As foreign businesses eye easier entry into the Philippine market, local retailers are advised to fortify their competitive edge by tapping into unique strengths and a deep understanding of the local landscape. Industry experts emphasize that being first movers and leveraging a profound knowledge of the market positions Filipino retailers strategically. While foreign entrants bring confidence and preparedness, local retailers can ensure long-term competitiveness by focusing on enhancing the customer experience and capitalizing on their distinct identity.
Paul A. Santos, Chairman of the Philippine Retailers Association (PRA), highlights the advantage local retailers possess as first movers. Having an established presence before foreign companies enter the market provides a solid foundation for Filipino businesses.
Rosemarie B. Ong, President of the PRA, underscores the importance of prioritizing customer experience. Filipino retailers can set themselves apart by creating a memorable shopping environment, offering unique products, and fostering consumer loyalty through marketing local identity and heritage. To stay on par with foreign counterparts, local retailers must adapt to evolving consumer preferences by embracing technology. Incorporating e-commerce platforms, mobile apps, and omnichannel techniques is crucial in streamlining operations and ensuring competitiveness in the dynamic retail landscape.
Staying agile, investing in employee development, utilizing data analytics, engaging with the local community, and continuous improvement are essential strategies suggested by Ms. Ong. These measures ensure that Filipino retailers remain adaptable and responsive to changing market dynamics.
The Retail Trade Liberalization Act of 2000 was amended in December 2021, aiming to ease entry requirements for foreign retailers. However, industry experts note that the significant influx of new foreign players has not materialized, with existing retailers expanding their presence instead.
Challenges such as the ongoing pandemic, logistical constraints, and market dynamics have hindered new players’ entry. Mr. Santos suggests that the amended law may make the Philippines attractive to small- and medium-scale foreign retailers (SMEs).
As the Philippine retail landscape evolves with the potential entry of more foreign players, local retailers are urged to stay proactive. By embracing innovation, enhancing the customer experience, and staying attuned to market trends, Filipino retailers can not only compete effectively but also seize opportunities that arise in the ever-changing market dynamics. The call is to leverage inherent strengths, foster uniqueness, and continuously adapt to ensure a thriving future in the retail sector.
