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You own a digital-native brand and you want to set up a physical brand store? Read this first

Despite the cannibalizing impact on their own online channel, brand stores are an effective means to increase a brand’s top-line sales. Digital natives in startup or growth markets that aim to draw investors’ attention can try to improve their valuation through brand stores and the corresponding sales growth.

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Multichannel retailing has become crucial to the sales strategy of any brand, including digital-native brands that started retailing as online-only. Digital-native brands like Quip in the U.S. and Myprotein in Europe have partnered with independent retailers to offer consumers an in-person retail option. But some brands—especially those in the fast-moving consumer goods (FMCG) category—have opened their own brand stores to create a bigger physical footprint.

Researchers from Erasmus School of Economics at Erasmus University Rotterdam, KU Leuven, Universität zu Lübeck, Christian-Albrechts-Universität zu Kiel, and FoodLabs published a new Journal of Marketing article that investigates the multichannel impact of brand stores by digital-native FMCG brands.

The study, appearing in the Journal of Marketing, is titled “Assessing the Multichannel Impact of Brand Store Entry by a Digital-Native Grocery Brand” and is authored by Michiel Van Crombrugge, Els Breugelmans, Florian Breiner, and Christian W. Scheiner.

Brand stores are brick-and-mortar stores owned and operated by the manufacturer. They carry only the brand’s products and are designed to sell them profitably in a brand-centric environment.

Van Crombrugge explains that “these stores offer physical exposure, which digital-native brands might struggle to attain on supermarket shelves given the steep competition from mass-market brands.”

Brand stores increase brand awareness, which in turn can increase sales in the company-owned online channel and independent supermarkets.

“Brand stores can also spark distributor interest and prompt supermarkets to distribute more of the brand on their shelves. Since the number of brand stores that a digital-native FMCG brand can open is limited, increasing breadth and depth of supermarket distribution can further drive brand sales,” adds Breugelmans.

Yet brand stores also entail risks. Sales in this channel may cannibalize sales in the incumbent channels if consumers migrate to the newly opened brand store. If brand stores signal the manufacturer’s encroachment, supermarkets might reduce their distribution of the brand. Finally, opening and operating brand stores is expensive and these substantial operational costs put pressure on profits.

The Supermarket Effect

This research uncovers a substantially different impact of brand store entry on own-online channel sales than on sales in independent supermarkets. In areas in the vicinity of brand stores, the brand’s online channel sales decreased, yet its supermarket sales increased. This is because for customers seeking a more elevated consumption experience, brand stores offer an interesting alternative, which causes cannibalization of its own online channel.

In supermarkets, on the other hand, buyers are mainly concerned with price and convenience. For them, brand stores offer an opportunity to discover a digital-native brand that otherwise would have remained anonymous between bigger mass-market brands, which in turn causes supermarket sales to increase.

Brand Distribution

The research team also discovers that brand stores spark distributor interest and prompt supermarkets to start distributing the brand on their shelves. Indeed, part of the supermarket sales increase that brand stores bring about is driven by brand stores’ positive effect on the number of supermarkets that carry the brand. This increase in distribution breadth is an important component to drive sales since brands cannot open brand stores everywhere.

“We find that brand stores generate an influx of own brand store sales that more than make up for any online losses. This is not necessarily surprising because their strong local visibility, typically in locations with high foot traffic, and their appeal to customers who lack opportunities or motivations to visit the online channel or supermarket make brand stores an attractive sales channel on their own,” Scheiner says.

Despite the cannibalizing impact on their own online channel, brand stores are an effective means to increase a brand’s top-line sales. Digital natives in startup or growth markets that aim to draw investors’ attention can try to improve their valuation through brand stores and the corresponding sales growth.

However, opening and running brand stores is a capital-intensive operation due to factors such as store rental cost and sales staff wages. Breinder warns that “our analyses show that nearly half of the brand stores under study were not able to turn a profit. Brands therefore need to carefully weigh brand stores’ top-line gains against their high operational expenses to justify the investment financially.”

These findings offer important insights and caveats to digital-native brands that consider opening brand stores to increase their physical footprint beyond supermarkets. The upside is that brand stores can help digital natives reach potential consumers and gain additional physical exposure that FMCG brands especially require. Yet brand stores are not without risks: they may hurt the brand’s sales in the online channel where the digital native started and further impact brand profitability if the influx of new sales is not great enough to cover those online losses and the brand stores’ own substantial operating costs.

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Mercato Centrale, College of Saint Benilde launch micro-certification program to upskill MSMEs in food sector

Developed through the collaboration of Mercato Centrale’s entrepreneurship platform and CSB’s School of Hotel, Restaurant, and Institution Management (SHRIM), the courses aim to equip  both aspiring and existing food entrepreneurs with the tools to build sustainable, growth-oriented businesses.

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Mercato Centrale Group, the country’s premier food and lifestyle market, has partnered with De La Salle-College of Saint Benilde (DLS-CSB) to roll out  micro-certification courses aimed at strengthening micro, small, and medium enterprises (MSMEs) in the food industry. 

The program will offer short courses covering food business management, marketing strategies, financial literacy, and culinary innovation. Developed through the collaboration of Mercato Centrale’s entrepreneurship platform and CSB’s School of Hotel, Restaurant, and Institution Management (SHRIM), the courses aim to equip  both aspiring and existing food entrepreneurs with the tools to build sustainable, growth-oriented businesses. The program is expected to launch in the coming months and will be open to home-based food vendors, market stall owners, and individuals entering the food industry.

The partnership was formalized through a memorandum of understanding signed on March 26, 2025, at  the Vatel Restaurant within the CSB campus. The signing ceremony was attended by RJ Ledesma and Vanessa Ledesma of Mercato Centrale; DLS-CSB Chancellor Benhur Ong; SHRIM Dean Marie Paz Castro; and Vice Chancellor for Academics Angelo Marco Lacson.

“Almost 99.5% of businesses in the Philippines are MSMEs, and a large number of them are in the food industry,” said RJ Ledesma, co-founder of Mercato Centrale. “Our mission has always been to champion local food entrepreneurs by providing them with the right platform and support. Through this partnership with CSB, we’re taking that commitment further by giving MSMEs access to quality education and training—tools that can help them sustain and grow their businesses. With what we’ve built at Mercato, we have a real opportunity to contribute to making these businesses more sustainable. This initiative also reflects our Lasallian mission of service.”

Under the agreement, the partnership will roll out a comprehensive set of academic and industry-focused initiatives. These include student internships across Benilde’s hospitality and entrepreneurship programs, providing students with hands-on experience in real-world business environments. Selected courses will be micro-credentialed to better align academic offerings with the operational needs of the food and hospitality sector. Faculty and associates from both institutions will also participate in immersion and exposure trips to gain deeper insights into industry practices.

To further enrich learning, Mercato Centrale and DLS-CSB will co-host data analytics workshops and seminars that draw from Mercato’s field experience—equipping students, faculty, and the broader public with a deeper understanding of market trends and consumer behavior. Students will also take part in project-based learning alongside Mercato, solving real-world entrepreneurial challenges. These will be supported by mentorship-led class enrichment programs that bridge academic theory with practical application.

The collaboration marks a strategic alliance between two institutions committed to empowering the next generation of Filipino food entrepreneurs through accessible, experience-driven education.

For updates on enrollment and course offerings, follow Mercato Centrale on Facebook and @mercatocentraleph on Instagram

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Asahi Appliances taps TikTok Shop

By tapping into TikTok Shop’s unique ACE Indicator System—Assortment, Content, and Empowerment—Asahi Appliances has modernized its approach while staying true to its legacy.

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For over four decades, Asahi Appliances has been a household name in the Philippines, known for its durable electric fans and a broad range of home appliances. Now, the brand has found new momentum in the digital marketplace through TikTok Shop, achieving remarkable growth in the latter part of 2024. By tapping into TikTok Shop’s unique ACE Indicator System—Assortment, Content, and Empowerment—Asahi Appliances has modernized its approach while staying true to its legacy.

Asahi Appliances saw a surge in sales, growing 2,700% year-over-year from Q4 2023 to Q4 2024, and 56.5% quarter-on-quarter from Q3 2024 to Q4 2024. The 11.11 Paskong Panalo Sale played a key role in this momentum, driving sales nearly six (6) times higher than the 10.10 sale that same year.

Reinventing Success with Digital Innovation

Asahi Appliances’s success on TikTok Shop exemplifies how local and heritage brands can thrive in a rapidly evolving digital space. The platform’s ACE Indicator System, which guides sellers in optimizing their assortment, enhancing content, and empowering campaigns, played a central role in this transformation. By refining its product offerings, creating engaging livestreams, and maximizing ad placements, Asahi Appliances connected with a new generation of online consumers.

“TikTok Shop has given us a platform to bring our products and story to life in a way that truly resonates with today’s audience,” said Eunice T. Sy, Vice President of Asahi Appliances. “This has been an opportunity to not just sell, but to engage with our customers on a deeper level, offering them value while staying true to the quality that has defined us since 1982.”

The Power of Assortment and Engagement

Through TikTok Shop, Asahi Appliances curated exclusive offers, including discounts, bundles, and Buy 1 Get 1 deals, tailored to its audience’s preferences. This strategy drove substantial growth, with gross merchandise value (GMV) increasing by 130% quarter-on-quarter. The brand also embraced TikTok Shop’s tools, such as the Shipping Fee Program and Bonus Cashback Program, to create a seamless and appealing shopping experience.

Complementing these efforts was a robust content strategy that featured daily livestreams and collaborations with creators. During major campaigns like 11.11, the brand extended livestream durations to seven hours, engaging customers in real time and significantly increasing impressions. These efforts translated into a 361% year on year growth in livestream sales, with product impressions surging 387% quarter-on-quarter.

Building Trust in E-Commerce

Asahi Appliances’s journey on TikTok Shop reflects the broader value of operating within a safe and trustworthy e-commerce ecosystem. TikTok Shop ensures compliance with Philippine laws, including requiring Philippine Standards (PS) Licenses or Import Commodity Clearance (ICC) certifications for regulated products. These measures provide assurance to both sellers and consumers, reinforcing the integrity of the platform.

“Trust is the foundation of any thriving digital marketplace,” said Franco Aligaen, Marketing Lead of TikTok Shop Philippines. “At TikTok Shop, we go beyond driving growth. We are committed to building a secure and transparent ecosystem where brands like Asahi Appliances can thrive, and consumers can shop with confidence, knowing they are protected by the highest standards of compliance.”

Globally, TikTok Shop has invested over USD 500 million in safety initiatives, including the development of tools to identify and remove non-compliant products. Programs like the TikTok Shop Intellectual Property Rights (IPR) Report further demonstrate its commitment to fostering a secure marketplace.

A Blueprint for Filipino Excellence

Asahi Appliances’s transformation on TikTok Shop is more than just a business success; it is a testament to the potential of Filipino enterprise in the digital age. By blending innovation with heritage, the brand has demonstrated how traditional businesses can adapt to the demands of a new market while preserving their identity.

“This isn’t just about growing sales; it’s about showing what Filipino craftsmanship can achieve when paired with the right tools,” Sy added. “TikTok Shop has been an invaluable partner in this journey, helping us share our story with customers who value quality and authenticity.”

To explore Asahi Appliances’s innovative offerings and see how they’re embracing the digital marketplace, visit their official TikTok Shop.

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5 Trends shaping the future of online selling

The consumer ecommerce market is expected to approach $6 trillion by 2027, according to the International Trade Administration, up from roughly $4 trillion in 2024.

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Thanks to the explosion of ecommerce over the past couple decades, consumers can find virtually any product or service they can think of online. In fact, the consumer ecommerce market is expected to approach $6 trillion by 2027, according to the International Trade Administration, up from roughly $4 trillion in 2024.

A diverse collection of product segments is driving this growth, including everything from fashion and furniture to food and beverage. While major marketplace retailers still lead the category, ecommerce has become commonplace among small businesses, too. In fact, by the end of 2023, an estimated 80% of small businesses had at least basic ecommerce capabilities, according to a report by Digital Commerce 360.

However, small businesses are grappling with challenges such as inflation, supply chain issues and keeping pace with major retailers, among others, that are driving a variety of ecommerce trends in 2025 and beyond, including:

Video Content

Spurred by social media, video content is in high demand on ecommerce sites, too. Videos that explain how to use products, offer tips for using them and demonstrate projects that were completed using a product all earn favor with shoppers. In addition, videos that highlight product features, video reviews on social media and “live shopping events” on the social channels of ecommerce retailers can provide a more appealing interactive experience for shoppers.

Inclusive of the “live shopping events” trends, livestreaming is often popular among consumers as it can create a sense of FOMO (fear of missing out), leading to enhanced brand loyalty and engagement. Short-form videos sweeping social media also drive engagements and offer a quick, appealing way to demonstrate new or popular products.

Personalized Products

Ecommerce provides opportunities for shoppers who appreciate buying products that are uniquely their own. Online buying platforms that allow for customization of products such as shoes, clothing and drinkware can create buyer engagement and earn loyal shoppers who know they can purchase the items they want exactly to their own specifications.

In fact, a survey by McKinsey Insights found 80% of loyal customers prefer shopping with brands that offer tailored choices and personalized experiences. From color selection and accessories to performance variations, custom options can help create a highly personalized shopping experience that allow buyers to interact more directly than they would for a standardized transaction.

Beyond the initial purchase, customized reports and shipping notifications are also becoming the norm. Shippers can alert customers to their products’ delivery status – including any delays or changes – via email, text, video message or, in some cases, a customizable dashboard where consumers can view incoming shipments tied to their account or address, request a different delivery time or location, pre-sign for packages and more.

Micro Purchasing Moments

You may think phenomena like impulse buys or convenience purchases are reserved for brick-and-mortar stores, but micro-purchasing trends suggest otherwise. These purchases are typically made by someone looking for a quick solution or information in a hurry from a mobile device, such as comparing two or more similar products and clicking a “buy now” link, ordering and paying for food ahead of time to skip the line, making a hotel or excursion reservation while traveling or looking up movie showtimes and purchasing tickets from the same page. Ecommerce sites that can establish themselves as a resource, make information easy to digest and simplify the purchasing process are earning customers (and revenue).

Flexible Payment Options

Online purchases were once limited almost exclusively to credit card purchases, but over time, businesses have granted greater flexibility to shoppers when it comes to collecting payment. While this trend has been growing for several years, many contemporary ecommerce sites now accept credit or debit cards, online checks, digital wallet and mobile payment services, cryptocurrency and even installment payments via third-party providers. By 2029, the third-party payment market is expected to almost double from $62.5 billion in 2024, according to findings from Mordor Intelligence.

Simplified Shipping Options

Evolving technology isn’t just improving the browsing and purchasing side of ecommerce; shipping operations are also seeing enhancements. For example, ShipAccel, a digital platform designed by Pitney Bowes, simplifies and enhances shipping operations with advanced ecommerce technology. The platform empowers early ecommerce brands to ship like larger companies with access to discounted carrier rates; more than 80 integrations including leading marketplaces, data and insights to help make smarter shipping decisions; branded tracking; and return capabilities. It features a collection of apps, widgets and application programming interfaces to easily configure new workflows and seamlessly meet the demands of business growth.

“As ecommerce becomes a mainstay, shippers must take a technology-first approach, utilizing platforms that can grow along with the business and partnering with providers who offer deep expertise in the segment,” said Shemin Nurmohamed, president of Sending Technology Solutions at Pitney Bowes. “As a result of using technology like ShipAccel, ecommerce shippers can save money, enhance operational efficiencies and delight customers – all of which support the business’ bottom line.”

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