A BRIGHT spot for commerce can be found in the latest Internet statistics report titled “Digital in 2017” released last week.
The Philippines ranked third out of 28 countries in the number of shoppers purchasing online via their smartphones, according to the report dated January 2017 of the social media management platform Hootsuite and We Are Social Ltd. consultancy.
For businesses, this means the number of Filipinos buying goods or services from their phones almost doubled, at 85 percent growth, in 2016 from the previous year. The money spent, however, may not be significant, and is in fact the lowest in the report, at only US $33 by each e-commerce user last year. But purchasing power rests on other factors, whether online or offline.
The high growth rate in purchases via phones appears in contrast to the Philippines’ having the lowest amount of buys per user, but that is where opportunities lie. The report does not mention the kinds of purchases made although earlier studies pointed to Filipinos paying for mobile applications, games and downloads. Micro payments tend to be favored over huge dollar purchases.
In terms of the percentage of the national population who bought something online in the past month, 38 percent of the Philippine population of 101 million are considered as active online shoppers. Those who buy online do so using their mobile phones. The report said 26 percent of the population bought something online via a phone in the last month.
Filipinos go online to connect with family and friends, check email and get information, including the news. Most do not go online to buy something but there are those who visit websites for price comparisons and to find out about recommendations. Once they have tried ordering a gadget online, buying food via their smart phone, or calling for a cab from an app, they become confident about their online purchases and they share the experience with others.
The obstacles to a stronger online commerce are slow interconnectivity and the limited number of persons who own a credit card or Paypal account that a user needs to buy over the Internet.
It will take time for online or mobile purchases to grow into becoming a dominant form of commerce in the Philippines. The impetus is there and technology is trying to catch up with demands of users, and businesses only have to take advantage of this bright spot to participate and win in mobile commerce.
As the report said, “More than half of the world’s population now carries a powerful connected device wherever they go. Smartphones have moved beyond being just ‘phones’ though, and we need to start thinking of them in terms of what they are: remote controls for our lives. In a world where people can check the news, watch a full-length movie, buy their groceries, plan a holiday, renew their passport, and even find love through online dating – wherever and whenever they choose – brands need to work much harder to earn and keep people’s attention on mobile.”