Manila, Philippines – Nowadays, Filipinos are turning to eCommerce in getting their daily essential needs in response to physical distancing measures to help curb the spread of COVID-19. Since the community quarantine measures were implemented, Lazada has observed a clear shift in consumer behaviour—an increase on time spent on the platform and making purchases in more categories.
“The COVID-19 pandemic has transformed how Pinoys use Lazada and how they see the platform as a lifestyle destination that promises safety and convenience. Consumers have started using our platform to interact and bond with family and friends, and is now an entertainment destination perfect to enjoy indoors. I believe that this new dependence on eCommerce will grow and become permanent, because of the assurance and sense of stability that Lazada is able to provide for consumers. Supporting the Filipino community while elevating the consumer journey through our technology will continue to be our main priority as the leading eCommerce platform,” says Neil Trinidad, Lazada Philippines’ Chief Marketing Officer.
More consumers are adopting eCommerce as a way of life
eCommerce is increasingly becoming an integral part of a consumer’s lifestyle in Southeast Asia. The ECQ was a catalyst that accelerated the adoption of online shopping among Filipinos. During this period, over half of the population switched to eCommerce for grocery shopping and buying household needs, citing it as a convenient and safe channel to get daily essentials.1
Time spent on the platform increased and has almost doubled with approximately 15 minutes per visit compared to the period prior to quarantine. This has also led to more than nine percent (9%) increase of transactions on the Lazada app.
The app also gained more traffic during noon time compared to the previous peaks in the evening at around 8:00pm to 9:00pm. This shift is most likely due to the fact that more people are working from home and they are probably checking items on the app during lunch breaks. Besides online shopping, consumers have also spent time browsing through Lazada’s wide array of entertainment such as LazLive livestreams, and playing interactive LazGames.
The ECQ has evolved purchasing patterns
After the implementation of quarantine and physical distancing guidelines, there was a 15-times increase in demand of household essentials such as groceries and cleaning supplies. Clearly, consumers have been considering other alternative channels to shop for both essential and non-essential goods—which were considered low in terms of priority before quarantine. Lazada foresees that this will continue to be on an upward trend as more people are looking for ways to source all their everyday essentials online, as an effort to reduce unnecessary physical contact.
More people staying at home also appear to be engaging in activities like baking and self-care. Purchase of baking supplies have increased by 13-times, and skin care product sales have increased by almost 4-times. This period has influenced what consumers are searching for as Lazada observed top searches during this period leaning towards more Do-It-Yourself (DIY) activities around the home, including grooming of pets with the increase purchase of pet care essentials like clippers and shampoos. These searches also include exercise mats, inflatable swimming pools, tapioca pearls, lounge wear, as well as DJ equipment such as headphones and portable speakers.
Increased transactions via online payment channels
More customers are utilizing digital bills payment capabilities of the Lazada platform. There has been a 5-times increase in this portion during the quarantine period. Cashless payment options, including credit cards and the LazWallet payment channel, had a two-times increase in use as people reduce physical interactions and prefer the convenience of online transactions.
Customers have also turned to digital channels to contribute to charity. To date, Lazada’s digital giving platform LazadaForGood has raised over Php 22 million for our 22 partner beneficiaries since the start of the lockdown in the Philippines. For a list of Lazada’s advocacy partners, please refer to https://www.lazada.com.ph/lazada-for-good/.
Livestream is emerging as a new form of entertainment
The concept of eCommerce has transcended beyond transactions and evolved into an entirely new experience. With Lazada spearheading ‘Shoppertainment’ in the region, more brands and sellers have embraced the online interactive feature to engage with their customers, especially during this time. Across the region in April, Lazada welcomed over 27 million active audience on livestream.
In the Philippines, the platform continues to focus on leveraging Lazada’s livestream technology to elevate the online shopping experience for Pinoys, by bridging eCommerce and entertainment.
LazLive shows have seen a three-times increase in viewership. A pilot series of content were also launched, including the lifestyle channel QuaranTV, and Sing It! that is hosted by Lazada Philippines’ ambassador Mimiyuuuh. Lazada also brought back its classic, fan-favorite gameshow, Guess It!, with each episode averaging over 70,000 views.
Besides an increase in LazLive livestream engagement, there has also been a rise in consumers playing LazGames, with three-times more consumers engaged in gameplay compared to back in February, before the ECQ was implemented. The top games rising in popularity among Filipino consumers are LazCity and Lucky Drums, each recording over four-times increase in unique visits since the start of the ECQ.