Cebu retailers bullish on last quarter, 2010; spending will not equal 2007 level

CEBU CITY — Retailers are looking forward to the last quarter when consumers shop for the holidays, and to 2010 when election spending is projected to fuel consumption and drive up retail sales.

They don’t, however, expect to duplicate the double-digit growth rate achieved in 2007, an election year, because of the continuing global financial crisis.

"It’s still going to be challenging. To go back to double-digit growth as in 2007, an election year, will be extremely difficult because of the external environment now," said Bernie H. Liu, chief executive officer of Golden ABC, Inc. and director of the Philippine Retailers Association Cebu chapter, at the sidelines of the third Cebu Regional Retail Conference yesterday.

Mr. Liu said it could take another year or two for the global and the local economy to fully recover from the crisis.


"Nobody really knows when the economy would recover. Even (US President Barack) Obama can’t say when. But the environment in Cebu is not as depressing," he added.

Cebu’s retail industry is not as badly affected by the crisis as the other sectors and is projected to continue to grow, albeit at a slower pace than in 2007, because of the business process outsourcing (BPO) sector, the overseas Filipino workers and their families, and the tourists.

Focused markets

"These are our focused markets that are stable. We’re still very positive. Maybe, it won’t be the same kind of growth, but we expect some growth nonetheless," said Marissa N. Fernan, SM Prime Holdings, Inc. vice-president for marketing in Visayas and Mindanao, in a separate interview.

She said food continues to be the top seller, followed by apparel and electronic gadgets.

There is, however, a shift in consumer preference — from high-end to more affordable products.

Mr. Liu said some retailers cope with this "obvious and daring" shift in consumer behavior by repositioning their product mix.

For Golden ABC, Mr. Liu said they have come up with non-apparel products such as fashion accessories that cost less than P200. Golden ABC makes Penshoppe, Oxygen, Memo and ForMe apparel and accessories.

"Our accessories are growing by 300% while growth in apparel is a little lower," he said during a panel discussion.

Advertising

Despite the shift in consumer preference, Ms. Fernan said there has been no let-up in advertising efforts.

"Our budget (for advertising) is bigger. It’s times like this that more than ever, we need to boost promotions," she added.

Pinky Yee, managing director of Goldilocks, said retailers can’t afford to lose presence in the market. The last thing to go in times of crisis should be advertising, she added.

"We just have to be creative in reaching out to our customers. Have a strategic partner and work together," she said.

Ms. Yee also noted the need to maintain product quality despite being squeezed by the high cost of raw materials, ensure product availability and stay attuned to customers’ needs.

Source: BusinessWorld


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PLDT SME Nation, Smart whip up Cebu Storm launch

Packaging entrepreneurial necessities with mobility, PLDT SME Nation and Smart Corporate Business group launched the BlackBerry Storm in Cebu recently to provide entrepreneurs mobile ICT solutions.

As the need to become more mobile arises, the BlackBerry Storm unit, which comes for free under the Smart Plan 3500, affords entrepreneurs the competitive edge of being productive even out of the office.

PLDT SME Nation Marketing Head Amil Azurin said amid an economic crisis, small and medium enterprises have always been optimistic and continue to “persevere” and are determined to see growth.

“SMEs are starting to invest in technology to support their expansion plans. They turn technology into profit which in turn reduces their cost and increase market reach and efficiency.”

The SME sector employs 70 per cent of the labor force and contributes 32 per cent to the country’s gross domestic product. “The business sector, especially the younger generation, are more wiling to incorporate technology in their business since they understand the cost-efficiency it can generate,” said PLDT SME Nation Vice President and head Kat Luna-Abelarde. Smart Corporate Business Group Marketing Head Chet Alviz attests that, the BlackBerry’s new model will help its users get connected anytime and anywhere, and will fit the needs of today’s entrepreneurs.

The BlackBerry Storm integrates PLDT SME Nation business solutions like the PLDT Watcher, where live video feed from the IP camera device can be directly viewed from the phone.

Aside from being a mobile email device, the BlackBerry Storm also packs in a global positioning system, multimedia functions, a 3.2-megapixel camera, and mobile streaming, to name a few. For more info on what PLDT SME Nation can offer your business, visit www.pldtsme-nation.com.ph.

Source: Manila Bulletin

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Cebu energy project signs P16-B loan package

CEBU Energy Development Corp. (CEDC), the power arm of the Metrobank Group, said on Friday it completed the financing package for its P22-billion clean-coal power plant in Toledo, Cebu, in a bid to alleviate the power situation in the Visayas.

CEDC is a joint venture among Global Business Power Corp. of the Metrobank Group, Aboitiz Power Corp. Vivant Corp., and Formosa Heavy Industries (FHI) of Taiwan.

In a statement, CEDC said 11 banks and insurance companies pledged to lend CEDC P16 billion over 12 years in the deal arranged by investment bank First Metro Investment Corp. last week.

CEDC said the loan is already considered the largest peso-denominated project financing in the Philippines to date.

CEDC’s power project gives a much-needed shot in the arm to Trade Secretary Peter Favila’s economic-stimulus initiative that calls for the private sector to contribute P100 billion.

“The new power plant is also CEDC’s response to President Arroyo’s calls for the expansion of power-generation capacity, particularly in Cebu and the Visayas,” said Jesus Alcordo, CEDC president.

He added the plant will have a generating capacity of 246 megawatts.

CEDC claims that construction of the plant is well on its way, and is some 50-percent complete into the first of three power-generation units.

The unit is scheduled to be energized by the first quarter of 2010, with full commercial operation of the plant expected in the third quarter of 2010—the time that the power situation in Cebu and the Visayas moves from critical to actual shortage.

The new coal plant will be using the latest in clean-coal technology and is being built by FHI of Taiwan. FHI itself has a portfolio of modern, efficient and clean coal-fired power plants in Taiwan, the United States, Indonesia and the Philippines.

The clean-coal plant is envisioned to help solve the worsening power situation in the Visayas in general, and Cebu in particular. The Visayas and Cebu have been facing dwindling power reserves and insufficient peak capacity as early as 2008.

The plant is anticipated to supply the Balamban EnerZone, where Tsuneishi’s shipbuilding plant is being expanded, requiring not only more power but also reliable and quality energy.

Carmen Copper, which is now fully operational in the old Atlas Mining site, will also be a major beneficiary and is projected to create a tremendous multiplier effect as an economic-stimulus project.

Source: Paul Anthony A. Isla Business Mirror


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Parkmall: Cebu's newest lifestyle destination

MANILA, Philippines - Parkmall, Cebu’s newest lifestyle destination, continues to attract discerning mallgoers, thanks to its ideal location, wide range of stores and facilities that set it apart from other malls.

Conveniently located 15 minutes away from the Mactan International Airport and just a stones’ throw away from the port of Cebu, Parkmall encompasses a total lifestyle experience with the right blend of a lush, landscaped park and ample parking spaces that offer a convenient shopping experience.

It boasts of having Save More, Cebu’s most spacious and complete grocery store, and the Kids Village, one of Cebu’s biggest indoor playgrounds.

Only recently, a beach volleyball sand court was constructed, which cements Parkmall’s reputation as Cebu’s one-stop place for shopping, leisure and recreation.

The sand court makes quality beach volley action easily accessible to more people, while helping to promote a healthy and active lifestyle.

The newly opened Parkmall is no stranger to major events. Barely a year since it opened, Parkmall marketing manager Tony Tiu says Parkmall has already played host to some of Cebu’s hot-ticket events like the 13th Bob Marley Festival, OZR Motor Grand Prix Racing, Cebu Auto Cross Competition, First Cebu Airsoft Competition, the first Cebu Reggae Festival, and the Visayas leg of the Nestea Fit Beach Volley National Circuit ’09, the summer’s biggest event.

Indeed, the intense beach volleyball tournaments featuring Visayas’ best collegiate beach volley teams and the highly successful Nestea Fit Summer Street Party that featured creations by noted designer PJ Arañador and a party that showcased Driven Manila DJs David Ardiente and Miko Syquia complemented Parkmall’s thrust as the mall to see and be seen at in Cebu.

Source: Philstar

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BOC to enforce new system for Peza shipments in Cebu

THE Bureau of Customs will enforce a new procedure in the Cebu International Port and Mactan International Airport starting later this month on economic-zone shipments for the effective implementation of the Automated Cargo Transfer System.

According to Customs Memorandum Order 24-2009, approved by BOC Commissioner Napoleon Morales last week, the new order will be enforced on Philippine Economic Zone Authority-registered locators and importers starting next week.

Under the new regulation, the BOC will no longer require Customs Peza Warehousing Entry, Transshipment Permit, Transit Cargo Manifest, Boatnote, Mission Order and Telegram in cargo declaration and transfer. The government would instead require the use of Import Entry Internal Revenue Declaration (IEIRD)-Transit for the particulars of the import shipments.

Ecozone enterprises, meanwhile, will have to lodge the IEIRD-Transits using the Single-Administrative Document through any of the BOC-accredited value-added service providers as the BOC will no longer accept entries lodged manually.

Only ecozone enterprises and customs brokers with active registration in the old automated customs operating system can lodge electronic transit declarations.

Ecozone enterprises are also required to post a one-time surety bond issued by a surety company accredited by the BOC, which will serve as guarantee of payment of taxes and duties.

The value of the bond should be equivalent to the average duties and taxes due on importations of the ecozone enterprise for a period of three days.

This is based on the total duties and taxes due on its actual importations during the three-month period immediately prior to its posting of the bond.

BOC may also require an ecozone locator to increase the value of the bond at the end of a semester, upon determination of a significant increase in the level of its actual importations in order to ensure that its surety bond provides adequate coverage of taxes and duties due on its current importations.

The locator is also required to pay BOC cargo transfer fees for the transit goods.

This will only be available through automatic debit from a pre-payment account that they have established in a bank branch designated by BOC’s Port of Mactan collector.

“For tax and duty-exempt import shipments arriving by sea at the Cebu International Port, the transit declaration should be electronically lodged with the Port of Mactan through the VASPs,” BOC said. It added that the processing will be the same as those cargoes shipped through air.

Source: VG Cabuag Business Mirror


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Cebu welcomes call center expansion

Rep. Eduardo Gullas (1st District, Cebu) has credited business process outsourcing provider Aegis PeopleSupport Inc. for its decision to build a new P685-million facility in Cebu City and engage an additional staff of 2,500, a press release from his office said.

"This is definitely most welcome, coming at a time when other firms are aggressively laying off workers, or have ceased hiring as result of the global economic meltdown," Gullas said.

He added that the BPO company’s move has also reinforced Cebu’s standing as a global hub for outsourced information technology-enabled services, with the province’s vast college-educated human resources and ample infrastructure and connectivity.

Through his campaign to build up the English and other foreign language skills of Filipinos, Gullas, an educator, has been a key congressional backer of the country’s booming BPO industry.

Aegis SeopleSupport, formerly PeopleSupport Inc., is one of the pioneers in the local BPO industry, the press release said.*

Source: Visayan Daily Star

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The reason why investors loved Cebu.

Cebu has the highest economic growth rate in the Philippines and higher than that of the national capital region. Foreign investment Group make cebu ranked number eight as a great Potential Investment Hub. by the Finance Direct Investment (fDi) magazine of the Financial Times Group. Investment advisory firms tholons and the global services publication ranked cebu as the number one city for Business Process Outsourcing companies overtaking the three cities in india.

Cebu is also ranked as the Top 10 Best Asian Cities. With over 5 billion US dollars in annual revenue in export industry alone. Cebu's Major industries are Electronics / electrical equipment manufacturing, car manufacturing, gun manufacturing, shoe manufacturing, computers, metals and precision instruments, chemicals, industrial parts assembly, food processing, furniture, fashion accessories, gifts, toys and housewares (GTH), garments, stonecraft, shipbuilding, and mining. More than eighty percent (80%) of the Countries Inter Island Shipping are Cebuano owned Companies.

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