When it comes to the Philippines, it is not about technology so much as it is about mobile technology.
"The
younger segment of the population make up the new workforce. They have
the utmost need to be connected, updated, informed and entertained. In
most cases, they also have lower number of dependents. All these
characteristics point to stronger demand for anything mobile, whether
devices, services or applications,” says Jubert Alberto, Research
Manager, IDC Philippines.
IDC has
forecast that an expected increase of 22% on smartphone spending and
40% on tablet expenditure, coupled with rosy economy indicators, will
drive overall ICT spending in the Philippines in 2014. Apart from devices, ICT spending
starting this year will be impacted by other aspects of mobility, plus cloud, big
data/analytics and social business, as the Philippines embraces these
four key pillars of the 3rd platform, IDC said.
Usage
of these technologies is being driven by the need of companies for new
and effective ways to market and reach out to targeted customers, said
the research firm, as well as increasing ICT demand from small and
medium enterprises.
The following are some of the top predictions that IDC believes will have the biggest commercial impact on
the ICT industry in the Philippines in 2014:
Mobile data continues to drive telecom growth in the Philippines
Unlike in other Southeast Asian countries
where mobile data will only surpass mobile voice in terms of overall
size in 2014, mobile data will continue to drive the Philippines market.
Mobile data is expected to grow by 15%, with voice peaking at 7%.
Karen
Rondon-Garcia, Research Manager, IDC Philippines, commented:
“Popularity of mobile computing devices such as smartphones, mini
notebooks and tablets will increasingly translate to actual mobile data
usage especially as 3G and 4G coverage improve, and mobile operators
become creative in pricing their mobile data services.”
The smartphones and tablets craze will open up bigger opportunities in the 3rd platform space
IDC
forecasts 40% growth for tablet shipments to the Philippines in 2014.
It is also noteworthy that people in the Philippines patronise local
brands more often compared to their Asian neighbours. The country still has a lot of room for growth in the tablet space.
Jerome
Dominguez, Analyst, IDC Philippines says, “With the bullish tablet and
smartphone growth in the country, novel opportunities within the 3rd
platform space of social and mobility will increase - which businesses
can utilise to their advantage.”
4. Increasing integration of social media and mobility will give rise to new modes of consumption
With
the increase of smartphones and tablets in the Philippines, mobile
devices have become the preferred primary devices for consumers. Due to
this, social media and mobility have increasingly been integrated.
Cecilia Santos, Analyst, IDC Philippines, states, “In 2014, more organisations
will see the importance of having visibility in the mobile social
network and look for more creative ways of selling themselves to their
consumers through app partnerships.”
Mobile apps will go more “Pinoy*” than ever
Over
the past few years, Pinoy pride has become very apparent. This is
driving the need for a plethora of apps developed which have Pinoy
flavor and/or which are specific to Pinoy interests and customs. This
trend will be likely continue in 2014.
Geolocation will unlock opportunities for commerce
Filipinos
are increasingly letting their circles know about the places they
frequent, from restaurants, to hang out places to vacation spots through
social media. This trend has influenced IDC to forecast that
geolocation information will be the game changer in 2014.
Such
data could allow marketers to study the behaviour of current and
potential customers based on the places they frequent, their social
activities, and interests.
Pervasiveness of mCommerce and mobile banking will rise in 2014
mCommerce and mobile banking are not new to the Philippines. However,
the explosion of smartphone sales, coupled with expanding 3G coverage
and LTE roll out and improving affordability of mobile data services are
leading to demand for applications that allow mobile users to shop for
products and tickets, book taxis, and sample content among others.
The
growth in smartphone usage is also putting pressure on banks to provide
mobile banking services as more customers are demanding it for its
convenience.
Rondon-Garcia
adds, “Additionally, mobile banking is the easiest way for banks to
reach a larger population, and bridges the gap between banks and people
who have no access to traditional banking facilities, particularly in
agricultural areas.
"Furthermore, as online shopping becomes
increasingly popular, whether using a smartphone or a personal computer,
mobile wallets offered by mobile operators provide customers a means to
pay for online purchases even when they have no credit cards, PayPal or
bank accounts.”
More technology players in “next wave cities”
With
increased expansion of technology-dependent commercial activities
outside Metro Manila, IDC predicts a rise in IT spending across more
cities in the country: Sta. Rosa in
Laguna, Bacolod, Iloilo, Metro Cavite (Bacoor, Imus, and Dasmariñas),
Lipa in Batangas, Cagayan de Oro, Malolos in Bulacan, Baguio, and
Dumaguete.
*Pinoy is a term often used to describe something that is uniquely Filipino.
