Homegrown fashion brand Penshoppe is ramping up its logistics and technology investments to adapt to the rapid growth of e-commerce and intensifying competition from global fashion players.

At the Anvil Business Summit 2025 on Monday, Sept. 15, Golden ABC Inc. Executive Chairman Bernie Liu said that while managing logistics for a thousand physical stores is handled through established systems, serving hundreds of thousands of unique online customers is far more complex.

“That’s why we have to invest in state-of-the-art distribution centers,” Liu said.

Golden ABC owns fashion brands Penshoppe, OXGN, ForMe, Regatta, Memo, and BOCU.

Liu explained that online orders used to take more than a week or two to fulfill, especially during big sales like 11.11 or 12.12, which often led to inefficiency flags from online platforms. With new systems, orders can now be prepared for shipment within an hour.

However, Liu noted that this efficiency also created new challenges, citing some customers now cancel orders within hours, prompting costly reverse logistics.

“Being too efficient can bite you back,” Liu said, stressing that businesses must understand customer behavior and adjust accordingly.

Despite the rise of e-commerce, Liu believes that malls and physical stores will remain relevant.

“Shopping malls, physical stores will always be part of positivity,” he said, emphasizing that in-person experiences cannot be fully replaced.

Liu also noted the growing role of data and artificial intelligence (AI) in the fashion industry.

“One of the misconceptions of being in the fashion business is that it’s all about fashion, creativity. To succeed, it requires science alongside art,” he said. Golden ABC is starting its AI journey with merchandising, where accurate data is crucial.

The company maintains a strict inventory discipline, carrying only up to 12 weeks of stock to avoid excess merchandise and “dumping.” This approach means Penshoppe rarely joins mall-wide sales, as it has little surplus inventory to clear.

On marketing, Liu said that promotion comes last in the 4Ps of marketing, namely: product, price, place, and promotion.

He recalled a failed celebrity endorsement from a decade ago that underscored the need to first strengthen products, pricing, and store readiness.

“I would say, a decade ago, when we had all those serious endorsers, it really just catapulted,” he said.

From its beginnings as a single brand and store, Golden ABC has grown to nearly 1,000 outlets with thousands of employees. Liu attributed this growth to transparency and a long-term vision.

“If you want to manage an organization, you’ve got to be transparent to the professionals that you brought in to help you run the business,” he said. “Otherwise, they will be useless to you. Without the right information, they do not know how to help you.”

Liu concluded by urging entrepreneurs to “play the long game,” focusing on sustainable growth instead of short-term wins.

(Ricardo M. Austria)