IGD drew attention to the progress of Alfamart in the Philippines which aims to have 500 stores in the country by the end of 2019. © Google
Asia’s leading convenience retailers are predicted to grow 6.6% a year to 2022, according to the latest forecast from research organisation IGD.
Based on a survey of the top ten Asian convenience retailers, the new research anticipates that convenience will be the fastest growing brick and mortar channel in Asia over the next five years, resulting from both retailers expanding their networks and consumers changing their shopping habits.
IGD said that Asia’s large and congested cities, growing young and increasingly affluent populations are ideal incubators for proximity retailing.
It drew attention to the progress of Alfamart in the Philippines which aims to have 500 stores in the country by the end of 2019. It also highlighted 7-Eleven in Hong Kong which is blending foodservice with convenience retail.
IGD Asia senior retail analyst Charles Chan said: “The Asia convenience channel is definitely one to watch over the next five years with the strong growth expected for c-store retailers.
“Indonesia in particular will continue to stand out as the fastest growing retailer country and the increasing number of single- and two-person households is driving the growth of South Korean retailers, increasing growth of smaller formats.
“This reflects consumer behaviour of purchasing smaller portions and pack sizes along with ready-to-eat solutions.”
With the convenience channel expected to take centre stage in the coming years, IGD has outlined five priorities suppliers should focus on to succeed in this area: flex thinking to the model, build strategic accounts with the big three convenience retailers, flex products and services to location, prioritise innovation and differentiation, and focus on online and digital solutions.
Chan added: “Online and digital solutions should be a focus – all major retailers have online operations, delivery and collection services and are experimenting with digital and mobile, maximise this opportunity to test and learn.”
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