(Source: Manila Bulletin | March 10, 2018)
The Board of Investments (BOI) has pre-qualified Zalora Shopping and CJO Shopping Co. Ltd., the first two online retailers to be registered under the country’s domestic retail trade law.
So far, the BOI has already registered a total of 25 foreign retailers with total investments of R40 billion. These retailers have created 29,000 jobs since 2000.
BOI Director for legal and compliance services Marjorie O. Ramos-Samaniego, who announced the recently pre-qualified online retailers at the Euro-PH Advocacy Forum on Retail Competition, said both firms were subjected to the current rules under the Republic Act 8762 or the Domestic Retail Act of 2000. The law requires minimum capital requirement of $2.5 million.
Since they have no physical stores, the online retailers’ warehouses will count as their store where under the law a retailer is required to invest $830,000 per store.
In February, 2017, the Ayala Group Acquired 49 percent stake in BF Jade E-Service Philippines, which owns and operates Zalora Philippines, the country’s largest online fashion platform offering a wide range of fashion and lifestyle products.
Last year, Zalora said it was investing in a new warehouse that is five times bigger than its existing facility in Carmona, Cavite to accommodate more volume on strong orders from online shoppers. CJ O Shopping Co., Ltd operates as an online shopping company in South Korea and internationally. It provides various shopping channels, such as TV home, T-commerce, Internet, and mobile shopping, as well as catalogue and e-Catalog services.
The company offers various product lines, including fashion, luxury goods, beauty, household appliances, jewelry, kitchen, household goods, and travel and baby products. CJ O Shopping Co., Ltd was founded in 1995 and is based in Seoul, South Korea.
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