Global brands, local reach: Upson’s role in digital transformation

Digitalization is the defining transformational opportunity in the world today, moving every country forward and breaking through to a better future. It drives the change needed to enhance connectivity, promote financial inclusion, boost competitiveness and economic growth, reduce poverty, foster innovation, improve accountability and governance, and more.

Underpinning the transition to digital is information technology (IT). In the Philippines, the value of IT markets and services, as well as the number of users has steadily risen in recent decades and is poised for continued strong growth. According to the DatarReportal’s Digital 2024 report, nearly 87 million Filipinos are online or 74% of the population, up from 85 million and 73% in 2023. Meanwhile, the Philippine Statistics Authority (PSA) estimates that the country’s digital economy rose 7.7% to P2.05 trillion in 2023, contributing 8.4% to the gross domestic product. This digital economy is projected to reach as much as US$150 billion in gross merchandise value by 2030, according to the e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company. This growth will be led by e-commerce which includes marketplaces, direct-to-consumer, groceries, and video commerce.

As the world goes digital, Upson International Corp. (Upson) stands as a partner to both Filipinos who are looking to adopt new technologies, and global brands that are looking to enter the Philippine market.

Through Octagon, Micro Valley, Gadget King, Octagon Mobile, and concept stores of Acer, Brother, HP, Silvertec, and TP-Link, Upson has been evolving to close the digital divide, ensuring that technology is within reach of everyone, everywhere in the country.

What are the important ingredients that have set the company apart and how will that help the country to transform digitally?

Availability: Upson has a product portfolio of over 13,000 stock-keeping units (SKUs) spanning nine product categories to meet the needs of Filipinos in an increasingly digital world. These categories include personal computers, printers, communication, storage, networking, peripherals, components, accessories, and software from 115 technology brands.

Keeping product assortment fresh is also something that Upson does extremely well. The company introduces about 200 new SKUs per month and its exclusive product brands, 15 in total, makes it attractive to consumers and competitive in the marketplace.

Accessibility: With almost 250 stores nationwide, Upson’s store network is critically important. Its nationwide reach has been a core business strength, having presence in not only the major cities but also secondary and tertiary cities and municipalities, and making IT accessible to Filipinos even in underserved areas.

“Our regional warehouses act as distribution centers and are strategically located to support branches in the main islands of Luzon, Visayas, and Mindanao,” Upson’s President and CEO Arlene Sy said in an email interview. “We will continue to invest in our supply chain and other support capabilities to further enhance our operations and customer experience.”

In addition, Upson is helping Filipinos access digital tools by fulfilling the promise of responsible pricing. With its “one-price policy,” Upson sees to it that all customers are charged the same price for all the products offered, regardless of location. This means the price of one product in an Upson store in Manila will be the same in an Upson store in Baguio, Palawan, Cebu, Davao, or Zamboanga.

“Being the largest IT retailer in the country, we benefit from economies of scale. We are able to negotiate for better terms and prices to cover for additional costs in freight due to the archipelagic nature of the Philippines,” Ms. Sy explained.

Authenticity: Product integrity is as relevant today as it has ever been. By offering only authentic and untampered products, Upson has been recognized by leading suppliers for upholding their brand standards, at the same time, allowing customers to be confident with their purchases on the quality and completeness of the products.

This track record forms the basis for fruitful partnerships. For more than 15 years, Upson has proven to be a reliable partner for international brands such as Acer, Asus, HP, Brother, Epson, Lenovo, and others.

Similarly, Upson has consistently shown its commitment to brands and Filipinos with awards such as Retail Partner of the Year, Dealer of the Year, Top Market Share Award, Outstanding Growth Award, and many more. This year alone, the company has been awarded the Pioneer Business Award 2023 by Honor, the Top Market Share Award by Oppo, and the Top National Key Account Award by Xiaomi.

As Upson continues to expand its footprint throughout the Philippines, the company is also improving its supply chain and logistics efficiency to reach more Filipino communities and open more markets for its partners and brands.

“We are strengthening our logistics to meet the demands of the store expansion. We are developing additional locations to supplement our current regional warehouses. These warehouses are pivotal to a hub and spoke distribution, ensuring products, both current and new, will be available to our customers in a timely manner,” Ms. Sy said.

Upson has a clear role to play in accelerating digital transformation. Through its unwavering commitment to availability, accessibility, and authenticity, Upson reinforces its mission to be a true partner in progress — helping Filipinos unlock new opportunities and enabling brands to make a meaningful impact across the Philippines.

For more information, visit www.upson.com.ph or email iro@upson.com.ph.

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