Businesses and proprietors of malls are being advised to increase the amount they spend on investment approaches as the holiday season approaches. The level of consumer holiday retail in the Philippines is likely to continue strong, with nominal domestic spending anticipated to expand by 5.5% YoY – lower than the 7.6% growth forecast for 2022 but still forecasted to average 5.1% each year from 2023 to 2026 according to a study by Fitch Solutions. Let’s identify some of the holiday trends in the Philippines in 2023.
Status of Holiday Retail in the Philippines
When it comes to holiday retail in the Philippines, it’s critical to keep on top of the competition if you’re an online retailer. Online shopping has undergone exponential development over the last several years and is here to stay. According to the International Trade Administration, eCommerce’s worldwide retail revenue increased from 13.6% to 18% in 2019.
E-Commerce for Holiday Retail in the Philippines
Companies throughout the world are reconsidering their retail strategy and expanding their digital marketing efforts as more people embrace online buying. The Philippines is not immune to this inclination. Despite reverting to pre-pandemic levels, eCommerce in the Philippines is expanding, but so is competitiveness.
- Increased Online Deliveries
- Logistics Traffic
- Increased Online Expenditures
- Competitive Marketing Promotionals
Traditional Shops for Holiday Retail in the Philippines
Since eCommerce sales globally have come to USD 8.1 trillion (approximately PHP 477 trillion), industries are beginning to demonstrate signs of revival. Though purchasing goods through the Internet is still widespread and will continue to grow in the decades to come, some traditional shops have redesigned themselves to meet consumers’ requirements.
- Populated Traditional Stores
- Brick-and-Mortar Transition to Online
- Increased Holiday Retail Activities
Holiday Retail in the Philippines Amid Inflation
In the Philippines, as in various countries, inflation has been rising throughout the beginning of January, hitting 6.9% in September, according to governmental figures. Prices are likely to be an issue to the Philippines’ purchasing habits estimate. However, Fitch Solutions anticipates the inflation rate for consumer prices to reduce from 6.8% in 2022 to 3.7% in 2023.
Commercial Marketing through the Christmas Season
Commercial holidays are periods throughout year-round when purchasing activity is at its greatest, both in physical stores and online. Some retail holidays, such as Black Friday or the day after Christmas, are renowned and provide an obvious chance to make money on a large number of shoppers and enhance sales. Others are less noticeable profit opportunities, yet they might yield superb outcomes for your shop.
E-Commerce
- Taking into account both mobile and desktop viewing
- Customer and product focus
- Ensuring 100% order fulfillment
- Taking both visual and aural quality into account
- Interactive marketing on eCommerce platforms
Brick-and-Mortar
- Examine past Christmas marketing campaigns
- Invest heavily in window displays
- Make an emotional appeal
- Provide delivery
Demographics
Metro Manila Ranks on Top of the Holiday Retail in the Philippines
In spite of government agencies and eCommerce platform initiatives, sales throughout the Philippine provinces are still pulling ahead. While it seems sensible that one concentrates on promoting to the broadest possible consumers, it may be prudent to begin marketing to areas. You may locate an enthusiastic community that welcomes your business since they are underused.
The Millenial group shops the Most
Based on the study, 52% of Filipino online consumers are between the ages of 25 and 34. When combined with 18-24 shoppers, they account for roughly 80% of all consumers. Because of adulthood’s increasing purchasing power and duties, Millennials are projected to outnumber Gen Z.
Online Marketing is Most Utilized
According to research, 83% of buyers buy from businesses with which they feel connected through online marketing. This insight suggests that businesses whose products are too broad or don’t have any aims other than generating revenue will almost certainly have lower sales throughout the holiday season.
How Sale Events Affect Holiday Retail in the Philippines
E-commerce mediums, like retail businesses, offer frequent site-wide promotions known as sale says, which Filipinos prefer. Near-holiday discounts, such as 11-11 and 12-12 occasions, enhance apparel, groceries, and office spending dramatically.
Smartphones Rank Up in Devices Used for Online Shopping
Mobile phones are by far the most popular gadget among Filipino shoppers from private and enterprise levels. Nearly 92% are smartphone users, while the figure is anticipated to rise as phone access expands. To use this, make sure your product listings and marketing are optimized for phone screen sizes.
Flexibility of Payment Methods Increases Sales
As more people lean towards online purchases during holiday retail in the Philippines, consumers expect more payment options to be available. A wider variety of payment channels encourages more consumers to shop online or through brick-and-mortar stores for both individual and corporate expenditures.
Expanded Cashless Channels
In the Philippines, the trend favoring cashless payment systems has begun to gain traction, with virtual wallets and additional ways becoming more common. Companies and lawmakers are pushing this change because of the ease and security digital cash replacements provide.
Growth Across ASEAN
Throughout the pandemic, 54% of customers in the country completed their first purchase through the Internet, and 73% of prospective online buyers carried on shopping online when prohibitions were lifted. Despite its lesser starting point, the country swiftly draws up to its SEA counterparts.
Forecast of Holiday Retail in the Philippines
Online purchasing in the Philippines has gradually increased, impeded primarily by the need for better digital and financial systems in increasingly rural locations. Anticipate even stronger revenue growth as the holidays approach, as examined by Statista.
Inclusion of AI in Online Shopping
Because mobile devices are widely used in the Philippines, eCommerce businesses are trying out technological advances such as artificial reality (AR) and artificial intelligence (AI) for enhanced buyer experience. Shoppers may visualize things without ordering them via augmented reality. AI offers a wide range of possible software involving data analysis and robotics.
Thanks to the retail holiday calendar, you can map your marketing far in advance. This way, you’ll be able to plan and create visual content, partner with influencers or other businesses, write emails, and prepare your website on time for maximum impact.
The holiday season is an excellent time to introduce new items as well since 78% of shoppers during holiday retail in the Philippines said they experiment with novel offerings more during the holiday season than the rest of the year.
