The Philippines is one of the fastest developing economies in Southeast Asia, with GDP projected to grow by 6.0% in 2019 according to the Asian Development Bank.
Rising consumer confidence, household income levels, employment rates, and overall favorable economic situation have contributed to excellent growth prospects for global fashion labels in the country.
According to leading market and consumer data provided Statista, the Philippines’ fashion industry revenue amounts to US$227m in 2019, with the apparel segment making up the largest contribution (US$155m) in market volume.
The “On-the-Go” Filipino Consumer
Discerning young and upwardly mobile Millennials and Gen Y consumers with more sophisticated tastes and higher disposable income have powered the growth of fast fashion giants H&M, Uniqlo, Zara, and Mango in the country. This is spurred on by the Filipino’s shopping mall lifestyle, the rise of e-commerce, and the increasing number of smart phone users.
Fashion bloggers and social media influencers have helped shape a highly aspirational market that continues to look for quality, value for money, and are not afraid to try new brands that will make them look good and elevate their social status.
Luxury brands are also slowly gaining momentum alongside the thriving casino and gaming industry that caters to wealthy locals and foreign tourists. Partnering with local distributors, brands such as Gucci, Prada, and Louis Vuitton now occupy big spaces in new megamalls and casino resorts.
Active lifestyle is also trending in the Philippines with more people living healthier lives. International travel has also become increasingly popular with Japan, Korea, and European destinations in the bucket lists of many Filipinos. As a result, fashion gear for winter, fall, and spring now has a market in a country where it’s almost perpetually summer.
Opportunities for Global Fashion Market Players
With this changing consumer mindset, here are some of the hottest international fashion businesses that will sure to do well in the Philippines:
- Activewear – top activewear brands such as Lululemon, FP Movement by Free People, and Kate Hudson’s Fabletics will definitely be a big hit for Pinoys who value fashion and fitness.
- Travel lifestyle accessories – demand for personal accessories such as bags and luggage, is fueled by the strong travel culture in the Philippines. The image-conscious Pinoy travelers love to travel in style with more premium luggage brands such as Samsonite, Tumi, Rimowa, and LV.
- Trendy statement accessories – individuality and self-expression are now “in” with the rise of bloggers and influencers. Eyewear, watches, handbags, jewellery, hair extensions and accessories worn by celebrities will soar high among the brand-conscious consumers.
- Gender-neutral apparel – while still a very conservative market, Filipino consumers are slowly embracing inclusivity and diversity. Leading androgynous labels like Wildfang, Nicopanda, and One DNA will find a niche in the local fashion market.
- Sustainable fashion – the concept of sustainable, ethical, and recyclable fashion is yet to take shape in the Filipino’s consciousness. However, the hunt for sustainable denim, sneakers and clothes will be the buzz in no time as a handful of local designers are leading the movement.
The Philippines offers excellent opportunities for international fashion brands to expand their businesses in the country. The key to success is in the ability to cater to the evolving consumer mindset that aspires for style, quality, value for money, and individuality.
