Why Grocery Delivery Service Is Not Growing Fast in the Philippines?

Why Grocery Delivery Service Is Not Growing Fast in the Philippines

Technology is growing fast and it is making life comfortable. One great example is the online grocery delivery service. It is amazing since all you need to do is to fill a virtual empty cart with the groceries of your choice and wait for their delivery. In the Philippines, this is a bit slow, but it is hoped that with the emergence of Filipino grocery delivery services, things will change. So why is the digital market not growing as fast as it is in other countries?

1. Shoppers have not embraced digital trends

One of the reasons why the digital market is not growing fast in the Philippines is the fact that people still prefer buying in physical stores. The reason for doing this is that the shoppers want more information concerning the product before buying it. They are yet to develop the trust that will allow them to select and buy products online. They still believe in seeing the product first before buying it.  Also, the younger generation wants things done instantly. So they would rather get the groceries from a physical store than wait for the products to be delivered in a couple of hours.

2. Online grocery delivery is a new concept

According to a recent study, online groceries businesses are few in the Philippines. They have not grown, and their penetration is less than 1 percent. The reason for this underdevelopment is that Filipinos still enjoy physical shopping. They would instead move from one aisle to another and see the products they intend to buy rather than ordering online.

3. The infrastructure

Philippines infrastructure is still limited and is a consistent threat to the same day delivery promise. It results in unnecessary delays. Also, online purchase requires that you make payment using credit/debit cards. Unfortunately, very few Filipinos have such cards. They would rather pay by cash than trouble themselves with online payment and registrations.

4. Online stores need to do more marketing

For Filipino grocery delivery service provider need to go out there and educate the public on what they offer. They need to place most of their advertisements on TV which still enjoys 97perent penetration. But as they do all this, they should not forget the digital marketing. The rate at which smartphones have penetrated the Philippines is amazing, and any marketing that targets it is likely to reach more people.

5. Late delivery

Other than delays in the delivering process, online grocery shops face a wide range of challenges. For instance, orders placed late may be delivered the next day. It inconveniences people and makes planning difficult. Filipinos detest procrastinating so they would rather visit a physical store and buy all the groceries they want and pay in cash than place orders online only to have the groceries delivered the next day.

Lastly, it is important to note that these trends are expected to change soon. More people are connecting to the internet, and the exposure to digital campaigns is likely to make them change the way they look at grocery delivery. Also, the trends show that the service is gaining popularity and is likely to gain support from a wider Philippines population.

Disclaimer: This post has been sponsored by Mercato


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