NEWS

Positive Retailing Moves During Challenging Times
By: Samie Lim, CFE
Father of Philippine Franchising
President, Blim's Fine Furniture
Chairman, Francorp Philippines

In his message to the all the retailers who converged at the Stores Asia Expo 2008 at the Crowne Plaza Hotel last August, Philippine Retailers association (PRA) Chairman Emeritus and Francorp Chairman Samie Lim reiterated that despite the challenging times that Philippine business is experiencing at the moment, there is cause for excitement.

"Challenging", Lim says, is the order of the day because due to the bad economic situation, customers now are more aggressive marketing campaigns."

Lim attributes the present customer behavior to the fact that customers now are more complicated and have many more options offered to them.

A positive note, however, is that he foresees that in ten years time, half of retail sales will emanate from a franchise store, thus brightening the prospects of franchising, whose growth in the Philippines zoomed from 40 to 1,000 concepts in ten (10) years.

Lim advised his colleagues to look to Europe for emerging concepts that can be replicated here in the country. For serious investors, he cited the next franchise expo in Paris, France as the trade show to visit and watch.

Another positive development is that the Philippines will have the honor of hosting the World Franchise Council (WFC) Congress in 2011. Preparations are underway for this big event which is a gathering of the world franchise community for its international franchise council meeting and exhibitions. For pulling off the Philippine hosting coup, Lim thanked Ms. Alegria Sibal-Limjoco, a two-termer president of Philippine Franchise Association (PFA), concurrently, chief executive officer of Francorp, as well as Mr. Robert Trota, incumbent president of PFA and chairman of Max's Restaurant.

During the international conference, 40 countries will make the Philippines their destination and use the meeting to introduce the wealth of their franchising concepts to Filipino business circles. It will also be an opportunity for the Philippines to present to the world showcase Philippine franchise and retail concepts.

Addressing Secretary Joseph Durano of the Department of Tourism who was also present as a keynote speaker, Lim cited the retail industry as an important factor that will drive Philippine tourism to greater heights. He gave the audience a deeper understanding of customer behavior by explaining the 3 C's of Customization, Convenience and Concern.

First, Lim Relates, the customers are saying, "I am unique", which means that customer want to be considered special. Therefore, there is a need to customize products to meet customers' wants such as, for instance, gaining status or bragging rights, so that a product becomes more of a personal statement of the "me".

Mr. Lim cites many examples. Nike has studios where personalized Nikes can be made. M&M's, the confectionery giant, can produce personalized candies and packaging in special colors and text, with even the face of the customer imprinted on chocolate. There is also personalized art where one's DNA code, kiss mark or fingerprints can be enlarged into painting that can be hung on the wall. In the United States, there is a My DNA fragrance kit costing $99 whereby, through a swab from one's cheek, one's DNA code will be known and hence, a biologically compatible perfume can be produced exclusively.

Mr. Lim said that trends are really towards the "I" and "me" economy and no matter how self absorbing it sounds, retailers can do well to offer products that are unique, and create atmospheres for more intimate shopping experiences.

The customer also says "I want it now" which has to do with convenience. Everybody wants everything here and now. It is for this behavior why, Lim says 7-Eleven has succeeded and has become the icon of convenience. It now leads as the biggest franchise company in the world. The last is that the customer is saying "I am the world." Lim says many consumers now are environmentally conscious. Concern for the environment, Lim explains, is no longer just the turf of activists. Consumers with environmental concerns flaunt their advocacy with pride.

To cater to this new mindset, stores like Walmart have "green superstores" powered by renewable energy which sell products that promote environmentalism. Levi's uses organic cotton and recyclable buttons in its jeans and apparel. Procter and Gamble has SWASH- clothes which need no washing with water.

In closing, Mr. Lim looks forward to the bright future of retailing. He said "retailing is so adaptable that it can ride on other industries. The sunrise industry now is tourism and that is why retailers should be able to supply this sector."