Guerilla Investing is Back

... After securing an internet connection one month after the last post.

I am using Sun Cellular's mobile broadband and I tell you, the monthly rate is quite a steal. So far, in my two weeks of using the service, it has been quite consistent. (Unlike their mobile phone service). If you already have an existing Sun Cellular line, you can avail of the service for just Ph 799 a month.

Before I go back to my usual guerilla posts, I'd like to blab about personal observations heh. O.o

These aren't trivial posts though, my ever observant and critical mind could not stop wandering and wondering about the real state of the economy. I used to say that the Philippine economy is a student economy. I forgot to mention that the country is also driven by the mall culture economy.

Last month I went to Robinsons Place Ermita and SM Manila due to the proximity from where I am based. Both were open until midnight on the occasions I went there. It was a pitiful sight. There were only scant shoppers and every shop had the "S" word. I wondered if it was because everyone was at the Mall of Asia or that the economy was that bad.

In any case, I am of the opinion that the mall business has reached saturation point. Apart from that, the growth rate of personal wages will fall behind the rate of expansion of malls. Malls are just snatching away customers from each other. The industry is much like the cellular network industry. While there may still be growth, each provider is just eating away at the share of the next competitor.

More than just wooing customers from the next competitor, each company is also at risk of cannibalizing its own market. Smart has Talk and Text. Globe has Touch Mobile. Their prepaid promotions (text all you can, etc) is used to flank Sun Cellular. Now, Red Mobile is attempting to eat a pie that's already saturated. When one company reports growth while another report losses, you know that the industry has reached saturation point.

Is the Philippines just one big saturated market?

Have you seen the distance between Banco De Oro branches? You should visit Binondo. Along Soler street, you will see not one, not two, but three Banco de Oro branches along the same street! This isn't the best example as some were recently converted Equitable Bank branches. Nonetheless, it makes you wonder if there is any room left for new players in local industries.

Going back to the malls, I wouldn't be surprised if malls compete with each other and decide to have parking rate promos or, better yet, waive parking fees on selected hours just to entice customers to visit their malls. SM alone already has 32 malls if I'm not mistaken. And like the relationship of Jollibee and McDonalds, a Robinsons mall is never far away from SM.

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Thank you for patiently waiting for a new post. When you come back here, you'll get more guerilla investing tips. Ciao!