FEATURE ARTICLE
myAyala.com - Explores
the Boundaries of Online Shopping
On the Cover
The Philippines´ commercial center mogul Ayala Group finds
a new nook on the web via myAyala.com.
The Internet has dramatically
changed the way people shop. The World Wide Web means
´a twenty-four hours by seven days shopping experience´.
In the last couple of years, as business equalizes, this
new medium has made it possible even for small home-based
vendors to compete with multinational companies.
Just recently, a US-based
Internet Shopping Study reveals that online retail sales
grew 66 percent to US$44.5 billion last year despite a
bloody year for many dot-com merchants. Hence, several
countries are following suit and are moving towards the
establishment of information technology (IT) in their
own backyards.
In the Philippines,
for instance, commercial center mogul Ayala Group has
found a new nook on the web via myAyala.com to pursue
the companyÕs consumer oriented Internet strategy.
The virtual mall strives
to be more than just an online shopping shrine, offering
the latest in fashion, leisure, and entertainment. "We
first started out as a lifestyle and entertainment portal
but have since narrowed our focus to on-line shopping
and ticket reservations," says Teodoro Limcaoco,
Chief Financial Officer of iAyala Company, Inc., a joint-venture
partner of Ayala Land, Inc. in undertaking myAyala.com.
The two main sites
on the web are www.glorietta5.com a.k.a. myAyala.com,
an on-line mall and www.sureseats.com, which offers movie
ticket reservations. Other links to myAyala.com include
eGuide.com, an online guide to entertaining events around
the country, and OnePhilippines.com, a guide to Philippine
products and travel spots. eGuide.com features content
from magazines, such as Cosmopolitan, Preview, and FHM,
while the latter targets overseas Filipinos and includes
a link to Libros Filipinos, a virtual Filipiniana bookshop.
Barely one year old,
the largest online shopping mall in the Philippines was
launched on June 9, 2000. As it turns out, myAyala.com
draws a huge crowd. The traffic is impressive, with average
page hits of 300,000 per month.
Currently, myAyala.com
is considered to be one of the few successful premiere-shopping
portals in the web that targets Filipinos or shoppers
with Filipino links. "Today, we have close to 70
merchants on our on-line mall and an array of 7000 SKU
(stock keeping units)," says Limcaoco even as he
anticipates the number of merchants to increase to a hundred
by year-end.
Presumably, reaching
out to consumers online may seemed to be just another
channel of distribution when you have the name Ayala attached
to it. Ayala has been synonymous with success and expertise
in the 'real' store in the Philippines' premiere commercial
hubs. But not so it seems for the retail czar who strives
to maintain its industry leadership in both the Old and
the New Economy.
During the launching
of myAyala.com, Ayala Land, Inc. Chairman Fernando Zobel
de Ayala talked about the role of this virtual mall. "There
are no ifs or buts about this. Either we innovate and
reinvent, or we decline."
The site is dubbed
as the 5th Glorietta of the actual Glorietta 1 to 4 malls,
though the E-store also works closely with them. Limcaoco
explains, "The start-up costs for a merchant to join
myAyala are so low that it does not make sense for a merchant
to build their own site and bear all the development,
hosting, marketing and operations costs associated with
a site. Also, our site allows the merchant to concentrate
on their business (which is selling) and leave the back-end
(security, delivery, payments) to us. Contrary to what
many think, we do not require a merchant to be an Ayala
Center tenant to be a merchant on myAyala.com."
Limcaoco reveals that
more than half of the sales are clearly gifts. Appliances,
electronics, flowers, books and music are the biggest
sellers on the site.
"We also receive
donations on our site for Philippine charitable institutions
(and make no money out of this!). Sureseats.com has gained
quite a following in the past 10 months. Today, we average
close to 2,000 tickets for the movies in Glorietta 4 reserved
over the Net per week. Sureseats is also available on
WAP and SMS, since we believe that mobile customers are
also important targets for us. We hope to bring Alabang
Town Center and Greenbelt theaters on-line pretty soon."
Moreover, the joint-venture
company is also in negotiation with other upscale cinemas
to put them on-line. It has also partnered with TicketWorld
to create the first real-time on-line ticketing purchasing
system in the Philippines and it expects to launch www.ticketworld.com.ph
pretty soon.
The largest online
shopping mall in the Philippines requires the stores to
sell their goods at prices equal to or better than those
in the real (physical stores). "Some of the merchandise
is even cheaper online," Limcaoco explains, "because
it is less expensive to maintain a virtual storefront
than a real one. Online sites entail less or no personnel,
rental, and storage costs."
One of the challenges
of electronic retailers such as myAyala.com is how to
find their market in a boundless marketplace. With 7,000
web sites being built daily all over the world, it is
easy for merchants and especially consumers to get lost
in cyberspace.
Although Information
Technology (IT) presents a limitless business potential,
it will only be seen as a catalyst to more opportunities
if businesses are better equipped and are more receptive
of the on-going technological revolution.
"We have invested
a lot in on-line systems so that our customer service
people know where every transaction is in the process
chain," Limcaoco stresses. This could also probably
be the underlying message behind the siteÕs evolving
into a company that has gone past just simple web retailing.
"Our experience in both web-based selling and web-site
creation has allowed us to provide web solutions and web-presence
for several companies. Our success in moving sureseats.com
over to the mobile world has also allowed us to create
and sell wireless applications."
Would it be possible
- if at all - for myAyala.com to replace the store-based
Ayala malls? Much has been said about electronic retailing
as an inevitable evolution that happens to the business-to-consumer
(B2C) sector, and Limcaoco is quick to point out the difference.
"We don't think it will replace a (real) mall,"
he says, even as he expects increased traffic on their
site. "In the US, 2 to 3 percent of shoppers do online
shopping," he explains, "because online stores
address different requirements of shoppers."
He goes on to cite
an example that those who buy clothes for themselves would
prefer to shop in real stores to be able to try them on
first. But those who are buying clothes as gifts may choose
to shop online because it is more convenient. "I
believe that shopping continues to be a very sensual business
and therefore on-line shopping is material only to very
specific needs or products."
Makes sense indeed,
especially since where shopping is concerned, people will
still want to do it the hard way once in a while.
In the meantime, online
retailing is also here to stay even if some merchants
are not. This underlying message from the myAyala.com's
success story is coming through loud and clear.
CLICKING THE
RIGHT BUTTONS
The name Ayala has
a proven track record in commercial centers development
and management in the Philippines
There is merchant base
support to ensure that very good products are on the site.
They target a specific
niche in the borderless market - primarily Filipinos overseas
and those at home, and secondarily foreign customers in
Singapore, Hongkong, Taiwan, the Middle East, Europe (UK
and Germany), Canada, and Australia.
Ayala invest heavily
in technology-intensive online systems to meet the needs
for convenience, and ease of shopping.
HIGHLIGHTS:
There are no ifs or
buts about this. Either we innovate and reinvent, or we
decline." - Ayala Land, Inc. Chairman Fernando Zobel
de Ayala's speech during the launch of myAyala.com
One of the challenges
of electronic retailers such as myAyala.com is how to
find their market in a boundless marketplace.
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