Retail In Cebu And Manila Philippines
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COMPARISON BETWEEN METRO MANILA AND CEBU
One of the main criteria for a successful business, most especially in retail, is the location. Thus, in this study we reviewed both Cebu and Metro Manila to evaluate the potential of entering the retail industry and market in Cebu.
Metro Manila is officially called the National Capital Region (NCR) and is composed of Manila plus 16 surrounding cities and municipalities. Metro Manila is considered to be the political, economic, social, and cultural center of the Philippines. The most prominent cities that serve important roles in the business and retail in Metro Manila are Makati and Mandaluyong City.
A. Makati City is considered to be one of the most important cities in the Philippines in terms of finance and commerce. Many refer to it as Business Capital of the Philippines since many companies would locate their main offices in this area. If in the United States their stock trading are done in New York In the Philippines it is done in Makati City at The Philippine Stock Exchange Located at Ayala Avenue.
Makati City is also known for the numerous of malls located in it like SM Makati, Glorietta Mall, Greenbelt, Rustans Department store and Rockwell. Many 5 star hotels are also located in Makati like Mandarin Oriental, Makati Shangri-la and Manila Peninsula Hotel. Other well-known hotels that can be found in Makati are Inter-Comtinental Hotel, Dusit Hotel and many more.
Through time, Mandaluyong City has eventually became, one of the leading business centers in the Philippines. Many would sometimes compare Mandaluyong and Makati with each other because of some similarities that they have. In Mandaluyong a part of the Philippines stock exchange can also be found. Many malls can also be located in Mandaluyong like SM Mega Mall, The Podium, Shangri-la Mall, Star Mall and Robinson Galleria.
Currently, there are more constructions that are happening in Ortigas that caters to different businesses like the new home depot and car depot located near Meralco Avenue.
Cebu is often called the “Queen City of the South” and the Seat of Christianity in the Philippines. Cebu is the countrys oldest city. Exploring Cebu City, one encounters a rich historic past. Cebuanos are extremely proud of their cultural and historical heritage, a legacy that has gone through centuries of rich history and culture from the time Ferdinand Magellan first planted the cross on Cebus shore. Beside this description Cebu city is also one of the most prominent and well-known city in the Visayas region of the country
Time has been kind to Cebu. From Zubu, the fishing village and busy trading port in 1521 has evolved a highly urbanized metropolitan center which now serves as focal point of growth and development in Southern Philippines. With its five cities; Cebu, Danao, Lapulapu, Mandaue and Toledo; and its 48 smaller towns, Cebu has more than kept pace with the nations progress. Today, the island province leads in traditional and non-traditional exports and has the highest economic growth rate anywhere in the country. Likewise, recent indications pointed out that Cebu has become the countrys most favorite tourist destination.
In the heart of the business center of Cebu malls can be found like Ayala Center Cebu, SM Cebu and Gaisano Mall. Due to the establishment of these malls, so did more businesses tried to enter the market in Cebu. In comparison to Metro Manila, eventough Cebu is the oldest city in the country its businesses and industries are not yet congested.
COMPARISON OF FAMILY INCOME AND EXPENDITURE BETWEEN METRO MANILA AND CEBU (concerning clothing and food)
Families in Cebu allocate more of their money to spend for the foods that they consume at home and outside in comparison to those who belong to Metro Manila. On an average the food expenditure consists of 51.7% of their total expenditure. On the other hand for Metro Manila, on an average the food consumption expenditure is only 35.8% of their total expenditure.
On an average a family in Cebu would spend 16% out of their total spending to rice, breads, and cereals. On the other hand, for Metro Manila families out of their total expenditure their only spend 6.2% of it on an average to rice, breads, and cereals.
Families in Metro Manila allocate 2.4% of their total expenditure for clothing, footwear and other wear while for Cebu it is slightly lower by .03%, at 2.33%. Based on the tables on Expenditure of both Manila and Cebu. In Metro Manila the families that have the highest percent of spending for clothing, footwear and other wear are those who belong to the lower classes, meaning families who are earning 39,999 and below. In Cebu, the income classes of the families that have the highest percent of spending for clothing, footwear and other wear are those who belong to the upper income classes. They belong to the families earning P 60,000 and above.
Due to this findings we can assume that for those family in Metro Manila who have higher spending in clothing (those who belong to income classes earning 39,999 and below) the clothes, shoes and other wear that they purchase are not those who are “branded” and most likely they do not purchase clothes where in their target markets are those people who belong to the middle to upper income class.
CONCLUSION:
Cebu being the oldest and one of the most prominent cities in the Philippines is one of the best locations in the country to put up a retail store or company.
Many people would ask, why not Manila? Why Cebu? The reasons for this are the following:
First, The dilemma with setting up a retail store or company in Metro Manila is that competition is very tough. And the industry is so congested that it is difficult for a company to maximize their competitive edge. However, in Cebu where the retail industry is continuously growing, since the industry is not congested it is easier for a retail company to enter this part of the country.
If one would look at the list of the New retail stores in Ayala Cebu, it is noticeable that these brands target middle to upper class consumers. These increase in retail stores in Cebu shows that there is a potential for retail stores targeting people belonging the middle to upper class.
Second, Another important factor that makes Cebu as a great place to invest in especially in the retail industry is because of its strategic location that makes it ideal for those who wish to travel to the other islands and provinces in the