In Filipino culture, the anticipation and excitement for the holiday season start early. The ‘Ber months”—September to December—are traditionally associated with the festive spirit of the holidays. Monthly sales surge during this time, peaking on repeating dates like 9.9, 10.10, 11.11, and 12.12. These specific dates, like 9.9 (September 9th), have emerged as major online shopping events, much like Black Friday in Western countries. Brands often roll out early holiday campaigns, discounts, and special product releases to capitalize on this festive spirit.
Nevertheless, the prevailing challenging economic conditions are anticipated to persistently affect consumer spending in 2023. According to a recent study, Filipino consumers are expected to persist in seeking cost-saving measures. RELEX Solutions, the market-leading supply chain and retail planning platform provider, offers insights to help retailers navigate the complex economic climate and evolving consumer behavior during the “Ber Months”, guiding businesses to maximize profitability while delivering exceptional value to customers.
E-commerce surged during the pandemic, but in-store shopping remains strong for its immediacy and quality assurance. Consumers now compare prices both online and offline to find the best deals. However, for retailers, determining prices and crafting effective promotional offers can be challenging. The traditional approach of A/B testing promotions can occasionally result in inefficient use of products and resources. Moreover, since promotional planning is frequently carried out manually, there is a significant risk of inadvertently setting low profit margins, ultimately reducing overall profitability, even in cases of increased in-store foot traffic.
Consumers have also been seen doing more bulk buying for savings. This surge necessitates robust inventory management that meets the rising demand and replenishes the stock accordingly. Retailers also have to determine the optimal discount for bulk purchases while balancing profitability and operational margins. Tailored promotions to cater to bulk buying customers may also be explored to increase competitive advantage compared to other retailers.
“As consumers leverage omnichannel to save up, Filipino retailers face challenges in manual inventory and promotion planning for both online and in-store,” shared Donald “DJ” Felbaum, Head of Sales for the Philippines at RELEX Solutions. “With the emergence of technologies like ChatGPT, retailers must consider artificial intelligence (AI)-powered solutions to streamline these processes and drive growth.”
AI can revolutionize retail operations by enhancing data quality through the integration of company databases and real-world insights. This customized and precise data foundation empowers retailers with a clearer understanding of their data’s potential impact. Consequently, retailers can significantly enhance various aspects of their operations, such as precise demand forecasting, efficient replenishment strategies, and optimized promotions, resulting in increased profits and minimized losses.