In a remarkable achievement, the Duty Free Philippines Corp. (DFPC) recorded a substantial increase in revenue, generating $102.9 million in sales last year, a staggering 53 percent growth compared to its $67.3 million sales in 2022. This outstanding performance has positioned the company on a trajectory of success, prompting the DFPC Chief Operating Officer, Vicente Pelagio Angala, to express his confidence in doubling efforts to sustain this momentum and achieve a target of $167 million by the end of 2024.
Angala, in a recent briefing, acknowledged the challenges faced by the organization and highlighted its strength and resilience in overcoming them. He emphasized the agency’s commitment to business recovery, stating, “There is no way but up.” This optimistic outlook reflects the determination of DFPC to continue thriving in the ever-evolving market.
One of the key factors contributing to the success of DFPC is its loyal customer base, with Overseas Filipino workers (OFWs) taking the lead, accounting for 63 percent of the total sales in 2023. Following closely behind are the Chinese customers, contributing 15 percent, followed by Americans with eight percent, Vietnamese with three percent, and Malaysians with one percent. This diverse customer base demonstrates the appeal of DFPC’s offerings to a wide range of international travelers.
To further enhance its customer experience, Duty Free Philippines plans to expand its product lines, catering to the evolving needs of its customers. Angala also emphasized the agency’s commitment to promoting local products, showcasing the rich diversity and craftsmanship of the Philippines. This strategic focus on local products not only boosts the country’s economy but also provides travelers with unique and authentic souvenirs.
Recognizing the growing trend of online shopping, DFPC is set to launch an online shopping platform in February. This initiative aims to provide customers with convenient access to DFPC’s wide range of products, which includes chocolates, confectionery, liquors, wines, bags, perfumes, and cosmetics, among others. By embracing e-commerce, DFPC aims to stay ahead of the curve and meet the changing preferences of modern-day shoppers.
In addition to its online expansion, Duty Free Philippines will also join the Department of Tourism’s (DOT) Hop-On Hop-Off (HOHO) itinerary in February. The HOHO initiative, led by the DOT, enables tourists to book quick, do-it-yourself (DIY) tours through a mobile application. This integration will further enhance the accessibility and convenience for tourists, allowing them to explore the country’s attractions with ease.
DFPC’s commitment to growth is evident in its plans to open additional stores at Clark Terminal 2, Bacolod, Kalibo, and Iloilo International Airports. These strategic locations will cater to the increasing number of travelers and provide them with a seamless shopping experience. By expanding its physical presence, DFPC aims to capture a larger market share and solidify its position as the premier duty-and tax-free merchandising system in the country.
As the travel industry gradually recovers from the impact of the pandemic, DFPC has resumed remitting contributions to its mother agency, the Department of Tourism (DoT). In the first quarter of 2020, DFPC remitted P54 million to fund the government’s tourism programs and projects. However, due to the challenges posed by the pandemic, remittances were temporarily deferred. With the resumption of operations and the significant revenue growth, DFPC has already remitted P40 million to DoT from 2023 to the first month of 2024, reaffirming its commitment to supporting the country’s tourism industry.
In conclusion, Duty Free Philippines Corp. has demonstrated remarkable growth, with a 53 percent increase in revenue in 2023. By focusing on customer needs, expanding product lines, embracing e-commerce, and strategically expanding its physical presence, DFPC is well-positioned to achieve its ambitious target of $167 million by the end of 2024. With its commitment to promoting local products and contributing to the government’s tourism initiatives, DFPC continues to be a key player in the country’s duty-free merchandising sector.
Source: The Manila Times
