Brick-and-mortar to stay amid eCommerce surge

While more and more business are now investing on making their presence felt in the online retail sphere, local retailers believe that traditional retailing will still remain for a long time.

Philippine Retailers Association (PRA-Cebu) president Robert Go insisted that profitability in the retail business in the Philippines will be in the "brick and mortar" store presence, although maintaining online connection is important.

The slow internet speed, poor and expensive logistics, are just few of the major hurdles why online businesses, especially from Cebu and other parts of the Philippines, cannot take off in the medium term.

The culture of "utang" system in the sari-sari store, the Purchase Order (P.O.) card offering of large retail operators, purchases offered via installments are just few of the hard practices that online cannot beat.

Go further reasoned that buying and digital payments are yet to reach the majority, thus online retail is not at all a threat to the retail industry at least in the medium term.

Meanwhile, the Department of Trade and Industry in Cebu reported that more Cebuano small and medium retailers are now entering the online retail space.

DTI Cebu Provincial Director Ma. Elena Arbon reported that at least 15 startup retailers from Cebu are now making their presence in big online retail platforms like Lazada.

These Cebuano SMEs are mostly selling food, fashion accessories and housewares online.

DTI has been helping SMEs and startup businesses to maximize the inexpensive digital retail platform or eCommerce to gain broader market foothold.

Part of the agency's support programs is to identify potential retailers to make good in the online marketplace.

DTI also mentors SMES or startup businesses on how to properly register their businesses online or be part of the big online shopping platforms like Lazada.

Some of the proper eCommerce requirements include business name registration, FDA licenses (for food) and other permits.