...the emerging retail destination

Time to promote Philippines retail to the world - British retail expert

Malaya Business

Category: Entrepreneur

Published on Tuesday, 23 July 2013

Written by Jennifer A. Ng

 

“The Philippines offers much better value for money than Hong Kong. It has a greater variety of stores than most countries, some of the biggest malls in the world are all in one city. From a retail point of view, the Philippines has a lot to offer, but you don’t tell the rest of the world,” - Ian Wade, Sainsbury

THERE has never been a better time than now to position the Philippines as one of the top destinations for shopping, according to a British retail expert who will deliver a keynote speech during the 22nd National Retail Conference and Stores Asia Expo (NRCE) organized by the Philippine Retailers Association (PRA).

 

 

Ian F. Wade, executive advisor of sainsbury’s—the second-biggest supermarket chain in the United Kingdom, said the Philippine retail scene has many advantages compared to its Asian counterparts.

 

 

“The Philippines offers much better value for money than Hong Kong. It has a greater variety of stores than most countries, some of the biggest malls in the world are all in one city. From a retail point of view, the Philippines has a lot to offer, but you don’t tell the rest of the world,” Wade emphasized.

 

 

Wade noted that five of the biggest shopping malls in the world where affordable and quality products can be sourced are in Metro Manila. “It’s time to promote the Philippines and make people more aware that it has a lot more to offer.”

 

 

The former group managing director/chairman of health, beauty and lifestyle retailer A.S. Watson Group has been visiting the Philippines for the past 27 years. Wade was instrumental in the setup of Watson’s stores in the country.

 

 

“The Philippine retail industry used to be sleepy. It has transformed itself from being ordinary a few years ago to pretty damn good today. Stakeholders are more knowledgeable and more aware of what they’re doing,” Wade explained.

 

 

Wade served as group managing director of A.S. Watson group from 1982 to 2006. Under his leadership, the number of Watson stores grew from 16 to around 7,700 stores, which are found in more than 30 countries worldwide.

...the modern shoppers

Filipino Shoppers Going Modern – Survey

 

Manila Bulletin 

 Sat, Jun 30, 2012

More and more Filipinos are purchasing goods in modern trade channels such as supermarkets and hypermarkets throughout the country but sari-sari stores still rule, a consumer survey by Kantar Worldpanel found.

SM Hypermarket

A study by Kantar Worldpanel, the world-leading provider of continuous, syndicated consumer panels and research solutions into shoppers' purchase and usage behavior, looked at the venues where Filipino households make their fast-moving consumer goods (FMCG) purchases.

It tracked 3,000 urban and rural households nationwide, predominantly from the DE market with an annual household income that is P800 billion more than the national budget.

Mercury Drugstore

Around 17 million homes comprise the DE market with FMCG purchases amounting to P434 billion.
Almost half of Filipino shoppers (47%) still buy from the sari-sari stores.

However, the Kantar Worldpanel study, "Philippine Households' FMCG Spending," reveals that Filipinos are now increasingly buying more goods in supermarkets and hypermarkets where promotions and affordable packs are becoming more available.

Watsons outlet

An upward trend in the growth of channel shares has been seen in modern trade channels, increasing from 26% to 28% in the past four years, compared to other channels like grocery stores, drug stores and market stalls, which registered flat or decreasing growth.

Filipino homes are also spending more on modern trade. The average FMCG spending in modern trade channels per household has increased to Php 9,495 in 2011 from Php 9,194 in 2010 (301-pesos increase). In fact, average spending on modern trade has also steadily increased in the past four years.

• Another key finding in the "Philippine Households' FMCG Spending" study is the expansion of modern trade retailers to reach more Filipinos. These retailers have been aggressive in opening more branches outside the National Capital Region (NCR). The likes of Mercury Drug, Watsons and SM have post the highest number of branches at 700, 218 and 144, respectively. Evidenced by its number of branches nationwide, Mercury Drug enjoys a market penetration rate of 30.4%, compared to SM at 25.9% and Watsons at 4.5%.

...the happy shoppers

Survey says Filipinos happiest grocery shoppers

 

By Daxim L. Lucas in Manila/Philippine Daily Inquirer |

Sat, Aug 13, 2011

 

Manila (Philippine Daily Inquirer/ANN) - Here lies the irony: the average Filipino shopper visits the grocery less-as most are hard pressed for money and time-but she and, increasingly, he are happier doing so compared with other shoppers in Southeast Asia.

Indeed, four out of five Filipinos enjoy grocery shopping, outstripping their peers from around the region, many of whom view their periodic trips for consumable goods as "chores," according to an international market research firm.

In the latest Nielsen Philippine Shopper Trends Report, 80 percent of consumers in the country said they "enjoyed" grocery shopping. In contrast, one in 10 consumers claimed to "dislike" it, with the balance of respondents having more neutral views.

Consumers in Thailand placed a distant second, with 66 percent saying they really enjoy or like grocery shopping, according to the results of the survey, which was also conducted in other countries in the region.

"This finding is unique to consumers in the country," Nielsen associate director for retail services Marge Martinez said in a statement.

"With 85 percent of the Philippines population falling into the lower income bracket, grocery shopping continues to be a way for some consumers to entertain themselves and spend time with their families at the same time."

Martinez added: "Most consumers take this must-do activity in their stride and even derive enjoyment from this activity, which may be seen by many consumers in other countries as a chore."

Grab-and-go

Indeed, shoppers say, trips to the supermarkets, at least in the Philippines, seem like family affairs, with parents bringing even their children and, sometimes, their babies, too.

According to the study, when it comes to main grocery trips, Filipino shoppers on average will make about two trips a month. Thirty percent of consumers in the Philippines do their main shopping once a week, another one-third do it fortnightly, and 25 percent do it once a month.

Filipino grocery shoppers are most likely to "grab-and-go," with 35 percent of respondents saying they know what they want from the store and 51 percent saying they will just visit parts of stores that have what they want.

In contrast, the most "leisurely" shoppers in the region are from Singapore, where only 16 percent said they will just visit sections of the stores that have what they want. The rest shop in a more leisurely manner, including 9 percent who said they know what they want.

Aged 18 and 65

"Shoppers who 'grab-and-go' are either pressed for time, or are from the lower income classes, trying to manage their budgets by resisting the temptation to buy more," Martinez said. "Both types of shoppers will be looking to get in and out of the store as quick as they can."

Nielsen Shopper Trends is an annual study on consumer shopping behavior that is conducted in Metro Manila and major cities in Luzon, Visayas and Mindanao.

The research for the latest edition was fielded between October and December 2010 involving interviews with at least 1,500 respondents between the ages of 18 and 65, who were both main grocery buyers and "key influencers" in their households.

The survey also showed that females continued to be the dominant shoppers in Filipino households, comprising 67 percent of the total, even as a slight downtrend has been detected over the last few years.

Emergent males

The study noted the "emergence of more male main shoppers when it comes to grocery shopping."

Nielsen's analysis revealed that the percentage of male main shoppers tripled from 2006 to 33 percent at the end of 2010.

This relatively high percentage also placed Filipino males as the second most likely to be the main grocery shopper for their households in Southeast Asia, trailing Malaysia's 36 percent.

Martinez pointed out that the growth of the business process outsourcing industry in the Philippines over the past few years has driven women to take more of a proactive role in seeking employment and landing a job.

"We therefore see more men and women sharing household responsibilities from bringing food to the table to taking care of the children to doing errands for the household needs," Martinez said.

Retail trade growing

The survey also revealed that, despite the global economic downturn, retail trade in the country continues to grow as consumers' monthly spending on food, grocery and personal care increased by 19 percent in 2010 compared to 2009.

Most consumers continue to spend their money mostly at supermarkets, with one-third of consumers claiming to have spent most their funds at this channel last year.

Another 28 percent of consumers spent their money mostly in sari-sari stores, and 25 percent of shoppers claimed to spend their money mostly at wet markets.

...the mall of the masa

Tutuban Mall sets P1.5-B redevelopment

By BERNIE CAHILES-MAGKILAT

March 14, 2011

Manila Bulletin

MANILA, Philippines – The Tutuban Mall, the wholesale and retail shopping hub, has announced a major facelift including the development of additional 11.5-hectare property to create a sprawling 20 hectare mix-use commercial center right at the heart of the City of Manila.


Ernesto Hilario, Tutuban Mall business development manager, told reporters at the project launch that the 11.5 hectare-new development will feature commercial areas but also hospitality amenities that would operate on a 24/7 basis.


“We would like to capture the younger market, particularly the students. We are also positioning for the younger Binondo Chinese,” Hilario said.


Part of the plan is the construction of six-story budget hotel, a review center hub and a fresh produce area with estimated initial project cost of P1.5 billion.

“There is no new hotel near here for the accommodation of traders. The nearest hotel would be Manila Opera House and Manila Hotel,” he said. It would be a 250-room hotel.


The review center hub hopes to attract the review centers for board exams scattered around the Claro M. Recto area into one new place.


The new development would also include an ‘Auto City’ or an ‘upgraded Banaue’ where all the automotive showrooms and services are located. There would also be a specific area for motorcycle displays.


Another area would be devoted to a strip mall, which would be developed similar to the Bonifacio Hi-Street to cater to the new generation of ‘Binondo Chinese’.


Hilario, however, said that the new Tutuban Commercial Mall would still retain its symbol as a wholesale and retail market. It has six existing buildings.


The Center Mall would be devoted to the retail market.


The night market in Tutuban, which used to be seasonal, is now on a 365 days a year.


According to Hilario, 50 percent of the new development would be alloted to roads and open spaces to make it more convenient for shoppers, a lesson they learned from the construction of the existing Tutuban mall.


The Tutuban redevelopment also envisioned the creation of an intermodal terminal hub being the home to Philippine National Railways.
 

Hilario said they are going to get more traffic once the PNR starts its full operation for northern and southern routes. The PNR Bicol line will start in June and the Tarlac line in the first quarter of 2012.


“Although the Binondo-Divisoria is already huge market,” he said.


The management has already started talking with existing tenants. It has an existing 2,000 tenants.

The mall is owned by Tutuban Properties Inc., which is wholly-owned by publicly-listed firm Prime Orion Philippines Inc.


The management is trying to position Tutuban as a brand, not a destination to be able to capture the image of affordability and quality products.


“The redevelopment of the Tutuban Mall is going to change the landscape of wholesale and retail marketing and further metamorphose into a more dynamic and progressive shopping hub in the country,” Hilario said.