THE YEAR 2010 stands to be even better for a number of sectors that
are expected to be among the first to feel the glorious return of investments
into the local economy, and the opening wide of wallets that were shut
tight when the global recession slammed the brakes on spending in 2008.
Bernie Liu, president of the Philippine Retailers Association, said
retailers expected to post a growth in sales and profit this year after
hardly any increase in sales in 2009.
The first half of 2009 was very bad coming off 2008 when the US
economy – and consequently the rest of the world – went into a
tailspin. Some recovery was seen in July and August, but it disappeared
with the onslaught of several destructive typhoons. In December, sales
started creeping up as the economy did not turn out to be as bad as
expected.
The Philippines’ Gross Domestic Product – the sum of all products
and services produced within the country’s borders – is expected to
grow by around one percent this year, and then accelerate by as much as
four percent in 2010.
Liu says that consumers are expected to come back in a big way since
the Philippines did not sink into a recession as earlier feared, and
remittances from Overseas Filipino Workers just kept coming.
As for sectors, Liu says food was, still is, and will always be a constant growth area. Everybody needs to eat, after all.
“Shelter and construction will also increase in activity as
Filipinos prefer to invest their savings, which have been improving, on
housing, a tangible asset,” says Liu.
“Clothing and accessories that offer value will pick up due to
slight improvements in economic condition plus sustained OFW
remittances,” adds Liu, who is also chief executive officer of the ABC
Group, which owns such brands as Penshoppe, Oxygen, Memo and Regatta.
Lex Ledesma of The One School, which seeks to produce young
entrepreneurs, sees good profit prospects for companies involved in
making the world a “greener” place.
These include appliance manufacturers
selling more environment-friendly and energy-efficient appliances,
retailers selling products safer for the environment, as well as
individual consultants who can help people and companies achieve a more
sustainable lifestyle.
Ledesma also expects investments in wellness and alternative medicine to pay off in 2010.
With Filipinos living at an ever-increasing pace, the need to sit
back and relax becomes more pressing. This translates to good news for
spas, salons and resorts selling wellness packages. And with Filipinos
embracing concepts of more traditional medicine to cure their chronic
ills, resorts selling wellness and medical packages should also do well.
Meanwhile, Anna Marie Periquet, chairperson of the Young
Entrepreneurs Group of Asia, Pacific, says that both the government and
the private sector are working on a roadmap for the business sector in 2010.
Both have identified four basic areas of focus, namely: food security, infrastructure, reengineered education and energy.
“Difficult times require innovative businesses that create
realizable, long term plans to ensure their sustainability and
survival,” says Periquet, “Businesses focusing on these four areas,
therefore, appear to be the vital engine for economic activity
stimulation in the coming year.”
Periquet likewise sees robust growth in the tourism industry next
year since the private sector is taking concrete steps to promote
domestic tourism.
Data from the Department of Tourism are bearing this out as in the
third quarter, considered the local tourism industry’s lean season,
tourist arrivals grew by 17 percent to 5.2 million.
“By encouraging Filipinos to explore the Philippines instead of
traveling abroad, consumer spending will be boosted locally. This
should give business to local entrepreneurs involved in the travel
industry that would filter down to other business sectors like food,
transportation and handicrafts,” Periquet adds.