INTERNET-ENABLED SHOPPERS ACCOUNT FOR 75% OF FMCG SALES — KANTAR
According to the Digital Shoppers for Brand Growth study released by Kantar, shoppers with internet access are the leading buyers of fast-moving consumer goods (FMCGs). The FMCG segment is comprised of toiletries, food and beverages, and other consumables. The report showed that Filipino digital shoppers tend to spend an average of PHP38,000 (USD750) a year on FMCG compared to the PHP31,000 (USD610) annual expenditure of non-digital shoppers.
The growth of e-commerce and rapidly evolving consumer tastes have been compelling the country’s traditional brick-and-mortar stores to innovate and tap the online market. Data from the Philippine Statistics Authority (PSA) show that household spending grew by 5.8% in 2019 compared to the 5.6% in 2018. This is likely to be threatened by a potential decline in Overseas Filipino Worker (OFW) remittances as a result of the COVID-19 health scare worldwide. Colliers encourages retailers and mall operators to capture the growing Gen Z market once conditions improve. The Gen Z market will likely account for 30% of the country’s population in the next five years and is likely to drive consumer spending in the near to medium term.
NO MORE NEW HOTEL BOOKINGS ALLOWED DURING LUZON QUARANTINE
As a response to the threat of the Coronavirus disease 2019 (COVID-19), hotels are no longer allowed to accept new bookings during the enhanced community quarantine (ECQ) Luzon. According to Cabinet Secretary Karlo Nograles, hotel operators may consider a few exceptions which include foreign guests with existing bookings as of March 17; guests under long-term lease; and employees of companies exempted under the provisions of the memorandum on ECQ released by the government. The ECQ in Luzon will be implemented until April 12, 2020 as mandated by the government.
Aside from the enhanced community quarantine in Luzon, we see the drop in foreign arrivals further affecting the occupancy rates of hotels across Metro Manila. In February 2020, the Manila International Airport Authority (MIAA) stated that airports in the country have already lost about 322,000 international and domestic passengers within three weeks since the COVID-19 outbreak in January. For H1 2020, we project Metro Manila hotel occupancy rates to drop below 50%, lower than our initial forecast of 60% to 65%. A number of operators are even recording occupancy of between 30% to 40% as of end February. Colliers recommends that hotel operators boost marketing campaigns in order to attract local and foreign guests once the situation improves.
RHK LAND CORP.: PHL PROPERTY MARKET ONE OF THE BEST IN ASIA
RHK Land Corporation recently launched the 45-story The Velaris Residences. The joint venture project between Hongkong Land (HKL) and Robinsons Land (RLC) is located within the 31-hectare (76.6 acres) Bridgetowne township along the C-5 corridor in Pasig City. The luxury project offers various unit cuts such as one to three-bedroom and a penthouse. Each unit features a biometric scanner, PIN code, RFID access, smart digital locks, and smart phone-controlled lights and air conditioning.
Foreign developers such as Hongkong Land, Mitsui Fudosan, Mitsubishi Corporation, Hankyu Realty Co., Ltd, and Nomura Real Estate Development Co. have already started to enter the market through projects with local developers. These include The Velaris Residences, Arton Residences, The Ametrine at Portico, Idesia, and The Seasons Residences in Fort Bonifacio. Joint venture (JV) projects launched in 2019 had an average take-up rate of 63% as of the end of Q4 2019. To take advantage of the growing popularity of JV projects, Colliers recommends local developers to further explore partnerships with foreign players.