THE 5 RINGS OF FASHION Chapter 1.17

The First Ring: Roots

CHRONICLES

Chapter 1.17

In the Philippines, chains such as SM Department Stores and Rustan's dominate the market. These stores are often located within large shopping malls, which have become a mainstay of Philippine urban culture.

Retail in the Philippines has evolved significantly since the early 20th century, when the first modern department stores began to emerge, inspired by both Western and Asian models. Among the pioneers was the H. E. Heacock Company, founded in Manila in 1900. Heacock is considered one of the first modern department stores in the country, offering a wide range of imported luxury goods, from textiles to stationery, and setting a high standard of quality for urban consumers. The store closed its doors in 1981 due to growing competition and economic difficulties, marking the end of one of the most significant commercial entities in the country at the time.

A.M. Menezes Department Store, founded in the early 20th century, was known for its range of luxury products and imported goods, catering to urban elites.

Estrella del Norte, operating since the early 1900s, was a luxury store located along Escolta, the economic center of Manila during the American colonial era. It was famous for selling jewelry, watches, and high-fashion items. The business ceased operations in the 1970s after a period of decline, largely due to increasing competition from other chains and the evolution of the retail market in the Philippines. Many historic department stores, such as Estrella del Norte, struggled to survive the rise of modern shopping centers and shifting consumer habits.

During the American colonial period (1898–1946), U.S. influence promoted the introduction of Western consumption models, with department stores becoming symbols of modernity. In the postwar period, with economic and urban growth, new department stores such as the Good Earth Emporium and Avenida Rizal Department Store emerged to serve a rapidly urbanizing population.

Today, the Philippines is dominated by retail giants such as SM Department Stores, part of the SM Group, founded by Henry Sy in 1958, with its first store in Carriedo, Manila. Today, SM is the market leader, with a large network of stores across the country.

Rustan's was founded in 1952 by Bienvenido Tantoco and his wife, Gliceria Rustia Tantoco. The name 'Rustan's' is derived from Gliceria Rustia's last name. The chain has become one of the most prestigious and well-recognized in the Philippines, specializing in luxury items, high-quality clothing, cosmetics, and household goods. Over the years, Rustan's has developed a reputation for excellence in service and its selection of high-end international brands.

Rustan's remains one of the leading department store chains in the Philippines and is part of the Rustan's Group of Companies, which also includes other luxury and retail businesses. The chain has expanded its concept to include not only clothing stores but also a wide range of luxury products and high-end services, as well as collaborations with international brands to cater to a high-end clientele.

Cebu-based Metro Retail Stores Group was founded in 1982. The company has grown to become a major player in the retail industry in the Philippines, operating a chain of supermarkets and department stores. Initially, its business focused primarily on retailing everyday consumer products, but over the years, it has expanded its offerings to include apparel, electronics, and home goods. The company has managed to adapt to market trends and remain relevant in the country's retail landscape. Headquartered in Cebu, the chain has a strong presence in the Visayas and Mindanao.

Landmark Department Store in the Philippines was established in 1980. The chain opened its first store in Makati, one of the country's major metropolitan cities. Landmark quickly established itself as a leading shopping destination, offering a wide range of products, including clothing, housewares, electronics, and groceries. Its philosophy has always focused on offering good quality at affordable prices, making it a one-stop shop for Filipino families seeking a convenient yet high-quality shopping experience. Landmark Department Store in the Philippines is not related to Landmark Group of Dubai, despite the similarity in name. They are separate entities, operating in different contexts.

The opening of the first department stores in the Philippines not only transformed consumer habits but also introduced new standards of customer service and the shopping experience. These stores acted as cultural meeting points, blending local products with imported goods, and contributed to the modernization of Philippine society.

Vietnam is one of Asia's fastest-growing economies, with a strong industrial sector and solid export base, particularly in technology, electronics, apparel, and manufacturing. With a nominal GDP of around USD 400 billion in 2023, Vietnam ranks 14th among Asian economies.

Economic growth is driven by a large export market, spanning both Asia and the West, where manufacturing and technology products are in high demand. Additionally, the expansion of the middle class and rising domestic consumption are further fueling the economy.

The country, with its young and dynamic population, is witnessing an increase in demand for quality products, including those in the fashion sector. The growing openness to international brands and the adoption of modern lifestyles are driving the expansion of the fashion market, with particular interest in global brands. The influence of globalization and access to the internet are contributing to the growing demand for clothing, footwear, and accessories from abroad.

The retail sector is also evolving rapidly, with new high-quality shopping centers opening in major cities like Ho Chi Minh City and Hanoi. This offers significant opportunities for investors in the fashion industry. The Vietnamese government actively promotes foreign investment, creating a stable and favorable environment, while strong tourism growth contributes to increased sales, especially in tourist areas.

Competitive labor costs compared to other Asian countries like China and Thailand make running retail businesses more accessible. Additionally, the expansion of e-commerce offers new opportunities to integrate physical and online stores, increasing revenue potential.

Investing in the fashion sector in Vietnam also allows products to be adapted to local preferences, with growing demand for styles that combine Vietnamese cultural influences and global trends. Collaborating with local designers can foster a deeper connection with consumers.

The department store market in Vietnam is experiencing significant expansion, driven by the growth of the middle class and the demand for quality products. International brands such as Parkson, Takashimaya, Lotte Mart, Aeon, Sogo, and Robinson are very popular, but local chains like Vincom and Satra are also gaining ground. Vinmart, despite being primarily a supermarket, has created spaces that resemble the concept of a department store, offering clothing and cosmetics.

In general, while Asian department stores are more widespread, Vietnamese consumers are showing an increasing interest in international brands, which are also easily accessible online. This makes Vietnam an attractive market for opening fashion stores, both physical and online, offering long-term growth opportunities.

While major Asian economies such as China, Japan, and India continue to dominate the retail and department store landscape, it is important to note that other countries are also starting to make a significant impact on the international market. Countries such as Vietnam, Malaysia, the Philippines, and others are experiencing the rapid development of their retail infrastructure, with new department store chains and shopping centers attracting global investors and catering to the growing demand for high-quality shopping experiences. These emerging markets offer significant opportunities for companies looking to expand their reach into Asia.

As competition intensifies, the continued evolution of the retail sector in these younger, more dynamic economies points to a promising future. Current trends suggest that the department store market is no longer limited to established economies, but that new players are making their voices heard in the global retail landscape.

To be continued...