Metro Manila (CNN Philippines, May 28) — Colliers International Philippines said mall operators and retailers should take advantage of new opportunities to offset lower retail demand due to the COVID-19 pandemic.
“We recommend that mall operators expand their e-commerce platforms. Retailers, meanwhile, should maximize mall developers’ online sites and social media platforms,” Colliers said in a report published May 26.
“In our opinion, retailers should remain relevant by ramping up client engagement efforts and partnering with delivery platforms,” the report said.
Specifically in Metro Manila, the firm said that due to the personal safety protocols that will still be in place even after the government eases the community quarantine, consumer traffic will likely reduce.
This may lead to slower absorption of retail space all over the capital, Colliers said, projecting a rise in vacancy rate to 12 percent this year from 9.8 percent in 2019.
However, this “new normal” can make way for new opportunities, Colliers said.
In order to take advantage of such new setup, the firm said mall operators and retailers should expand their partnerships with logistics firms who have “modernized warehouses and efficient logistics systems” to be able to maximize their shift to online selling.
With their transition to online selling, Colliers said it is expecting more retailers to create their own e-commerce websites, as well as make use of mall operators’ sites or, expand their presence in social media platforms like Facebook and Instagram.
In a survey made by the firm, people in the older age group may be a better target for retailers. Respondents 51 years old and above use the internet for more than 10 hours, 5 hours of which is spent for online shopping.
It also noted that the younger people, 21 to 30 years old, spend an average of 3 to 6 hours a day online with 2 hours spent on online shopping.
“With online shopping becoming more popular among the aging population, retailers should ensure that their sites are easy to navigate with convenient search and checkout options,” Colliers said.
In order to stay on top of the consumer’s mind, it is important for retailers to be more innovative especially for high-end brands, Colliers said.
Online shoppers with a monthly income of ₱80,000 and above spend more time online looking for goods to buy, the survey showed.
One way of staying engaged with the consumers is by creating online communities, wherein shoppers can contact retailers immediately, Colliers said.
