Online shopping, thy name is vanity

Abhinav Kumar

When it comes to making cross-border online purchases, Filipinos, apparently, like to buy things that make them look and feel good, as three product categories rule among consumers: fashion, electronics and beauty.

This is one highlight of the PayPal Cross-Border Consumer Research 2018, a study released recently by the global online payments company Paypal together with market research firm Ipsos.

Over 1,000 Filipinos, aged 18 and above, and have access to an internet-enabled device, were interviewed via online survey for this study, from April 16 to 27.

Of those surveyed, 81 percent said they bought something online in the past 12 months.

Half said they shopped only on domestic sites, while 45 percent said they shopped on both local and overseas stores.

Focusing on cross-border purchases, fashion came in first among shopping categories.

According to the study, 68 percent of Filipino cross-border shoppers bought clothing, footwear, or accessories online in the past year.

Filipinos also love to score gadgets online, as electronics comes in at second place, at 57 percent.

The study also notes that over a third of those surveyed said they used their smartphones to buy online, which puts Philippines in third place when it comes to mobile shopping against other Asia Pacific countries where the study was also conducted (China is No. 1, followed by Indonesia).

Beauty also comes out as one of the “most-shopped” product categories among Filipinos, as 56 percent of respondents said they purchased these from websites or marketplaces overseas.

Abhinav Kumar, head of strategic partnerships for PayPal in Southeast Asia, said at the study’s recent launch in Makati City that they did such research to gain insight on three main areas: how online commerce, specifically cross-border, is evolving; how and why consumers shop online across borders; and how consumers pay for cross-border transactions.

Kumar said that based on the survey, the total e-commerce spend of Filipinos was expected to rise this year, as 55 percent of respondents said they expected to do more of their shopping online.

This is driven by three main factors: convenience, variety of platforms to buy from, and the expectation that shipping will be quicker.

According to the study, Filipinos’ estimated total online spend in 2017 was P92.5 billion, and is expected to surge by 32 percent to P121.9 billion this 2018. For cross-border e-commerce alone, 2017 saw Filipinos spending around P42 billion— an average of P3,302 per head—a number which is expected to grow by a hefty 47 percent this year.

The study also estimated that Filipinos would buy more items that they need on a daily basis, such as groceries and household goods, as well as baby needs—a sign that more people are feeling comfortable using online platforms to buy basic necessities, said Kumar.

“[This year] looks to be a year of growth and opportunities for savvy businesses that are equipped to take their cross-border sales online, on mobile and in-app,” Kumar said.

Filipinos’ three favorite locations for cross-border online transactions, according to PayPal’s research, are the United States, Hong Kong and Japan.

Kumar was happy to note that Filipinos favor PayPal among other payment channels when buying online, mainly because of its convenience, security, efficiency and availability on many platforms.

“We have a unique approach to risk management because we know both sides of the transaction,” he said. “As leaders in digital payments, we are proud to enable merchants to take the best advantage of opportunities by connecting them with global consumers regardless of place or space.”