Retail in the Philippines has been progressing as consumers gain more purchasing power, along with higher demand for convenient shopping experiences. Given the traffic situation and lack of parking spaces in the metro, consumers tend to stay at home and find convenience through online shopping. The convenience, good deals, and variety of products lure the consumers to switch from visiting a brick-and-mortar store to purchasing at Shopee, Lazada, Metrodeal, Instagram resellers etc.
Now that 70% of total shoppers are online shoppers, how will the more retailers get their consumers to purchase without going to a physical store? E-commerce and online advertising.
The growing online trend of E-commerce has evolved and the leading players in the industry have already embraced this method. With 5.9% growth in the market (as of 2018) and the increase of spending power, the number of consumers online have aggressively increased.
Below are trends to watch out for in 2020.
Direct-to-Consumer brands will go mainstream
The trend of consumers purchasing online has gone mainstream and the growth of the E-commerce market has spiked up to 31% last 2019. This shows that more and more consumers are relying on digital platforms instead of brick-and-mortar stores.
Consumers see the advantages of online shopping; thus, brands are starting to realign themselves with the market’s demand and reconstruct effective strategies where brands have control over customer’s buying experience, pricing, and promotions.
Shoppable Video and Voice Technology will grow
If there is one thing that emerges across all platforms, it’s video content.
Social media platforms have been expanding in bringing in “shoppertainment” to draw more consumers in. These shoppable video experiences build strong brand-consumer relationships that unlock unique content and interactive viewing experience.
Take a look at what Shopee, Lazada, and other E-commerce sites have done during the 11.11 and 12.12. They have taken over the ad space and social media platforms to carry the weight of their marketing strategy and promotional capabilities.
Digital Installment Plans will become more popular in this tight economy
Digital payment growth of 27-30% in the Philippines, with mostly women, has been the digitization driver in the retail industry.
With a lot of digital installment plans being offered by brands and retailers on their websites, budget-conscious consumers are able to prevent spending all their money in one transaction. Since consumers are more cognizant in their spending habits, breaking the amount in smaller chunks and paying staggered amounts have been convenient for the consumers. This is especially the case for the younger consumers.
The Rise of Recommerce
Everything old is new again and another man’s trash is someone else’s treasure. Yes, we're being poetic.
But it's true. Here in the Philippines, recommerce is nothing new- most especially to fashion and furniture. Ukay-ukay or thrift stores are all over and more consignment stores resale or rent goods which makes the market’s revenue skyrocket. This is an indicative of digital transition most especially with the emerging issues happening in the country. More and more consumers are switching from one item to another, shaping the closet of the future.
The battle for faster delivery will accelerate E-commerce
84% consumers say that they won’t return to a brand that has poor delivery experience.
Convenient and at-your-doorstep kind of service is what customers are looking for nowadays. More and more brands offer flexible and affordable shipping options. Most use a “purchased today, delivered tomorrow” type of method.
Evidently, this creates an excellent customer experience. On-demand shopping relies on quick and reliable delivery services through efficient digital tracking and automation of logistics. This is also a reason why these brands easily gain affinity and customer loyalty.