The planned entry of Thai home improvement giant Siam Global House into the Philippines will have a “substantial impact” in the country’s home improvement retail scene, analysts at consultancy firm Euromonitor International said. Responding to questions sent by DIY International via email, Haikal Sufiyan, senior research analyst, and Nick Stene, Home and Garden Industry manager at Euromonitor, said the joint venture between the retailer and Cosco, the Philippines’ top grocer, will foster competition, innovation and competitive pricing in the building materials sphere of the country of 100 million people: “Consumers can anticipate a broader range of construction and home-related products, tailored to their diverse needs and preferences.”
They added that partnering with a grocery operator could lead to “unique shopping experiences” that integrate home improvement products with grocery purchases as well as enhance the Thai company’s distribution network in the archipelago with over 7 000 islands.
Global House Philippines, the entity that was established by Global House and Cosco, will operate eponymous stores in the archipelago by next year. “This move has the potential to reshape the home improvement landscape in the Philippines by intensifying competition, enriching product offerings, and enhancing the overall shopping experience for consumers,” the analysts said.
They noted that Global House’s distribution strategy is founded on five core principles -- “fast”, “accurate”, “affordable”, “convenient”, and “polite” -- and that the retailer focuses on differentiating its products, services, personnel and brand image.
The company may introduce a diverse product range that sets it apart from other home improvement retailers in the Philippines, they said. “This can encompass a wider array of construction materials, innovative solutions for home renovations, and exclusive brands not commonly found in the Philippines,” they explained.
The retailing chain is also known for competitive prices, the analysts said, adding that affordability can draw in a wide range of shoppers, including the budget conscious.
Meanwhile, Global House’s reputation for innovative products and high quality goods is also a “cornerstone” that allows the company to meet the “evolving demands” of the market, they added. “This includes highlighting product durability, energy efficiency, and sustainability, which resonates with consumers seeking enduring solutions for their home renovation projects.”