Junrex downsizing operations as smartphone sales dip

JUNREX owner Jun Yap says the company is focusing on the mid-market income class in Cebu. (CDN PHOTO/JUNJIE MENDOZA)

JUNREX owner Jun Yap says the company is focusing on the mid-market income class in Cebu. (CDN PHOTO/JUNJIE MENDOZA)

GADGET retailer Junrex Cellphones and Accessories, Inc. will downsize and focus its operations in Cebu as sales of smartphones and computer tablets decrease.

Jun Yap, chief executive officer (CEO) and owner of Junrex, said they have gradually closed shops outside Cebu while opening new ones in the city. Of the 30 branches within the Visayas and Mindanao regions, a total of 18 are located within Cebu City.

“You have to find the balance. If you expand too much, that can’t work out. You have to find the right number,” he said.

He said sales of smartphones and tablets have declined by about 8 percent based on their mid-year review in July.

The average number of units sold monthly dropped to 8,000 units from the previous 10,000 to 12,000 units.

“The focus of people is now a very selective market. They think if it’s worth buying. Before, it was more on the hype of the product, and people wanted to get connected. Now that everyone is connected, they’re looking for capacity and capability,” Yap said during the Philippine Retailers Association (PRA) general membership meeting.

Consumers, particularly those in Cebu, can be “picky” with gadgets. They always look for the best deals, he added.

Yap also cited the lack of skilled manpower for the decision to downsize operations.

In terms of market dynamics and consumer behavior, he said he has observed a shift towards products that offer more in terms of capability, capacity and speed.

The more a gadget can do, the more appealing it becomes to buyers.

Yap said Cebu is “more vibrant” than other regions in the Philippines. Merchandise in their Cebu outlets are sold within just a week while those outside Cebu stay on the shelves for as long as one month.

“Cebuanos are advanced thinkers in terms of technology adaption, next to Manila. We adapt to new technology very quickly,” Yap added.

The company is also concentrating its efforts on the mid-market consumer segment, with a whole array of products priced between P3,500 and P12,000.

“Primarily, the Cebu market is in the mid-income class. We’re focusing on that, and offering smartphones and tablets that are within that price range,” he said.

Junrex is one of the leaders in the technology retailing industry, having operated for 20 years in the Visayas and Mindanao. It has 10 principals, namely: Samsung, LG, Huawei, Star Mobile, Happy Mobile, Oppo, My Phone, Asus, Cherry Mobile and Lenovo.

Of the total business, the Samsung brand is the most popular. Current gadget favorites and the fastest-selling are the Samsung Galaxy S6 Edge and Samsung Galaxy Note 5.

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