John Gokongwei turning focus to e-commerce
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Billionaire John Gokongwei, whose empire includes airlines, malls and property, is expanding the family business into online shopping.
His Robinsons Retail Holdings is moving more of its $2.7 billion empire online with plans to triple by next year the number of supermarkets handling web orders. Other retail chains in the empire will follow.
Rivals SM Investments Corp and Ayala Corp are already expanding their e-commerce reach, all three launching online shops or investing in services over the past year.
The Gokongwei family is speeding up its efforts as Alibaba and Amazon move into Southeast Asia.
But supermarkets are the main driver of revenue. Robinsons launched online sales in May and is already showing exponential growth, says president Robina Gokongwei-Pe, the tycoon’s daughter.
“This is the way to go given the horrible traffic in urban areas like Manila and a growing market of millennials.”
Questions & Answers
Q.Which specific parts of John Gokongwei's retail empire are prioritising the move to online sales?
Which specific parts of John Gokongwei's retail empire are prioritising the move to online sales?
Robinsons Retail Holdings is initially focusing on its supermarkets, with plans to triple the number handling web orders by next year. Other retail chains within the empire are expected to follow later.
Q.What is the primary reason given for the Gokongwei family's increased focus on e-commerce?
What is the primary reason given for the Gokongwei family's increased focus on e-commerce?
The family is accelerating its online efforts due to the increasing presence of major players like Alibaba and Amazon in Southeast Asia. Horrible urban traffic and a growing millennial market are also cited as factors.
Q.How do Robinsons' e-commerce efforts compare to its main competitors?
How do Robinsons' e-commerce efforts compare to its main competitors?
Robinsons is joining rivals SM Investments Corp and Ayala Corp, which have already been expanding their e-commerce reach. All three have either launched online shops or invested in services over the past year.
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