Food and Drink Internet Retailing in the Philippines

PROSPECTS

Demand rising for online grocery retailing

2018 saw demand continue to rise for food and drink internet retailing, with more grocery stores and e-commerce players seeing the potential in providing such a service, particularly in urban areas such as Metro Manila and other large cities due to worsening traffic problems and increasingly busy lifestyles, particularly for millennials. Robinsons Supermarket has witnessed this growth first hand through its partnership with honestbee.

E-commerce giants launch their own online grocery platforms

Current players in the channel include local e-commerce platforms Pushkart and MetroMart and the regional player honestbee. Several international companies also announced their entry into online grocery in 2018.

Online grocery retailing set to grow in popularity over the forecast period

The entry of e-commerce giants into online grocery retailing will help boost consumer awareness thanks to the marketing and advertising prowess of Lazada and Shopee. However, food and drink internet retailing will likely record slower growth than other categories such as beauty and personal care, media products and personal accessories and eyewear.

COMPETITIVE LANDSCAPE

Regional players Shopee and Lazada enter online grocery retailing

The major e-commerce players Lazada and Shopee have also entered the online grocery space. Lazada is set to launch its service by the end of 2018 or early 2019, while Shopee launched Shopee Mart in August 2018.

Pushkart.ph and Metromart the first movers

Metromart was one of the first to offer a grocery delivery service in the Philippines, recognising the potential of the channel as early as 2016. By the end of that year, Metromart was reported to have 90,000 registered users, with 60% being repeat customers.

Waltermart Supermarket launches its own e-commerce platform

Among supermarket retailers, Waltermart was one of the first to launch its own e-commerce platform, waltermartdelivery.com.

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