The SSI Group Inc., a prominent player in the Philippines’ retail industry and the official distributor of several luxury international brands, has announced the acquisition of a majority stake in Rustan Marketing Corp. (RMK) for P232 million. This move marks a significant expansion of SSI’s footprint in multi-channel retail distribution, allowing the group to broaden its reach across various retail platforms.
In a regulatory filing, SSI revealed that its subsidiary, Stores Specialists Inc. (SSI), has successfully acquired a 99.44 percent stake in RMK. This strategic acquisition allows SSI to diversify and strengthen its presence across specialty stores, department stores, supermarkets, and e-commerce platforms. By acquiring RMK, SSI can now provide its brand partners access to a wider array of retail channels, enhancing its distribution capacity across the Philippines.
Deal highlights and reach
Founded in 1964, RMK has become one of the country’s largest wholesale distributors, specializing in global brands across various categories, including fragrances, beauty, fashion, footwear, luggage, home and lifestyle products. RMK’s portfolio includes well-known international brands like Samsonite, American Tourister, Tefal, Lacoste Fragrances, Maison Margiela, Spanx, OPI Nail Polish, and Nine West.
The acquisition is expected to strengthen SSI’s already formidable retail presence. SSI, which currently manages a portfolio of 96 brands and operates 565 stores across the country, will benefit significantly from RMK’s established wholesale network. The combined entities will be able to offer a more comprehensive distribution system, covering more than 1,300 outlets and major e-commerce platforms nationwide.
RMK, under the leadership of the Tantoco family, posted impressive financial results in 2024. The company reported P1.085 billion in revenues, with an EBITDA of P111.2 million and a net income of P44.2 million. The deal also includes a requirement for RMK’s selling shareholders to inject P232.08 million into the company, further solidifying its financial foundation.
SSI president and CEO Anton Huang has expressed confidence that the acquisition will allow the group to expand its portfolio in 2025, potentially offering up to seven new brands. As the Philippines’ consumption-driven economy continues to grow, SSI aims to capitalize on the increasing demand for premium and luxury products.
The acquisition also aligns with SSI’s vision of becoming a multi-channel distributor of premium brands nationwide. The group is committed to offering a variety of lifestyle choices to Filipino consumers, responding to evolving tastes and preferences. With a strong retail presence, including 111,816 sqm. of gross selling area, SSI is positioning itself at the forefront of the retail industry.
Huang added that SSI’s goal is to continue bringing global lifestyle trends to Filipino consumers, providing them with access to a broad range of luxury, casual, and fast fashion products. The acquisition of RMK will also contribute to the group’s efforts to enhance its online retail presence, meeting the growing demand for e-commerce in the Philippines.
Honoring RMK’s roots
The Tantoco family’s deep roots in the Philippine retail industry have been instrumental in shaping the success of both SSI and RMK. Over the years, the family has nurtured a strong reputation for delivering premium products to the local market, and this acquisition underscores their ongoing commitment to expanding their retail footprint.
With the integration of RMK, SSI Group is poised for even greater success in the future, with enhanced distribution capabilities and an expanded portfolio of global brands that will cater to the diverse needs of Filipino consumers. The acquisition reflects SSI’s strategy of continuous growth and expansion, which has seen the group return to expansion mode in recent years, following a 7.4 percent increase in its gross selling area in 2023.
As SSI continues to broaden its influence in the retail sector, the acquisition of Rustan Marketing Corp. is a significant step toward becoming a comprehensive, multi-channel distributor of premier global brands in the Philippines. With its increased reach and a wider array of retail channels, SSI is well-positioned to remain a key player in the ever-evolving Philippine retail landscape.
The journey of customers and business innovation in the retail industry comes to a close once again. As the curtain falls, let us reflect on the stories from the second half of the year—highlighting the transformative changes, groundbreaking breakthroughs, and the rise of new players in the retail arena. This period has witnessed a shift in how businesses approach customer engagement, technology, and sustainability. Alongside this, we have seen the evolving expectations of customers, who are now more informed, demanding, and conscious of their purchasing decisions.
As we look back on the key moments, game-changing trends, and emerging strategies, we explore what’s shaping the future of shopping. Learn who the consumer of tomorrow is and discover the strategies you’ll need to capture their attention. After all, in this ever-changing arena, the consumer will always be the king.
At RetailWise, we firmly believe that keeping a finger on the pulse of what the market wants isn’t just a strategy but the heartbeat of a successful business.
Stay updated with RetailWise’s comprehensive Retail Report for H2 2024! Gain insights into the latest developments and trends in the retail industry at global, regional, and local levels. Discover innovative advancements and understand the dynamic changes shaping the retail sector. Don’t miss out, click below to stay ahead in the retail world!
CS Fresh Supermarket truly lives up to its name—everything is genuinely fresh, from fruits and vegetables to the delicatessen, meat, and seafood sections.
Fruits and vegetable area
Fresh butchery and meat area
Fresh seafood
CS Fresh by Cold Storage is an upscale supermarket spanning over 2,700 sqm at Basement 1 of Great World. It’s a haven for gourmet enthusiasts, featuring bespoke butchery services, a world-class selection of beer, wine, and spirits, a fresh bakery, fresh sushi, and Singapore’s widest range of organic produce.
Wine, beer and spirits
Fresh sushi and fresh bakery
Delicatessen and fresh produce area
You will love this store from the moment you step in. Fresh flowers greet you at the entrance, accompanied by vibrant displays of colorful fruits and vegetables.
For added convenience, the “meals-to-go” section offers ready-to-eat options for those on the go. Coffee enthusiasts will appreciate the Tanamera Indonesia coffee bar, where you can enjoy premium coffee, refreshing drinks, and delicious food while shopping.
Kitchen on the go area
Tanamera coffee shop
CSFresh also prioritizes customer convenience with features such as free delivery for minimum orders, clear signage guiding you to counters, and self-checkout stations—an innovation worth considering in the Philippines to reduce long supermarket lines.
One more thing we like about this store is their e-waste collection bins, encouraging customers to recycle and be rewarded. You can recycle household batteries and bulbs here. Additionally, they have a Foodbank at the entrance, where customers can drop off food donations to support vulnerable families during challenging times.
Self check-out | free home delivery signage | recycle bin | Foodbank
The ambiance, look, and feel of this store make shopping a delightful experience. It’s a place you’ll not only shop at but also enjoy visiting time and again.
Stay tuned for more highlights from our Singapore retail journey as we continue to explore some of the city’s most inspiring retail experiences.
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Private labels first captured my attention as a child in the 70s during a visit to Cora, the newest hypermarket near my hometown in northern France. Amidst the bustling aisles filled with colorful packages, I was drawn to a section showcasing “white products” – merchandise packaged in plain, minimalistic white without branding. The store-brand products communicated their value clearly: unbranded and low-priced. This early encounter with private labels, offering significant savings despite their lack of flashy branding, piqued my ongoing interest in private labels as I journeyed into retail.
Key Insights in Private Label Development
When I began my retail career in 1988 at Auchan in France, private labels were quite different from what we see today. Back then, their packaging often mimicked that of leading brands to the point where it could confuse customers, despite private labels being priced about 20% lower.
From those early experiences, I picked up three key insights:
Identify the top brands in your category to effectively position your private label.
Set your private label’s price 20% lower than the leading brands to attract price-sensitive customers.
Ensure your private label offers a margin that is 15 to 20% higher than the category leader to ensure profitability.
A decade later, at Monoprix-Prisunic, I encountered the concept of exclusive premium retail brands – high-quality products that resonated with customers and helped differentiate the retailer.
In the Middle East with Carrefour, I faced the challenge of launching private labels in a market dominated by established international brands. Despite Carrefour’s global reach, our progress was slower than expected due to limited initial volumes.
At Aswaaq, the challenge was even greater as we had to develop a private label before the first supermarket had even opened, with minimal volumes to start. We chose to focus on ten basic commodities, targeting the low-price segment with a distinctive brand name.
Since moving to the Philippines in 2011, I have had three key experiences developing or enhancing private labels. Although private label sales remain relatively low at below 5% share of sales compared to Europe, which has a 30% to 40% share of sales, or the US, with a 25% share of sales, the rise of hard discounters like Dali and O!Save, and the “No Brand” concept with strong private label strategies, has pushed local retailers to reassess their approaches to private label development.
Key Fundamentals of Private Label Development and Implementation
From my extensive experience in retail, I have learned that private label development serves three key purposes: strengthening branding, enhancing customer loyalty through unique products, and increasing profitability. Achieving these objectives relies on a meticulous step-by-step process, where each phase is critical. Missing even one step can compromise margins, affect targets, lead to flawed product development, and impact cost management efforts.
To attain success in private label development, attention must be given to several key aspects, from initial development to final implementation. These include:
Negotiating Costs: Start by focusing on fast-moving items. By leveraging high volumes, you can negotiate better deals and reduce costs effectively.
Defining Specifications: Ensure that your product specifications are clearly outlined and at par with the quality of national brands. This like-for-like comparison will build credibility in the market, demonstrating that your product meets top standards and that quality is never compromised.
Market Research: Take time to understand your competitors’ private label strategies and pricing. This insight will inform your own strategy and pricing decisions.
Sourcing Manufacturers: Evaluate both local and international manufacturers to secure competitive pricing without compromising on quality. It is crucial to balance high standards with cost efficiency to achieve success. Leading retailers often source their private labels globally to optimize both quality and cost.
Pricing Strategy: Ensure that the product’s cost price allows for a retail price difference of 15 to 20% compared to category leaders, along with an additional 15 to 20% margin. This principle has consistently guided me in scaling private labels effectively.
Contract Management: Establish contracts with manufacturers that cover volume requirements, pricing, lead times, product and packaging specifications, and penalty clauses for non-compliance. Regularly reviewing and adjusting these terms helps you stay agile and responsive to market changes.
Quality Control: Continuously monitor the quality of your private label products. Implement stringent quality control processes to uphold product standards. I recommend using a third party for random quality checks to ensure adherence to the agreed-upon standards with the manufacturer.
Brand Strategy: Deciding whether to use an existing brand name or create a new one significantly impacts your overall brand identity. Regardless of the choice, the brand will reflect the company’s value proposition and influence its reputation. Ensuring high-quality products is essential for strengthening brand identity.
Legal Compliance: Make sure you comply with all legal requirements and secure exclusivity for your brand name. This protects your brand and ensures regulatory compliance.
Packaging: Designing packaging that enhances the perceived quality of your product and meets legal standards is something I have learned to prioritize. Effective packaging can make a big difference.
Tiered Pricing: Develop private labels for various price segments – low, mid, and premium. Assign distinct brand names to each segment to appeal to different customer demographics. For the low and premium segments, creating specific brand names is especially effective.
In-Store Display: Allocate adequate shelf space for your private labels and position them at eye level. Proper placement can significantly boost visibility and sales.
Promotion: Plan regular promotions through catalogs, online channels, and social media. Utilize loyalty programs to encourage repeat purchases.
Price Monitoring: Regularly review and adjust prices to remain competitive. Periodically renegotiate costs with manufacturers to keep your pricing strategy effective.
Supplier Partnership: View your private label suppliers as partners. Regularly review their performance to address issues like quality and pricing, and use customer feedback to drive continuous improvement.
Fresh Food Quality: For fresh food and perishable items, maintaining consistent quality and safety is crucial. Your brand must be associated with reliable and high standards to avoid any perception of inconsistency or poor quality.
Supply Chain Management: Efficiently manage your supply chain to prevent disruptions. Streamline processes to ensure timely and reliable product availability.
Sales Monitoring: Regularly assess the sales performance of your private labels within their categories. Set targets for the next 3 to 5 years. For categories with limited or no brand presence, aim to achieve up to 75% sales contribution for your private label.
Customer Feedback: Collect feedback through surveys, focus groups, and blind testing to refine your products. Use this input to make improvements and better align with customer needs.
In summary, a well-executed private label strategy can greatly enhance a retailer’s brand, profitability, and customer loyalty. Achieving this requires a comprehensive approach that includes in-depth market research, strategic partnerships, innovative product development, effective marketing, and rigorous quality control.
In the current Philippine retail landscape, despite the presence of dominant international and strong local brands, strengthening private labels remains an opportunity for retailers to enhance their commercial offerings and reflect their company’s size and capability. Furthermore, a stronger market share in sales would significantly impact their economic model.
Reflecting on my early encounter with “white products” at Cora in the 70s, it is evident how far the concept of private labels has evolved. What started as a curiosity about cost-effective, unbranded merchandise has become a cornerstone of my strategic approach to private labels, helping retailers achieve success.
I hope these insights inspire you to fully embrace the potential of private labels in your own retail journey.
Postscript: For those looking to advance their private label strategy, consulting Philippe Devismes is highly recommended. As a mentor during the development of Aswaaq’s private labels, Philippe’s expertise and attention to detail offer invaluable guidance. His insights can help retailers effectively leverage private labels to enhance their market position and drive sustained success. Connect with Philippe on LinkedIn for more information.
Mr. Eric Poiret, delivered a message at the Heyday general assembly, emphasizing the importance of teamwork, collaboration, and exceptional customer service in achieving customer satisfaction and company goals.
In business, fostering a culture of teamwork and clear communication is essential. Proper alignment enables the team to consistently deliver a high standard of customer service, thereby effectively fulfilling customer expectations and achieving satisfaction.
RetailWise spearheaded the second phase of the Euroasia Group of Companies’ strategic planning session, facilitated by Ms. ANNA MARIE PERIQUET. The day was marked by productive discussions and collaborative efforts, with everyone aligning on the common goal of achieving success and driving each company forward. The session not only reinforced a unified vision but also laid the groundwork for actionable strategies to propel the group to new heights.
Euroasia Group of Companies recently conducted our strategic planning session, facilitated by Ms. ANNA MARIE PERIQUET.
It was a highly productive and collaborative event where we charted the course for the company’s future. However, beyond the strategic discussions, it was a perfect time for the team to enjoy each other’s company, along with indulging in delicious food.
With a cohesive team united by a shared vision, we are ready to tackle challenges and seize opportunities, ensuring a bright and prosperous future for Euroasia Group.
These are rather vague guidelines for interacting with customers. Customer service is a critical aspect of any business, but it is an aspect of business that where many companies make mistakes. It may help for customer service staff to think, “What if I were in this customer’s shoes?” When you put yourself in the customer’s position, you can more easily figure out how to truly serve their needs.
Why is customer service important?
Customer service policies exist because unexpected concerns arise: a product does not meet expectations, the wrong size was purchased, the product turned out to be of poor quality. Perhaps there are problems with the product. There may be room for improvement.
These concerns stem from one critical assumption: that your product is of good quality. A good product should provide consumers with a good experience. So when a customer files a complaint or requests an exchange, you should see it not as a disaster but an opportunity.
Customer service is an opportunity to turn a negative experience into a positive event. Rules for return and exchange should always have the end goal of providing the customer with a positive experience. The customer has a problem involving your product, and you should do your best to provide a solution, one that reduces the customer’s stress and annoyance.
99.9% of customers are honest.
Paranoia is common amongst retailers. There are fears of profit loss, cheating by cashiers or sales staff, and other unscrupulous practices. To protect the company, retailers often lay down customer service rules that are overly strict, filled with tedious procedures and endless forms. These ensure protection for your business, but they are not very accommodating to your customer.
Online stores have been very progressive with their exchange and refund policies, and brick-and-mortar stores would do well to follow suit. Your customer most likely has a genuine request. Very likely your customer wants to come back to your store. Your customer service policy should encourage customers to keep coming back. Start with the assumption that all customers are honest, and design your rules for them. Inevitably there will be some unscrupulous customers, but these are an exception and not the rule.
Rules, decisions and escalation.
All employees of retail organizations have to follow strict rules. The same goes for customer service. But most sales staff don’t have the authority to make decisions about return and exchange. The request is only granted after the customer has spoken directly to the sales staff supervisor. This is frustrating and time-consuming for everyone involved.
Even lower-ranking employees should have authority to make decisions about return and exchange. Escalating the problem to their supervisor should only be a last resort, and addressing the problem should not take up too much time. Rules should be customer-oriented; simple and easy to understand and to implement; and flexible enough to accommodate customer requests.
In most of Europe, exchanges, refunds and returns are quick transactions in any establishment, be it a large supermarket chain or a small family store. If you are not happy with the product, even if it is fresh produce, a half-empty bottle of wine, or half-cooked meat, the proprietor will replace or refund it, no questions asked.
Trust that your staff will make the right decisions to satisfy the customer. Review each case of return or exchange, and make sure your employees understand the proper way to respond to customer complaints.
It’s not what you say. It’s how you say it.
Most stores have a sign that indicates their return and exchange policy, usually written in legal language, full of “must” and other forbidding words, as well as mentions of relevant consumer laws. Such signs tend to discourage consumers. If they make a mistake with their purchase, they have little assurance that they can easily correct the mistake.
Your policy can be phrased in a positive and friendly manner. You can say, “Reassessing your purchases? Feel free to change your mind. You can exchange or refund items from any of our stores up to 7 days from date of purchase.” Friendly language is much more accommodating and less hostile to consumers.
Remember, you spend money on promotions and advertising to get new customers. But how much are you willing to spend to keep them coming back?
If well-managed, exchange and refunds are neither a treat nor a loss of sales. They are an opportunity to show respect and empathy to customers, at almost no cost.
To be the best then learn from the experts. EuroAsia Research Experts will conduct a free consultation on assortment merchandising and product placements on November 23, 2015.
If you’re a part of a merchandising team or if you’re from the retail industry then take this opportunity to learn from the experts.
There are many factors that contribute to the success of a new store, but one of the most critical elements is your location. You may have done everything perfectly, but in the wrong site, your business could easily fail.
As with all other aspects of business, you need thorough research and careful planning when it comes to the ideal location. This begins with a crucial step: understanding the requirements of your business format. Different formats have different needs. For example, convenience stores need to be in urban areas with heavy foot traffic, while a grocery store can be located in residential areas that have ample parking space.
Once you have identified the needs of your business format, you can assess locations based on these criteria:
Demographics.
In any business, one of the first things you do is you identify your target market. What are their income brackets? What brands do they buy? What are their buying habits? When you determine these, you can also figure out the areas they frequent. You can look at these areas for your store location, because your target market is already there.
Accessibility and visibility.
You have to make it easy for your target customer to visit your business. If your business format requires a lot of foot traffic, you can choose locations along main roads or busy streets, or near public transportation routes. Do you expect your target customers to drive to your store? You may need ample parking space and a large driveway. The flow of traffic is also an important consideration, especially since roads that are one-way today may become two-way in a few years, or the flow of vehicular traffic may change. Which side of the road would be better? Are there upcoming commercial or residential developments that might affect your business?
Potential for development.
Study not only the current business landscape, but also the future of that area. Many thriving business and commercial districts started out as idle or undeveloped locations five or ten years earlier. In addition to researching upcoming developments, you can assess current and potential competitors in the area to see how you can compete with them.
Clustering.
Often you have to look at multiple locations because you have to open more than one store. But it’s not practical to open one store in one place, and then open a second store on the other side of the country. If the locations are too geographically distant, you will have problems with logistics. You may want to consider opening multiple stores in a single city, business district or region, for example. This will help build your brand recognition, paving the way for expansion to other areas in the future.
Risk management.
There are many risks to consider when setting up a new business or opening a new store. Some of these risks you can plan for, such as prospective sites in flood-prone areas or earthquake zones. Other risks are difficult to predict, such as changes in traffic management schemes or a large shopping mall suddenly opening. Think of possible situations that might have a big impact on your business, and draft contingency plans for them.
Budget.
One of the most important things to remember when choosing a new location is your budget. There are many costs involved in opening a new store, and it may be tempting to spend a lot on what you think is the ideal location. If you find an optimum space that is over your budget, think carefully if it is worth the expense. The additional cost of this location could be detrimental to other aspects of your business. Did you find a low-cost location? Cheaper is not always better.
These are a lot of factors to consider when choosing a new location. How do you decide? You can assign a weight to each criterion, determining which factors are most important for your business format. Then you can create a score card for the different locations you are considering, and see which one is the most ideal. When you find your ideal location, you are already contributing to the success of your business.
About the Author:
Eric Poiret Strategic Planning Director – EuroAsia Research Experts
Eric has a solid experience of more than 25 years in the management of retail chains in the Gulf Region, Asia and France. Before becoming the Chairman of ERE, he was Managing Director for Metro Gaisano, Chief Operating Officer for ASWAAQ, a Dubai Government-owned company, and Chief Executive Officer for MAF Carrefour KSA. Eric Poiret’s expertise lies in strategic planning and operations management.
