Social network spurs retail, travel growth

CEBU, Philippines - The growing popularity of social networking among Filipinos have increased the revenues of travel and retail trade in the Philippines as this phenomenon pushes people to frequently buy new things and update travel plans.

Philippine Retailers Association (PRA-Cebu) chairman Jay P. Aldeguer said that the advent of social networking has changed the movement of retail and travel businesses. For one, vacation plans now are not dictated by season but depends on the availability of airlines’ low fares, as people are encouraged by photos posted in social networking sites, specifically Facebook.

Having new gadgets, apparel, trying new restaurants, among others also push Filipinos to splurge for the sake of showing off to friends within their network.

According to Aldeguer, this trend is based on a study recently conducted, indicating the strong effect of social networking to retail and travel in both domestic and international destinations.

“Because what you do is now being published in social networking sites, this encouraged people to keep on updating their gadgets, apparels, as well as travels,” said Aldeguer.

Aldeguer, owner of the Islands Group that operates Islands Souvenirs, Islands Banca Cruises, Talima Adventure Park and Islands Stay Hotel, said that the impact of social network to these businesses have helped them achieve good performance amid the unpredictable economic situation.

Also, Aldeguer mentioned that the advent of social networking sites like Facebook and the existence of bloggers in the Internet have made heavier impact on influencing consumers’ attitude.

This is because people are so trusting — they trust even strangers. Bloggers, for instance, whom people do not know of, can impact consumers.

“Reactions now are so fast. Everybody knows instantly about what’s new, what’s not to try, or must try product and services,” Aldeguer said adding that these   factors that affect the choices of consumers have to be dealt with seriously by retail players.

“The world is changing. So with the retail game,” said Aldeguer.

Although retail and travel have stayed dynamic in the fragile economic state, players are encouraged to look at another dimension of challenges, where competition is tougher, and consumers’ attitude is too complicated.

A brand, for instance, which will stop making its presence felt in the different medium like Internet, newspaper, magazines, radio and TV, should be extra careful because consumers now can easily forget the existence of a certain brand as there are many choices in the market.

Investing on innovation is one of the top drivers for retail growth starting 2011. This means that retail players should make constant innovation of their products and services, while giving value for money and good service is already “given.” (FREEMAN)