By Revin Mikhael D. Ochave, Reporter
LOCAL RETAILERS should adapt to rapid digitalization, the growing use of artificial intelligence (AI), and changing consumer preferences to ensure sustained growth, industry players said.
“Digitalization is here to stay. The use of artificial intelligence is really picking up. It really says a lot about how digitally fluent the Filipinos are,” Metro Retail Stores Group, Inc. Chairperson Sherisa P. Nuesa said during a panel discussion at the BusinessWorld Forecast 2025 forum on Tuesday.
The e-commerce sector saw significant growth in the country during the pandemic as consumers turned to online shopping. This prompted many businesses to continue expanding in the e-commerce space.
Ms. Nuesa said Filipino consumers have become smarter when it comes to spending.
“They choose and are ready to switch to cheaper alternatives. What has happened is that digitalization has empowered customers with many choices,” she added.
Household consumption accounts for over 70% of the Philippine economy.
“Consumption has always been a strong component of the Philippine economy. We have a young population and they still need a lot of consumer goods,” Ms. Nuesa said.
Vicky V. Abad, country manager for global research company Ipsos in the Philippines, said that AI is poised to transform the retail industry.
“AI is going to change the way retailers will adapt to how consumers are utilizing this technology. There’s a lot that retailers can learn about the consumers like offering these things that they’re going to look for,” she said.
“We’ve already seen examples in omnichannel strategies wherein technology has been used to create a seamless process for consumers to navigate from identifying a need they’re looking, to their journey and search, and to the actual fulfillment of their needs and wants in the retail store,” she added.
Ms. Abad said local retailers should focus on retaining the trust of consumers amid rapid digitalization.
“In the age of digitalization, we need to be able to trust companies we work with that they will protect our data, that they will protect our money. The importance of trust as a currency amongst brands and consumers will be paramount,” she said.
“Retailers should remain authentic to who they are, what they stand for, and what they believe in. They must not lose those as they adapt to the different kinds of consumers,” she added.
Jennifer Jane G. Echevarria, Globe Telecom, Inc. Vice-president for enterprise data and strategic services, said retailers should cultivate customer trust.
“Offering the lowest price will not guarantee any retailer success because at the end of the day, trust has become the new currency for Filipinos,” she said.
“What we can bank on as companies and brands is knowing that there will always be a budget for our customers. If we are able to make them feel that it is worth spending and trusting their money with us, we just need to be able to deliver,” she added.
Ms. Echevarria said retailers should give customers an array of options, instead of only focusing on setting the lowest price.
“Since most Filipinos have irregular sources of income, what’s important for retail today is to make sure there’s always flexibility by offering flexible deals and customizable options,” she said.
“It is up to us (retailers) to understand our customer base and make sure that we’re not leaving money on the table and that we offer what is best for them. If the customer is at the center of everything that you do, you could never go wrong,” she added.
Meanwhile, Ms. Nuesa said that retailers should recalibrate their strategies in order to keep up with changing consumer preferences.
“We in business should also be daring enough to experiment, respond, and adapt our strategies to changing behavior and environment. There’s no such thing as brand loyalty because the younger generation try new things,” she said.
“Consumers today really focus a lot on their individuality. There is a lot more promise in helping them express themselves,” she added.