As foreign clothing giants start to establish a foothold in the Philippine fashion market, one brand is pushing to expand both even more in its native country and into the world market as a whole. Having been this successful is the result of the creative minds at Penshoppe and its mother company Golden ABC. The recent insight from Bernie H. Liu, the owner and CEO of GOLDEN ABC, shared with Retail in Asia, shows the eagerness, desire, and ability to excel in the fashion world.
RIA: Who are Penshoppe’s target consumers?
Bernie H. Liu (BL): Penshoppe targets the fashionably young of all ages, creeds and income levels.
RIA: How many stores does Penshoppe currently have in the Philippines? What’s your strategy for Penshoppe’s growth in the homeland?
BL: We have over 300 retail sites as of today spread out across the country. We continue to open new stores, introduce new product lines that complement the Penshoppe lifestyle we advocate for our customers, and get more people to try out the Penshoppe experience by enticing them with updated designs.
RIA: You have signed Thai actor Mario Maurer and Ed Westwick from the popular US teen drama Gossip Girl as your international endorsers. What are the reasons behind? How can the right endorsers help to grow the business?
BL: The brand has begun to offer the Penshoppe experience outside of the Philippines. Getting Ed and Mario as our endorsers gives the brand global appeal to entice new customers to enjoy our products. Endorsers influence their fans to try out the brand or become more loyal to the brand. Having prestigious endorsers adds prestige to the brand too.
RIA: Many fashion brands are tapping into the Philippine market as Gap, Forever 21, Topshop have opened shops there and we’ve heard that Uniqlo is planning to enter the Philippines in June. What do you think about the fashion industry’s competition in your country?
BL: The arrival of the global giants is an inevitable reality in the Philippine market. It’s incredibly exciting for us, because it also educates the market to think more globally. At the same time, the competition further excites us and pushes us to constantly improve. In the end, the retail race will only become more intense and only those fit enough to run to the finish line will survive. We are all primed for the race.
RIA: Amid growing competition in the Philippine market, how does Penshoppe plan to be a strong competitor and gain market share there?
BL: Penshoppe will continue to innovate in products & store design and enhance its brand management. The past years were very exciting ones for us with Penshoppe undergoing constant innovation. In 2012 the transformation continues, and we’re sure our customers will continue to be excited by the brand.
RIA: Penshoppe opened its store in China’s Xiamen in 2002 as the first Philippine retail brand to do so. Can you tell us more about the move? Can you talk us through your experience in China? What’s your plan for Penshoppe in the country in the near future?
BL: Our move to open our first store outside of the Philippines in China was a sentimental tribute to our founder, Lim Liu, whose roots are from Xiamen, China. China is without a doubt going to be the largest market in the world in a matter of years, not decades. No brand that wants to become global can ignore China in their future plans. However, opening our first store there was a learning experience in many aspects for us. While it made us realise the potential of the market, we also had to look at the sustainability for its long term operations. Learning the nuances of retail trade laws in China and having the right retail partner in the country was a crucial lesson for us. We had to regroup and rethink our strategies. We believe however, we should be able to re-enter the market soon, stronger and more equipped.
RIA: Do you have plans to enter other markets?
BL: Yes, we are already exploring opening new stores around the Asian region. We already have a presence in the Middle East with all stores doing very well. We will continue to target the fashionably young wherever we go. How many stores we open will depend on the right type of partner we have in those countries we expand to.
RIA: Do you think consumer behaviour is changing in Asia? What are Penshoppe’s strategies for these changes?
BL: Asians are becoming more savvy and intelligent in their choices. Because of the internet and readily available information, global exposure is now standard. What they see on TV they want now. Penshoppe always strives to be right along the latest trends around the world, catching them just right before the style becomes rampant giving our customers a first pick of the incoming trend.
RIA: Many fashion brands have started exploiting the online shopping market. Do you have plans to launch online shops?
BL: Yes, we are already developing our online shop. This will become a major channel of retail for all retailers not just in the Philippines but in Asia.
Bernie H. Liu, is the owner and CEO of GOLDEN ABC, Incorporated (GABC), a Philippine fashion retail giant that owns diverse and well-known brands that suit the different tastes and lifestyles of the Filipino people. Beginning with its flagship brand Penshoppe in 1986, GABC has expanded its brand base to cater to a wider group of customers: Oxygen began to breathe new life into fashion forward retail in 1996; Memo has offered stylish work wear to yuppies since 2002; in 2004, ForMe pioneered to clothe women of different body shapes. After that, GABC began to acquire top brands: Regatta in 2009 to offer leisure wear; and Tyler in 2011 to cater to the upscale market. In 2008, GABC set up Red Logo, a fully owned direct selling subsidiary that carries its own clothing accessories and cosmetics lines. The company just celebrated its 25th year.
For more information about this company, visit GOLDEN ABC.
CEO Talking Shop is the Retail in Asia section devoted to interviews with brand CEOs and retail industry leaders.