The Future of Retail in the Philippines

The pandemic has forced retailers to shift their operations online. It was a sentiment seen by most
technocrats but not this soon.

Not everyone can still afford to shop. But people need to buy the so-called “essentials”.

Food, disinfectant and related materials has taken up a chunk of the best seller lists in most online
shopping apps. And for good reason. If buying important items cannot be stopped by the lockdown
that occurred in most municipalities, then the biggest challenge facing retailers struggling with the e-
commerce platforms is delivering the items on item.

This is why much of the brunt of the new normal fell on retailers. So much inventory waiting to be
taken off the shelves, so little time based on the expiry date found in the perishable items.

Every crisis can be an opportunity for retailers dependent on Philippine markets. In an interview
granted to Tatler Magazine Philippines, Jappy Gonzales of H&F Retail Concepts stated how their
“efforts went directly to e-commerce”. This approach helped their company ship products from the
brands that they carry namely, Y3, Lanvin, Balenciaga and Commes des Garcons.

E-commerce served as “the survival factor” for Donnie Tantoco of the Rustan Commercial
Corporation. He noted, “I think the next level of e-commerce is not just for convenience and ease. We
should strive to make visiting rustans.com as inspiring and emotionally uplifting as visiting our stores.”
(Plans to ease restrictions on movement are underway as of this writing.)

Gonzales mentioned though possibly the biggest hurdle to this shift to e-commerce is logistics. “The
physical delivery proved impossible in certain locations.”

These pandemic-related restrictions call to mind a challenge posed to logistics companies back when
online shopping is more of a novelty than a necessity in e-commerce. In an article published in
FreightWaves back in 2017, Alex Allen of the WCA E-Commerce Network viewed the latter’s behavior
as “reactive” rather than proactive when it comes to delivery and shipping services provided for
online retailers.

Could the pandemic be the ultimate circumstance that shipping companies in the Philippines be
waiting for as well? Competitiveness is now measured by the timeliness, if not speed, of shipment
delivery.

If the buyers can’t come to the stores for their essentials, the essentials come to their doorstep.
Thanks to logistics company ready to ship these items in the timeliest manner possible. They might as
well be among the frontliners ready to brave the outdoors in service of the people.