The retail industry in the Philippines is in for a bumpy 2023. Supermarkets, convenience stores, department stores, and other brick-and-mortar businesses that stood against the odds to survive tight lockdowns and physical distancing measures now find themselves battling record-high inflation and diminishing consumer confidence.

Like many nations, the Philippines has been subject to global pressures of inflation caused by international conflict and disrupted supply chains. Analysts announced household income growth of 5.5% in 2023, down from the 7.6% forecasted in 2022. The silver lining amidst this bad news is that income growth is estimated to outpace the 3.7% consumer price inflation.

Spending set to increase, but not how you might expect

The good news is: consumer spending is set to increase across the retail sector in the Philippines. And the bad news: analysts predict that food sales will command the majority of the retail share. This means that consumers may not be willing to spend elsewhere, even if they can afford it. How is your retail store going to adapt?

In a state of constant change and evolving customer expectations, retailers in the Philippines must adopt digital strategies to remain flexible and agile. The race on this uneven terrain won’t be won by businesses that simply adopt new technology, but by businesses that adopt technology in a way that addresses the needs, demands, and concerns of consumers in 2023.

Integrating digital communications into modern physical and digital retail

Regardless of what forecasts might predict, it’s important to note that the future is still up in the air. Shopping is still an emotional experience for consumers, and companies that can sniff out consumer sentiment will likely attract the most traffic, both online and offline.

Play to nostalgia with experiential retail

Experiential retail will likely be in demand after people have spent more than two years locked up at home. This is not just limited to in-store decorations and layouts, but in-person classes, community events, product demos, samples, and other activities that are only possible in face-to-face settings.

But even the most exciting events will require support from online marketing to succeed. A survey commissioned by TikTok found that 91% of Filipinos learn about new things online, and 73% would discover new brands and products through short-form edutainment.

Retailers can go one step further by integrating live video chats, giving customers a walkabout on what’s available in-store or simply chat about the latest product. This provides you with an opportunity to introduce store-exclusive deals, personalise the shopping experience, or deploy other tactics to funnel new customers into your shops.

Automate the day-to-day wherever possible

Let’s be honest, from sore ankles to sweaty armpits and long queues, there are plenty of things that people don’t miss about physical retail. Companies that can capitalise on available technology to automate the shopping experience as much as possible can provide consumers with convenience that rival digital platforms.

We’re not just talking about using high-quality software to keep track of stock and purchase orders, either. Communication APIs help product managers launch new shopping channels with fuss-free integrations, enable marketing managers to monitor campaigns with zero developer resources, and give service agents the tool to provide consistent, cross-channel support.

For example, membership deals and discounts can be recommended to customers based on their in-store purchase orders and sent through SMS or preferred chat apps on their phones. In this way, you can continue building relationships with your customers long after they’ve left your store, significantly increasing your chances of retaining repeat buyers.

Unify online and offline for the complete hybrid shopping experience.

IBM estimates that 27% of consumers, as well as 36% of Gen Z, rely on hybrid shopping as their primary method of purchase. But this doesn’t mean that consumers trust online and physical stores equally. Rather, the entry point is still skewed towards physical stores, where nearly three in four consumers verify the quality of a product in person before patronising a new brand.

This means that retailers should maximise their physical store as a touchpoint to get connected with their customers. From there, establishing two-way conversations by way of chat apps and SMS can help build customer relationships and trust, eventually reaching a point where consumers trust your brand enough to forgo a trip to your store before purchase.

This is where multi-channel messaging APIs and platforms come in handy. With APIs, retailers can integrate SMS and multiple popular chat apps into existing communication channels with ease. This not only allows you to capture various pockets of your target market, but you can do so without sacrificing workflow efficiency or attention towards each individual customer.

Finding the right mix between the physical and the digital, is required.

Create an elevated retail experience with 8x8’s Communication APIs

The road ahead may be fraught with challenges, but businesses that do things the smart way will find themselves navigating even the most uneven of terrains with ease. Since retailers often have to bear the brunt of changing consumer preferences, it is important for your business to remain flexible, adopt new technology, and engage vendors/partners that help you scale.

If you’d like to secure your retail ship for 2023, learn more about 8x8 Communication APIs or schedule a demo with us today.

Want more tips? Join 8x8 at Smart Digital Retail!

Join 8x8 at Smart Digital Retail, happening on April 13, 2023 at the SMX Convention Center in Manila. Our product experts will be sharing how you can unlock new ways of running a retail business in the Philippines using digital communications.