Economy in the Philippines depends on consumer spending, especially retail. The better growth they have, the faster the recovery continues. Philippines retail industry outlook is an important aspect that’s needed and contributes a lot for their GDP annually.
Philippine Retail Industry Outlook
In the term of retail, the Philipines has been keeping up the latest trends. Globalization has affected the consumer spending in the last two decades. Many immigrants and tourists are coming to this archipelago country with many purposes from vacation and businesses.
The population of the country joins the up-level as well as the diversity. The differences of consumer behavior makes the market grows wild to fulfill their needs. Their retail industry grows significantly to support the consumer behavior. It’s not only producing in Philippines, but also consuming.
Retail store rapidly grows in many sectors from beauty, fashion, food, etc and they make branding before marketing their own product. Once they established the brand, companies usually choose to expand in short-time by having many stores and franchises as part of the business system.
Retail and Technologies
It’s not only about spending the money, but also how to do the transactions when the consumers are shopping. The Philippines have many kinds of FinTech companies to support consumer spending. People tend to choose cashless payment since it’s easier and automatic system.
Another sector that they develop is the marketplace. Many large marketplace companies come to Philippines as part of their expansion purpose. Some people are into online-shopping lately because they don’t have to spend much time in retail store. This change is a challenge in retail industry.
The Philippines also have the new system such as loyalty kiosks and cashier free checkout. Once they come to the retail store, the access is a whole new world. No more cashier staff would welcome the customer. All payments are checked and done by technology.
For the ads, as another important factor in the retail industry, they choose to do social networking activity. Many companies choose to pay online ads rather than conventional ones such as billboard and television. The market target of retail can be achieved in a short-time and cheaper cost reason.
The Change of Consumer Spending in Philippines
As the COVID-19 attacks globally, this country has also experienced the change of consumer spending in Philippines. Those who come from the middle and high class might still buy some luxurious stuff, but it’s different with the lower class. However, the change happens in general.
Consumers choose online shopping for convenience and competitive price. As the result, the growth of e-commerce changes rapidly. In 2021, the Philippines has additional user for online-shopping buyers, about 700,000 and it’s influenced by the pandemic era.
In online market, the population is exposed by the wide range of option for certain product. It also eases the company to flow their product in the market. It reaches bigger audience without many distributions and advertisements as long as it’s available on e-commerce with a competitive price.
The market needs to figure out the demand and decide the marketing strategy. Brands and products are two main point in consumer spending behavior of the Philippines retail industry outlook. Usually, those which are sustainable will stay relevant and last longer.