Analysis agency iPrice Group predicts that demand for fashion products in the Philippines may decline

Data from analytics firm iPrice Group shows that during the pandemic , the Philippines ranked second in Southeast Asia in terms of growth in online shopping site visits in 2020. iPrice said in its report that online shopping visits in the Philippines increased by 21%, ranking second in Southeast Asia, second only to Singapore's 35% .

iPrice Group said that due to the impact of the epidemic , online shopping has become more popular , and the overall website traffic of online shopping platforms in all regions of Southeast Asia has increased year by year.

In terms of product categories, iPrice said traffic to the e-commerce platform grew 59% in the first half of last year, but declined in the following months.

The report said that visits to technology e-commerce websites fell 83% from the fourth quarter compared to the first quarter . At the same time , data on fashion e-commerce websites, which were hit at the beginning of the epidemic , recovered, with visits increasing by 18%.

It is understood that Filipinos spent the most on fashion products last year , with an average shopping cart expenditure of about US$40, or about 1,947 pesos .

“This suggests that as lockdowns begin to ease , people are returning to the apparel and accessories category , ” iPrice said .

As the number of confirmed COVID-19 cases increases, the Philippine government has implemented a new movement control order , which restricts travel and temporarily closes commercial establishments in various regions as of April 4. Therefore , iPrice said that with the implementation of the second wave of movement control orders , it is predicted that demand for fashion products may fall again .

In 2020, visits to online shopping sites in the Philippines increased, but iPrice said consumer purchasing power fell by 4% . In this regard, iPrice said that as many Filipinos faced unemployment or salary cuts, they were more inclined to buy daily necessities rather than higher-priced non-essential items .

Last year, the average order value for consumers in Singapore and Malaysia was US$61 and US$41 respectively .

iPrice said that although the epidemic has had a huge impact on consumers in the region , the unprecedented changes in Southeast Asia show that the digitalization of online retail is accelerating , and it is only a matter of time before the Philippines catches up with the digitalization trend .  

the Philippines

Southeast Asia