Page 27 - Sphere No.6 (Jun 2002)

S ocialising, entertainment, fast-
food dining and shopping all roll
into one in the Philippines.
They call it “malling”. In the
world’s second-youngest country, where
half the population is under 20 and the
streets are too hot to be hip, megamalls
that stretch as far as 1.5 km over several
floors are modern-day community cen-
tres for youthful crowds who congregate
in their thousands.
The air-conditioning is one attrac-
tion – but there’s much, much more. Pop
stars perform mini-concerts, outside-TV
broadcasts feature the country’s most
popular entertainers, and glamorous
models strut the catwalks.
Cinemas screen the latest block-
busters, giant fast-food courts feed the
multitudes, cavernous arcades howl and
explode to the sound of video games,
Internet cafés attract long queues and
music, the lifeblood of this most musical
nation, plays constantly.
Then there’s the shopping. Filipinos
famously love to look good, and they
cheerfully spend as much as 20% of their
income on fashion, beauty and groom-
ing products. Girls are adept at their
own make-up at an early age, boys
habitually splash on deodorant after
basketball practice and men don’t
blink at the thought of manicures
or pedicures.
O PPORTUNITY KNOCKS
Tough trade restrictions have until
recently kept international retailers sit-
ting on the sidelines of this emerging
market. However, when the Retail
Liberalisation Act was passed in the
Philippines last year the door was
thrown open.
Some foreign companies remain
wary of national statistics indicating an
average pay packet of just US$6 a day –
misleading because financial contribu-
tions from an army of eight million
overseas workers substantially bolster
most household incomes.
But for Hong Kong-based Watsons,
Asia’s leading chain of health, drug and
beauty stores owned by Hutchison
Whampoa Limited, the Philippines rep-
resents a golden opportunity. Watsons
has moved rapidly to become the first
“household name” to enter the newly
liberalised market – and it is doing so in
a big way.
With a 174-year history, the A.S.
Watson Group is among the best-known
trading names in Asia with over 630
branches of WatsonsYour Personal Store
spanning Hong Kong, Mainland China,
Macau, Taiwan, Singapore, Malaysia and
S PHERE
25
Thailand. These branded stores have
proved adept at catering to the unique
characteristics of each market while
retaining Watsons’ distinct “discovery”
themed shopping formula which incor-
porates tremendous product diversity
under the simple concepts:“Look Good.
Feel Great. Have Fun.” It’s a compelling
mix that attracts two million customers
per week.
The Philippines represents Watsons’
biggest-ever expansion programme.This
year, more than 60 ShoeMart stores will
be re-branded with theWatson’s identity,
15 new stores will open and at least 150
new outlets are planned over the next
five years. The ceremonial grand open-
ing of its first two flagships was on April
26 in two of the biggest and most pres-
tigious malls in Metro Manila.
“We’re registered as number 0001 in
the Department of Trade and Industry’s
file of international retail investors regis-
tered under the new law,” says Dennis
Casey, Managing Director of Watsons
Personal Care Stores in the Philippines.
“We see enormous potential.”
PERFECT PARTNER
The campaign is through a joint venture
partnership with the ShoeMart (SM)
Group, the leading and largest owner,
developer and operator of shopping
malls in the Philippines. It owns and
operates 11 super-malls – seven in
Metro Manila, with others in Cavite,
Cebu, Iloilo, Pampanga and Davao.
One of the country’s largest con-
glomerates with interests also extending
to banking, real estate development,
ISLAND
SHOPPING
When the Philippines opened its doors to foreign retailers last year,
Watsons didn’t hesitate to make its move.
By Tim Metcalfe
PATRICK LUCERO (9)