Variety Stores in the Philippines

PROSPECTS

Younger consumers play key role in driving channel growth

Variety stores was one of the fastest-growing channels in the Philippines at the end of the review period, as major brands expanded aggressively, and new players entered the market. Rising demand amongst younger consumers is a key driver of growth in the channel.

E-commerce currently under-explored

While e-commerce is recognised as an opportunity by variety store operators, it is not yet being fully explored. While Daiso Japan had not launched an official website by the end of the review period, it recognised the fact that rising consumer demand for convenience was increasing the potential of e-commerce.

Growing presence of Korean-inspired stores

With the success of the first variety stores in the Philippines, including Daiso Japan and Miniso, a growing number of discount players are starting to emerge. Most of these are Korean-inspired stores such as Mumuso, Yoyoso, Ilahui, and Arcova.

COMPETITIVE LANDSCAPE

Daiso Japan introduces new Japanese-inspired store design

Surplus Marketing Corp retained the lead in variety stores through its Surplus Shop in 2019. Robinsons Retail Holdings Inc was the second largest player, with the Daiso Japan brand, which was one of the pioneers of the variety store format in the Philippines.

Robinsons Retail Holdings launches new brand

As well as operating Daiso Japan in the Philippines, Robinsons Retail Holdings looked to further exploit the growing interest in variety stores in the market through the launch of a new brand, Super50. According to Robinsons Retail, the first Super50 store has been positively received by consumers and the company plans to open more outlets.

MUJI back to store network expansion

Having closed outlets in 2017, MUJI returned to store network expansion in the final two years of the review period. In 2019, the company opened its fifth store in the Philippines with a new concept inspired by a minimalist lifestyle.

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