Changes in the Retail Business
Most traditional retail business owners in the Philippines are satisfied about how their businesses are run especially if they are at the top of their field. Pinoy and Tsinoy business owners who have been running their family business for decades are the slowest to adapt to change. Some business practices that have been working for them through the years may no longer be applicable in today’s business environment. Advancements in technology also opens up doors to new ways of doing business.
Take for example the traditional location of retail business compared to today. Before, when a person wants to start a retail business, places like Divisoria, Raon, Quiapo, Baclaran are the top choices where you want your business to be located. Most buyers who are outside of Metro Manila are willing to travel a few hours via bus or jeepney just to go to these places to buy their goods. But in present times, when people want to buy something they go straight to the Mall. Big malls like SM, Robinsons, Trinoma are the places where you want your retail business to be located. Big malls are now all over the Philippines. Even those living outside Metro Manila have access to Malls and are not willing to travel a couple of hours going to Divisoria even if its cheaper there but its still the place to go for some great bargains.
Another modern location of doing traditional retail businesses is via the internet. The Philippines, sad to say has been quite slow in adopting online retailing. Items sold online are usually cheaper than is stores because of lower overhead cost. But for most Filipinos, shopping the traditional way is still preferable to the virtual way because you cant touch, feel or smell the items you are buying online. For the smart retail businessman, having an online retail store in addition to the store located in the mall is the best way to go because whether we like it or not. The future of retail is online.
Labels: Business Advice