Philippines is returning from the pandemic and is expected to have a stronger holiday season in 2022 than in 2020 and 2021. According to the Asian Development Bank Outlook 2022, the Philippine economy will expand at least 6.5% in 2022, up from the April estimate of 6.0 percent. The forecast for 2023 is 6.3%.
Businesses are starting to see opportunities in newer markets. However, there are some important changes that businesses need to be aware of to stay ahead of the competition. This article will discuss the business landscape in 2022 and give tips on navigating the changes in demand brought about by the pandemic.
What Can Businesses Expect During the OND months of 2022?
The main difference between the Christmas season of 2022 and the pandemic-affected 2020 holiday season is that businesses will be able to operate at a more normal capacity. This means that stores will be open for longer hours, with fewer restrictions on travel and gatherings. While this may seem like a positive development, businesses need to be aware of the potential changes in consumer demand.
During the pandemic, many people put off making large purchases or taking vacations. This led to a significant decrease in demand for many products and services. However, as the vaccine rollout continues and restrictions are lifted, people will likely start spending again. This means that businesses need to be prepared for an increase in demand, especially during the key shopping months of October, November, and December.
To navigate the changes in demand, businesses need to be flexible and adaptable. They should consider offering promotions and discounts to encourage people to buy during the holiday season. They should also have a plan for dealing with sudden demand increases, such as hiring additional staff, partnering with logistics providers, and increasing inventory levels. By being prepared for the changes in the market, businesses can ensure that they capitalize on the post-pandemic Christmas season.
Your business can thrive during the post-pandemic Christmas season with the right planning and preparation. Understanding the potential changes in the consumer behavior can ensure that your business is ready for anything.
State Of Local Industries in The Philippines
Online Retail
According to Google-commissioned Kantar SEA e-Commerce Research 2021, the Philippines is Southeast Asia’s fastest-growing market. It went on to say that the country’s rapid expansion of its internet sector resulted from government efforts to promote digital usage and mass digital adoption in response to the pandemic.
According to the DTI, e-commerced contributed 3.4 percent to the country’s GDP in 2020. It contributed $22.6 billion (P1.1 trillion) in 2021, exceeding the government’s target of P17 billion. For 2022, the Philippines’ goal is to increase e-commerce revenue to $24.2 billion (P1.2 trillion), or 5.5 percent of GDP.
Food and Beverages
The entire Philippines food and beverage industry were worth approximately $100 billion as of 2020, and it is projected to grow at a rate of 7.16% annually from 2021 to 2027.
The outbreak of COVID-19 has largely impacted food, and beverage supply chains and how much people are consuming in the Philippines. The pandemic in 2020 had a substantial impact on dining out. However, the market showed an increased growth rate in 2020 for other reasons, such as increased consumption of heated foods and beverages, home-based food preparation, and direct purchasing from retail stores. One of the most difficult challenges the Philippines’ food and beverage industry faces is ensuring a steady supply of raw materials. This is due to various factors, including climate change and high inflation.
Despite the challenges, demand for this sector will continue to rise as the Philippines enters the BER months. People are becoming more accustomed to leaving their homes to dine and party.
Retail Stores and Malls
The business landscape of the Philippines in 2022 will be vastly different from what we are used to seeing these past two years. The pandemic has changed how people live and work, and this will continue to be the case in the post-pandemic era.
The Philippines is expected to increase foot traffic in malls and parks this BER months due to the pent-up demand from the COVID-19 pandemic. Businesses should be prepared for this by ensuring that they have enough staff on hand to handle the increased customer volume. They should also have a plan in place for how to deal with any potential spikes in customer demand.
Conclusion: Plan and Forecast
This is just one of the many changes businesses will need to navigate in the post-pandemic world. Others include a shift in consumer spending patterns, an increase in e-commerce, and a change in how people work. The key for businesses is to be prepared for these changes and to adapt their strategies accordingly.
If you’re doing business in the Philippines, staying up-to-date on the latest changes is important. Doing so will ensure that you can remain competitive and continue to grow your business.
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