Leading independent oil firm Phoenix Petroleum is gearing for growth and expansion in the long term by going into e-commerce and digital synergies to enhance its core petroleum business.
“Phoenix’s growth strategy remains focused on its core petroleum business, which includes fuels and LPG, but this will be strongly supported and accelerated by our emerging digital and e-commerce channel, led by Limitless, which is our own app-based lifestyle rewards program,” stated Phoenix president and chief executive officer Henry Albert Fadullon.
Limitless users can earn points, claim rewards and access exclusive promotions and privileges with every transaction at accredited merchants of Phoenix, including affiliates in its group such as FamilyMart, Conti’s restaurant and Wendy’s fastfood burger chain. The app also 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.
“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.,” he added.
This will primarily be attained through the use of e-vouchers as the app’s main cashless currency. Aside from convenience and ready use, promotional discounted vouchers on fuels and more products as the app expands to include more brands within the Phoenix group and beyond.
“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.
In addition, the company is earmarking around P1 billion in capital expenditure annually over the next few years, to be funded by internally generated cash.
“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 stated.
According to Fadullon, the reimposition of community quarantine restrictions in March posed challenges to consumer demand anew, but overall, first quarter performance could be considered better than last year at the start of the COVID-19 pandemic.
