MANILA, Philippines — In a recent report from Research and Markets, the social commerce industry in the Philippines is expected to grow by 30.4% on annual basis to reach $681.6 million in 2022.
It is expected to grow steadily over the forecast period, recording a CAGR of 26.7% during 2022-2028. The social commerce GMV in the country will increase from $681.6 million in 2022 to reach $2,744.5 million by 2028.
The publisher also states that this rise of the social commerce industry is parallel to the growth of the market in Southeast Asia with social commerce accounting for more than 45% of the SEA ecommerce market in 2021 and is expected to have increased in 2022.
This report also enforced what many studies have already shown: Filipinos lead the world in the consumption of social platforms and the internet, and more are embracing online shopping, especially the younger generation.
As the social shopping method continues to become more normal in the Philippines, brands are increasingly using social platforms as they embrace the future of ecommerce.
Here are the reasons why brands should invest in this growing trend:
1. Facebook reached 83.85M users in the Philippines in early 2022
This is a huge opportunity for businesses to show their products to new faces and scale up the business exponentially.
Considering that the heavy users of social media platforms, particularly millennials and Gen Xers are impulse buyers, shopping on social platforms has the power to attract customers and increase sales.
Brands should leverage this purchase behavior by making it seamless as possible for customers to check out directly through their social media platforms.
A seamless buying process guarantees users of the platform to go all the way through their purchase and a rule of thumb is to make sure that the purchasing process doesn't involve too many steps. Additional steps in the sales funnel risk customers losing interest.
2. Social commerce engages customers where they are
Most of your customers are already on social media. Build your business and engage with existing and potential customers through consistent creative product posting focusing on how it is used and its benefits.
Being responsive and acknowledging customer feedback to establish excellent customer service and posting user-generated content to validate not just the positive but those that need to be improved are just a couple of ways customers feel they are involved in your brand story.
Take advantage of social platform analytics that allows you to track customers’ social and buying behaviors and leverage this information on your content and product.
Take time to know your customers, directly chat with them and get valuable feedback. Use the information to improve both your communications and product offerings.
A Facebook Messenger-integrated selling tool
This year, Super Pumped Philippines Inc. launched GC Mart, a free selling tool integrated within Facebook Messenger that eliminates the manual management of online orders and streamlines the buying process of customers.
Creating a GC Mart seller account is easy—no app needed. Just search GC Mart in Facebook Messenger and it will guide you to the step-by-step process until you create your selling link that is shareable to your network, other social platforms and messaging apps.
Once customers click on the selling link, it will lead them to the shopping page where they can browse through products' info, prices, delivery and payment options.
Fulfilling orders is fast and efficient as the tool is integrated with J&T delivery, which has a COD payment option. On-demand delivery and self-collection options are also available for customers who are in a rush to get their purchases.
GC Mart has the lowest transaction fees from its payment gateways, such as GCash, Maya and GrabPay, which allows sellers to maximize their profit.
It also has a resell mechanism that helps MSMEs grow their business. The mechanism automates the onboarding of potential resellers with an invite link sent through Facebook Messenger, centralized management and fulfillment of orders and automatic direct release of commission to resellers.
"GC Mart being integrated with FB messenger allows both sellers and buyers to directly chat with each other in real-time without any restrictions, unlike the popular selling apps in the market,” GC Mart CEO Jodie Zeng said.
“Sellers can also maximize this by creating a group chat in Messenger where customers get real-time updates about new products or promotions. The tool provides a more accessible venue with Facebook Messenger where sellers and customers can engage better and faster—improving customer relations and creating sustainable and scalable business," she added.
To learn more about social commerce and GC Mart, click here.