Asian lovers don’t seem to shy away from Valentine’s day.
According to Mastercard, 75% of mainland Chinese are likely to buy a gift for their partner on this amorous occasion, followed by 74% of Thai, and 63% of Malays and Filipinos.
They’re shelling out hefty sums too.
Chinese residents indicated they would spend an average of US$310, closely trailed by Hong Kong at US$282 and Taiwan with US$281.
Filipinos don’t spend as much as some of their other Asian counterparts, but they’re ranked as some of the most romantic in the region.
An Orient McCann study revealed that Filipinos are the most emotional people in the world and second among those who most frequently say “I love you”, making Valentine’s Day an ideal event to let their feelings be known.
Google Trends data for the past week show interest in Valentine’s Day from the Philippines reaching a zenith as we approach the day itself.
What are Filipinos searching for online? And how can brands leverage this information?
Analyzing customer preferences in The Philippines
ecommerceIQ surveyed 500 Filipinos with access to the internet in an effort to understand how they prepare for Valentine’s Day.
87.2% of those surveyed said they intend to purchase a gift to mark the occasion, whereas only 12.8% indicated that they had no plans to do so.
But it’s not so straightforward.
63.9% of survey respondents said their eventual purchase would take place offline.
Within this subset, 42.8% said both the search and purchase would happen in-store and 21.1% outlined that their purchase journey would start online by searching for products but would be followed by a visit to their local mall.
36.1% of the people surveyed said they’re comfortable transacting online, mainly because of better deals & discounts, as well as the option of scheduling delivery at a particular time.
The most popular gifts sought by Filipinos for Valentine’s Day were surprisingly clothes at number one, followed by chocolates, and perfumes.
Flowers ranked a distant fourth – likely because the price of flowers in Manila tends to spike by 500% on or right before Valentine’s Day.
There’s no real substitute for red roses but consumers have a plethora of options when it comes to clothing and perfumes, leading to price stability.
What’s preventing Filipinos from purchasing online?
According to the survey results, more than 75% of respondents exhorted that they prefer to see the product before buying it.
A further 17% said they can’t trust the quality of products they see online or that they’ve been subjected to scams. Only 5% thought malls offer better deals & discounts.
Lazada was the overwhelming favorite among those who did purchase online. Almost 60% of respondents said they’d shop for Valentine’s Day gifts from the popular etailer. Shopee came in second, with 22.2%.
Despite the fact that the most sought-after gift was clothes, pure-play fashion ecommerce site Zalora secured only 4.4% of the vote.
Capturing love online
Filipino preferences are indicative of a larger trend engulfing global ecommerce markets.
“It’s very hard to launch a brand these days that’s just online-only,” explains Sucharita Mulpuru, analyst at Forrester Research. “It’s an incredibly difficult and crowded ecommerce environment.”
Filipino brands have consistently tried to latch on to prevailing sentiments during Valentine’s Day to either sell more products or increase brand awareness.
Popular fast food joint Jollibee launched a successful campaign last year playing on themes of unrequited love and eventual reunification.
The ads, which were released in three parts, went viral on social media with over 50 million views on Facebook alone.
Condom manufacturer DKT Health gave away nearly 40,000 condoms in Manila during the Valentine’s Day weekend in 2015 by partnering with stalls selling balloons, chocolates, and roses.
Southeast Asian brands are cognizant of this dynamic, at least in Thailand. David Jou, the CEO and co-founder of Pomelo wrote in 2016 about how he viewed offline as a key component of his business moving forward.
“[…] is our goal to be the biggest online fast fashion brand or is our goal to be the biggest fast fashion brand?”, he said, posing an apparent challenge to his team.
Brands in mature ecommerce markets have already started to take a similar route too. Zara opened a pop-up shop in London last month to support its ecommerce channel. Staff at the store were trained to assist with online orders – shoppers can walk in, examine the inventory, receive recommendations from assistants, and eventually pay for the goods they like. But all the products they purchase are shipped to their address.
For companies looking to capitalize on the visible potential and consumer intent to purchase, they’ll have to overcome the prevalent trust barrier currently impeding ecommerce. A consistent online-offline retail experience could very well be a significant first step in doing so.