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Online store enjoys brisk sales
By Melissa V. Patricio 
Computerworld Philippines
August 4, 2003
View article on itnetcentral.com

AFTER almost three years of operating an online shopping business, Filgifts.com has not only managed to weather the adverse effects of the dotcom crash, it has also been able to sustain its development by boosting its sales and bolstering its marketing efforts.

Analyzing the improved performance of Filgifts, whose sales have been rising 100% annually, managing partner Gerry Ditching said knowing what the company is and what it’s not and exercising efficiency in sales and marketing operations are crucial factors in successfully managing an online business.

He stressed that running a successful business requires knowing that the process would not be instant and acknowledging that it’s going to be a long grind since “one must first learn how to get one’s hands dirty and pay one’s dues.”

Filgifts, Ditching said, has also learned to focus on all the fundamental aspects of the business. It also practices a tight monitoring system for its operating expenses and the implementation of its projects.

Ditching likewise credited the efficiency of the company’s back office support, composed of only nine employees, for the success that Filgifts is now enjoying.

A gift center Web site (www.filgifts.com), Filgifts.com allows Internet users to shop online for gift items that are delivered in stylish packages when and where clients exactly want them, making gift-giving a hassle-free experience.

“Although Filgifts won’t replace the traditional way of gift-giving wherein customers actually see and test the products (they buy), it is still able to balance out the situation by offering convenience and cheaper, faster, safer and more exact delivery (of the items),” said Ditching.

NEW PRODUCTS

Although gift buying reaches its peak during the Christmas and Valentine seasons, Filgifts seeks to boost its base sales during the off-season months by consistently coming up with more product offerings to sustain the interest of customers who will eventually get bored if they repeatedly see the same items being sold.

Committed to increasing its offerings by 50%-100% more each year, the gift site is currently looking at new product lines such as appliances and clothing apparel. “It’s kind of tricky to offer such items as clothes since we have to make sure about the size, material and design, among other things.” Ditching said. “But we’d like to give it a shot, and (we) are now negotiating with possible merchants.”

Originally targeting overseas Filipino workers who want to send gifts to their loved ones in the Philippines, Filgifts is now seeking to harness the potential of the local market to further strengthen its online business.

With the integration in its operations of Payplus, the online ATM payment gateway of Yehey! In October 2002 as an additional payment system aside from the usual credit cards, Filgifts has enabled more than four million Filipinos to transact business with the gift site using their ATM cards.

“With the integration of Payplus in affiliation with Allied Bank, China Bank, China Trust, Manila Banking Corporation, Metrobank and RCBC, Filgifts will be able to target more of the domestic traffic to use the site,” said Jason Banico, chief technology officer of Yehey!

SECURITY ISSUES

Although many people remain hesitant to try the gift site primarily due to uncertainties regarding technology and security, Filgifts assures present and potential customers that there would be no problems since its transmissions are all in encrypted mode, preventing hacking and theft because the data entered into the system go directly to the merchants’ gateway.

“Payplus has a track record of zero fraud and, as a result, transactions are starting to grow as we continue to ensure a secure payment system and make people aware of the services that we offer online,” said Kevin Khoe, Yehey!’s chief operating officer.

Although gift-giving online may be new from the technological viewpoint, its essence is still traditional and should not be perceived as a high-tech and glamorous business, Ditching said. Thus, Filgifts continues to fine-tune its site by considering customer suggestions, answering queries, and making online gift shopping as client-friendly as possible.

The addition of search tools, product descriptions, modified shopping carts and the implementation of the new Payplus payment scheme are just a few steps that Filgifts is currently taking to optimize its growth and improve its services.

The gift site will also look into online advertising as a potential source of revenue as soon as it has firmly established its retail operating systems and has fully gauged the outstanding media value that it can offer advertisers.

Well aware of the bigger market potential of online gift shopping and the changing lifestyle of Filipinos who are slowly showing a more positive attitude toward the practice, Ditching believes that buying gifts through the Internet is here to stay. “There’s no other way for the business but up,” he said.

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