With 9 in 10 Filipinos postponing major expenditure and more than half cutting back on daily spending, retailers need to reinvent their value propositions and follow the behavior of their markets.
In her presentation at the US-ABC UPS SME Workshop yesterday, Marianne Mendoza, head of marketing at UPS for Indonesia and the Philippines cited the findings of the Global Web Index survey which showed 92 percent of respondents in the country were delaying big purchases like cars and home appliance or going on holidays.
Fifty-five percent are cutting back on the day-to-day things they buy and the same proportion of respondents look for cheaper versions of products from alternative brands.
The same survey showed 65 percent are spending more time socializing as a family; 64 spend longer time on social media or watch more news coverage and 63 percent are watching more shows and streaming services.
Such shifts should lead retailers to rethink the way they reach reach customers in the most fundamental ways, Mendoza said.
“(Companies need) to grow in the evolving retail environment where customers are also evolving in a very fast pace. We also see the need to understand opportunities that we have and behavior of future customers,” she added.
UPS has identified five imperatives for retail not just in the Philippines but in the entire Asia-Pacific as well: reinvent value proposition, win digital engagement, future-proof assets and operations; master the last mile and supply chain resilience; define the ecosystem destination and; retool for digital.
According to Mendoza, about 70 to 80 percent of online purchases will be made through a mobile phone such that digital tools including artificial intelligence and robotics are important for retailers to focus on.
Home delivery is a priority so marketplace presence and last-mile service are key. (I. Isip)