Pinoy consumer preferences, reshaping business strategies

The Philippine market is undergoing a transformative period, influenced by digital innovation, changing consumer behaviors, and economic pressures.

Google, Temasek, and Bain & Company recently released their e-Conomy SEA 2024.

Let us reconcile its findings with Synergy Market Research's MarketInsights Report, PwC CEO Survey 2024, Havas Ortega's reports "Is the Party Over?" and "Prosumer Trends 2024.

These reports collectively provide a comprehensive view of the current market dynamics, highlighting opportunities and strategies for businesses in the retail, e-commerce and technology sectors.

E-commerce in the Philippines has seen remarkable growth, as highlighted in e-Conomy SEA 2024, which values the sector at $21 billion following a 23 percent increase.

Video commerce has emerged as a significant driver, accounting for 20 percent of this growth, fueled by live streaming and short-form videos. Businesses can capitalize on this trend by investing in video-led strategies, such as live selling on platforms like TikTok and Facebook, and enhancing product listings with engaging visuals.

Additionally, the report notes that Filipino consumers are increasingly sophisticated, demanding personalized digital interactions. AI-powered tools can help retailers offer tailored recommendations, targeted promotions, and customized shopping experiences.

The MarketInsights Report focuses on the financial challenges faced by Filipino consumers, emphasizing cost-cutting measures in categories like dining out, clothing and non-essential items. It highlights the increasing demand for value-driven consumption, urging retailers to offer affordable bundles, discounts, and loyalty programs that resonate with budget-conscious shoppers.

Similarly, Prosumer Trends 2024 examines evolving consumer values, including a strong preference for meaningful purchases and sustainability. This report underscores the importance of aligning product offerings with these priorities to build lasting consumer trust.

Sustainability and inclusivity are becoming central to purchasing decisions, as outlined in both Is the Party Over?, MarketInsights Report, and Prosumer Trends 2024. Filipino consumers now prioritize eco-friendly products and ethical practices, prompting businesses to integrate sustainability into their offerings. This can include the use of reusable packaging, ethical sourcing certifications, and environmentally friendly products. Marketing campaigns should emphasize these efforts to appeal to conscious consumers.

Digital payments have grown significantly, with e-Conomy SEA 2024 reporting a 22 percent increase in adoption. QR payments and e-wallets have become mainstream, presenting opportunities for businesses to streamline transactions and enhance customer convenience. Retailers and tech companies should ensure seamless integration of these payment options and explore partnerships with leading e-wallet providers to offer exclusive incentives.

Retailers can also diversify their product offerings to cater to a wide spectrum of customers, from budget-conscious shoppers to premium, eco-conscious buyers. Localization of marketing strategies, such as using Tagalog and regional dialects, can help businesses connect culturally and emotionally with their audience. Moreover, enhancing omnichannel strategies by integrating online and offline shopping experiences, such as click-and-collect options, can meet evolving consumer expectations.

For tech and digital companies, the reports collectively emphasize the critical role of AI and digital transformation in driving innovation. The PwC CEO Survey 2024 highlights AI adoption as a key investment area, with companies leveraging the technology for customer engagement, operational efficiency and data-driven decision-making. e-Conomy SEA 2024 similarly emphasizes AI's potential, particularly in delivering hyper-personalized experiences. Tech companies can develop AI-based tools tailored to the Philippine market, such as chatbots for e-commerce, predictive analytics for sales forecasting, and dynamic content delivery systems.

Cybersecurity is another pressing concern, as noted in PwC CEO Survey 2024 and the MarketInsights Report. Businesses adopting digital platforms must prioritize robust cybersecurity measures, including data encryption, fraud detection tools, and secure payment systems, to build customer trust and protect sensitive information.

Localization of digital tools is a recurring theme across e-Conomy SEA 2024 and Prosumer Trends 2024. Companies should focus on creating culturally relevant interfaces and providing support in local languages. Expanding services to underserved markets, including rural areas, can also drive growth and inclusivity.

Sustainability and tech innovation intersect in significant ways, as highlighted in PwC CEO Survey 2024 and Is the Party Over? Businesses are encouraged to develop energy-efficient software, promote cloud-based solutions to reduce reliance on physical hardware and communicate these benefits to stakeholders. Investing in AI talent, collaborating with academic institutions, and upskilling teams can further strengthen tech capabilities tailored to local needs.

Additionally, leveraging government initiatives like the Philippine Digital Infrastructure Project can help bridge connectivity gaps and expand digital reach.

Customer education campaigns can play a pivotal role in driving the adoption of AI, cybersecurity, and digital payments. Companies can partner with e-commerce, fintech, and retail platforms to create an integrated ecosystem that enhances scalability and efficiency.

The five reports collectively underscore a rapidly evolving Philippine market shaped by digital transformation, economic pressures, and shifting consumer values. By embracing these insights and prioritizing affordability, sustainability and innovation, businesses in retail, e-commerce and tech can secure a competitive edge while fostering meaningful connections with Filipino consumers.

Source: Manila Times

Notice to mortgagor is required prior to extrajudicial foreclosure

Foreclosure of property is a remedy used to satisfy an obligation in case the debtor defaults on his or her obligation.

Foreclosure can be judicial or extrajudicial, the latter being governed by Act 3135, as amended by Act 4118, or "An act to regulate the sale of property under special powers inserted in or annexed to real estate mortgages."

A careful reading of this law shows that the only notice required is found in Section 3 thereof, which provides:

"SEC. 3. Notice shall be given by posting notices of the sale for not less than twenty days in at least three public places of the municipality or city where the property is situated, and if such property is worth more than four hundred pesos, such notice shall also be published once a week for at least three consecutive weeks in a newspaper of general circulation in the municipality or city."

Notably, and as consistently ruled in the past by the Supreme Court, personal notice to the mortgagor is not required as the only notice required under this law is a notice of sale to the public. However, in the recent case of Philippine Savings Bank v. Josephine Co (GR 232004, Oct. 6, 2021, Ponente: Associate Justice Marvic M.V.F Leonen), the Supreme Court revisited this interpretation, stating:

"Notwithstanding the absence of an express directive under Act No. 3135, principles of due process and the utmost diligence of banks require that mortgagors be personally notified of extrajudicial foreclosures of their mortgages prior to public auctions.

"Due process requires that a mortgagor be notified, to afford him or her an opportunity to safeguard his or her rights prior to the extrajudicial foreclosure of his or her mortgage, and the sale of his or her property. The current reading of Act No. 3135 affords no safeguards whatsoever for the mortgagor. The publication requirement under Act No. 3135 is not intended as a notification for the mortgagor, but rather for the public, to enable participation in the auction sale of the foreclosed property."

The extrajudicial foreclosure made without your knowledge or personal notice may be held null and void as it violates your right to due process. Such action amounts to a deprivation on your part of any opportunity to exhaust all possible legal remedies to protect your interest.

Consumers less gloomy; business sentiment rises

Consumer sentiment remained negative, but less so, while business optimism improved in the fourth quarter, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

Results of the central bank's latest consumer and business expectations survey placed the consumer confidence index (CI) at -11.1 percent for October-December, improving from -15.6 percent three months earlier.

The CI for businesses, meanwhile, rose to 44.5 percent from 32.9 percent in July-September.

Consumer sentiment for the quarter and year ahead also improved, to 4.2 percent and 12.4 percent, respectively, from 0.7 percent and 9.9 percent in the earlier survey.

Business confidence, however, fell for the first quarter of 2025 and the full year, to 40.3 percent and 56.4 percent from the quarter- and year-ahead 56.8 percent and 58.0 percent in the third-quarter poll.

A positive CI means that optimists outnumber pessimists. The reverse applies with regard to negative results.

Factors cited

The less pessimistic consumer confidence for the fourth quarter was said to have stemmed from expectations of higher and additional sources of income, more working family members and more available jobs and permanent employment.

Business sentiment, meanwhile, was boosted by expectations of higher demand for certain goods and services, and a seasonal uptick in business activities.

For the next quarter and the next 12 months, consumers said they expected higher income, additional sources of income and more available jobs.

A post-holiday decline in demand, stiff competition here and abroad, increased uncertainty leading to the May 2025 midterm elections, a weaker peso and higher production costs were tagged as having pulled down quarter-ahead business confidence.

For the next 12 months, the lower business sentiment was said to be due to concerns over weaker demand, the impact of escalating geopolitical tensions, domestic and foreign competition, and inflation rising anew.

Consumer findings

With regard to the country's economic condition and family financial situation and family income, consumers were also less pessimistic in the fourth quarter: -24.2 percent from -30.7 percent, -9.0 percent from -11.12 percent and -0.1 percent from -4.7 percent.

Results for next quarter also improved to -3.1 percent from -5.8 percent for the country's economic condition, 5.4 percent from 1.8 percent for family financial situation and 10.3 percent from 6.1 percent for family income.

Consumers turned optimistic for the next 12 months and the outlooks all rose for the country's economic outlook (6.9 percent from 2.9 percent), family financial situation (14.4 percent from 11.6 percent) and family income (16.0 percent from 15.3 percent).

Confidence in purchasing big-ticket items remained firmly negative, but improved slightly with the confidence index for such items hitting -67.3 percent from -68.9 percent three months earlier.

The percentage of households with savings, however, declined to 25.6 percent from 29.0 percent, and the proportion of households with loans was unchanged at 25.5 percent.

Industry outlooks

As for businesses, fourth-quarter sentiment was less upbeat in the construction sector (35.6 percent from 37. 6 percent), but more positive in services (52.9 percent from 36.7 percent), wholesale and retail (42.5 percent from 32.3 percent) and industry (34.5 percent from 26.0 percent).

Firms said they expected easier cash flow and credit access in the last three months of 2024, with the financial condition index improving and the credit access index returning to positive territory.

Businesses also said the peso would strengthen and that borrowing rates would rise in the next quarter and over the next 12 months.

Inflation expectations for 2025 appear to be easing, the BSP said, as fewer businesses predicted rising inflation compared to the previous survey.

Consumer price growth was projected to average 3.6 percent in the fourth quarter and 3.7 percent in the first three months of 2025 and the year ahead.

Consumers, meanwhile, expect higher interest rates, a weaker peso and higher unemployment in the coming months.

They said that inflation would average 6.2 percent in the next 12 months, higher than the business outlook and above the BSP target.

The central bank said that like businesses, fewer consumers said that prices would rise compared to the previous quarter.

Source: Manila Times