Cebu Pac, Lazada top online Singles Day sale
Credit to Author: MA. GLAIZA LEE| Date: Sat, 29 Dec 2018 16:17:03 +0000
Budget carrier Cebu Pacific and online shopping merchant Lazada topped the most searched keywords during the Singles’ Day Sale, the anti-Valentine event which happened last November 11. Coming in at third and fourth were their respective competitors, Air Asia and Shopee.
The data came from iPrice Group, which conducted a research on the Philippine market by analyzing the local consumer behavior trend, geographical trend and the market search interest during the “11.10” pre-sale and “11.11” sale period in the country. To understand the overall performance of Singles’ Day, the report used iPrice proprietary data and Google Analytics, as well as external data from Google Trends.
With the rise on tourism traffic among millennial travelers, it is not surprising that airline promotions are one of the most searched keywords during the sale period, which is consistent across Southeast Asian markets, including Malaysia, Singapore, Thailand, Vietnam and Indonesia. The surge in the popularity of airline promotions coincided with the offering an early Christmas and New Year holiday seat sales.
Based on the analysis of last year and this year’s data, there is a consistent upward trend suggesting that Filipinos are consistently hyped for the sale event. There has been a whopping 91.3 percent increase in the online visit this year, rising from last year’s 48,385 to 92,603 this year. For the pre-sale event comparison, data showed a 29.7 percent increase — from 71,386 to 92,603.
This translated to an increase in this year’s revenue — roughly by 27 percent. According to the report, the anti-Valentine event surpassed the recorded revenue from last year, from $25.3 billion to $30.8 Billion. Although its annual growth rate is the lowest in the history of Single’s Day.
Meanwhile, the Singles’ Day has overwhelmed e-merchants such as Lazada, which is planning to expand its local warehouse due to the after-sale surge. Lazada Philippines CEO Juan Spencer shared that its continued growth prompted the e-company to scout for another logistics hub that would raise its footprint from 60,000 square meters in warehouse space to 120,00 sqm by 2021.
In the past years, the shopping preference of the Filipinos has changed. With the emergence of online technologies and the increasing reliance on internet, Filipinos are becoming more and more active in online shopping despite the prevalent “ mall culture.”
But still, brand familiarity remains the driving point, creating a strong interest in Lazada and Shopee. According to Kantar Worldpanel survey, approximately 84 percent of Filipinos still preferred to buy from established companies, in spite of the alternatives available in the market.
Interestingly, majority of Filipinos still shopped at the very last minute. Data showed that Filipino online shoppers are actively searching for products during the late-night hours, with 9:00 p.m. as the most active hours.
Meanwhile, early mornings, specifically around 3:00 a.m., is the dead hour for online shopping, and then slowly gains momentum in number of visits starting from 5:00 p.m., surging continuously every hour. This trend coincides with the social media activity of the Filipinos.
Majority of Filipino online shoppers during the Singles’ Day came from the Greater Manila and neighboring provincial metropolis cities. Quezon City, Makati City and Manila were the top three most active cities that participated, with 36 percent, 26 percent and 11 percent consumer activity, respectively. These cities have the highest minimum wages in the country, justifying their high online activity during the sale event.
Pasig and Caloocan took the sixth and the eighth spot, with 5 and 3 percent consumer activity respectively. Cebu, Davao and Cavite made it on the list, placing fourth, fiveth and seventh spot.
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