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Tuesday December 13, 2005

Retail, Fast Moving Consumer Goods and Logistics

Denise Santos-Dizon




































In recent years, South East Asia has become synonymous with fantastic shopping. While Hong Kong, China, Singapore and Japan stock store windows with world-class quality goods, Thailand, Malaysia and the Philippines have come to be known as the bargainer's best friends. Despite waves of natural disasters, flu epidemics and political turmoil, the region has maintained its retailing momentum, and as even stronger economic growth looms in the horizon, Asian retailers are optimistic about the future of their businesses.

According to the inaugural Retailer Sentiment Survey conducted in Asia by Jones Lang La Salle, 47 percent of respondents expected profit margins to climb in the year ahead, 63 percent planned to increase the size of their stores and 95 percent planned to expand their business in 2005-06. Bangkok continues to be a highly profitable shopping metropolis, say most Asian retailers, while China, Hong Kong, Tokyo and Singapore top the list of cities where store expansions are likely to take place, creating opportunities in retail for graduates.

Experts say major retailers will do large scale recruiting in 2005-06, competing for candidates by offering higher starting salaries, competitive benefits and more opportunities for advancement. According to the Manpower Employment Outlook Survey, 33 percent of employers in China expect to hire new staff in the second quarter of 2005, with most of this hiring movement taking place within the retail sector. In Hong Kong, where the retail, entertainment and hospitality industries are making incredible recoveries, 50 percent of local companies say they expect to make additions to their workforce this year, reports the Classified Post. This is welcome news for women in particular, who are deemed equal assets to men in the retail industry, and make up half of its employees in South East Asia.

To get ahead in the game, human resources executives say applicants should have at least a university degree with a major in marketing or fashion and a few years experience working at a smaller retailer or a fast-moving consumer goods company if they aspire for an office managerial (as opposed to in-store clerical) position. Meeting language requirements is essential in countries such as China, Taiwan, Hong Kong and Thailand, where marketing managers are expected to speak and write English and the local language. While being IT and computer savvy used to be a plus for any marketing manager or buyer candidate, today it is a necessity to monitor inventory, control supply chain management, keep track of finances and conduct sophisticated marketing research.

Retail is the perfect fit for one who:

  • has people skills


  • is business savvy


  • has technical expertise in a specific area of retailing


  • has IT skills.


  • Fast moving consumer goods: fast moving careers

    Fast moving consumer goods (FMCGs) is a giant industry that is perpetually expanding - Asia Times Online reports that in China it has grown by a jaw-dropping 40 percent over the last five years. It is a haven for jobseekers. As the need for newer, more innovative products arises, so does the need for competent, talented individuals whose skills might bring what was once merely imagined onto supermarket shelves and then into millions of consumers' homes.

    Professionals in the FMCG industry usually follow one of three very distinct career paths:

  • commercial (including sales and marketing)


  • operational (such as manufacturing, finance, IT or logistics)


  • research and development (including laboratory and scientific work).


  • Thus, professionals in the industry hail from a variety of academic disciplines and universities.

    A career in FMCG, say human resources executives from Real World, is the right fit for someone who:

  • has a solid academic background


  • thrives in a fast-paced environment


  • has an innovative approach


  • displays total brand commitment


  • is a team player with exceptional communication skills.


  • In the bustling Asian cities of Beijing, Shanghai, Shenzen, Hong Kong, Bangkok, Singapore, Tokyo and Manila, major and minor players in the industry have begun to hire at all levels, after several years of conservative or even 'freeze-hiring'. With Asian markets showing signs of economic recovery, companies are starting to get over their fears of another downturn and are finally looking to grow and expand their businesses. According to Kelly News Services, hiring specialists say they received significantly more calls this year from Asia-based multinationals inquiring after promising candidates than in years past.

    The selection process at multinational FMCG companies remains tough, with rigorous screenings that include interviews, ability tests, presentations and team exercises. But employees of multinationals are rewarded by starting salaries that are 20-30 percent higher than those offered at local firms. They are also equipped with training programs, possible transfers between departments (such as from sales to marketing), and opportunities to travel to or work at international offices.

    Who's hiring in Asia?

  • Multinationals


  • Procter & Gamble


  • Unilever


  • Nestle


  • Colgate Palmolive


  • Coca Cola



  • Local/regional FMCG companies

    Inter Sonic International - Taiwan

    Intergroup Far East Ltd. - Hong Kong and Shanghai

    Texchem Group - Malaysia

    Boonrawd Group - Thailand

    San Miguel - Philippines

    Trends in logistics

    The Asian economic revival -and its subsequent hiring boom- is perhaps most pronounced in the logistics sector. Major and minor players in the logistics industry are seeking fresh talent. Hiring growth in logistics and trucking are up at least 30 percent across the board in all regions of Southeast Asia, reports Kelly News Services. As more and more Asian residents get hooked on placing orders on the internet, companies expect business to thrive.

    The search for staff is on, and headhunters, particularly in Singapore, Hong Kong and China, are being bombarded with requests for jobseekers with experience in the logistics sector - professionals who are capable of planning, moving and delivering at short notice. In Singapore, the Manpower Employment Outlook Survey reports that local and multinational firms are actively recruiting, as are those in the logistics hub of Hong Kong. But this year's biggest story in the logistics industry is China, where Kelly News Services reports that expansions from Hong Kong are the trend, and the industry is looking to hire 600,000 new professionals.

    For those already employed in the logistics industry, the picture just keeps getting better, with a forecasted pay increase from 9 to 13 percent in the coming year, reports human resource consultancy Hewitt Associates. Top logistics multinational firms, such as Kimberly-Clark, are also offering general and specialised job training, the possibility of transfers to different departments - such as from Sourcing & Supply Management Analyst to Transportation or Customer Service Analyst - and the opportunity to work at offices abroad as added bonuses.

    As compensation and benefits have soared, competition for positions at the largest and best-known companies has become cutthroat. Fresh graduates will need outstanding academic performance, strong communication skills and a genuine interest in the industry if they are to succeed in the two-interview recruitment process with senior management.

    Hiring specialists say the minimum requirements for a middle management position in logistics include:

  • relevant experience in logistics/supply chain management


  • ability to communicate effectively at all levels


  • ability to withstand a highly stressful working environment


  • fluency in the local language, with proficiency in foreign languages a plus. Ability in Mandarin is especially valuable.


  • Sources: Kelly News Services, Asia Times Online, Real World, Retailer Survey Sentiment ?Asia by Jones Lang La Salle, Manpower Employment Outlook Survey, Classified Post, Hewitt Associates, Kimberly-Clark, Payscale.com.



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