Philippine retailing boosted by the economy in 2013
The overall retailing market in the Philippines continued to be boosted by the Philippine economy as it soared to new heights in 2013. Having finally been granted several investment grade ratings, the country has enjoyed higher purchasing power resulting from higher remittances and incomes with business process outsourcing opportunities. These in turn have stimulated consumer spending in both grocery and non-grocery retailers, giving the retail landscape an unprecedented hike.
Demand for value for money results in more sophisticated shoppers
In 2013, despite stronger purchasing power, Filipinos experienced the lingering effects of budget constraints which characterised the last few years, resulting in more discriminating purchasing behaviours. Demand for value for money translated into more sophisticated shoppers and saw grocery retailers grappling to offer many more affordable, or at least, alternatives that are perceived to offer added value. On the other hand, for non-grocery retailers, increasing sophistication may have, to some degree, benefited specialist retailers, as high-quality branded items are increasingly appreciated as a good investment for their hard-earned cash.
Grocery retailers remain unchallenged
During the review period, grocery retailers remained more dynamic compared to non-grocery retailers. This was largely driven by the developing expansion strategies of large retail players, such as SM Retail and Puregold Price Club. The increasingly intense competition translated into more dynamic pricing strategies, thereby further boosting demand. Furthermore, the increasing popularity of hypermarkets, which progressively added non-grocery items to their product mix, also boosted the growth enjoyed by grocery retailers.
Retail giants defend their position through aggressive strategies
Although retailing involves many large players, the larger conglomerates have continued to take more share through aggressive strategies. These included their continued expansion in key cities outside the confines of Metro Manila. This is true not only for SM, but also for players, such as Mini Stop, owned by the Robinsons Retail Group, and Philippine Seven Corp. Many of these expansion strategies are designed to leverage on the rising income levels in cities outside Metro Manila thanks to flourishing business process outsourcing companies in these locations.
Retailing is expected to continue booming in the forecast period
The robust performance of the retailing market in the country is expected to continue into the forecast period. This will be driven by the improving economy, especially with the stronger prospects of earning the long sought-after investment-grade status. Continued overseas Filipino workers’ remittances, coupled with good potential for earning higher incomes within the country, are expected to boost retailing sales up to 2018.
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Discover the latest market trends and uncover sources of future market growth for the Retailing industry in Philippines with research from Euromonitor's team of in-country analysts.
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The Retailing in Philippines market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic number of stores, selling space and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- How big is the grocery/non-grocery/non-store channel in Philippines?
- Who are the leading retailers in Philippines?
- How is retailing performing in Philippines?
- What is the retailing environment like in Philippines?
- Which channels are winning or losing in the fight for consumers’ money?
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- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Retailing market research database.