Positive Growth of Retail Industry in Philippines: Ken Research
Posted on 24 October 2016 by KenResearch Consumer Products and Retail,
Ken Research announced latest publication titled “" discuss extensive, cross-country, industry research program which brings together Verdict Retail's research, modeling, and analysis expertise in order to develop uniquely detailed market data. It provides detailed quantitative analysis of past and future trends-crucially providing retail sales data not just by channel and by product, but showing product sales through different channels.
Philippine economy is in a good state. Retail sales growth is expected to increase and the country’s GDP is also rising. The sound position of the economy is increasing the sales of retailers. Increase in disposable income is allowing consumers to purchase more of retail products. Also lower inflation is increasing purchasing power of the households. Philippines is promising wealth to the retailers. Foreign brands are trying to get entry in to the market with the help of local distributors.
Overview of Philippines retail Industry
Retail industry is flourishing in Philippines. Increase in GDP and sound position of the economy is allowing consumers to spend more. There are two categories for the retail products: grocery and non-grocery items. Grocery retailers are dominating the retail market because grocery items consist of essential commodities which every household needs to buy and thus, this category has a high demand.
The top companies are: SM Retail Inc., it is country’s leading retailer with various department stores. Its stores have items like toys, homecare, personal care and hardware items. Company is maintaining strong position in the competitive retail market. The competitor company is Robinsons Retail Group. It is the second largest multi-format retailer in Philippines. Company has a deep understanding of what Philippines consumers demand with 30 years of experience and operates in six segments: supermarkets, department stores, DIY stores, convenience stores, drug stores and speciality stores. Another competitor is Puregold Price Club Inc. It has more than 200 stores worldwide. It is listed under Philippines stock exchange and engaged in business of consumer products on retail and wholesale basis
Retail industry in Philippines at a glance
· Many people prefer online shopping
· Various foreign brands in the market
· Awareness of global brands among Filipino’s
· Franchising of brands
Key Driving Factors in retail industry in Philippines
· Increase In Consumer Spending: Unemployment has reduced over the years and increase in income of the households is boosting retail sales
• Easy Bank Loans: Bank is offering credit with easy terms to the retail companies and financing up to 60% of capital
• Increase in demand is leading to growth of Organised Retail: Entry of foreign brands and consumers desire to try new brands is driving retail industry
Future of Retail Industry in Philippines
Retail industry is expected to grow in the Philippines with the improvement in the economic situation of the country. Consumers are expected to have higher disposable incomes in the future period. Thus, they will spend more on grocery and non-grocery items and it will lead to high sales in retail market. Various foreign companies are introducing their brands with the help of local dealers in the strong market of Philippines to increase sales of their product. Philippines retail market already has so many brands and more will be added in the forecast period.
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