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'Survivors' of online retail business bullish about '04
2/12/2004
by Melissa V. Patricio
Computer World

The dotcom crash several years ago signaled the end of business for a number of online retailers. Several companies, however, were not discouraged and, instead, became more determined to prove that online shopping was not just a fad but an opportunity which they could turn into a profitable business through the right investments and proper management.

Computerworld Philippines takes a look at some of these "survivors" whose respective online businesses are slowly turning around and whose expectations are starting to be realized. 

FILGIFTS.COM 

Filgifts.com, which started operations in June 2001, is targeting Filipinos abroad who want to send gifts to their friends and loved ones in the Philippines without having to worry about shipping damage and late deliveries. 

The marketing strategy is proving to be an effective one as Filgifts has posted heat sales growth in the past six months, particularly last Christmas. 

"We still haven't made money, but we are very close to doing so," claimed Gerry Ditching, managing partner of Filgifts. "This year is going to be a critical one for us because we expect to jump-start revenues." 

During the holiday season, Filgifts increased sales by over 80% compared to the previous year and closed 2003 with almost a 100% growth. 

"Aside from food, toys and flowers, which have been the traditional 'bestsellers' during the holidays in the past few years, interest in gift certificates from clothing apparels such as Bench, Celio and Human rose in 2003," disclosed Ditching. 

Although 85% of its customers come from Filipinos overseas, Filgifts is not completely discarding the idea of developing the remaining 15% who are its Philippine-based clients. 

"Most local Internet users are young, wary about security, and have low purchasing power. But we still invest in them, hoping that when they mature, they will also be able to provide a good market for us," Ditching said. 

Business problems still come mainly from attempts at fraud which continue to escalate, thus, security has become tighter which "balances the situation," said Ditching. 

While other online shops expand their services, Filgifts is focusing on maintaining its main identity and sticking to its core competence. 

"We are not turning away any possibility, but we plan on taking things one step at a time because we want to make sure that we won't ask for anything that is more than we can handle," said Ditching. "And this strategy seems to be working perfectly for us." 

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