HomeTech NewsThe Rise of Superapps in the Philippines: A New Era in Digital Economy
The Rise of Superapps in the Philippines: A New Era in Digital Economy
November 10, 2023
The digital landscape in the Philippines is undergoing a significant transformation, driven by the burgeoning superapp economy. Superapps, which consolidate multiple services and solutions within a single platform, are rapidly gaining traction among Filipino consumers. This trend is particularly evident in sectors such as payments, peer-to-peer lending, and investments.
The Philippines’ digital economy is on a robust growth trajectory, with projections indicating a market value of US$35 billion by 2025, and an impressive compound annual growth rate (CAGR) of 209%. This growth is underpinned by a 69% internet penetration rate and an expansion of digital services to smaller cities across the country. The rise in social media use and a shift towards online purchasing behaviors are also notable, with nearly 63% of Filipino consumers now engaging in e-commerce transactions through mobile applications. Key sectors poised for growth include e-commerce, streaming, and food delivery, with e-commerce alone expected to expand at a CAGR of 17% from 2022 to 2025.
Andrew Male, Client Partner for ASEAN at Publicis Sapient, highlights the untapped potential in the banking sector, noting that 63% of the Philippine population remains unbanked. With mobile users spending over five hours daily on their smartphones, superapps present a significant opportunity for revolutionizing digital financial services in the country. Publicis Sapient is keen on leveraging this potential to foster growth in the digital-first economy of the Philippines.
To capitalize on this opportunity, organizations are advised to focus on developing a winning proposition. This involves establishing clear commercial objectives for the superapp, whether it’s market growth or defense. Critical factors include targeting specific client segments, forming strategic partnerships, and devising a viable economic and regulatory strategy. The technology aspect requires careful consideration of platform capabilities and architecture to determine the essential components and the balance between building, buying, or reusing technology.
Creating a Minimum Viable Product (MVP) is another crucial step. Organizations should adopt a customer-centric approach, connecting various touchpoints across the customer journey. This involves identifying and addressing pain points through data-driven insights and delivering maximum value. An iterative approach to MVP development is recommended, with rapid prototyping and market testing to gather feedback and make necessary improvements.
Leveraging AI and ML for personalized experiences is also key. Understanding customer behavior and preferences is crucial for creating personalized recommendations and services. This can be achieved through analyzing data such as purchase history, browsing behavior, and search queries. The goal is to build hyper-personalized recommendation systems that predict consumption patterns and analyze customer activity, thereby increasing engagement and loyalty.
As consumers increasingly seek personalized and convenient experiences, superapps emerge as an ideal solution for transforming the mobile and digital user experience. They offer a comprehensive suite of tools for various tasks and services, marking a significant shift in the Philippines’ digital economy.