Retail sector lacks innovation, Toua says

 THERE is a lack of innovation in Papua New Guinea’s retail sector, PNG Business Council president David Toua says. 

He told the Leaders’ Summit in Port Moresby that investors in the sector tended to confine themselves in whatever basic areas of their businesses.

“There is lack of innovation in the retail sector,” Toua said. 

“If it’s a trade store, it’s a trade store, there’s no desire to invest in other areas – there is lack of diversity and innovation in the market. 

“With limited business knowledge, SMEs will continue to face challenges in the market that’s rapidly demanding diversity, innovation and creativity.”  

He said figures from companies registered with Investment Promotion Authority indicated that 60 per cent of entities registered were in the services sector.

“That’s roughly about 15,000 companies

The employees in that sector contribute about 30 per cent of the personal income tax collected in PNG.

“That sector had also been a consistent foreign direct investment in the country.”

He said the potential issue was that most entities were hesitant to invest in other areas to improve lives. “This constituencies are largely in the SME space and its concentration remains disconnected in more lucrative markets due to this conservative and at times, outdated mindset.”