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Golden ABC Inc in Apparel and Footwear (Philippines)

Local Company Profile | 01 Mar 2017

STRATEGIC DIRECTION
In addition to the major plans of the company to strengthen its presence across the ASEAN region, during 2016 Golden ABC Inc was
involved in the opening of 100 more stores across the Philippines. Since the increases being seen in consumption are not focused entirely
on major cities, including some of the countrys rapidly developing smaller cities, the opening of new shopping centres and the extension
of existing ones has also benefited the companys expansion plans.
Known for bringing celebrities from different parts of the world to the Philippines, the company introduced two major models, Lucky
Blue Smith and Gigi Hadid, as the new endorsers for its brand Penshoppe during 2016.
Although it remained a privately-held incorporation in 2016, Golden ABC Inc has not ruled out the possibility that it will become a
public entity during the forecast period. With its ambitious plans to establish a very strong presence in all of the ASEAN countries, going
public is an inevitability for the company.
Golden ABC Inc manufactures and distributes apparel and footwear and personal accessories and these industries remained the core
business focus of the company during 2016.

KEY FACTS
Summary 1 Golden ABC Inc: Key Facts
Full name of company: Golden ABC Inc

www: //www.goldenabc.com/

Activities: Manufacturer and distributor of apparel, footwear and personal accessories

Source: Euromonitor International from company research


Summary 2 Golden ABC Inc: Operational Indicators
Year end December 2014 2015

Net sales PHP3,566.9 million PHP4,732.4 million

Net profit PHP75.0 million PHP200.1 million

Source: Euromonitor International from company reports

RETAIL OPERATIONS
The companys expansion plans involve it reaching an even bigger consumer base, both at local level and abroad. In the Philippines, the
company plans to open as many as 100 new stores across all of its retail brands in less densely populated cities which are still
developing.
In November 2015, the company opened Penshoppes biggest store yet in SM Seaside Cebu, which is also the biggest shopping centre in
the area. The opening of this outlet reflects the development goals of the company as it seeks to strengthen its presence outside of Metro
Manila and cater to an even bigger consumer audience.
Summary 3 Golden ABC Inc: Retail Operational Indicators
2014 2015 2016

Outlets 283 294 304

Source: Euromonitor International from company reports, company research, trade press, trade sources

INTERNET STRATEGY
The company offers most of its brands online through Zalora and it did not have its own e-commerce website in 2016. Demand for the
online retailing of apparel and footwear remains insignificant in the Philippines, although the companys brand has managed to expand
its consumer base through the use of third-party online retailing websites.
Most of the companys brands have a social media presence through its Facebook, Instagram and Twitter profiles. These social media
platforms are being used as a way for the company to reach out to consumers by answering their inquiries and suggestions and to
publicise promotions.

COMPETITIVE POSITIONING
Golden ABC Inc held second position in apparel and footwear in the Philippines in 2016 with a value share of 2%, just slightly behind
the leading player, Suyen Corp. Golden ABCs brands targets a wide range of consumers with different needs and style preferences,
which has enabled it to successfully position itself as one of the biggest players in apparel and footwear in the country.
The companys market share recorded slight growth in 2016 despite the challenges presented by the increasing demand for international
fast fashion brands. Through its use of aggressive marketing strategies, Golden ABC Inc has been able to penetrate demand among low-
income and middle-income segments of the Philippine population.
The company position itself mainly in the middle of the price spectrum in apparel and footwear in the Philippines.
Summary 4 Golden ABC Inc: Competitive Position 2016
Category Value share Rank

Apparel and footwear 1.7% 2

Womenswear 2.4% 1

Menswear 2.4% 2

Childrenswear 0.4% 12

Sportswear - -

Jeans 2.1% 7

Hosiery 0.2% 14

Apparel accessories 0.2% 15

Footwear 0.0% 46

Source: Euromonitor International from company research