The Digital Economist

The young demographics of the country, the rising disposable income of its young population, remain as key drivers of domestic consumption. There are other factors that drive the retail industry to grow such as: Increased consumer spending due to reduced unemployment rate brought by the BPO and the overseas work.  This increase in income of the households is boosting retail sales. Easy Bank Loans: Bank is offering credit with easy terms to the retail companies and financing up to 60% of capital.  There is a high availability of financing channels. Increase in Demand is leading to the growth of Organized Retail:   Entry of foreign brands and consumers desire to try new brands is driving retail industry; this increases the availability of product options. Omni Channel , the rise in a multi-channel sales approach that provides the customer with an integrated customer experience. The customer can be shopping online from a desktop or mobile device, or by telephone, ...

What does it looks like? The Philippines with its solid macroeconomic fundamentals; young working population, rising disposable income of its young population, is an attractive destination for global brands. Economic activities that are a driving sustained positive economic expansion. Rising disposable income triggering the demand move in upward slope. This rising disposable income and increase in demand for a variety of commodities attracts foreign brands to enter the Philippine retail landscape. In a research conducted by the Business Insider in United States, 8,053 retail outlet closures were announced in 2017, and more than 3,800 will close in 2018. These figures are driven by the increasing preference for online shopping. While many retail stores in the United States and elsewhere in the world have been affected over the last few years, rendered obsolete by the consumer’s growing preference for online shopping among other factors, the Philippines meanwhile h...