25 C
Batangas

The rise of Super Mini-mart Format in the Local Retail Scene

Must read

- Advertisement -

Disclaimer: This is not a sponsored article. The sole purpose is to inform and to educate the readers.

(Last in a Series)

My previous articles zeroed-in on the characteristics, business models and product offering of Alfamart and Dali as the two major players in the super mini-mart retailing as I touted them to be the “paradigm shifters” in this format.

The former’s format is more on hybrid (mixture of convenience and supermarket retailing) while the latter is inclined towards hard discounting. There are other notable differences between these two popular retailers which could probably be the reason why they have been so successful as evidenced by their continuous massive expansion projects (I am even surprised that in my place, Dali and Alfamart stores are not significantly distant to one another).

These differences give these two giants a boost in terms of overall positioning and competitive advantage to the market that they serve. Their positioning (the positive image that they portray in the collective minds of their target consumers in terms of the value that they offer and their uniqueness and differences over the competitors) strategies have been so effective which other retail formats can emulate and benchmark. This is by far one of the most important aspects of strategic marketing process after carefully selecting the target market that the business wants to serve.

Additionally, these two brands are currently reaping the benefits of FMA (First Mover Advantage)—the advantage or an edge that a brand or a business hold being the first to introduce a product or a specific business model or format.

Alfamart and Dali differ significantly in their business formats. Alfamart blends supermarket retailing with convenience, which is one of the key success factors of this SM subsidiary. Convenience retailing offers quicker and easier access to basic and staple commodities, focusing on speed and convenience rather than giving consumers wider range of products on top of extended operating hours.  Alfamart started with operating hours similar to malls and other retail stores. However, due to current market demand, it is already positioning itself also as a convenient store evident to most of its stores opening round the clock.

On the other hand, Dali is focused on hard-discounting. As discussed in my previous article, Dali’s strategy centers on ensuring lower commodity prices as compared to regular retailers which is the heart of a hard-discounting retail scheme. This can be done by significantly lowering down the overhead costs (it does not have baggers and security guards which add up to the selling price of the product) which significantly makes their product more affordable than the competitors.

The unfortunate part of the domination of Dali and Alfamart, is that these two giants have already been cannibalizing and slowly putting sari-sari stores and other smaller retail stores into death bed (this claim is solely based on my observation, since in my place alone, numerous smaller stores have already closed and the others are also at the brink of bankruptcy). The effect has already been felt by several small retail owners, and the impact is somehow very frightening at least to those who have relied their livelihood to sari-sari store retailing especially that Dali and Alfamart are up to aggressive and massive expansion initiatives. But in my perspective as a marketing educator, I believe this is just the start of the modernization and upgrade of our retail environment here in the Philippines and it will eventually bring better perception towards the business sector of the country. This is a significant leap to the retail sector, one that we shoul be all be prepared for and, at the same time, take pride in. We are steadily moving forward toward a modern retailing system, much like our Asian neighbors, such as Thailand and Singapore.

On Dali’s Criticisms and Issues on its In-house Brands

Dali has already faced criticisms, for instance, NutriAsia filed a complaint with the Intellectual Property Office of the Philippines (IPOPHL), accusing Dali of trademark infringement, unfair competition and copyright infringement. This is because of some of its products called “Kulina Ketchup” and “Rajah Pura Vinegar” whose packaging are similar to Nutri Asia’s UFC and Datu Puti products. – Source: Philippine Star

Dali’s in-house brands have already gained their popularity over time. These in-house brands are rip-off of popular and household brands. There are multitude of brands that Dali had somehow “replicated” in terms of brand name and packaging (Bakakult for Yakult, Margie Margarine for Star Margarine, among others). Personally, this issue faced by Dali, about unfair competition and trademark infringement ended up giving Dali a further exposure and brand recognition which further elevated its brand value. Though it cast Dali into a negative light, the company has somehow benefited from it, since in a business situation like this, consumers are the ones who will determine whether it is a matter of significant concern. And for as long as they perceive the product or feel that it is not blatantly replicating a brand that they trust, and the product gives ultimate value for their money, they are likely to support and patronize. I haven’t heard of any updates on the complaint raised by Nutri Asie to Dali, but I suspect it didn’t go through since as of this writing, lots of brand “rip-offs” are still visible in Dali’s shelves.

Let us see how long these two can continue to become market leaders in the retail sector.|

- Advertisement -
- Advertisement -

More articles

I SEE the importance of addressing adolescent pregnancy as a public health issue becoming even more apparent, based on my experience as a youth parliamentarian in 2022, when I drafted and co-authored a resolution urging the 19th Congress to...
SANTA CRUZ, OCCIDENTAL MINDORO - During his visit here on Saturday, former Senator Panfilo "Ping" M. Lacson broached the idea that should he earn a Senate seat, he intends to help Occidental Mindoro realize its potential as a premier...
DAAN-DAANG mamamayang Batangueno ang nagtipon-tipon sa bayan ng Bauan, Batangas upang makiisa sa isinagawang Walk for Unity at Prayer Rally nitong Sabado, Pebrero 1. Pasado alas-dose y media ng tanghali ay sama-samang lumakad ang mga nagsidalo mula sa Bauan Technical...
- Advertisement -

Latest article

- Advertisement -