Why inventory management is key to competitive pricing

Improved infrastructure also plays a major role, a Suyen Corporation official said.

Effective inventory management is crucial for keeping product prices competitive, according to Suyen Corporation, the parent company of Studio Dimensione, a leading Philippine furniture distributor.

“Price is always a challenge when bringing products from overseas, and customers are comparing prices directly to Europe, without including shipping, taxes, and delivery,” Marcela Luca, retail operation manager SEA at Suyen Corporation, said at the sidelines of the Retail Asia Forum 2024.

“In Suyen, we cannot have delivery costs doubling the product price, especially for less expensive items. Improved infrastructure will play a major role,” she added.

Whilst companies invest in digital applications and websites, it's crucial that their infrastructure, particularly logistics, keeps pace, noted Luca.

Founded in 1976 by Filipino business mogul Ben Chan, Studio Dimensione features high-end Italian brands such as Cappellini, Clei, and MDF Italia. The company currently operates 16 retail outlets nationwide and plans to open more by the end of the year.

Luca said the brand's target market consists of young urban professionals who appreciate studio-type homes and minimalist designs. Customers browsing the catalogue will find clean, muted-colored pieces that emphasise simplicity and elegance.

“We also ensure that we maintain a large inventory in various sizes and refresh our stock regularly to keep clients engaged,” Luca said.

Since the company imports furniture from 21 international brands, she said that it is also important for staff to familiarise themselves with all of them.

Managing furniture, Luca said, requires detailed explanations, which is why they utilise audio-visual presentations to educate customers.

“The more you're able to pass that information and create your videos to educate the consumers, the more engaged they become and knowledgeable,” she said.

Luca noted that the videos should explain how the products are manufactured, as well as their functionality, durability, creation process, and the inspiration behind them.