The fourth quarter is traditionally the busiest time of the year for e-commerce businesses and other retailers. This is mainly due to the holiday season. Filipinos love celebrating the holidays, and shopping is a big part of that tradition. In fact, Filipinos start the countdown as early as September (remember the Jose Mari Chan meme?). However, there have been some significant changes in holiday shopping trends in the Philippines in recent years.
Gaining insights into these ever-evolving consumer shopping trends presents a golden opportunity to create a more targeted e-commerce and digital marketing strategy.
That is why on this page, we’ll explore the key factors influencing holiday shopping in the Philippines. We’ll uncover Filipino shopping behaviors, shopping trends, and market insights for the festive season in 2023.
7 Shopping Trends and Market Insights Every Retailer Should Know
Here are the latest predictions, statistics, and expert insights to help you prepare for this year’s holiday shopping season.
1. Holiday Starts Early Now Worldwide
The early holiday season is already a norm in the Philippines. Holiday decorations start to pop up as early as the first day of September. And many have already started holiday shopping around this time.
However, other countries seem to be joining the shopping trend. According to a study by Google, holiday shoppers globally had on average 21% of their holiday shopping complete as of mid-October.
Another international research found that 32% of consumers start thinking about holiday season shopping in October. Interestingly, nearly a quarter of the participants (23%) started their holiday shopping preparations in September. This was significantly higher than respondents who reported preparing in November (18%), which is typically considered the peak month for holiday shopping.
Traditionally, Black Friday opens the holiday shopping season. However, the findings show a significant shift in consumer buying behavior during the holiday season. The early holiday shopping trend is becoming the new norm.
As an e-commerce business, you need to grab this opportunity and start preparing in advance. Ready your holiday social media campaign early and grab the attention of your customers. Optimize your checkout process, mobile compatibility, and speed to meet the expectations of your savvy shoppers. Otherwise, you’ll miss out on a large portion of early bird customers.
2. Shoppers are Likely to Try New Brands During the Holiday
The holiday season is a critical season for all retailers, both online and brick-and-mortar stores. According to a recent survey by Meta (formerly Facebook), 94% of holiday shoppers are willing to try a new brand. To compare, only 66% of shoppers are open to it during the rest of the year.
According to Meta, this consumer shopping behavior is particularly noticeable in categories of clothing, fashion, food, and electronics.
Shoppers are more adventurous during the holiday season. Take advantage of this opportunity to attract new customers and convert sales. Prepare your social media in advance and come up with a campaign that will connect with your audience.
3. Customers Do Research Before Buying
Yes, customers are actively looking for products during holidays. But they are not an easy target. Holiday consumers are becoming more selective in their shopping habits. Google research reveals that shoppers spent more time researching products and offers in 2022 than in 2021.
Even on social media platforms, where impulse buying is common, shoppers are more deliberate. Google reports that 74% of social shoppers plan their purchases ahead of time, and they consult 10 sources on average to make sure they get the best deal.
Strategically creating gift guides can help you target these deliberate shoppers. Create video content to spark ideas for your customers. Finally, don’t forget your SEO. Come up with quality content to help your e-commerce site rank on relevant searches.
4. Increased Holiday Shopping Budget for Online Sales
Online sales in the Philippines are on the rise every year. And in this year’s holiday, this Filipino shopping trend is expected to reach new heights, as local shoppers are ready to splurge online.
According to the InMobi 2023 Holiday Retail Guide for Advertisers, 57% of Filipino shoppers have increased their budgets for online shopping. However, the report also cautioned that 43% of the shoppers have less than P10,000 in budget. This could mean that Filipino shoppers will be looking for the best deals and discounts.
The study also mentioned that 35% of shoppers have a budget of P10,000 to P25,000, 13% can spend P25,000 to P50,000, and 5% are considering spending over P50,000.
5. Filipinos are Budget-conscious Shoppers
Filipinos value the price of the products more than anything else when they shop for the festive season. According to data from Meta, 81% of Filipinos consider price as the most important factor. This is followed by discount offers (73%), product availability (72%), Product Choices (72%) and free delivery (72%).
Interestingly, this shopping behavior is observed not only in the Philippines but also internationally.
According to Celigo’s report, the majority of consumers are planning to spend less on their holiday purchases this year. Moreover, 80% of the shoppers are going to cut down their spending to under $5,000, and 49% of them aim to spend less than $1,000.
6. Shoppers Will Still Visit Physical Stores
Online shopping is expected to grow during the holiday season. But it doesn’t mean that the physical store is losing its appeal.
A survey conducted by Rakuten Insights revealed that 65% of Filipino shoppers bought products both online and in physical stores during the holiday shopping period. Meanwhile, only 21% preferred to do their holiday shopping exclusively online.
For retailers both online and offline, a price-driven message is extra important right now. 84% of shoppers will be comparing prices according to Shopify. You need to emphasize the price advantage in your marketing effort. Moreover, your holiday deals and promotions will play a critical role.
7. The Power of Social Media
Social Media is an important tool to reach and attract new customers during the holiday season. In fact, 36% of shoppers who plan to buy products online will look for deals on social media. Another study found that 55% of respondents are willing to make a holiday purchase directly from social media ads.
These numbers reflect the power of social media for lead generation. But for Shopify, social media is more than just a place to discover products. It is also a marketplace where many people can buy and sell goods.
Shopify found out that 33% of consumers would be willing to buy products directly from Instagram, while 31% would do the same from Facebook, and 28% on TikTok.
8. Embracing Mobile Shopping
Mobile shopping trends are prominent during the holiday season. Mobile devices have become the dominant platform for online shopping.
Take the Black Friday event last year. According to Shopify, 73% of sales were made on mobile devices and 27% on desktops. This shopping trend has been consistent since 2014 when mobile shoppers (50%) outnumbered desktop shoppers (49%) for the first time.
This shows how important to have a mobile e-commerce website. Many customers prefer to browse and buy products on their smartphones for convenience and flexibility.
A More Informed Holiday E-commerce Strategy
Filipino shopping behavior during holidays continues to evolve every year. However, you can still make a holiday a success for your business by making your strategy customer-centric. Finding ways to prioritize your customers allows you to establish a stronger connection with them.
The following holiday shopping trends above can help you create a more targeted e-commerce and marketing campaign. To stand out, you can partner with Be Global E-commerce Corporation.
We offer comprehensive e-commerce and digital marketing services for businesses like yours. We work closely with our clients to give them a personalized approach. Contact us today to learn more about our services.
