A new trend in retail sparked by the lockdown is seen to sustain small businesses and spawn more entrepreneurs.
Sherill Quintana, president of the Philippine Franchise Association (PFA) said “hyper localism” is borne out of both necessity and bayanihan.
Quintana said limited mobility and resources have turned quarantined people into accidental entrepreneurs who are baking bread, sewing face masks, cooking dishes and selling and trading their products within communities.
“With the challenges and behavior of the market, people are now used to sourcing their own supplies for household and work requirements from their own communities,” said Quintana, founder of Laguna-based Oryspa Spa Solutions.
Hyper localism, she said, ties well with the government Pinas Muna campaign.
Launched on June 12, the campaign integrates Buy Lokal (shopping), Pasyal Na (tourism) and Sarap Pinoy (dining).
Even with the lockdowns easing and malls reopening, Quintana said there has been a resurgence of mom and pop stores.
“With hyper localism, there will be people who would want to procure products from nearby areas, from community stores which can deliver right at their doorsteps,” she said.
Quintana said marketing campaigns have shifted to homegrown brands and micro, small and medium enterprises (MSMEs) now start to build their following locally instead of going to Metro Manila or pursuing exports.
“The pandemic forced MSMEs to see what is in their own localities. People are patronizing locally-available products and services,” Quintana said.
With logistics a challenge in the countryside, Quintana said, small businesses have learned to use online market platforms and social media groups to push their products. Vendor communities have also tapped barter, exchanging their goods without money changing hands.
Tricycle drivers who have been out of jobs now serve as delivery partners.
Quintana admits because of this, there has been a surge in the underground economy as most micro enterprises had started from their homes.
“But we hope to nurture these businesses to level up after some time and continue beyond the pandemic. Those which have systems in place will experience higher demand; and competition will be stiffer. We have to support these businesses to scale up, register their businesses and be contributors to the economy by paying taxes,” Quintana said.
PFA is working with the Department of Trade and Industry in various MSME programs like
mentoring, market matching, product development among others.