we’re now in the social media age where there’s a lot of strong, influential millennials like Nadine [Lustre],” he explained.
TRAVEL BUDDIES
Aside from the launch of the new D’Lites colors, Skechers has also launched the new iterations to its GOWalk walking shoe line — GOWalk Evolution and GOWalk Revolution — promising comfort due to its “lightweight and responsive midsole,” according to a press release.
The new shoes feature Air Cooled Gogamat insoles, a departure from the usual Air Cooled Memory Foam cushion, which is meant to keep one’s feet cool all day long.
The new GOWalk Evolution slip-ons comes in three colors for women (white, mauve, and taupe) and two for men (charcoal black and navy gray). The women’s style retails for P3,590 while the men’s are P3,695.
The laced GOWalk Revolution comes in a single colorway for the women and men’ style: black and hot pink for women and charcoal and orange for men. The style retails at P4,195 for women and P4,295 for men. — ZBC