I. Executive Summary: The Southern Backbone

MyxxMarket is establishing the Mindanao Mega Hub in Davao City, a 5,000–10,000 sqm modular, tech-enabled logistics and premium retail facility designed to serve up to 33 cities across Mindanao through a disciplined hub-and-spoke model.

Built on five years of proven operations in Cebu, MyxxMarket solves Mindanao’s most persistent challenge: trusted, fast, and high-value fulfillment for families, businesses, and institutions—locally and from abroad.

The Davao Mega Hub functions as the mother hub, managing inventory, technology, fleet, and quality control, while lightweight city hubs (1–2 staff each) enable same-day or next-day fulfillment across the island.

This infrastructure captures four independent but complementary revenue engines, creating resilience, scalability, and strong investor protection.

II.The Critical Problem: The "Mindanao Bottleneck"

• 1. OFW Trust Gap

  Millions of Mindanaoan OFWs lack a reliable way to send goods instead of cash without:

  • Theft

  • Long delays

  • No delivery visibility

  Cash remittance does not guarantee care, quality, or timing.

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  2. Fragmented Logistics

  Outside major cities, fulfillment becomes:

  • Expensive

  • Inconsistent

  • Dependent on informal networks

  There is no centralized logistics backbone serving Mindanao as one system.

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  3. Underserved Premium Demand

  Davao’s growing upper-middle and high-income population lacks:

  • Concierge-level shopping

  • Same-day curated fulfillment

  • A modern, tech-enabled retail experience

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  4. SME & Agricultural Storage Gap

  Mindanao producers (cacao, coffee, durian, tuna, processed goods) lack:

  • Cold-chain access

  • WMS-integrated storage

  • Export-ready 3PL services

III. The MyxxMarket Solution: The Davao Mega-Hub

The Mother Hub (5,000–10,000 SQM)

Located in the Davao–Panabo Industrial Corridor, the Mega Hub serves as:

• Central inventory authority

• Fleet and dispatch command

• Technology & WMS brain

• Trust and quality enforcement layer

• 
  

Hub-and-Spoke Expansion

• One Mega Hub in Davao

• Up to 33 Mindanao cities served

• Expansion is phased and demand-led

• City hubs are staff-based, low-capex nodes

This model is already validated through Cebu operations and real-world Zamboanga fulfillment.

IV. The Quadruple Revenue Model

1. 1. OFW-to-Family E-Commerce (40%)

   • FX-funded purchases (USD, CAD, AUD, SAR)

   • High basket size (₱8,000–₱12,000)

   • Emotion-driven, repeat behavior

   • Photo-verified, same-day / next-day delivery

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   2. Premium Membership & Retail Experience (30%)

   • ₱800/year membership (capped)

   • Exclusive lounge access

   • Tablet-based ordering

   • Concierge pick-and-pack

   • High-margin food & beverage while orders are prepared

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   3. Disaster & National Resilience Logistics (20%)

   • Pre-positioned rice and essential goods

   • B2B, NGO, and LGU contracts

   • Activated during typhoons, earthquakes, and supply disruptions

   • Counter-cyclical revenue during crises

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   4. 3PL Storage & Fulfillment (10%)

   • Palletized dry and cold storage

   • WMS-integrated fulfillment

   • Monthly recurring income from SMEs and exporters

V. The Premium Lounge Experience

• Members-only access

• Tablet ordering at lounge tables

• Orders picked by professional shoppers inside the warehouse

• Customers enjoy pizza or specialty coffee while waiting

• Curbside loading or home delivery within minutes

This converts waiting time into profit.

VI. City Contribution Model (33 Cities)

The Mindanao network operates on a tiered contribution system:

VII. Ideal Daily Sales Targets (Mindanao)

Conservative (Year 1–2)

• 500–800 orders/day network-wide

• AOV: ₱3,000–₱3,500

• Daily Sales: ₱1.5M – ₱2.8M

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Target / Base (Stabilized)

• 800–1,000 orders/day

• AOV: ₱3,500–₱4,000

• Daily Sales: ₱2.8M – ₱4.0M

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Expansion / Aggressive

• 1,200 orders/day network-wide

• AOV: ₱4,000

• Daily Sales: ₱4.0M – ₱4.8M

VIII. Real-World Traction Proof

Zamboanga Case Study:

• OFW customer in Queensland, Australia

• Orders delivered to Zamboanga / Pagadian City

• 2 transactions, total ₱24,000

• Delivered successfully with photo confirmation

• Repeat order placed immediately

“This demonstrates that high-value, repeat orders are achievable anywhere in Mindanao, validating our assumption that the Davao hub and city network can reach daily sales comparable to NCR once fully scaled.”

IX. Go-To-Market & Marketing Strategy (18 Months)

OFW Market

• Geo-targeted ads (US, Middle East, AU)

• OFW community partnerships

• Retargeting for repeat occasions

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City-Level Activation

• 1–2 staff per city as local coordinators

• Partnerships with bakeries, groceries, riders

• Demand-first, marketing-second rollout

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Premium Retail (Davao)

• Invite-only launches

• Subdivision-level outreach

• Limited membership for exclusivity

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B2B, Disaster & 3PL

• Direct outreach to LGUs, NGOs, exporters

• Pre-positioned disaster pack proposals

• Contract-based revenue

Marketing Budget (18 months): ₱117M

XIII. Investor Return & Exit

• Investment: ₱450M for 25% equity

• 5-Year ROI: ~119% (conservative) to ~231% (optimistic)

• Exit: Strategic acquisition by logistics, retail, or infrastructure players

XIV. Conclusion

Mindanao is the Philippines’ most under-served logistics market.

MyxxMarket is not building another store — we are building the logistics backbone of Southern Philippines, combining trust, speed, and infrastructure into a scalable, high-yield platform.

We have real transactions, proven demand, and a disciplined expansion model.
We are seeking a strategic partner to anchor the Davao Mega Hub and own the future of Mindanao logistics.

XV. Investor Q&A

Q1: How many cities will the Davao hub serve?
33 cities in Mindanao, including Davao City, Cagayan de Oro, Zamboanga, Iligan, and other key urban centers. Each will have a small hub (1–2 staff) managed by the Davao mother hub.

Q2: How realistic are the daily orders projections?
Conservative: ~500–800 orders/day

• Target: 800–1,000 orders/day

• Aggressive: ~1,200 orders/day
  This is supported by real-world transactions, e.g., a single Zamboanga customer spent ₱12,000 across 2 orders, demonstrating high AOV and repeat behavior in smaller cities.

Q3: What is the average order value (AOV)?
Between ₱3,000–₱4,000 per order, varying by city and product mix. Premium OFW orders can reach ₱8,000–₱12,000, while smaller city orders contribute consistently to volume.

Q4: How many staff will run the hub network?
Mother hub: 40 warehouse pickers, 30 lounge & concierge, 18 fleet staff

• 33 small city hubs: 1–2 staff each

• Total: ~121 employees for the network
  This allows ~1,200 orders/day with proper operational efficiency.

Q5: What is the membership model?
 Premium membership ₱800/year, capped for exclusivity. Members access the lounge, tablet-based ordering, and concierge pick-up. Membership ensures predictable recurring revenue.

Q6: How is marketing handled for Mindanao?
18-month, ₱117M budget allocated across 4 segments:

• OFW market: geo-targeted ads, diaspora partnerships

• City activation: local launches, partnerships, organic growth

• Premium retail: invite-only Davao launch events

• B2B / disaster / 3PL: LGU & NGO engagement, SME partnerships

Q7: How will delivery work across 33 cities?
Mother hub coordinates inventory and WMS

• Small city hubs (1–2 staff) pick & deliver orders in their city

• Fleet: 50 vehicles including cold-chain trucks + 10 vans

• On-demand 3PL partners supplement during peak times

Q8: How is risk mitigated?
Logistics disruptions: Redundant routes and local stockpiling

• Tech failure: Cloud-based WMS with backup systems

• Economic volatility: Four revenue engines (OFW, Premium, Resilience, 3PL) ensure diversification

Q9: Why is the 5-year ROI lower than NCR (231% vs. 650%)?
Mindanao is geographically dispersed with smaller city populations, meaning more hubs and staff per order.

• Daily sales initially lower per hub compared to NCR’s dense urban population.

• ROI reflects strategic coverage, diversification, and first-mover advantage, rather than weak demand.

Q10: Can the small city hubs scale easily?
Yes — each small hub is low-capex and staff-light (1–2 staff). Once demand proves itself, the model scales without large additional investment, increasing margins as volume rises.

Q11: How is real-world demand proven?
Example: Zamboanga order from Queensland OFW — 2 transactions, ₱12,000, delivered successfully with photo proof.

• Repeat orders show trust and repeatability in remote cities, validating aggressive daily sales projections.

Q12: What happens if orders don’t meet projections initially?
Daily sales projections are phased: conservative → target → aggressive

• Fixed costs covered by diversified revenue streams

• Marketing spend scales only after demand is validated, reducing risk

Check Related Topics:

THE Mega-Hub Project Frequently Ask Questions

THE Mega-Hub 180-Day Pre-Launch Roadmap

THE Prospectus: The Mega-Hub Vision

THE Math: Unit Economics, Scalability, & Financial Stability

THE Deal: Structure, Governance, & Investors Rights

THE Mega-Hub Detailed Marketing Strategy

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