Rate cuts good, but 'clarity' over global issues better for business: Citi CEO

MANILA - As central banks around the world cut interest rates to boost their economies, the head of one of the world's largest financial companies said interest rates can only do so much and businesses want "clarity" more. 

Citi CEO Mike Corbat said cutting rates won't necessarily stimulate economic activity, as businesses hold off on investing amid uncertainties over issues like the US-China trade war, the US-Mexico-Canada trade deal, and Brexit. 

"We can have the conversation in terms of whether or not quantitive easing in some places has overstayed its functionality," Corbat said in an exclusive interview with ANC's The Boss. 

He said the financial industry was particularly affected, as interest rates in Europe are already negative.

"Banks weren't really built around a business model of negative rates," Corbat said.

Besides not being able to charge fees for holding clients' money, businesses also don't necessarily borrow more because rates are low, he added. 

"What businesses want is clarity and we can invest on the back of that," Corbat said.

Despite the uncertainties over trade issues, the global economy remains resilient, Corbat said, thanks to consumption. 

Consumers powered the recovery of the world economy following the global financial crisis, and they are behind the resilience of the world economy today, the Citi chief said. 

"The consumer has been phenomenally resilient and remains so today."

Corbat said he is also optimistic about the digitalization of finance, and Citi will continue to "invest heavily" in technology. 

Citi recently partnered with Grab to launch a co-branded credit card in the Philippines, the first in Southeast Asia.

source: news.abs-cbn.com

Lady Gaga shoemaker finds perfect fit in Asian market

MANILA - The creator of Lady Gaga's shoes, which found instant fans in other celebrities like Nicki Minaj and Kim Kardashian among others, is looking to expand its footprint in a fast-growing, trendy Asian market, according to Rem D Koolhaas, founder and creative director of global footwear brand United Nude.

Koolhaas, who described his brainchild as an "affordable design company" and whose products are "exclusive by design, and not by price," is on his second visit to the Philippines, following UN's flagship opening at Resorts World Manila in Dec. 2018.

There are also talks of opening more stores in the horizon, but Koolhaas was quick to add that there was no need to rush into the fresh market.

"One of the reasons I think that we are popular in Southeast Asia is because there have been a lot of economic growth over the past decade. And therefore, there's a lot of interest and newness, and there's not so much retrospect in a new market like that," said Koolhaas in an exclusive chat with ANC's "The Boss."

Unlike its European counterpart, which Koolhas has described as "conservative" and "casual" citing the influence of established heritage brands. Asia, he said, has a higher interest in fashion, taking note of the women who tend to dress up "a little bit more."

The California-based Dutch native also revealed plans to venture beyond fashion and into hospitality like United Nude Hotel or into property with Filipino real estate billionaire Robbie Antonio of Revolution Precrafted, the Philippines' first Unicorn startup. 

"We're always interested to find a collaborator, but we also get a lot of requests for collaboration," said Koolhaas. 

Among United Nude's current collaborations include Lady Gaga's choreographer Richard "Richy" Jackson, and African-American Shaun Ross, the world's first albino male model.

Established in 2003 with Galahad Clark, a seventh-generation scion of the Clark shoe brand, United Nude's shoes are sold in over 50 countries with concept stores in places, such as Vienna, Tokyo, and Beijing, among others. Its roster of other high-profile creative collaborations include Iris van Herpen, Linda Farrow, and the late Zaha Hadid. - Jan Yumul, Eah Antonio, Christel Lagdameo, and Cathy Yang, ABS-CBN News

source: news.abs-cbn.com

Filipinos' sweet tooth defy price shock from weak peso: Candy Corner

MANILA -- With or without sugar, Filipinos are gobbling up their chocolates and gummy bears, helping specialty retailer Candy Corner weather the effects of a weak peso, its owner said Thursday.

The 20-year-old chain plans to grow its stores to 112 by the end of 2019 from 106 currently, as it looks outside Metro Manila for growth, CFO and managing director Rosemarie "Bubu" Andres said in an exclusive interview with ANC's The Boss.

The exchange rate is a "big challenge" for Candy Corner since it increases the cost of imports. It raised prices by 10 percent, the biggest ever increment, before Christmas 2017, she said.

"Thank God their tastes already developed. They will still look for the same good quality products," Andres told ANC in her Manila office filled with giant jars of colorful candy.

Metro Manila residents have developed a taste for organic and sugar-free desserts, which comprise up to 15 percent of the inventory in some stores.

The "not very health conscious" market in the south prefer regular sweets, she said.

Andres said she was hoping the peso would not depreciate further so she could hold off on another round of price increases.

Candy Corner is also a family operation. Andres runs it with husband Ricky and the eldest of their 3 children, daughter Rina, 26.

source: news.abs-cbn.com

Billionaire Dell boss embraces change, saves oceans

MANILA - Michael Dell, who founded the computer company that bears his name, always reminds employees of the need to anticipate change, a company official said Friday.

Dell is now Dell EMC after it acquired a data storage business in 2016, enabling the technology hardware pioneer to leverage itself as a one stop shop for digital services.

The 53-year-old Dell is "very humble, very focused and works extremely hard," said Amit Midha, Dell EMC president for commercial business in the Asia Pacific and Japan.

"The first thing he always says is change is the only constant. We have to expect change in our industry. We cannot take anything for granted," Midha said in an exclusive interview with ANC's The Boss.

Forbes Magazine estimates Dell's net worth at $23.5 billion and ranks him as the tenth richest person in technology. The college dropout started his business at 19 from his college dorm in Austin, Texas, according to the magazine.

Dell is also supporting cleaning the world's oceans, even allowing the use of recycled ocean plastic in the company's products, Midha said.

Since 2007, the company has cleaned up 1.8 billion pounds of electronic waste, he said.

source: news.abs-cbn.com

OK Google: What the future holds for AI in consumer tech

MANILA - Artificial intelligence is Google's "big bet" and consumers should expect a more "conversational" interaction with their smart devices, the internet giant's Philippines head said.

Google also hopes to bring to the country "soon," Android One, its mobile software that offers a fluid and secure experience, even on non-flagship devices, said country manager Kenneth Lingan.

The Mountain View, California's Google Assistant is available across Android devices, which users can activate by saying "OK Google." Assistant is also available on Google Home line of smart speakers.

"This is something that is a big bet for Google. We really believe it is transformative in terms of consumer experience and there are a lot of benefits that we can unlock with it," Lingan said in an exclusive interview with ANC's The Boss.

Google's AI is also available on its Pixel line of phones, which can compete with other flagship devices with just one lens on the back, thanks to machine learning.

The accompanying earphones or Pixel Buds can translate foreign languages for its user with just a tap.

"The way we look at it, we really believe it's gonna be more Assistant-led. That's a big bet for Google," Lingan said.

"It's becoming more proactive, more intuitive, more conversational. It's going beyond your desktop or laptop, wearables," he said.

Google is adapting its services to countries with slow internet. YouTube Go allows users to select the bandwidth when streaming video, which they can also view offline, Lingan said.

"Our thrust is to get everyone online. That’s our advocacy in the Philippines," he said.

At Mobile World Congress in Barcelona last February, Nokia unviled a trio of devices that run on Android One, a "streamlined" version of its mobile software.

"We work very actively with global OEMs (device manufacturers) to be able to bring great devices, affordable (devices)," he said.

"We would like to have that soon in the Philippines," he said.

source: news.abs-cbn.com

Lazada ramps up operations for Christmas season, 'online revolution'

MANILA - For Lazada, fashion, health and beauty, baby products and electronics are among the most sought after goods today from the 29 million products available online, its chief said Monday.

Lazada CEO Inanc Balci he himself said, he bought six months worth of toiletries including shampoo and tootppaste to take advantage of the ongoing 'online revolution.'

The e-commerce platform offers up to 95 percent discount during the promotion happening from Dec. 7 to Dec. 12, 2017. To keep up with the demand, the platform prepares three months in advance.

"We have 24/7 staff during the year, I think they go as much as 10x for certain divisions of the company, for example call center gets really big, warehouse it gets really really busy," Lazada CEO Inanc Balci told ANC's The Boss.

The Lazada founder banks on the country's potential to dominate the global e-commerce stage despite challenges when it comes to Internet connectivity.

"When you look a Philippines several years ago, its the biggest SMS capital, today, the social media capital, Philippines is number on in terms of Facebook penetration in the world, tomorrow it will be the e-commerce capital of the world in 5 to 10 years," he added.

With 10 million e-commerce users in the country, Lazada remains optimistic despite the expected decrease in sales after the holidays.

"It doesn’t die down but it goes to normal level, e-commerce industry is a multi-billion dollar industry in the Philippines anyways on the normal days," Balci said.

To drive the country's global e-commerce potential, Balci said, payment and banking system, fintechs, and logistics should be improved.

Next year, Lazada will open a warehouse in Mindanao to optimize operations in the region. Lazada, 
Balci said, is unfazed with the region's political unrest.

"It didn’t hinder, what we do is, we don’t see it as a business opportunity but as something that we have to give back," Balci said.

Catch full episodes of The Boss on iWantTV and tfc.tv. New episodes premiere on ANC at 7:30 p.m. Thursdays with replays on Thursday, 11 p.m.; Friday, 3:30 a.m. and 1 p.m.; Saturday, 4:30 a.m. and 10 a.m.; Sunday, 10 p.m.; and Monday, 9:30 a.m.

source: news.abs-cbn.com

7-Eleven boss reveals top-selling, game changing products

MANILA - The biggest-selling product in 7-Eleven stores in the Philippines is one of the essentials - water, according to country boss Jose Victor Paterno.

Magnum ice cream bars also signaled the shift to more premium products in convenience stores. At its launch in 2012, Magnum sold for P50, double the price of regular brands.

"I think in the last 5 years, we've seen a trend towards premiumization. Before, we couldn't sell a rice meal for over P50," said Paterno, president and CEO of Philippine Seven Corp.

Rice meals at 7-Eleven can now be sold for as much as P120, Paterno said in an exclusive interview with ANC's The Boss.

"There's a move towards affluence, even if its just occasional," he said.

Business process outsourcing is a key growth driver. Paterno said Philippine Seven needs only 3,000 people in a BPO area to open a store, compared to the 20,000 people needed in a "regular" area.

"They really overperform because they come down every break. Their breaks are short. It’s a stressful job they need to treat themselves," he said.

Paterno said the company was "at the pace we want" to reach its target of operating 10,000 7-Eleven stores, buoyed by the robust economy.

source: news.abs-cbn.com

Luxury prefab developer eyes low-cost housing market

MANILA - A Filipino developer of designer prefabricated homes said Tuesday it was hoping to partner with government for low-cost housing projects.

Revolution Precrafted CEO and founder Robbie Antonio said the modular homes would be affordable if the scale reaches “hundreds of thousands or tens of thousands.”

Antonio’s venture is poised to become the Philippines’ first “unicorn” or $1-billion startup. Aside from designer homes, the company is targeting prefabricated condominiums, hotels and pop-up retail shops.

“We’ve been really trying to serve that base of the pyramid,” Antonio told ANC’s The Boss. “The affordable market is a goal from the CSR (corporate social responsibility) perspective.”

“It’s about design democratization. We would go to the bottom. It’s a thick market and need homes and if we can do that for the country, we can do it for the region.”

The government needs to build some 5.7 million homes in six years to address the country’s housing backlog, according to analysts.

source: news.abs-cbn.com

P&G's Francisco: Walking the talk on gender equality

For Procter and Gamble's first woman and Asian global president for feminine care, "walking the talk" is the most effective way to simply get things done and inspire change, even more when one is in a position to do so.

In an email response to "The Boss" for her International Women's Day message, Fama Francisco shared how lucky she is to work for a company like P&G where all people are welcome, valued, and respected.

"When you’re a senior leader in a big international company, you have to hold yourself and your team accountable to make change happen and accelerate gender equality progress within the organization,"said Francisco.

She said P&G recently kicked off a new program in their global P&G Fem Care organization called "FemPowerment," which is designed to strengthen the metrics, policies, and practices across the organization to ensure women are getting the support they need to succeed.

"This includes reviewing and improving the pipeline of women for advancement and empowering them with a strong support system. Making this type of commitment to gender equality is essential. And we must walk the talk; putting specific policies and actions into practice is critical to remove barriers and ensure women are equipped to achieve their career goals," said Francisco.

The mother of two also shares her recollection meeting the former first lady of the United States, Michelle Obama, which Francisco described as a "truly unforgettable experience".

"She is very warm and genuine (and very tall!), so I immediately felt comfortable chatting with her," said Francisco.

"She’s a mother of two teenage daughters, and I have a teenage daughter so its always nice to have this in common. And hearing her talk, it quickly became obvious that Michelle has great sensitivity and heart for girls. She is very aware of the barriers that girls around the world face when it comes to things like education and equal opportunity. And when she gets behind a cause, she really puts her personal time in to champion that cause," she added.

Catch The Boss on Thursdays at 7:30pm on ANC, THE Filipino Channel, and iWantTV.

source: news.abs-cbn.com

Potato Corner notches record P1 billion sales in 2015

MANILA - Last year was a banner year for local food cart business Potato Corner after it hit over P1 billion in sales, a record in the company's 23-year history.

Jose Magsaysay Jr., the chief executive of Potato Corner, said a robust domestic market coupled with growth in its store network helped boost sales last year.

Magsaysay added that they are hoping the next administration will make setting up businesses easier.

They also plan to bring Potato Corner to new territories like Myanmar and Vietnam.

Catch the full interview with Potato Corner's Joe Magsaysay on "The Boss" airing every Wednesday on ANC.

source: www.abs-cbnnews.com