Phoenix Petroleum says e-commerce will be new pillar of growth
Philippine independent fuel retailer Phoenix Petroleum says e-commerce, led by Limitless, the company’s app-based lifestyle rewards program, will drive a third of its future revenues. The app provides a store finder directory and a location-based community interface that allows user groups to interact with each other. The app currently has over 119,000 users.
Limitless users can earn points, claim rewards and access exclusive promotions and privileges with every transaction at accredited merchants of Phoenix Petroleum, including affiliates in its group such as FamilyMart, Conti’s restaurant and Wendy’s fastfood burger chain.
“Given the changing consumer landscape vis-a-vis our existing portfolio of brands and our over 18,000 retail touchpoints comprised of retail service stations, LPG retail outlets, FamilyMart stores and Posible retailers, we are identifying Limitless and e-commerce as our new pillar of growth that could drive close to 30% of our revenues in the future,” said Henry Albert Fadullon, president and CEO of Phoenix Petroleum. This will primarily be attained through the use of e-vouchers as the app’s main cashless currency.
“Over the next few years, from a lifestyle rewards program, Limitless will evolve into a revenue-generating digital platform that will complement our traditional B2B and brick- and-mortar B2C channels,” said Fadullon. He adds, though, that “Phoenix’s growth strategy remains focused on its core petroleum business, which includes fuels and LPG.”
The company, which has expanded rapidly in a few years to become the third largest fuel retailer in the Philippines, has earmarked around PHP1 billion (USD21 million) in capital expenditures annually over the next few years, to be funded by internally generated cash. Phoenix posted a net income of PHP63 million (USD1.3 million) in 2020. The reimposition of community quarantine restrictions due to the resurgence of Covid-19 cases especially in Metro Manila in March 2021 dampened consumer demand once again, but overall, first quarter performance could be better than last year at the start of the pandemic, the company said.
“We will continue expanding our retail business by leveraging on our existing strategic partnerships such as the joint ventures, as well as monetizing our brands through franchising. Building on the momentum of LPG, we will also continue focusing on our cylinders to reach more households nationwide,” he said. Phoenix Petroleum bought the LPG business of Petronas in 2017.