My eldest daughter, Christella “China or Stella” Soriano-Miranda, owns and operates a small but growing jewelry brand called Lily®. My wife Carol collaborates with her as co-designer. If big tech brands like Apple® and Google® were founded in garages, Lily® was founded literally on our dining table back in 2017. The brand has come a long way since its dining table days and has achieved many significant milestones in its first seven years. Branding Nerd® will definitely be featuring Lily® in this blog at some point in the future, but that will have to wait for another day.
For now, the focus of this blog is on another Filipino retail brand known as Kultura®, a one-stop shop for all things Filipino, which recently invited Lily® to be part of its “Filipino Design Studio” showcase last August 15-31, 2024 in their SM Podium Mall branch in Ortigas Center, Metro Manila.
I’ve always been a fan of Kultura®.
As Branding Nerd, I find Kultura® to have a very focused brand positioning and also a very cohesive, well-executed and consistent brand architecture.
As a customer, the brand is a go-to place for high-quality x world class Filipiniana products which come in handy as gifts for special occasions, or as ‘pasalubongs‘ (presents) to friends when we travel overseas. It’s also a good source of specialty Filipino food and beverage items which are not always available in the usual supermarkets, like Sikwate! Organic Tablea from Davao Del Norte or even globally-awarded Engkanto® beer which finds its origins in Makati City.
That is why I was personally thrilled to learn that Lily® was selected to be part of its recent showcase in SM Podium Mall.
I was even more delighted that Lily® has began its permanent presence in Kultura®’s flagship store in SM Mall of Asia (MOA) starting a few days ago, last 25Sep24, just in time for the upcoming festive Christmas season and the peak period for Filipinos abroad to come home for the holidays. Hopefully this becomes the start of a long-term partnership for the brands.
Two Decades of Kultura®
Kultura® is celebrating its 20th anniversary this 2024. Its website provides a brief commentary of its 20-year history:
“As we embrace the new year ahead, we reflect on our 20-year journey. Envisioned as a one-stop destination for all things Filipino, Kultura® began as the Philippine Crafts section at the SM Department store, then opened its first stand-alone store at SM Makati in 2004. The company is now known for its diverse selection of Filipiniana and Barong Tagalog, authentic Philippine pearls, local delicacies, natural wellness essentials, sustainable home decor, and more. Over the past two decades, we have provided a piece of home for everyone – from Balikbayans and tourists to locals. Today, with over 45 locations nationwide, Kultura® has established itself as the largest Filipino lifestyle retailer in the country.”
This commentary could very well represent its brand positioning statement!
There are some key points that are evident in the above commentary from its website:
- Who comprise the target market? Balikbayans, tourists and locals.
- How is the brand positioned? The largest Filipino lifestyle retailer in the country.
- What makes it unique? It’s a one-stop destination for all things Filipino.
- What makes this uniqueness believable? It is known for its diverse selection of Filipiniana and Barong Tagalog, authentic Philippine pearls, local delicacies, natural wellness essentials, sustainable home decor, and more.
The above key points are also the key elements of a focused and compelling brand positioning statement.
Kultura® Finds an Open Hole
Clearly, twenty years ago, Kultura® found an open hole in the market and has successfully positioned itself in this open hole, fully claimed it, and consistently deepened its hold of that position throughout the past two decades.
Whenever this Branding Nerd® engages with companies, I always emphasize the importance of continually deepening the brand’s hold of its chosen market space (aka brand positioning) through various strategies that consistently build upon its positioning.
Whenever I study successful brands, both local and international, I always look for the underlying brand strategies that are designed to achieve the above since this is key to its longevity.
Looking back at its various strategies throughout the twenty-year history of Kultura®, I find three key pillars that have contributed to its ongoing success, namely:
- “Support Local” – A clear push to support SME local businesses.
- “Crafts for a Cause” – A showcase of products made by underserved Filipino communities and Indigenous Peoples.
- “Kwentong Kultura” – Regular events and articles for the past four years featuring Filipino culture and customs.
Let’s explore each of these three key strategy pillars:
Support Local
Kultura® is clearly focused on supporting local businesses, especially SMEs which create and sell locally handmade products. It is because of this that small businesses like Lily® are provided a platform to expand its reach, increase its brand awareness amongst target customers, and drive higher accessibility and demand for its products.
In the past years, Branding Nerd® has also made it a point to write about the success of Filipino brands. In previous blogs, two homegrown brands, namely Malagos® and Engkanto®, amongst others, have been featured and I’m very pleased to see that these brands are available in Kultura® as well.
In a 2019 article of the Inquirer.net, it outlined five reasons why it is important to support local businesses, including:
- They help build the Philippine economy – SMEs are more likely to use the products and service of other local business in order to operate their own business, thereby providing a ripple effect in the local economy.
- They employ people from the community – SMEs are able to create jobs at the community level. According to the article, “Local ice cream store elait!®, which employs an all-deaf staff, was commended for promoting inclusivity and providing jobs for people with disabilities, where they feel empowered and treated as equal.” – In the case of Kultura®, thru its ‘Crafts for a Cause’ program, the local craftsmen and women are direct beneficiaries of livelihood opportunities brought about by the brand.
- They care about and are invested in the well-being of your community and its future – since the SME owners are actually part of the community, they are naturally inclined to help ensure its overall well-being and sustainability.
- They help build, preserve and promote community character – The above-mentioned Inquirer.net article said it best: “Cities across the country have similar chain restaurants, for instance, but those cafes, food stalls and small restaurants along the Maginhawa street in UP Village exude an air of uniqueness. They are the fabric and lifeline of that particular community. Creating and offering choices to their patrons, they can also bring originality and variety in a world that’s becoming increasingly homogenized. SMEs are where the most interesting concepts and most unique ideas are generated.” – In the case of Kultura®, since 100% of its products are sourced locally through a wide network of local businesses, the overall ambiance, vibe and nature of the store is truly uniquely Filipino which is not experienced in any other retail chain in the country. It is no surprise therefore that Filipinos abroad find a different kind of satisfaction in spending time and money in these stores when they come home to the Philippines for vacation.
- They create familial relationships with the customers – “Local businesses feel like home because you know the owner and they mostly know you. They are more aware of your needs and can address them immediately. With their size comes flexibility, so SMEs have the freedom to redeploy resources and change goals in no time.”
With 99.5% of businesses in the Philippines belonging to the MSME category, Kultura® provides a very important platform in promoting the above benefits that go a long way. According to an UNIDO report in 2020, these MSMEs provide 63% of employment to the Philippine workforce and contribute 40% of the country’s Gross Domestic Product (GDP).
‘Crafts for a Cause’
On May 20, 2010, Kultura® launched ‘Crafts for a Cause,’ an initiative designed to support non-profit organizations and uplift communities. The products featured are crafted by underprivileged individuals who have been trained through various livelihood programs aimed at enhancing their skills and fostering self-sufficiency.
When customers shop at ‘Crafts for a Cause’ at the Kultura® store, they not only contribute to these vital livelihood programs but also discover exquisite items from across the Philippines. Customers could explore ethnic crafts from cultural minorities, including woven mats, vibrant fans, and accessories created by the sea-dwelling Samal Bajau tribe of Basilan through the Claret Samal Foundation; Ifugao-inspired accessories and trinkets made by Cordnet in the Cordillera region; and beautifully carved wooden items from the Palawan NGO Network, Inc. These are just a few of the many Foundations that the brand partners with thru this program.
The video below features a Kultura® partner called Beyond Borders® whose mission is to help preserve the art of weaving known as Wasig in Ilocos which create textile called Inabel.
A feature on Beyond Borders®, a Kultura® Crafts for a Cause partner.
“Most of these items are made of recycled materials and crafted by locals from marginalized communities. Buying them would contribute not only to helping save the environment but also to supporting the livelihood of local artisans.”
Not only are the products showcased here sustainable, using recycled materials, but also these products provide a way to display the creativity and culture of the Filipino people from all parts of the country.
‘Kwentong Kultura’ (Culture Stories)
Kwentong Kultura is the dedicated section in the brand’s website which provides a good amount of long-form content about its various events or cultural features.
I’m a big advocate of quality long-form content in establishing the brand positioning of multi-dimensional brands like Kultura®. It’s also very helpful in optimizing the brand’s site for search, thereby further cementing its leadership in this market segment in the minds of its target customers.
‘Kwentong Kultura’ also provides a platform for the brand not only to promote its various events like the Filipino Design Studio where Lily® recently participated in, but also to put the spotlight on Filipino culture and customs while featuring the local products offered by the brand. For example, last July’s feature on “10 Travel-Friendly Pasalubong Ideas For OFWs on Vacation” is a nod to the Filipino custom of buying simple gifts to be brought back home for friends and family after traveling, while at the same time promoting quality home-grown brands like Auro® plant-based chocolate treats from Davao, or Cebu Best Dried Mango®.
There are three key lessons from this unique Filipino brand:
First, Kultura® identified a clear open hole for itself and has built a strong foundation based on his positioning.
Second, true to its brand positioning, Kultura® created and developed specific pillars that allowed the brand to innovate in many ways, all contributing to the strengthening of its positioning.
And third, the brand’s use of long-form content consistently through the years have greatly contributed in establishing its positioning as the leading one-stop shop for all things Filipino.
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