Disclaimer: This is an unsponsored article. The sole purpose is to educate and inform the consumers.
LET’S have a hindsight look at the “paradigm shifters” in the local retail environment focusing on companies that have dared to modernize and improve the traditional “sari-sari stores”, “nearby stores”, “Tindahan ni Aling Nena”, or whatever else we call them, grassroots retail outlets that consumers have patronized for decades. Dali and Alfamart are two mini-mart format retail stores that have been sprouting like mushrooms in the province. Despite being relatively new, this format of retail store has gained acceptance locally. The rivalry between Dali and Alfamart has already been likened to the rivalry between Jollibee and McDonalds in the retail sector. Hence “Kung saan may Mcdo, susunod ang Jollibee, and vice-versa, as well as “Kung saan may Dali, may susulpot na Alfamart”, and vice versa.
The first part of this analysis outlines the background and publicly available information about the major players in this retail format: Dali and Alfamart. I will delve deeper into the differences between these two companies in terms of format, business model, target market, product offering, and more.
But why should we care? It is because, as consumers, we need to understand these companies, as it directly influences our buying decisions. For example, these companies’ brand values should align with our personal beliefs. By understanding them better, we can make what we call INFORMED CHOICES. Of course, we won’t choose brands and companies that engage in unethical, exploitative and misleading practices.
ALFAMART:
“Alfamart started in the Philippines in 2014, and introduced its unique Super Minimart concept when it opened its first store in Trece Martires, Cavite.
Since then, Alfamart has rapidly expanded in various locations in Cavite, Laguna, Batangas, Metro Manila, Pampanga, Bulacan, Zambales, Bataan, Nueva Ecija and other locales in North and South Luzon.
A Super Minimart is a cross between a supermarket and a convenience store. It has everything you need for your home: frozen meats, seafood, vegetables, canned food, personal care products and more. A Super Minimart is ideally located within communities and residential areas.
In addition to providing the family’s basic daily essentials, Alfamart makes sure that these goods are affordable or very close to supermarket prices. It’s accessibility helps Alfamart customers save on time and transportation costs since they do not need to travel very far for their groceries.
Alfamart opened its milestone 1000th store in 2020, after just six years of operating in the country. It continues to open more branches to reach underserved communities in the Philippines. Source: alfamart.com.ph
Since this is my first ever column at Pahayagang Balikas (and Kabayan Newsweekly), for everyone’s reference, I am a College Professor at the National University Lipa, where I handle Business and Management subjects. In my classroom discussions, whenever I use Alfamart as an example, I always mention that Alfamart is under SM Group of Companies and is an Indonesian brand, a result of a joint venture between the two.
Alfamart’s uniqueness lies in its format– hybrid of convenience and a supermarket retailing. Unlike 7-Eleven which focuses solely on convenience, Alfamart also caters to the sari-sari store market. On a personal note, apart from the format, one of the competitive advantages of Alfamart over 7-Eleven (although the former can be considered as an indirect competitor) is its price points—Alfamart’s price point is lower than that of 7-Eleven’s. Of course, 7-Eleven’s higher price point can be justified by the convenience that it provides to customers (the fact that it opens 24/7—but as of this writing, more and more Alfamart branches also open all day).
This is by far one of the strongest points of differentiation of Alfamart in terms of business model and format, as well as the range of customers that it can serve. Customers who have impulse and basic needs do not have to travel to the city to buy goods that they can buy from modern trade retail format supermarkets. To add, items sold at Alfamart are also found in SM Supermarkets, but limited in quantity, product depth (number of assortments available for each product category) and product lines (product categories) . For instance, Bonus-branded items (which we know are the rip off or generic counterparts of well-known brands—examples are Bonus Whole Chicken, Bonus Sugar, Bonus Bottled Water, etc.) which SM Supermarket are known among budget-conscious shoppers are also available in Alfamart. (to be continued..)
