OFW families benefit from online shopping mall

i.t. matters
Monday, January 23, 2006 MANILA, PHILIPPINES

OFW families benefit from online shopping mall

In time for last year’s noche buena, one United States-based Filipino, via a few clicks on his computer, gifted his family back in the Philippines with a food package worth P28,000.

In the list were traditional must-haves: lechon, pansit, kare-kare and cake, said officials from myAyala. com, which processed the transaction. myAyala, the Ayala Group’s online shopping mall, described the transaction as its biggest single transaction ever in its five-year history.

Since the time it was formed in 2000, myAyala’s business model has not changed, said Manny Rodriguez, operations team leader. About 95% of its total market, valued at a "little less than P100 million" last year, are overseas Filipinos, that is Filipinos working and residing in North America, Canada, Europe, Australia and the Middle East.

Making up for their absence, and mindful of special occasions back home, these overseas Filipino workers buy items and transact online not for themselves but for their families in the Philippines, myAyala customer service coordinator Niña Jaspe said.

Food items such as cakes and Filipino favorites like lechon and pansit rank first in terms of the most popular. This accounts for almost half of myAyala’s total annual revenues, which grew to about P100 million last year from P50 million in 2004.

On the average, online food orders range anywhere between P3,000 for a small family event to P10,000 for parties. Transactions usually peak in December, in time for the Christmas celebration. In December, myAyala closed the month with P12 million in total revenues.

Second in the list are flowers, which now account for about 20% of the company’s total sales.

Prodded by increasing demand, myAyala has set up myflowershop.com, a virtual flower and semi-gift shop, sourcing flowers directly from farms, including getting down to the nitty-gritty of flower arrangement.

The whole business is being handled by a five-man team and the workshop is located within the myAyala corporate office in Makati City, occupying less than four square meters of floor space.

The company gets P800,000 worth of orders during lean months and higher during the months of December, May and February. Sales in May and February are driven by the Mother’s Day and Valentines celebrations.

And as of this writing, there were already 10 advance orders for February 14.

"Majority are still Filipinos overseas, for their parents and loved ones, but there are also foreigner clients, those who have partners living here or those who are into online dating," Ms. Jaspe said.

But there are also domestic orders, mostly from Metro Manila. Customers are usually working individuals with credit cards who are in their late 20s to mid-30s.

"Especially during Valentines, you have this guy working in Makati City who wants to surprise his girlfriend who is also working in Makati City," Mr. Rodriquez said.

Retail orders start at P800 for a package of three roses. Orders for corporate requirements and weddings usually start at P18,000/package.

In and outside the Philippines, most of myAyala’s clients shop at their office, providing e-mail and office addresses.

Aside from food and flowers, Filipinos based abroad also pay for Meralco, PLDT and Manila Water bills for families here.

"Give your share during difficult times even when you’re oceans away," the Website states.

OFWs can also send monthly remittances to families, gift certificates, and pre-paid cards for mobile phones so that family members back home can call.

Interestingly, Mr. Rodriguez said online transactions for pre-paid cards and remittances usually drop in December but jump in April and May for school enrolment.

Despite the assurance of secure transactions, he said the local market in general remains wary of transacting online.

"They are hesitant to give credit card information because they are afraid of identity theft and fraudulent transaction. And most of them prefer going to the mall," Mr. Rodriguez said.

For Filipinos abroad, however, sites like myAyala are a much-appreciated convenience. -- Maricel E. Estavillo