Cebu’s Golden ABC unfurls Penshoppe fashion in Dubai and Jakarta

Fashion retailer Golden ABC Inc. is forging ahead into new markets, primarily Indonesia and Dubai, spearheaded by its Asian brand.   Cebu-based Golden ABC on Tuesday said it has awarded MAP Group's PT. Prima Mode Indonesia a franchise to operate at least 150 stores of its flagship brand Penshoppe in the next 10 years.   It also signed a similar franchise deal with KN Retail Inc. covering six stores in Dubai in the United Arab Emirates.   Two Penshoppe stores will open in Dubai this year, the first one on Oct. 15, Golden ABC president and CEO Bernie Liu told reporters in a briefing.   The Jakarta-based franchisee would start with six stores in the next two years – two opening in December.   "This is going to be a huge boost in our business," said Liu, noting, "This will also raise the Philippine flag in Indonesia, UAE and the rest of the world."

  Liu said the first Penshoppe store in Jakarta spans 476.86 square meters, bigger than Golden ABC’s biggest at SM Mall of Asia.  "It seems that foreigners are more confident of our brand than our own Filipino malls," Liu noted.   For each store, Golden ABC said the franchise is spending P5 million to P8 million on merchandise alone.   Liu revealed they once opened a store in China, but shut it down two years ago as it was "very difficult to manage.   "We were actually spending more than our revenues," he said. "It's easy to open a store, but what is not easy is keeping it open," Liu added.   Liu brushed off rumors that Golden ABC would embark on an initial public offering. "We are still privately-owned, but we behave like a public company. That is the discipline of our organization," Liu said.   "Perhaps, it’s an option someday," the Golden ABC official noted, referring to becoming a publicly-listed company on the Philippine Stock Exchange. "At this point, we don't see the need to do so," he said.   "… A lot of institutions have been bugging me to… because I think the market is ready… because we have a good story," Liu added.   Golden ABC saw its first half income rise 17 percent year-on-year, Liu said, declining to give further details of the company’s financial results.   Last year, Golden ABC posted P70 million in net income on reported sales of P3 billion.   Liu said 70 percent of their supplies are sourced from the Philippines. "I believe we made our fortune here in the Philippines. I think it is right to give it back," he said.   Thirty percent of materials are imported "to augment our volume and get products we are not capable of doing here," Liu added. — VS, GMA News