(Source: Business World | June 28, 2018)
Most Filipinos expect to increase their online spending this year, a study by PayPal Holdings, Inc. and Ipsos said.
Results of the PayPal Cross-Border Consumer Research 2018 showed the total online spend of Filipino shoppers is predicted to rise by 32% to P121.9 billion this year from about P92.5 billion in 2017.
The survey, conducted by PayPal and Ipsos, covered 34,000 consumers in 31 countries, with 1,006 participants in the Philippines.
“Out of the survey respondents, 55% of those who are shopping online expect their online spending to increase,” PayPal Strategic Director for Southeast Asia Abhinav Kumar told reporters on June 27.
PayPal also said Filipinos are estimated to spend around P185.16 billion in online shopping by 2020.
“Cross border, which refers to international trade, spend in the Philippines is also expected to grow by 47% in 2018 from an estimated P41.5 billion spent in 2017,” PayPal said in a statement.
Mr. Kumar said that increase in cross-border shopping can be traced to various factors.
“There are multiple reasons, it could be buying something that’s not available locally, or something that’s cheaper abroad,” he said.
In terms of smartphone cross-border purchases, the Philippines ranked third out of surveyed Asia-Pacific countries, which are India, China, Japan, Hong Kong, Australia and Singapore. Mobile commerce in the Philippines is also expected to jump this year with the growth of mobile use and adoption of new technologies.
“PayPal predicts an increase in Philippines’ mobile commerce from an estimated P38.4 billion in 2017 to an estimated P55.7 billion in 2018. This figure is likely to continue to grow with the proliferation of mobile devices and new mobile technologies that are emerging to create greater mobile-commerce opportunities for Filipino consumers and merchants,” the digital payments company said.
Top reasons cited by Filipinos for increase in online spending are convenience, variety of platforms, and expectation of faster shipping.
The report also showed fashion such as clothing, footwear and accessories is the top category for cross-border shopping in the Philippines, with 68% of Filipino cross-border online shoppers having spent on these items in the past 12 months. This was followed by consumer electronics, and cosmetics and beauty products, with 57% and 56% respectively.
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