Southeast Asia has become one of the world’s most dynamic retail regions, driven by rising consumer spending, urbanisation, digital transformation and growing demand for international brands.
Donna Grace Aguilloso has more than eight years of experience in the Philippine retail industry, working across commercial operations, leasing and retailer partnerships. In her current role as Senior Associate Manager for Retail Management and Tenant Relations at Ayala Malls, she works with local and international brands across market evaluation, lease negotiations, store openings and long-term retail operations.
AsianTrade Connect spoke with Aguilloso about the evolution of Philippine retail, changing consumer expectations, the role of local partners and why some European brands struggle to establish themselves in the market.
AsianTrade Connect: Donna, thank you for joining us. To start, could you introduce yourself and share your professional journey in the retail industry?
Donna Grace Aguilloso: Thank you for having me. I have over eight years of experience in the Philippine retail industry, working across commercial operations, leasing and retailer partnerships. Throughout my career, I’ve had the opportunity to work with both local and international brands—from evaluating market fit and negotiating lease terms to supporting store openings and long-term operations.
What I enjoy most about retail is that every brand has a different story, and I’m glad to share some of the insights I’ve gained and hope they are helpful to businesses exploring opportunities in the Philippine market.
AsianTrade Connect: You have witnessed significant changes in the Philippine retail sector over the years. How would you describe the evolution of retail, and what are the biggest transformations you have observed?
Donna Grace Aguilloso: One of the biggest changes I’ve observed in the Philippine retail industry is how both retailers and shopping malls have evolved in response to changing consumer preferences.
Retail formats have generally become smaller and more efficient, while malls now dedicate a larger share of their leasable space to dining and lifestyle concepts. Years ago, food and beverage occupied a much smaller portion of the tenant mix. Today, it has become a major traffic driver and an essential part of the overall customer experience. I’ve also seen international retailers invest more in experiential store concepts by introducing larger formats, interactive spaces and flagship stores that strengthen customer engagement. At the same time, retailers have become much more strategic when selecting locations. Beyond foot traffic, they carefully evaluate neighbouring brands, the overall tenant mix and whether the mall environment aligns with their target market.
Overall, retail has become far more intentional. Success today is no longer just about securing a space—it’s about finding the right environment where a brand can build a meaningful and lasting connection with its customers.
AsianTrade Connect: Asian consumers are becoming increasingly sophisticated and exposed to international brands. How is consumer behaviour changing, especially among younger and more affluent customers?
Donna Grace Aguilloso: Filipino consumers have become much more value-conscious. They’re willing to invest in premium products, but they expect the quality, experience and overall brand proposition to justify the price. Without a clear sense of value, consumers will simply see the price tag. I’ve also observed that Filipinos gravitate toward brands that feel relevant to their lifestyle and culture. Whether it’s through local collaborations, meaningful storytelling or partnerships with personalities they genuinely admire, brands that create an emotional connection are more likely to earn long-term loyalty.
This is one reason some international brands struggle after entering the Philippine market. A strong global reputation alone isn’t enough. Brands need to understand the local consumer, communicate their value clearly and build a genuine connection with the market. When they do, they’re far more likely to succeed.
AsianTrade Connect: From your perspective working with retail destinations, what characteristics make an international brand attractive for a premium mall environment?
Donna Grace Aguilloso: For me, an attractive international brand is one that strengthens the overall retail environment, not just fills a vacant space. While brand recognition is valuable, it’s only one part of the equation.
I look at how the brand fits the target market, complements the existing tenant mix and whether it brings something differentiated to the customer experience. Even if two brands offer similar commercial terms, I would lean toward the one that adds greater value to the overall mix rather than duplicating what’s already available. Ultimately, successful retail is about creating the right balance. When retailers complement one another and meet the needs of the local market, both the brand and the retail destination are more likely to succeed over the long term.
AsianTrade Connect: Despite having strong brand recognition and successful performance in Europe or other international markets, some European brands struggle when entering the Philippines. In your experience, what are the main reasons behind these challenges?
Donna Grace Aguilloso: From what I’ve seen, the challenge is often not the brand itself, but how and where it enters the market. A successful brand in Europe doesn’t automatically succeed in the Philippines if it’s introduced in the wrong location or positioned for the wrong customer segment.
Filipino consumers are willing to invest in premium brands, but they also expect clear value. If a brand doesn’t establish a meaningful connection with the local market or communicate why it’s worth the price, consumers will simply see it as expensive. Successful market entry requires more than opening a store. It starts with understanding the local customer, selecting the right retail environment and ensuring that the brand’s positioning, price point and overall experience match the market.
In my experience, brands that adapt thoughtfully while staying true to their identity are the ones that achieve long-term success.
AsianTrade Connect: What are the most common mistakes you see international companies making when approaching Southeast Asian markets? Can a lesser-known European brand still succeed, and what factors can compensate for limited local recognition?
Donna Grace Aguilloso: One of the most common mistakes is assuming that a successful formula in Europe can simply be replicated in Southeast Asia. While there are similarities across the region, each market has its own consumer preferences, purchasing power and retail landscape. Brands that invest time in understanding the local market and adapting their strategy are generally better positioned for long-term success.
I also believe that a lesser-known European brand can absolutely succeed in the Philippines. Brand recognition helps, but it’s not the only factor that drives success. A compelling product, the right price point, a location that matches the target customer and a brand story that resonates locally can make a significant difference.
Another key advantage is partnering with the right local distributor or brand operator. These partners understand the market, have established relationships with landlords and other stakeholders and can help secure the right locations and position the brand more effectively. Their local expertise and network can significantly accelerate a brand’s acceptance and long-term success in the market.
AsianTrade Connect: How important is choosing the right local partner when entering Southeast Asia? From a mall operator perspective, what are the key elements you evaluate when considering an international brand for a premium retail environment?
Donna Grace Aguilloso: Choosing the right local partner is extremely important because they bring market knowledge, established industry relationships and a deeper understanding of local consumer behaviour.
They can help an international brand navigate the market more effectively—from selecting the right retail destination to adapting its strategy for local customers. In many cases, the right partner can significantly improve a brand’s chances of long-term success. When evaluating an international brand for a premium retail environment, I look beyond brand recognition.
I consider whether the brand aligns with the target market, strengthens the existing retail ecosystem and offers a differentiated retail experience. I also assess whether its positioning, price point and store concept are suitable for the location and whether the brand has the potential to generate sustainable long-term performance. Ultimately, the strongest retail environments are built through partnerships that create value for both the brand and the overall customer experience.
AsianTrade Connect: With the growth of e-commerce and social commerce across Asia, how do you see the role of physical retail evolving?
Donna Grace Aguilloso: I see e-commerce and social commerce as complements to physical retail rather than replacements. Digital platforms have changed how consumers shop and discover brands, but they have also made mall visits more intentional. Today, customers often arrive knowing where they want to dine, what they want to shop for or which brands they want to experience.
In the Philippines, shopping malls continue to evolve rather than decline. Many are expanding, renovating and introducing more lifestyle and experiential concepts that encourage people to spend time, connect and create memorable experiences. In many ways, malls have become more than shopping destinations—they’ve become community spaces and a second home for many Filipinos.
While online channels offer convenience, physical stores provide something that digital platforms cannot: the opportunity to experience products and services firsthand. For many brands, that personal interaction remains one of the strongest drivers of customer confidence and loyalty.
AsianTrade Connect: How is the premium and luxury consumer evolving in the Philippines? Are you seeing increased demand for international lifestyle, fashion and beauty brands?
Donna Grace Aguilloso: I’ve observed that the premium consumer in the Philippines has become more discerning and globally aware.
With greater exposure through travel, digital platforms and social media, consumers are more familiar with international lifestyle, fashion, beauty and dining brands. At the same time, they are more selective. They look beyond brand recognition and consider quality, authenticity, experience and whether the value justifies the price.
This is why we continue to see opportunities for international brands entering the Philippine market. However, success depends not only on global reputation, but on understanding the local consumer and creating a meaningful connection with the market.
AsianTrade Connect: Looking ahead, what retail trends do you believe will shape Southeast Asia over the next five years?
Donna Grace Aguilloso: Looking ahead, I believe retail will continue moving toward more experiential and customer-focused environments. Consumers will continue to seek more than just transactions—they will look for places where they can connect, discover brands, dine and create memorable experiences.
I also expect stronger integration between digital and physical retail. Online platforms will continue to drive awareness and convenience, while physical stores will remain important for brand experience and customer engagement. For international brands entering Southeast Asia, understanding local consumers will become even more important. The brands that succeed will be those that can balance their global identity with local relevance.
AsianTrade Connect: Finally, if you could give one warning to European brands planning to enter the Philippine market, what would you tell them to avoid?
Donna Grace Aguilloso: My advice would be: do not assume that success in other markets will automatically translate to the Philippines. A strong global reputation is an advantage, but understanding the local consumer is what drives long-term success.
Brands need to carefully evaluate their target market, choose the right location, establish the right local partnerships and ensure that their value proposition resonates with Filipino customers. The Philippines offers significant opportunities, but success comes from entering the market with the right strategy—not simply bringing an international name into the country.
“Global reputation opens doors, but local relevance keeps them open.”
The views expressed in this interview are shared by Donna Grace Aguilloso in her personal capacity and do not necessarily represent the official position of Ayala Malls or her employer.
