Electronic commerce in the country is expected to grow 20 percent annually until 2027, according to a joint study of Meta and Bain & Company or the annual SYNC Southeast Asia report which looks at the digital economy and the future of e-commerce in the region.
Filipino digital consumer population is the second largest in Southeast Asia at 69 million and is growing, with basket sizes up by 4 percent across most categories, including non-essentials.
Consumer online purchasing also grew from 2021, with household appliances increasing by 37 percent, personal care by 21 percent, and consumer electronics and accessories by 20 percent.
“This new evolution of digital consumers will undoubtedly be the driving force for the Philippines’ eCommerce growth and we expect this growth to reach a 20 percent compound annual growth rate by 2027,” Gino Dizon of Partner at Bain & Company said.
“As the Philippines leads in the adoption of future technologies, businesses that focus on staying the course in the country, build a truly integrated channel strategy and necessary capabilities, make their supply chains resilient, and leverage new tools and technologies to engage with digital consumers will emerge as winners.”
The study showed the experience of metaverse-related technology such as augmented reality, virtual reality, virtual worlds, cryptocurrencies and NFTs will evolve from 2D apps currently, to immersive virtual 3D experiences in the next two to three years.
The study forecasts virtual reality for business such as training and development as well as virtual working and the holding of social events in virtual worlds to be available in the region in the next 10-15 years.
In fact, the Philippines has high metaverse-related tech penetration, with regionally high penetration across Metaverse — tech (77 percent) and FinTech (50 percent) and mid penetration across EdTech (33 percent) and HealthTech (31 percent).
Hybrid shopping now the trend
Post pandemic, the study found that Filipino consumers are at a new stage of evolution. The consumer appetite for integrated shopping experiences that effectively blend online and offline services continues to drive digital commerce in the country.
At least 75 percent of the Filipino digital consumer’s pre- and post-purchase transactions are spent on online channels, with 77 percent citing a preference for social media and e-commerce platforms in the Discovery and Evaluation stages.
In fact, most Filipino digital consumers are discovery-led, especially for non -essentials, with 56 percent of respondents saying that they don’t know what they want when they shop online.
“This openness of consumers to experimentation and engagement is also driving new behaviors, with 33 percent of consumers spending more time on video and 47 percent having used business messaging in the past year,” said John Rubio, Philippine Country Director at Meta.
“As consumers seek more engagement, we’re also seeing the rise of the creator economy in the region. Creators are emerging as brands and retail channels and it is important that businesses find effective ways of marketing through this channel.”