Filipino shoppers still prefer bricks over clicks

Eight in 10 consumers are more likely to buy after seeing or trying a product in person.

Filipino consumers continue to value the tactile experiences and personal interactions that only brick-and-mortar stores can provide.

“Are malls dying?” Christine Coqueiro, vice president of Retail Development at Rockwell Land Corp., asked at the Retail Asia Forum 2024 in Manila. “And my answer is always no. We're very much a mall-loving culture.”

Consumers still very much prefer to interact with products, with 82% of them more likely to buy after seeing or trying a product in person. “The in-person experience heavily influences purchasing decisions for many.”

But this doesn’t mean that retailers should forget about having an online presence. Filipinos’ shopping habits have been shifting since the global COVID-19 pandemic, which forced them to buy stuff online.

Nine in 10 Filipinos have experienced some form of online shopping, according to a 2020 study by Colliers. And more Filipinos prefer online platforms such as Shopee and Lazada to buy goods, citing attractive features such as sales vouchers, and free shipping promos, a 2023 study by Agile Data Solutions, Inc. showed.

Coqueiro said online shopping has become a common practice among Filipinos, who spend an average of $246 yearly on e-commerce. Retailers should therefore integrate online and offline channels to thrive.

She said “high-quality one-on-one customer service increases sales,” noting that 91% of consumers are more likely to shop with brands that offer personalised recommendations.

“Personalised service helps create an emotional connection with the customer, enhancing their overall experience,” Coqueiro said. “But consumers are evolving. A large percentage of our consumers research online first before making a purchase.”

Coquiero cited the need to transform physical retail spaces into assets rather than liabilities. “It’s not just about making products available online now and treating the stores and e-commerce sites separately,” she said.

“So, it's not just about making products available online now and treating the stores and e-commerce sites separately,” she added.

Cequiero noted that regardless of the channel, product quality and customer service are nonnegotiable aspects for consumers across all industries.

“To win the consumers of tomorrow and differentiate ourselves, we have to be able to incorporate our store in a way that can create memorable experiences,” she said.

Coqueiro cited innovative strategies used by retailers like Crate & Barrel and Klean Kanteen Philippines, which enhance the in-store experience by integrating online catalogues and offering personalised services.