Majority of Filipino consumers are expected to go digital by the end of the year, according to a report by Bain & Company and Facebook, which also indicated that Southeast Asia saw the fastest e-commerce growth in the Asia-Pacific region.
The report noted that nearly 8 in 10 Filipino consumers will shift to digital platforms when transacting before the year ends and that Southeast Asia will have 350 million digital consumers by year-end, higher than last year’s 310 million.
Filipino digital consumers shop on an average of nearly 8 web sites this year, from 4.3 in 2020. Over 80 percent of them said they are open to paying a premium of up to 10 percent for sustainable and socially responsible products.
The report indicated that Southeast Asia’s digital retail share rose to 85 percent year-on-year, which is better than China’s 5 percent, Brazil’s 14 percent, and India’s 10 percent.
Spending on digital platforms per person also improved by 60 percent compared to last year. The joint study sees overall e-commerce sales doubling by 2026.
“It’s clear that the pandemic continues to push people online at an aggressive pace. People in Southeast Asia are forming new habits related to online discovery, consideration and purchase. For both new and established brands, these shifts signal the need to rethink traditional e-commerce experiences and find creative ways to inspire and connect with customers online,” said Benjamin Joe, Facebook Southeast Asia vice president.
In Southeast Asia, the study revealed that 45 percent of consumers are opting to use online platforms as their primary purchase channel. They are also willing to discover new products and services, with 51 percent claiming to have purchased for the first time from a previously unknown store.
Consumers in the region have a “wider range of categories online” for their purchases, the report said. They are shopping for an average of 8.1 categories, a 60-percent uptick from 5.1 a year ago.
The report expects that about 86 percent of in-home food delivery will remain even after the pandemic.
“The moment has arrived for brands to take advantage of Southeast Asia’s [SEA’s] paradigm shift in consumer behaviors. The most successful brand owners will focus on strategies to both capitalize on a post-pandemic digital boom in the region and insulate themselves from ensuing digital disruptions,” said Praneeth Yendamuri, Partner in Bain & Company’s Consumer Products Practice.
The report is based on a survey of around 16,700 digital consumers across the region.