Trending: Market Consolidation Moves of Philippine Modern Trade Retailers

-
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

Subscribe to our mailing list

* indicates required

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

Post a Comment

Popular posts from this blog

The Seventies - The "Disco" Era

-
Image
The seventies was undoubtedly the "disco" era.  As a teenager, I listened and danced to the distinct sound of that era. When "Saturday Night Fever" hit the movie theaters in 1978,  I became an avid fan of the Bee Gees and other bands that played the disco sound.   Besides listening to disco sound, I also mimicked dance steps like the "swing" and "L.A. shuffle" from a local popular TV show the "Penthouse Seven." I strutted my stuff every time  I danced with a partner at birthday parties held in friends' residences. Bands that dished out disco tunes during the '70s were  ABBA  with their  song "Dancing Queen";   Donna Summer 's   goosebumps-raising song "Last Dance."  Other bands like  KC and the Sunshine Band ,  The Trammps ,  Van McCoy ,  Gloria Gaynor ,  The Village People ,  Chic , and  The Jacksons   also flooded the radio airwaves in the '70s .   I even followed their progress over the loc
Read more

Grandfather@50

-
Image
I will be turning 50 before the  end of this year, and what better way to usher in my golden boy status is becoming a bonafide grandfather.  I now have a grandson, his name is Samien. He was born on April 25, 2012. His parents say that the name means "to be heard".  I guess their choice was right because when Samien cries, he is really heard by everybody. I noticed remarkable things in Samien.  While just a new born, he showed to us that he has strong legs and arms.  He can push himself upwards in the crib and was tireless in raising his small arms every  now and then.  Also, he is not the quiet type because he always cries and laughs unlike other babies inside the nursery who are peacefully asleep.  At three months old, he speaks amusing although unintelligible syllables.  Also, at three months, he is rather long for babies his age and quite heavy for a three month old baby.  He weighed in at 5 kilogram during his visit to his pediatrician. Samien, quite surprisingly
Read more

Organic Rice in the Philippines For Healthy Living

-
Image
Do you prefer healthy living? Go organic rice! Health buffs would like to get their hands on real organic rice. If you're one of them, do you know which ones are authentic organic rice? This blog will tell you all you need to know about organic rice. Some people think that organic rice is red and brown rice variety only.  Not really. It comes in other varieties and colors such as white, black, etc.  The idea that red and brown alone are organic rice is wrong.  These rice varieties are now sold under specific brands in leading supermarkets in the Philippines, however, not all of them are organic rice. But how will you know if you're buying organic rice or not? Organic rice is farmed without using synthetic fertilizer and chemical pesticide inputs. Besides the inputs, there are other things to consider such as -  How was it planted? What were the farming methods used? Was there contamination along the supply chain until it has reached the end consumer? There are variet
Read more