As COVID-19 drastically accelerated the adoption of new consumer trends driven by technological innovations and new consumption habits, the end-half of the year may just be the most highly anticipated season. According to a research update from Facebook IQ, Mega Sales and self-gifting are among the key insights that businesses should look into to maximize their business success during the holiday season.
The Philippines’ retail landscape remains dynamic and is one of the hotspots for year-end shopping. From 9.9, to mega sale days like 10.10 and Single’s Day on 11.11, Black Friday, or Christmas, the year-end season is full of shopping moments that businesses and consumers still look forward to, despite the slowdown.
“The pandemic has shifted people’s priorities, and understandably also their plans for the year. As we tread into the ‘next normal,’ we foresee these changes are likely to have lasting impact on brands and businesses,” said John Rubio, Facebook Philippines Country Director. “Right now businesses are changing their model to adapt to selling online, so we’re accelerating our commerce work and building solutions to help. We hope that with the launch of Facebook Shops in the Philippines, we’re able to support businesses to navigate challenges, and ultimately bounce back.”
Facebook IQ’s Mega Sales & Holiday 2020 insight study outlined five rising trends that brands should take into consideration as part of their festive-season planning. These include:
- Gen X and Boomers dominate global mobile and ecommerce growth – People of all ages have been relying on mobile to stay connected, informed, and shop during COVID-19, with 82 percent of the Philippines spending “significantly more time using the device.” Interestingly, 82 percent of Gen X and Boomers in the Philippines have spent more time on mobile during the pandemic – with 76 percent now shopping online.
- The economic downturn will expedite the rise of Mega Sales – A COVID-led economic downturn will undoubtedly impact consumers’ purchasing habits with 99% of shoppers in the Philippines agreeing that the pandemic will have an impact on their personal / household finances. In this season, price sensitivities will be heightened and we foresee many buyers waiting for Mega Sales Day. According to year-end shoppers surveyed in the Philippines, 12.12 is the most popular Mega Sales event, and 12.12 shoppers are more likely to plan “designer goods” purchases across the holiday season.
- Self-gifting and seasonal shopping reign supreme as the year comes to a close – Many have delayed purchases as a result of COVID-19. Our study revealed that almost 46 percent of shoppers in the Philippines look to reward themselves as the outbreak begins to ease, attributing to the rising trend of “self-gifting”. Some expect to pick up on purchases prioritizing travel (24%), clothing (22%) and personal electronics (19%) as their first non-essential “big” buys. Also, shoppers in the Philippines are 2x more likely to buy something for themselves during holiday sales events.
- Imposed disruption fuels receptiveness to new products and services – We see many shoppers trying out new behaviours, products, and services during this pandemic. This holiday season, more people will start exploring new product categories (78% of shoppers in the Philippines agree) —with Millennials and Gen Z most likely to do so and will look at purchasing products across the globe.
- Consumers value not just affordability but also the brand’s alignment with their personal values – During this pandemic, one crucial consumer expectation has surfaced: people expect brands to react with action, not just marketing gestures. Based on Facebook’s study, year-end shoppers in the Philippines indicated that they wanted to see content that is informative, real and authentic, and content that updates them on the latest offers, sales, and discounts from brands. In addition, 52 percent of shoppers would like to see videos that emphasize family during the holiday season.
The study was conducted in partnership with YouGov from 2 December to 24 December, 2019. 48,348 people aged 18 years and above were surveyed across 31 markets on their seasonal shopping habits and attitudes. These include Singapore, Hong Kong, Indonesia, South Korea, Thailand, the Philippines, Taiwan and Vietnam. Results were also drawn and analysed from Facebook conversion and conversation data from 1 October, 2019 to 31 January, 2020.
