Philippine digital commerce expands via social discovery and hyperlocal strategies

Still, physical stores remain important.

Digital commerce in the Philippines is experiencing growth, driven by content-led social platforms, fintech innovations, and hyperlocal engagement strategies.

Life Dawn Cervero, head of growth partnerships at TikTok, explained how the platform has grown beyond entertainment to become a shopping platform. “TikTok has evolved from just being an entertainment platform into a shopping platform, and we are really gaining ground, even if we are the younger marketplace versus our competitors,” she told Retail Asia Summit – Philippines 2026.

She said some users on our platform just watch videos for entertainment, but then they discover products, learn more about them, and can purchase them directly on the platform.

Anna Wilk, co-founder of Human Nature, also emphasised the role of trust and convenience in Filipino online shopping habits. She said that options like cash-on-delivery [COD] and next-day delivery have been crucial in establishing trust, especially amongst older consumers.

Rohit Kohli, SVP and head of business development at ACX, also said that fulfillment and flexible payment options are central to the evolving ecosystem.

“It does begin with content,” he said. “It's [the] ease of making payments, it's the choices to the consumers of how they want to make the payments. COD [or] whether it's broken down into installments. We're seeing a lot of changes.”

Despite the growth of digital commerce, panelists highlighted the continuing role of physical stores.

Kohli noted that whilst most consumers first interact with brands online, physical stores provide engagement, trust, and community.

“Stores allow you to bring together communities, which is very difficult on a digital environment, but that's all possible in a physical environment,” he said. “I think physical stores have evolved to become powerful and new omni-channel experience, and both will coexist.”

ACX plans to reintroduce Macro stores in the Philippines, combining physical retail with digital convenience. Kohli explained, “One key innovation would be digital,” he said. “It'll be allowing small business owners to be able to order online.”

He said these innovations ease some pressures on supply chain and allow small businesses to operate more efficiently.

Human Nature has also strengthened its hyperlocal strategies, combining online tools with community engagement.

Wilk described how the brand leverages local creators and affiliates to build real-world relationships. “We even have a content creator who comes all the way from Marinduquee every time we have an event," she said.

Additionally, click-and-collect services and vibrant local community groups, such as those on messaging apps, have further enhanced consumer engagement.

Cervero said that TikTok’s machine-learning algorithms personalise content according to user interests, creating opportunities for product discovery.

“The content that you see on TikTok is based on what you'd like watching, what you comment on, what you heart, and then the machine-reading algorithm creates a profile about you,” she said.

At the same time, human creators remain critical for authenticity. Cervero added that TikTok supports creators through training, analytics, and partnerships to maximize engagement and performance.

Looking forward, Kohli said that both digital and physical channels will coexist. “I still do believe there is a space for both digital and physical to coexist. I don't think one will take over, he said. “Fintech will play a significant part in how the digital ecosystem and marketplace is doing.”

Meanwhile, Wilk highlighted continued growth, with e-commerce projected to reach $6.1b this year, emphasizing that relationships and customer experience remain key to success.