Finance platform forecasts sales hike for electronics sold online

UnaCash, a prominent in-app and in-store financial solutions provider, is anticipating a significant surge in the share of electronics and gadgets purchased through e-commerce channels.

Projections indicate a robust 7.9% increase to reach a staggering ₱397.7 billion in sales for this category alone in the current year. This growth is attributed in part to the rising popularity of ‘buy now, pay later’ (BNPL) services, which are reshaping the landscape of online transactions.

The trend extends beyond electronics and gadgets, with other sectors also experiencing notable growth in e-commerce sales. The food and beverage industry is expected to reach ₱114.1 billion, marking an 11% increase, while appliances are projected to hit ₱100 billion (10%), and fashion and beauty products are estimated to reach ₱93.5 billion (8.5%). This diversification underscores the expanding reach and impact of e-commerce platforms in the Philippine market.

The success of the electronics and gadgets segment in e-commerce underscores the symbiotic relationship between BNPL services and online shopping. The adoption of BNPL services has led to an expanded customer base, with 12% of Filipino internet users utilizing BNPL for their online purchases on a weekly basis. This trend reflects the growing acceptance and popularity of these innovative financial solutions within the local market.

Analysis of online shopping patterns reveals interesting insights into consumer preferences and behavior. Fashion emerges as the top category, accounting for 65% of purchases, followed by beauty and personal care at 47%, and food and beverage at 35%. The 25-34 age group emerges as the largest user demographic of e-commerce platforms, comprising 32.8% of users.

While these categories enjoy high consumer engagement, the market share varies, with electronics, gadgets, and physical media leading at 45%, followed by food and personal hygiene at 25%, furniture and appliances at 16%, and fashion at 10%.

UnaCash’s data for February 2024 sheds light on the prevalent trends in online shopping behavior. A significant 70.17% of purchases made through the platform are for electronics and gadgets, aligning with a survey that indicates 61% of respondents use BNPL for purchasing electronics and gadgets, followed closely by fashion and accessories at 55%. These findings mirror the key online shopping categories, illustrating the natural synergy between BNPL services and e-commerce platforms.

Erwin Ocampo, head of product at UnaCash, emphasizes the pivotal role of BNPL services in shaping the future of e-commerce in the Philippines. He notes that the development of BNPL services will be intricately linked to the growth of online transactions in categories such as electronics, gadgets, furniture, home appliances, food, fashion, and beauty products.

The evolving consumer preferences and the seamless integration of BNPL services into the e-commerce ecosystem point towards a promising future for solution providers like UnaCash in 2024 and beyond.