CEBU, Philippines – Cebuano retailers expect upbeat sales during the next few months onwards to the holiday season as it has been noted that the new breed of consumers prefer to “spend than save.”
Philippine Retailers Association (PRA-Cebu) president Robert Go said that aside from the higher purchasing income of Cebuanos nowadays, the retail trade has also benefited from the changing buying psyche of Cebuanos, who now put more value on convenience, service, and quality rather than price.
"Retailers expect better sales because there are more OFWs sending their money home. The growth of the outsourcing industry also translates to a widening middle class. The younger breed are turning more middle class due to better education and better employment opportunity," said Go, who is also the president of Prince Hypermart Inc.
According to Go, although the shopping attitude of Cebuanos has evolved and loosen, priorities on food, clothing, personal hygiene products like cosmetics, home products (kitchenware, appliance and furniture) are still evident.
"As GDP grows higher, retailers expect growth in sales. If GDP grows six percent then we expect double-digit growth," said Go.
For retailers, one indicator of measuring the expanding middle-class market within an economy is the good sales performance of appliance, housewares, and even branded clothing.
"As long as there is GDP growth, there is always retail growth," added Go.
Research conducted by CBRE Asia Pacific showed that 70 percent of GDP or economic output comes from consumer spending. This is supported by OFW (Overseas Filipino Workers) remittances.
“The retail market in the Philippines has, and still continues to mature. Filipinos are now after the overall retail experience, choosing malls and outlets that give them the power of choice – whether in food and beverage or clothing and the like," said Rick Santos, President, Chairman, and CEO of CBRE Philippines.
According to CBRE Research, the boost in tourism will also provide extra support to retail market growth. The projected rise of 5.7 percent year-on-year average from 2010 to 2020 of international tourist arrivals in the region is strongest impetus to growth. With this, retailers are more encouraged to set up brick and mortar establishments in the country, contributing to over 250 new entrants in 2014. (FREEMAN)