More British firms set up shop in PH
More British retail companies are expected to set up shop in the Philippines before the end of the year, as the country becomes an increasingly important market for the United Kingdom.
British Ambassador Asif Ahmad has confirmed that clothing brand F&F, sold by UK’s biggest retailer Tesco, is establishing a boutique store this year.
Ahmad said during the recent launch of the British Fashion Month that growth prospects were good for British retail brands in the country as many Filipinos are naturally attuned to global fashion trends.
The Philippines also has a relatively young market that loves to shop, is fashion-conscious and media savvy, thus exposing them to foreign brands.
“Another reason [why more brands are coming in] is that UK firms have had experience outsourcing materials and clothes in this part of the world and so it is a very natural progression to sell here as well,” Ahmad added.
Even Philippine mall owners are bullish on retail prospects as a number of them have expressed interest to the British ambassador to bring into the country Primark, a destination store that offers a wide range of products, from home ware to accessories, beauty products and confectionery.
“Primark is very popular, but I’m not sure if they ready to internationalize here as the mode that works in the UK might not work here. But if they want to come, we will assist them. I’ve had big mall owners [from the Philippines] wanting to bring Primark here,” he disclosed.
The country is already host to a number of British retail brands, some of which have been here for years, while others have recently set up shop.
These include Debenhams, Marks & Spencer, Speedo, Topshop, Dorothy Perkins, Warehouse, Clarks Shoes, Burberry, Paul Smith, Ben Sherman, Hackett, Lee Cooper, Mothercare, and just last year, River Island.
According to Ahmad, the British Embassy in Manila often serves as a source of information for UK brands and helps link prospective investors to local partners.
“Typically, retailers in the UK will ask us what are the opportunities in the Philippines and we usually talk about demographics, the challenges, what is possible here and what is not possible here, as well as with whom they can partner. If they are interested, we would introduce them to owners of the big malls and to other partners, and then they can decide if they want to do it alone, through franchise or within a concession in a bigger department store,” Ahmad explained.
Apart from retail, British firms are also interested in other local industries including energy, retail, education, and engineering, architecture and construction.
At least eight trade missions are coming to the country this year, of which three are scheduled within the first quarter of 2014, Iain Mansfield, director of the UK Trade and Investment in Manila, said last week.
The Philippines is viewed as a potential regional base, from which British brands can have strategic access to the Asean region, especially once the economies of the bloc’s 10 member-states are integrated under the Asean Economic Community.
