Trending: Market Consolidation Moves of Philippine Modern Trade Retailers

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Modern Trade grocery chains in the Philippine are now in a heated race to consolidate their market positions. SM, Robinsons, Puregold and other modern trade grocery chains are doing this right now. They're definitely going to continue this in the future.

I've personally observed the progress of their market consolidation moves since I've been involved in FMCG (fast moving consumer goods) industry sector.  

The mega retailers in their quest for consolidation are either doing one, both or all of the moves: opening new branches; partnering with foreign based retailers; involvement in the different retail formats; acquiring small local retail chains. 

Here are links about the partnership of local retailers with foreign retailers. SM and Alfamart, Puregold and Lawson, Shopwise and Dairy Farm. See more links to articles about the big retailers like SM, Robinsons, Puregold Price Club acquiring small retailers.  

What will happen if this goes on?  What are the implications for consumer goods suppliers?  Suppliers will be faced with bigger scope of retailers' operation; bigger business volume; complexity in retailers' operation; fewer and fewer key customers to deal with; preferential treatment for few big retailers.

What needs to be done?  For starters: Key Accounts Management. Suppliers should have a deep bench (long time key account management practitioners) in their modern trade sales team.  If that is not an option at the moment, and there's a desire to maintain the existing team, the next option is: extensive training on "Key Accounts Management" for the team.

These are some of the ideas in Chapter 8 of the book that I'm writing about Modern Trade in the Philippines.


*I worked as a sales professional for 20 plus years.  I've been blogging since 2011 and currently the knowledge base writer of MBF Sales Training & Consultancy. You can reach me at melfonollerajr@gmail.com

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Comments

  1. InternMay 10, 2019 at 6:02 PM

    Everyone will surely gain a knowledge and will benefit from this, thanks for sharing! Btw , are you looking for a retail market? Feel free to visit our website https://www.chapalang.com.ph/ thank you and God bless!
    https://www.chapalang.com.ph/

    ReplyDelete

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