The Tantoco family’s upscale retailer SSI Group Inc. is more optimistic of its prospects next year compared to 2024 even as it continues to expand its food service portfolio to include the Venchi chocogelateria.
In an interview, SSI President and CEO Anton T. Huang said, “I remain optimistic (about 2025)… Next year, we'll be comparing ourselves to 2024 which is an, easier comparison to 2023.”
He explained that they registered a record high performance in 2022 and an even stronger 2023 like most retailers as they enjoyed the “revenge spending” by consumers after the pandemic lockdowns.
Huang described 2024 as settling back to reality with margins being in the first half becoming narrower due to promotional activities although sales have not dropped but actually continued to grow.
“But our third quarter has been much, much better and the fourth quarter is looking promising… We'll have a strong fourth quarter, as we typically expect to do. Because, in the Philippines, you can't afford not to have Christmas,” he noted.
Huang added that “the only problem with the fourth quarter is the weather. So hopefully the weather paces down a bit.”
While the peso’s current weakness may affect the cost of their goods since they are imported, he said that, historically, a weaker peso is a net positive for the company because their clientele tends to travel less due to the stronger dollar and instead stay in the country and shop for luxury brands here.
Meanwhile, Huang said they have been building up the food category of SSI’s portfolio since 2014 with the aim of the food and beverage accounting for 25 to 30 percent of the company’s revenues by 2030.
He said they continue to be selective in the brands that they introduce to the Philippine market with a bias towards the upscale market to “cater to the customer base that we are most familiar with.”
SSI and Venchi launched their partnership today with the opening for their first branch in Bonifacio Global City and Huang said “we actually have other brands and concepts that we’re looking at launching in 2025 as well."
Venchi CEO for Asia-Pacific Marco Galimberti said they will open their second branch as the Podium mall in Ortigas Center to end the year with two branches with two more to be opened in 2025.
While their commissary can support the operations of about 10 branches, Huang said that “as far as our partnership is concerned, we've always said we're not in a hurry. We're here to look for the right locations. And if there are more right locations that come up, then we're happy to open.”
“We go for the quality ones. This is a long term game. So there is nobody rushing us on opening an excessive number of stores. We will do it with the right location, the right steps,” he said adding that, they are currently focusing on Metro Manila and will consider if the market is big enough in the Visayas for them to put up a commissary there.
Huang also said, “if we go to Cebu, for example, we have to do it deliberately with multiple concepts in order to have the scale to do it.”
Galimberti said coming to the Philippines is part of the company’s global expansion plan as the country “is a market that has been growing a lot in the last years. So, I think it’s just the right time and the right thing to do.”
“We have been expanding in Southeast Asia and in Northern Asia so we have a very good following with the Filipino customers that buy our products in Singapore and in Hong Kong,” he added.
Venchi has 250 to 260 branches globally with about half of them in Asia but Galimberti said there are only 20 so far in Southeast Asia.
Aside from the Filipino travellers’ familiarity with Venchi, he said they can also enjoy the same products in the Philippines at prices that are about 15 percent lower than in their branches in other countries.
“We are thrilled to announce the addition of Venchi, one of the oldest and most respected names in the world of fine chocolate, in our F&B and retail portfolio.
Recognized all over for our penchant for sweets, we believe that the local market and the Filipinos will embrace the authentic Italian lifestyle brand’s dedicated mastery to creating high-quality chocolates and gelato crafted for your well-being,” said Huang.
Galimberti said, “this is an exciting new chapter for Venchi. I am honored to embark on it with Anthony and the SSI Group, the most trusted retailer in the country. I very much look forward to our continued collaboration and to witnessing the success of our first store in the Philippines. I have the utmost confidence that our shared vision and values will allow us to elevate the premium chocolate landscape and bring joy to our Filipino fans.”