Mobile Commerce is something that we do not normally hear everyday, but it is here and a huge number of people in the Philippines are engaged in such. During Lazada Philippines' office tour at their new place in Net Park, BGC, we were treated to an informative talk about the emerging Mobile Commerce in the Philippines and the Mobile Snack Shopping phenomenon - a newly generated form of shopping.
|Lazada PH CEO Inanc Balci, G-Cash CEO Albert Tinio, and Globe VP for Consumer Group Mobile Data Services Jenny Echevarria|
|Google PH Industry Lead Sashi Tripathi and Client partner from Facebook Ross Wakeham|
|Lazada PH employees and their warm welcome!|
According to Facebook, social media apps (FB / Instagram) are intuitively formed for bite sized discovery and snacking of content. With Filipino smartphone user habits primarily shaped by social media consumption, it is no surprise, that Filipinos' mobile shopping habits have similar patterns. Basically, we shop like we Facebook.
Massive small buys, on small screens
The average cost of an item purchased on the Lazada mobile app is 15% less than items purchased via desktop. But this lower average spend is easily offset by the massive growth of the app portal, up 400% from 2014. This massive growth of m commerce mirrors the Philippine digital landscape where mobile devices are the first and primary source of digital access. According to one of the speakers, Mr. Sashi Tripathi of Google Philippines, there are now more smart phone devices here in the Philippines than the entire population of the Philippines. And such is caused by the fall of the prices of smartphones and many affordable data plans.
Low cost categories give more reason to browse
|Lazada PH CEO Inanc Balci|
Interestingly, the most popular product categories for app purchases are: Beauty Tools, Food Supplements, Portable Audio, Kitchen & Dining, Small Kitchen Appliances, Diaper & Potty, and Fragrances. We were all amazed by such revelation by Mr. Inanc Balci, CEO of Lazada Philippines because some of these do not seem like items you'll purchase online. The nature of these low cost categories is that they do not have intimidating price points and therefore give more opportunity for product discoveries. In fact consumers spend 67% more time in browsing Lazada through the app versus desktop.
Dead Time is Deal Time
Just as checking social media through your mobile has become a habit during breaks, so too has mobile or app commerce and total traffic peaks during break times. 9am, 12 noon and 8pm, all show peaks in browsing and purchase quite similar to mobile social media consumption peaks.This habitual browsing makes Lazada mobile app users 10% more loyal in terms of repurchase vs. non-mobile purchases.
Ubiquity makes it utility
With 3G smartphones projected to have 100% penetration by 2020, and the constant stream of free content from service providers like Globe, we can expect more and more Filipinos immerse themselves in social media and m-commerce through mobile apps. It makes more and more sense for companies, especially those who thrive on the 'tingi' or “sachet” mentality, to consider app-commerce, as a priority distribution channel. The consumer predisposition to small, frequent purchases and the active pursuit for best value via the app makes it very likely that Pinoys will check out the latest sale just as quickly as they check out their latest social media status updates.
With this mobile revolution, Lazada PH is holding the biggest app sales event of the season starting with the Mobile Power Sale this February 25 until February 28 where app exclusive deals can be availed of. Aside from that, expect surprise deals, flash sales, discount vouchers, social media games, and more during their sale! Of course, be sure to download the Lazada Mobile App to avail these awesome deals!