No matter how successful your business already is today, embracing future advances in technology and adjusting to socio-cultural shifts can open up new opportunities you may not have imagined. By proactively anticipating and adapting to these changes, you can ensure the sustainability and continued growth of your business.
Whether you’re ready or not, demographic shifts are now directly affecting how your business interacts with its customers. Getting a handle on these changes before your competition can be key to setting your business apart in the marketplace and, perhaps, positioning it for more growth ahead. Let’s look at some important demographic shifts in the Philippines that your business must begin adapting to:
1. Shifts in Age Distribution
An aging population or a surge in younger consumers can dramatically affect not just product demands but also preferred modes of payment. Older customers might seek healthcare products and services, preferring to pay for these in cash, while younger demographics may prioritize technology and fashion, choosing cashless alternatives.
Maya Business makes it easy to create payment experiences to cater to all demographic groups. With Maya QR, your business can unlock a world of secure and seamless contactless payments for today’s digitally savvy customers. Once you become a Maya Business user, you can offer convenient QR code payment over the Maya Checkout online payment gateway or on physical point-of-sale devices like the Maya Terminal. Each Maya QR payment QR code complies with the QR Ph standard, ensuring cross-compatibility across a broad range of Philippine-based banks and digital wallet providers.
Both older and younger demographics benefit from tech-driven payment methods like Maya QR. For younger customers, QR payments help speed up transactions without the effort or security issues of legacy cashless methods. For older customers, Maya QR can improve the ease of cashless payments, helping them digitally transform along with their younger counterparts.
2. Population Growth, Decline, and Distribution
For obvious reasons, fluctuations in population growth can affect consumer demand. Provided all other factors are equal, an area with a faster-growing population presents a more profitable market than one where growth has become stagnant. However, population growth seldom occurs in a vacuum. Growth and decline in a given area also tend to be connected to urbanization levels.
For example, in the Philippines, increasing migration to urban centers has begun to partly depopulate the countryside. As a result, certain businesses like urban retail and recreation are booming while farming and rural industries show patterns of decline. With the Philippines’ overall population growth rate now slowing down, businesses in both urban and rural areas must rethink the types of services and investments they make.
You can start accounting for population trends by using publicly available census info alongside sales and inventory data. To avoid the need to build physical stores in declining areas, invest in e-commerce platforms to reach customers throughout the country. Additionally, be sure to offer tech-driven payment methods like Maya QR and Maya online payment solutions to avoid the challenges of limited banking services in low-population areas.
3. Growing or Declining Income Levels
Changes in a population’s relative income levels directly influence purchasing power and consumer behavior. An increase in income levels may lead to higher demand for premium products, while a decline could shift demand towards budget-friendly options.
In the Philippines, in general, the trend is toward a growing middle class with increased purchasing power, which is driving demand for a broader range of products and services, including both premium and affordable options. According to data from the International Monetary Fund, the country’s GDP per capita will grow from around USD 4,130 in 2024 to USD 5,895 in 2029, indicating a significant increase in income levels in the short term.
Depending on your target market, offer products with the expected level of quality at a price that makes sense. If you’re pursuing a more general market, you can consider implementing loyalty programs and discounts to attract price-sensitive customers. Regardless of who you’re targeting, make sure you integrate online and offline Maya Business solutions so that they support Maya QR and other tech-driven payments.
4. Shifts in Household Composition
The Philippines has largely followed the general patterns of other countries that are rising economically, with families becoming smaller as education levels and incomes rise. These shifts in education and income have also increased the number of single-person households, as more people can support a household on a single income. This can shift demand in the quantity and types of goods bought. For instance, single-person households may prefer compact, smaller-capacity washing machines while families might prefer larger machines that can process bigger washloads.
Use your sales data to better understand the typical household composition of your market. If you’re mostly targeting smaller households, promote online shopping and home delivery services to better fit in with their typically busy schedules. Singles are also likely to prefer time-saving payments like QR Ph codes so ensure your e-commerce platform supports this digital payment option.
Keep Up with the Philippines’ Changing Demographic and Payment Landscapes
As the Philippines’ demographic shifts continue, businesses need to stay on top of how regular customers pay. With QR Ph codes fast becoming one of the most popular ways to pay, your business can’t afford to be left behind. Sign up for Maya Business to enjoy the benefits of Maya QR and other leading payment solutions.
Signing up for Maya Business automatically makes you eligible to open a Maya Business Deposit account for settling payments made through Maya QR and other Maya Business solutions. Every Maya Business Deposit account comes with an industry-leading 2.5% per annum interest rate, guaranteeing yearly earnings of PHP 25,000 on each PHP 1 million deposit. You also enjoy free InstaPay and PESONet transfers through Maya Business Deposit, giving you extra savings on payments to partners and suppliers.
Lastly, signing up for Maya Business instantly qualifies you for a Maya Flexi Loan after just 3 months. Maya Flexi Loan offers can be valued up to PHP 2 million, perfect for developing digital marketing and payment acceptance strategies that match the Philippines’ changing demographics. For better future loan offers, just use Maya as your primary processor for all wallet and card payments.
Send in your complete Maya Business application today to enjoy the convenience of Maya QR and other Maya Business solutions.
