Tuesday, December 02, 2008 [ manilatimes.net ]
DESPITE global economic uncertainties, Ayala Land Inc. (ALI) said it is confident that international sales will grow next year due to better expected sales in non-traditional markets.
During the One Ayala launch, Francisco Ma. Roxas, head of operations and marketing of Ayala Land International Sales Inc. (Alisi), said there are still “pockets of opportunities” in the US but the company will focus on buyers in the Middle East and Europe.
“Next year we will be making significant investments in those areas,” he said.
Roxas said America is the traditional market for ALI products and the company has only started selling to the “rich markets” in the United Arab Emirates, Bahrain, Kuwait and the UK late last year. When the subprime crisis hit the US, these non-traditional markets have slowly eaten into the US share of ALI’s total international sales.
As of last month, sales in the UAE and Italy jumped 50 percent and 33 percent, respectively. UK sales doubled from a year ago, according to Roxas.
Jaime Ayala, ALI president, had said the US comprised half of the company’s total foreign sales but had since dropped to 25 percent. The developer’s Middle East and European market however came in to corner almost 70 percent total foreign sales.
Roxas said international sales this year were “not as strong as prior years” because of the downturn in the US, thus, the contraction in the company’s overseas business. For next year the US market would still make up almost half of total international sales, he said, adding ALI is offering high to affordable homes in Europe.
“We have a very strong Avida market in Europe. In the UK especially, we were able to diversify our portfolio since the jobs that are available to Filipinos there are of higher skill[s]. Even [for] Alveo and Ayala Land Premier [ALP] we were able to move inventory in this market,” Roxas said.
Avida is the most affordable line that ALI offers, Alveo’s price points are considered middle range relative to other products while ALP caters to the high end market.
Teresita Tan, Bank of the Philippine Islands (BPI) overseas banking and channel services group head, said the challenge for the Ayala group is the first 6 months next year. “That’s why we’re putting up One Ayala,” [which] would create synergy within sister firms, she said.
One Ayala is a rewards and benefits program aimed at overseas Filipinos whereby ALI, BPI and Globe Telecom will jointly undertake sales and marketing activities within the country and abroad. The group has launched the One Ayala card, an ATM card that can be used to withdraw remittances from abroad. This can be availed by opening a BPInoy remittance account with BPI, availing an OFW family pack from Globe or purchasing a property from ALI.
According to Roxas, about 60 percent of ALI’s payments for overseas sales are coursed through BPI either by remittances or loans.-- Likha Cuevas-Miel
