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Starting October 2025, the UK government will impose a watershed ban on junk food advertising before 9 pm, a move that will significantly alter how food and beverage brands market to consumers. The ban, covering both TV and paid online ads, targets high-fat, salt, and sugar (HFSS) products to address rising childhood obesity.

According to government statistics, more than one in five children in England are classified as overweight or obese by the time they start primary school—a figure that climbs to more than one in three by the time they leave. These numbers highlight a growing public health crisis that is increasingly linked to the pervasive influence of advertising.

UK’s public health minister, Andrew Gwynne, emphasised that these restrictions protect children from ads that “influence their dietary preferences from a young age.” Evidence supports this concern; research shows that children exposed to high volumes of junk food advertising are likely to make unhealthy food choices, contributing to poor eating habits early in life. Brands have long relied on marketing to drive consumerism, but the upcoming ban marks a decisive shift in the relationship between advertising and consumer health. As the government moves to regulate how food is promoted, brands must rethink their strategies and explore new ways to engage with audiences in a more health-conscious marketplace.

This isn’t the first time the UK government has introduced measures to reduce junk food consumption. The sugar tax of 2016 successfully prompted a reformulation of many sugary beverages, cutting 45,000 tonnes of sugar from drinks sold in Britain by 2019. With stricter advertising rules on the horizon, we’re likely to see further changes in how products are marketed—and even manufactured—as companies adjust to a regulatory landscape that places public health at the forefront. The question is no longer whether brands will adapt but how they will do so in a world where consumer behaviour and advertising standards are evolving rapidly.

Obesity in the UK

The issue of childhood obesity in the UK is complex and urgent. It is driven by various factors that extend beyond individual choices. Dietary habits are shaped by societal influences, with advertising playing a major role in promoting unhealthy food.

Children are frequently exposed to persuasive advertising that glamorises junk food, complicating efforts by parents and schools to promote healthier alternatives. Addressing childhood obesity requires not only personal responsibility but also systemic change, starting with reducing the exposure of young people to harmful food marketing practices.

The link between advertising and childhood eating habits is well-documented. Studies have shown that children exposed to high volumes of junk food advertisements are more likely to develop unhealthy eating preferences. Research published by Public Health England highlights that advertising significantly shapes children’s food choices, often leading them to favour products high in fat, salt, and sugar. This direct correlation between ad exposure and dietary behaviour supports the UK government’s decision to introduce more stringent regulations on how unhealthy foods are marketed to young audiences.

Consumerism has long been driven by targeted advertising, and the food and beverage industry has historically capitalised on this. In the UK, junk food ads are a powerful tool in influencing consumer behaviour, especially among younger audiences. Fast food, sugary drinks, and processed snacks are often portrayed as convenient, fun, and affordable, making them appealing to children and their parents. The repetitive nature of these ads reinforces unhealthy food choices, contributing to the nation’s growing obesity crisis. By limiting children’s exposure to junk food advertising, the new regulations aim to disrupt this cycle of consumerism that has favoured quick, unhealthy options over balanced, nutritious meals.

Government Interventions: Global Case Studies

Government interventions in advertising have a track record of significantly altering consumer behaviour and reshaping industries. In the UK and globally, regulations on tobacco, sugar, and alcohol advertising have shown the power of targeted policies to reduce harmful consumption. These examples offer important lessons for the upcoming UK junk food advertising ban.

Tobacco Advertising Ban (UK, 2003)

The UK’s ban on tobacco advertising in 2003 was a pivotal moment in public health policy. Before the ban, tobacco ads were pervasive across multiple media platforms, promoting smoking as a lifestyle choice. Once the ban took effect, smoking rates began to decline, especially among younger demographics.

According to data from Cancer Research UK, smoking rates among adults dropped from 27% in 2003 to 16% by 2018, and by 2022, this figure had further decreased to 12.9%, showing a continued decline in smoking prevalence. The restrictions pushed tobacco companies to focus on non-traditional strategies like brand sponsorships and retail displays until further regulations closed these loopholes. The industry’s adaptation underscored the resilience of brands under strict marketing limits, although their direct influence on consumer habits was notably reduced.

Sugar Tax (UK, 2016)

In 2016, the UK introduced a sugar tax to reduce the sugar content in soft drinks. The levy prompted major beverage companies to reformulate their products to lower sugar levels to avoid the tax. By 2019, Public Health England reported that the sugar content in affected drinks had dropped by 28.8%, removing roughly 45,000 tonnes of sugar from the UK’s beverage supply. This regulatory intervention successfully shifted consumer preferences towards healthier, lower-sugar drinks as brands introduced new product lines and marketed reformulated versions of existing drinks. The sugar tax demonstrated that fiscal policies and public health campaigns could directly influence industry practices and consumer behaviour.

Alcohol Advertising Restrictions (Norway)

Norway has long imposed strict regulations on alcohol advertising, including a near-total ban on television ads for alcoholic beverages. These restrictions, implemented to curb alcohol consumption, have been credited with contributing to a gradual decline in drinking rates, particularly among younger populations. A study from the Norwegian Institute of Public Health noted a marked decrease in alcohol consumption among youth over the past two decades, with the market shifting toward low-alcohol and alcohol-free alternatives. The success of Norway’s restrictions highlights how limiting advertising can directly affect consumption habits, pushing brands to innovate within the bounds of the law.

Portugal’s Junk Food Restrictions

In 2019, Portugal introduced restrictions on unhealthy food advertising aimed at children under 16, banning ads for sugary snacks, fast food, and soft drinks during specific TV programs. The regulations resulted in 94% compliance in TV advertising, according to the Directorate-General for Health (DGS). However, online advertising remains challenging, with infractions still being detected, especially on digital platforms. Although these restrictions have contributed to a decrease in children’s exposure to unhealthy food ads, violations in digital advertising have highlighted the need for stricter enforcement online. Furthermore, some brands have responded by reformulating products like yoghurts and cereals to comply with the new health standards. The early results suggest that targeted advertising restrictions can influence consumer behaviour, steering younger audiences toward healthier food choices.

European Union

In 2023, the European Union published a report recommending that member states adopt similar restrictions on junk food advertising aimed at children across all media platforms. The EU’s push aligns with growing global recognition of the role that advertising plays in childhood obesity. Although the policy has yet to be formally adopted by the European Parliament, if implemented, it would likely follow the trend seen in countries like the UK and Portugal. The EU’s recommendations suggest that reducing exposure to junk food ads could play a key role in shaping healthier food environments for children across Europe, with ripple effects likely to be felt in consumerism and brand strategy.

Defining Junk Food Under the UK Ban

The UK government’s upcoming ban on junk food advertising hinges on a clear classification system to determine which products fall under its restrictions. The focus is on products considered high in fat, salt, and sugar (HFSS), with a two-part classification system to identify which items are deemed “junk food” under the ban.

Criteria for HFSS Products

Products categorised as HFSS are based on a scoring system developed by the UK government, which evaluates their nutritional content. The classification process involves:

Nutritional Content Analysis: Each product is scored on its levels of fat, salt, sugar, and protein. Higher scores indicate a product is “less healthy” and thus subject to advertising restrictions.
Categorical Classification: Products are then grouped into specific categories commonly associated with unhealthy diets. These categories primarily target foods and beverages that contribute to childhood obesity.

List of Affected Categories

The ban will affect products across 13 categories widely consumed and marketed to children. These include:

Category	Examples	Exemptions
Soft Drinks	Cola, Lemonade, Fruit Juice, Smoothies
Savory Snacks	Crisps, Crackers, Rice Cakes	Flavored nuts, dried fruit, jerky
Cakes and Cupcakes	Doughnuts, Éclairs
Ready Meals	Sandwiches, Burgers
Baby Food & Formula		Exempt for child nutrition purposes

This classification system ensures that the ban targets the foods most linked to unhealthy diets while exempting products that serve essential health and nutritional purposes. For brands, understanding these criteria is crucial for navigating the new regulations, as reformulating products to fall outside the HFSS threshold may allow them to continue advertising even after the ban is implemented.

Impact on the Food and Beverage Industry

The upcoming UK ban on junk food advertising is set to impact the food and beverage industry both immediately and long-term. For brands that rely heavily on advertising high-fat, high-sugar, and high-salt (HFSS) products, this regulatory shift will force a significant rethink of their marketing strategies while also spurring innovation in product reformulation.

Short-Term Effects

The ban will fundamentally reshape how brands approach their advertising efforts in the short term. With TV and paid online ads restricted before 9 pm, companies must pivot to non-traditional marketing channels. This includes:

Social Media and Influencer Marketing: Brands are likely to invest more heavily in organic and influencer-driven campaigns on social media platforms, where paid ad restrictions are less stringent, provided they don’t promote HFSS products directly to children.
Experiential and Content Marketing: Companies will increasingly turn to experiential marketing events and content-driven campaigns, focusing on engaging consumers through brand experiences emphasising health, wellness, and lifestyle rather than direct product promotion.
Targeting Adult Consumers: Another strategy will be shifting the focus of advertising campaigns to target adult audiences during post-watershed hours, allowing brands to maintain visibility without violating the ban.

However, brands that fail to adapt quickly may face reduced market visibility as they lose the ability to target younger audiences directly through traditional channels.

Long-Term Effects

Over time, the ban will push brands toward product reformulation and innovation. Reformulating existing products to meet healthier nutritional standards allows companies to avoid being classified as HFSS and continue advertising across all platforms. As consumer demand increasingly trends toward healthier options, brands that innovate in this space stand to benefit from the shift.

Healthier Alternatives: Companies will explore creating new product lines or improving the nutritional content of their core offerings by reducing sugar, fat, and salt. This may lead to a wave of healthier snack options, ready meals, and beverages that meet government standards while appealing to health-conscious consumers.
Building Brand Loyalty: Brands that successfully reformulate products and introduce healthier alternatives can build long-term loyalty among consumers, particularly parents seeking more nutritious options for their children.

Case Study on Product Reformulation

A prime example of how brands have responded to regulatory pressure is the UK’s sugar tax, implemented in 2016. This levy, aimed at reducing the sugar content in soft drinks, led to widespread product reformulation. Major beverage companies like Coca-Cola and PepsiCo adjusted their recipes to lower sugar levels to avoid the tax, resulting in a reduction of 28.8% in the sugar content of affected drinks by 2019, according to Public Health England.

The consumer response to reformulated products has mainly been positive. Studies found that consumers gradually adapted to lower-sugar drinks, with many preferring them over time. Furthermore, sales of sugar-free and low-sugar alternatives surged in the years following the implementation of the tax, illustrating that brands can retain consumer loyalty and even grow market share by embracing product reformulation.

Similar outcomes have been observed in other countries where advertising restrictions or nutritional policies have prompted reformulation. In Norway, for example, alcohol companies responded to advertising bans by introducing low-alcohol and alcohol-free products, which have seen a steady rise in popularity. This demonstrates that reformulation, when done thoughtfully, can drive greater consumer acceptance and long-term brand success, even in the face of regulatory challenges.

The UK junk food ad ban is likely to accelerate these trends, driving innovation across the food and beverage industry as brands work to align their offerings with both regulatory standards and evolving consumer expectations.

Impact on Advertising and Expected Financial Loss

As HFSS brands lose access to traditional marketing channels, particularly during prime-time TV, the revenue loss for broadcasters and digital platforms is expected to be substantial. At the same time, these brands will need to reallocate their marketing budgets, shifting focus to alternative channels that are less restricted by the new regulations.

Financial Impact on the Advertising Industry

The financial fallout from the ban is expected to be considerable. According to estimates from industry analysts, junk food advertising in the UK currently accounts for a significant portion of total advertising revenue on television and digital platforms. Data from the Advertising Association suggests that the junk food sector spends around £200 million annually on TV ads alone. The upcoming restrictions could reduce TV advertising revenue by as much as 50% for HFSS brands, as they lose access to key time slots before 9 pm.

A study by Enders Analysis predicts that total advertising revenue across television and online platforms could drop by approximately £150 million annually once the ban is fully implemented. This decline is expected to hit commercial broadcasters the hardest, as prime-time ad slots will no longer be available to HFSS brands, and they will need to fill those spots with lower-revenue advertisers.

In addition to television, digital platforms that rely on paid-for advertising from HFSS brands are also expected to see a decline in revenue. As paid online ads are prohibited, brands will have fewer opportunities to promote products directly to consumers, leading to a drop in advertising spending on these platforms.

Advertising Strategy Shifts

With traditional channels restricted, HFSS brands are already exploring new avenues to maintain visibility and reach their target audiences. Shifts toward alternative marketing strategies are underway, with brands increasingly turning to channels unaffected by the ban.

Social Media and Influencer Partnerships: One of the primary areas of focus for HFSS brands has increasingly been social media marketing. Platforms like Instagram, YouTube, and TikTok allow brands to engage with audiences through organic content and influencer partnerships. Collaborating with influencers allows brands to create more personal content, bypassing traditional advertising restrictions. The global influencer marketing industry has seen significant growth, with a valuation of approximately $21.1 billion in 2023, and it’s projected to grow to $24 billion by the end of 2024. Food and beverage brands remain top spenders in this space, leveraging the power of influencers to maintain visibility, especially as the UK’s junk food advertising ban looms. This form of marketing is poised to keep growing as brands pivot to influencer-led strategies to connect with target audiences.
Experiential Marketing: HFSS brands also invest in experiential marketing, which focuses on creating memorable, in-person (or virtual) experiences that consumers can engage with. These strategies range from pop-up events and branded experiences to immersive digital interactions that connect with consumers on a deeper level. Brands shifting toward experiential marketing are finding it a valuable way to build loyalty and maintain relevance, even as traditional advertising opportunities shrink.

Case Studies: Transitioning from Traditional Advertising

Countries like Norway and Portugal, which have imposed similar restrictions on advertising for unhealthy products, offer insight into how brands can successfully pivot.

Norway: When Norway banned alcohol advertising, brands quickly moved to capitalise on social media and influencer-driven content. Beverage companies introduced low-alcohol and alcohol-free versions of their products, promoting these new offerings through influencers and engaging online communities. By targeting consumers through platforms that were not restricted, brands could mitigate the advertising ban’s financial impact and maintain strong consumer engagement.
Portugal: In Portugal, where junk food ads targeting children during key TV hours have been restricted since 2019, brands shifted their focus toward social media and digital content. Instead of relying solely on TV ads, food and beverage companies began creating online campaigns that featured health-conscious messaging and brand values. This transition allowed brands to continue marketing their products without violating the new regulations while aligning with a growing consumer preference for healthier options.

The ability of HFSS brands in these countries to adapt to stricter regulations demonstrates that alternative marketing channels can effectively maintain consumer engagement and market presence. As the UK prepares for its own restrictions, brands that successfully leverage social media, influencers, and experiential marketing will likely fare better in a post-ban advertising landscape.

Long-Term Consumer Behavior and Health Impacts

The long-term effects of the UK’s junk food advertising ban are expected to ripple through consumer behaviours, particularly among younger generations. By limiting their exposure to HFSS advertising, the government hopes to foster a shift in food preferences that could lead to healthier diets. Research from other countries that have implemented similar restrictions suggests that reducing junk food advertising can significantly alter both short-term consumption habits and long-term dietary choices.

Predicted Consumer Shifts

One of the primary objectives of the UK’s ban is to reduce the influence of junk food advertising on children and adolescents. Studies consistently show that advertising plays a significant role in shaping young consumers’ food preferences. By curbing their exposure to ads for high-fat, high-sugar products, the hope is that children will be less inclined to favor these items, leading to healthier food choices as they grow older.

International case studies provide compelling evidence for this outcome. In Norway, where advertising for unhealthy foods targeting children has been restricted for years, there has been a notable decrease in junk food consumption among young people. A Norwegian Institute of Public Health study found that children exposed to fewer food ads developed a stronger preference for fruits, vegetables, and other healthier options. This shift in dietary behaviour improved health outcomes and contributed to the decline in childhood obesity rates in the country.

Similarly, Portugal’s restrictions on junk food advertising during children’s programming have shown early success. Initial data from the Portuguese Association for Consumer Protection indicated that children’s requests for sugary snacks and fast food have declined since the restrictions were implemented. Over time, these trends suggest that reducing ad exposure can lead to a generational shift in consumer preferences as healthier food options become more normalised.

In the UK, younger generations with less exposure to junk food advertising may experience similar shifts. As brands are forced to re-evaluate their marketing strategies, there will likely be a greater emphasis on promoting healthier alternatives. These changes could help shape healthier eating habits in children, which could carry forward into adulthood.

Consumer Demand for Healthier Products

Beyond advertising restrictions, there is already a broader trend of increasing health consciousness among consumers, particularly in the food and beverage sector. Even without regulatory pressure, brands are feeling the push to offer healthier alternatives as consumer demand shifts toward products perceived as better for overall well-being.

According to research, 55% of UK consumers say they are actively looking for products that help them live a healthier lifestyle. This growing demand has pushed brands to respond by developing and promoting lower-calorie, lower-sugar, and more nutritionally balanced offerings.

The 2016 sugar tax offered an early look at how brands can successfully navigate such shifts. Many beverage companies reformulated their products to reduce sugar content and introduced entirely new lines of low-sugar and sugar-free drinks. This increased sales for healthier alternatives, demonstrating that consumer demand for wellness-oriented products is strong and continues to grow.

The UK junk food ad ban is likely to accelerate this trend. As HFSS brands lose access to traditional advertising channels, they will be incentivised to create healthier products that meet evolving consumer expectations. Brands that fail to innovate risk losing market share to competitors who are better aligned with health-conscious consumers. Additionally, younger generations, who are growing up in an era of increased awareness about the impact of diet on health, are more likely to prioritise nutritious food options, further pushing the market toward healthier alternatives.

In the long term, the combination of regulatory action and shifting consumer values could lead to a significant transformation in the food and beverage industry. As brands embrace reformulation and new product development, consumers will have access to a broader range of healthier choices, reshaping individual diets and the overall landscape of food consumption in the UK. This shift, driven by consumer demand and government intervention, could be a pivotal moment in the fight against obesity and diet-related health issues.

What Can Brands Do to Adapt?

As the UK prepares to implement the junk food advertising ban in 2025, food and beverage brands face a pivotal moment. Rather than viewing these new regulations as an obstacle, forward-thinking companies can see them as an opportunity to innovate, reformulate, and engage in meaningful corporate social responsibility (CSR) initiatives. Those that adapt effectively stand to maintain consumer loyalty, align with evolving market trends, and even gain a competitive edge.

Reformulation and Innovation

One of the most immediate and impactful strategies for brands is product reformulation. By reducing the levels of fat, salt, and sugar in their products, companies can avoid having their offerings classified as HFSS. This would allow them to continue advertising before the 9 pm watershed and through paid online ads. Reformulation also helps brands meet growing consumer demand for healthier alternatives, particularly as health-consciousness continues to rise across the UK.

Beyond simply reducing unhealthy ingredients, brands also have the opportunity to innovate by developing entirely new product lines that cater to healthier lifestyles. This could involve creating snacks focusing on whole grains, natural ingredients, and low-calorie alternatives. Brands that proactively develop these products could see a boost in market share, particularly as consumer preferences shift toward health and wellness.

Corporate Social Responsibility (CSR) and Health Initiatives

Brands can also adapt by aligning themselves with public health campaigns and engaging in CSR efforts that promote healthier lifestyles. Taking a proactive approach to corporate responsibility helps mitigate the potential negative impact of the advertising ban, enhances brand reputation, and builds trust with consumers.

For example, fast-food chains and snack companies could sponsor initiatives focused on reducing childhood obesity or increasing access to nutritious foods in schools and underserved communities. By engaging in CSR efforts and demonstrating a commitment to public health, brands can position themselves as part of the solution rather than the problem.

CSR initiatives also allow brands to continue marketing their products without violating advertising restrictions. Public health campaigns, NGO partnerships, or educational programs emphasising nutrition and wellness can provide valuable visibility while aligning the brand with positive social outcomes.

The Role of Market Research in Helping Brands Adapt

As the UK’s junk food advertising ban approaches, market research will be pivotal in helping brands navigate these new regulations. From reformulating products to understanding consumer attitudes and optimising packaging, market research provides the data-driven insights that brands need to remain competitive. Here’s how it can help brands successfully adapt.

Identifying Reformulation Opportunities

Reformulating products to reduce fat, sugar, and salt while maintaining taste and appeal is a significant challenge for brands. Market research can help identify which ingredients consumers are most concerned about and how they respond to different reformulation efforts. Through surveys and focus groups, brands can assess which attributes (such as sweetness, texture, or flavour) matter most to their target audience, allowing for more strategic reformulation efforts.

Additionally, competitive analysis through market research enables brands to benchmark their reformulated products against competitors. By evaluating how competitors have succeeded with healthier product versions, brands can better position their offerings and make more informed decisions about taste and nutritional changes, ensuring they meet market expectations without compromising quality.

Testing New Product Ideas

Before introducing reformulated products or launching new, healthier alternatives, brands must validate these changes through product testing. Market research methods such as focus groups, taste tests, and online surveys allow brands to collect valuable feedback on new formulations, ensuring they resonate with consumer preferences.

This process of prototyping and iteration is essential, particularly when making significant changes to flavour profiles or nutritional content. Product testing allows brands to fine-tune recipes, ensuring that the new version not only complies with HFSS guidelines but also meets the expectations of both existing customers and new health-conscious consumers.

Reevaluating Packaging Design

As reformulated products hit the market, packaging becomes critical to communicating new health benefits and aligning with consumer values. Market research can guide brands in reevaluating their packaging to ensure it reflects the healthier direction of their products. This could involve:

Packaging Testing: Research techniques such as A/B testing or eye-tracking studies can measure consumer responses to different packaging designs, colours, and messaging, helping brands identify which packaging is most likely to attract health-conscious shoppers.
Health Claims and Messaging: Market research can help brands determine how to best communicate changes in product ingredients. Packaging that highlights “low sugar” or “reduced salt” needs to resonate with consumers, and testing these claims ensures they are effective without overwhelming the customer.

In a market that increasingly values transparency, packaging must catch the consumer’s eye and communicate the product’s health benefits in a way that feels authentic and informative.

Understanding Consumer Attitudes Toward Health and Wellness

As health and wellness become central to consumer behaviour, market research can provide valuable insights into these shifting attitudes. Surveys and interviews help brands understand what factors drive consumer choices—whether it’s a preference for low-calorie options, clean ingredients, or eco-friendly packaging.

Behavioural studies can track how consumer demand for healthier products is evolving, revealing new opportunities for brands to align their offerings with these trends. For example, research might show that consumers are more likely to purchase products labelled as “natural” or “free from artificial ingredients,” giving brands clear direction on how to position reformulated products.

Evaluating Marketing Effectiveness

Once products are reformulated and packaging is redesigned, market research can help brands evaluate the effectiveness of their marketing strategies. This includes:

Ad Testing and Messaging: Testing which health-focused messages resonate best with target audiences helps brands fine-tune their advertising, ensuring consumers understand the benefits of reformulated products, even when traditional junk food advertising channels are no longer available.
Social Listening: Tools that monitor consumer sentiment on social media can provide real-time insights into how well new products are received. This allows brands to adjust their messaging or strategies based on consumer feedback.

Through targeted research, brands can not only adapt to regulatory changes but also seize opportunities for innovation, ensuring that reformulated products, new packaging, and marketing strategies meet consumer expectations and thrive in the evolving marketplace.

Seizing the Opportunity: The Future of Food and Beverage in a Health-Conscious World

The UK’s ban on junk food advertising before 9 pm, set to take effect in October 2025, is a clear signal that the industry must evolve. For brands, this isn’t merely a compliance issue—it’s an opportunity to align with the growing consumer demand for healthier, more transparent products. Those who can adapt quickly, innovate thoughtfully, and embrace this health-conscious shift will find themselves well-positioned for long-term success.

Key Takeaways for Brands

To thrive in this new regulatory landscape, brands must focus on proactive reformulation, effective communication, and strategic marketing. Reformulating products to meet government health standards isn’t just about avoiding restrictions; it’s about tapping into a rapidly growing market for wellness-oriented foods and beverages. Packaging and messaging must be reimagined to emphasise transparency and health benefits in a way that resonates with modern consumers.

The rise in health consciousness allows brands to lead, not follow. Consumers actively seek products that contribute to their well-being, and brands that take the initiative to create healthier options while maintaining taste and quality will likely gain an edge over competitors.

The Future of the Food and Beverage Industry

The food and beverage industry is poised for a transformation. As regulatory pressures mount—not just in the UK but globally—brands will be forced to rethink how they produce, package, and market their products. We can expect to see a surge in product innovation as companies experiment with lower-fat, lower-sugar, and cleaner-label alternatives. Additionally, the demand for transparency in labelling and packaging will only grow stronger, with consumers prioritising brands that align with their personal health goals.

Beyond product changes, the way brands communicate with consumers will also evolve. Traditional advertising avenues may shrink, but digital platforms, influencer marketing, and experiential campaigns will take centre stage, offering brands new ways to build relationships and foster loyalty in an increasingly health-driven marketplace.

With the ban on HFSS product advertising looming, the time for brands to act is now. The window to begin reformulating, testing, and repositioning products is closing rapidly. Waiting until the last minute to comply could mean losing valuable market share to competitors who have already embraced the shift toward health-conscious consumerism.

The brands that will succeed in this new environment are those that don’t just react to regulation but anticipate and shape the future of the industry. Now is the moment for innovation, adaptation, and leadership—those that seize this opportunity will find themselves leading the charge in a market defined by wellness and responsibility.

The grooming industry for men in Thailand is driven by cultural influences, evolving consumer behaviours, and economic growth.

Gone are the days of male grooming defined by Gillette razors in black packaging with neon accents. In the past, it was assumed men cared little about self-care, and grooming products were designed for convenience over quality.

Fast-forward to today, and the male grooming market has evolved significantly. Thanks to shifting perceptions of masculinity, the rise of social media, and influential male figures, self-care and self-expression are now integral to modern masculinity. Thai men are embracing skincare, cosmetics, and grooming routines as essential parts of their daily routines, driving a wave of innovation and growth in the industry. Brands have adapted, focusing on effective ingredients and gender-neutral packaging. Today’s male grooming industry is not just about appearance but also empowerment, fueled by education and evolving cultural norms.

This trend mirrors the global growth in male grooming, projected to reach $115 billion by 2028, up from $80 billion in 2022, according to Statista. Thailand is a key player in this expanding market, influenced by unique local preferences and international trends. Within Asia, Japan, South Korea, and Thailand are the top men’s beauty products consumers.

Worldwide Beauty Trends and Its Impact on Thailand

The global male grooming market has evolved from basic hygiene products to a broader range of skincare, cosmetics, and grooming tools. In Western markets, men are increasingly experimenting with products to enhance their appearance and well-being. Brands like The Ordinary and Fenty Beauty have embraced gender-neutral packaging and a focus on efficacy, allowing men to participate in self-care without the constraints of traditional gender norms.

The Bangkok Post reports about one-third of Thai men between 25 and 34 have purchased foundation or lipstick within the last year.

Thailand reflects many of these global trends but with distinct local influences. Thai men, particularly in urban areas like Bangkok, are heavily influenced by K-pop and J-pop culture, where male idols have redefined beauty standards. This has driven demand for BB creams, facial masks, and subtle cosmetics. While gender-neutral branding is gaining traction globally, Thai brands often still associate grooming products with traditional gender roles. However, this is changing as younger generations embrace more diverse grooming practices, blending global influences with local preferences.

Image Source: Instagram

Thailand’s Male Grooming Market

Market Overview

Thailand’s male grooming market is thriving, driven by changing perceptions of masculinity, the influence of pop culture, and growing awareness of personal grooming as part of overall health and well-being. Men are increasingly adopting skincare routines and cosmetics traditionally associated with women, with younger generations viewing grooming as essential to self-care and self-expression.

Thailand’s dynamic consumer market supports this growth. Urban centres like Bangkok have become hubs for male grooming trends fueled by a young, tech-savvy population. E-commerce platforms like Lazada and Shopee have made it easier for men across Thailand to access a wide range of grooming products, contributing to rapid market expansion.

Market Growth and Demand

Thailand’s male grooming market is projected to grow significantly. The Asia-Pacific male grooming market, which includes Thailand, is expected to reach $26.7 billion by 2030, with a compound annual growth rate (CAGR) of 7.7%. In Thailand, this growth is particularly evident in the skincare segment, with products like cleansers, moisturisers, and sunscreens becoming staples in men’s daily routines.

E-commerce has been crucial in expanding the market, making premium and niche products more accessible to men nationwide, including in rural areas. The growing number of male grooming salons and barbershops in urban areas reflects the increasing demand for professional grooming services, further driving market growth.

Consumer Demographics

Thai male grooming consumers are diverse, with urban men, particularly in Bangkok, leading the trend. These consumers, typically aged 18 to 35, are influenced by global beauty trends, social media, and celebrity endorsements. They are also more willing to invest in premium grooming products, viewing them as essential to maintaining their appearance and well-being.

In contrast, rural male consumers focus more on practicality and affordability. While demand for grooming products is growing in these areas, it is often driven by basic hygiene needs. However, with the rise of e-commerce, even rural consumers are exploring more advanced grooming options as they become more accessible.

Income levels also play a significant role in shaping grooming habits. Higher-income consumers tend to gravitate toward premium products, while middle and lower-income consumers focus on affordable yet effective options. However, across all income levels, there is a growing awareness of the importance of grooming, driven by social media influence and peer pressure.

Cultural Shifts and Influences in Thailand

Redefining Masculinity

Thailand’s younger generation is leading a cultural shift in perceptions of masculinity. Grooming is no longer seen as compromising one’s masculinity but as an essential aspect of self-care and confidence. Social media platforms like TikTok and Instagram play a pivotal role in this shift by giving visibility to men who embrace grooming as part of their identity, further normalising these behaviours. This growing acceptance of self-expression through grooming reflects a broader trend in which traditional gender norms are being redefined.

Influence of K-pop and J-pop

Regional pop culture, particularly from South Korea and Japan, has significantly influenced male grooming trends in Thailand. K-pop idols like BTS and EXO have set new standards of modern masculinity with flawless skin and polished looks, inspiring Thai men to adopt similar grooming routines. Products like BB creams, light foundations, and skincare routines that emphasise achieving the “glass skin” look are particularly popular among Thai men influenced by these trends.

Similarly, J-pop idols and actors are admired for their meticulous grooming, contributing to more sophisticated habits among Thai men. These pop culture icons have made grooming an integral part of self-expression for many Thai men, blending global beauty trends with local cultural norms.

Local Celebrity Endorsements

Local Thai celebrities also play a crucial role in shaping male grooming trends. Actors and singers like Mario Maurer and Nadech Kugimiya have become powerful advocates for grooming products, using their influence to promote a more modern and diverse view of masculinity. These campaigns have broken down traditional gender barriers, encouraging Thai men to invest in their appearance.

For example, Mario Maurer’s endorsements for various skincare brands have resonated with Thai men, who see him as a relatable figure. Similarly, Nadech Kugimiya’s campaigns for premium skincare products have helped elevate the market, making higher-quality grooming solutions more aspirational and accessible to a wider audience.

The Role of Male Beauty Influencers in Thailand’s Grooming Boom

Male beauty influencers are increasingly driving the male grooming market in Thailand, using platforms like Instagram, TikTok, and YouTube to reach a broad and engaged audience. These creators are not only normalising grooming and makeup for men but are also helping to reshape cultural norms around masculinity in the country. Their content resonates with younger generations, who are more open to experimenting with beauty products and grooming routines.

Key Examples:

Kacha Nontanun: A popular Thai singer and actor, Kacha frequently shares grooming tips with his fans on social media, discussing everything from skincare routines to makeup looks. His influence has made grooming more accessible to Thai men, encouraging them to invest in products that enhance their appearance.
Tae Darvid: Known for his flawless skin and polished appearance, actor and beauty influencer Tae Darvid regularly collaborates with beauty brands to promote skincare and grooming products tailored to men. His presence on Instagram has made him a key figure in Thailand’s male grooming market.
Poom Pattaranuwat: Renowned for his stylish looks and detailed skincare routines, Poom is another influential figure in Thailand’s beauty scene. His content often focuses on skincare solutions to address concerns like acne and oily skin, resonating with his male followers.

These influencers have become central figures in the growing acceptance of male grooming in Thailand. They’ve introduced new grooming products tailored to Thai men’s needs through their collaborations with local and international beauty brands. By promoting beauty as part of self-expression and self-care, they’ve contributed significantly to the cultural shift that views grooming as an essential aspect of modern masculinity.

As the popularity of male beauty influencers continues to rise, brands are increasingly partnering with these creators to reach younger audiences. This trend is expected to grow, further expanding the male grooming market in Thailand and offering new opportunities for brands to innovate and engage with this dynamic consumer segment.

Opportunities for Global Beauty Brands

Market Entry Strategies

Global brands looking to enter the Thai male grooming market should focus on localisation. Here are some strategies:

Leverage Local Influencers: Collaborating with Thai celebrities and influencers is essential for building credibility. Influencers can help global brands localise their message, making products more relatable to Thai consumers.
Tailor Marketing Messages: Marketing campaigns should align with local values and aesthetics. Avoid overly Westernised approaches and resonate with the Thai audience through culturally relevant messaging.
Adapt Product Formulations: Consider Thailand’s humid climate. Lighter, non-greasy formulations are preferred, and products should be tailored to address common skin concerns in the region.
Minimalist Packaging: Reflecting the sleek and modern aesthetics seen in K-beauty trends can appeal to Thai consumers who favour simple yet sophisticated designs.

Case Study: G&M Cosmetics’ Entry into Thailand

G&M Cosmetics, an Australian brand, successfully entered Thailand’s beauty market by leveraging online channels such as Lazada and Shopee to reach digitally savvy Thai consumers.

Recognising the high demand for natural and clean beauty products, G&M introduced its P’URE Papayacare range, which resonated strongly with local consumers. After achieving success online, G&M expanded into brick-and-mortar retail through a partnership with Tops Club, a retail chain owned by Central Retail.

Their vegan, natural skincare focus aligned perfectly with Thai consumers’ preference for safe, gentle products, helping the brand establish a strong market presence. G&M also utilised local events and influencer partnerships to boost visibility and engagement. This multi-channel approach demonstrates the importance of understanding local preferences and using digital and physical retail strategies to build a brand in Thailand.

Product Innovation

The Thai male grooming market offers substantial opportunities for innovation:

Skincare Focus: Products that address acne, oily skin, and sun protection are in high demand. Global brands can innovate by offering:
- Oil-control moisturizers
- Lightweight sunscreens
- Anti-ageing serums for men
Cosmetics for Men: BB creams, concealers, and tinted moisturizers providing natural coverage are gaining popularity. Global brands can cater to this growing demand for subtle cosmetics.
Advanced Grooming Tools: High-quality grooming tools, such as precision razors and electric shavers, appeal to tech-savvy Thai men who prioritise efficiency in their grooming routines.

Case Study: Better Way (Thailand) Co., Ltd.

Image Source Mistine – Instagram Feed

Background

Better Way is the parent company of Mistine, one of Thailand’s largest beauty and personal care brands. Mistine is a household name in Thailand, known for its wide range of affordable products, including cosmetics and personal care items. Recently, Mistine has expanded its offerings to include male grooming products to capitalise on the growing trend.

Strategy

Mistine’s strategy involved launching a dedicated line of male grooming products catering to specific skin concerns such as acne and oily skin. The brand focused on using locally sourced ingredients appealing to Thai consumers. Mistine also heavily invested in marketing campaigns featuring popular Thai celebrities and influencers to promote its male grooming products, reinforcing how grooming is essential for modern men.

Results

Mistine’s male grooming products gained traction quickly, thanks to the brand’s strong reputation and effective marketing campaigns. The brand’s use of local influencers helped make male grooming more mainstream, resulting in increased market share in the competitive grooming sector.

Distribution and E-commerce

E-commerce plays a crucial role in reaching Thai male grooming consumers. To succeed, global brands should:

Focus on E-commerce Platforms: Establish a strong online presence on popular platforms like Lazada, Shopee, and JD Central, which dominate the Thai online shopping space.
Localised E-commerce Strategies: Engage Thai consumers through localised strategies such as influencer partnerships for product launches, live-streaming events, and easy payment options.
Hybrid Distribution Approach: While e-commerce is essential, physical stores still play a role in product discovery. Pop-up stores or collaborations with local retailers can provide opportunities for consumers to experience products in person.

Thanks to the trailblazing efforts of brands like Fenty Beauty, which has redefined inclusivity in cosmetics with its gender-neutral approach, and dedicated men’s grooming lines from heavyweights like Tom Ford and Hims, the boundaries of the male grooming industry are continuously expanding and reshaping perceptions of masculinity.

Thailand’s male grooming market is poised for continued growth, driven by cultural shifts, rising awareness of self-care, and the influence of regional pop culture. Global brands that adapt to local preferences and embrace innovative strategies will be well-positioned to capitalise on this dynamic market.

To stay ahead of emerging trends in the global beauty industry, download our Global Consumer Trends Report in the Beauty Industry here. This report delves deeper into the trends shaping the future of beauty and cosmetics worldwide.

As third-party cookies crumble, so does the foundation of digital advertising. The impending demise of these cookies and growing restrictions on mobile device identifiers are forcing brands to rethink how they connect with consumers. Apple’s App Tracking Transparency (ATT) and other privacy-first initiatives have reshaped the landscape, ushering in a new era where traditional tracking methods are no longer viable.

This shift is more than a technical adjustment—it demands a fundamental transformation of digital advertising strategies. Brands must move away from third-party tracking and embrace privacy-centric approaches to thrive in this environment. The path forward is becoming clearer, with three key strategies emerging as crucial: first-party data collection, second-party data partnerships, and revisiting contextual and interest-based advertising. Although each brand’s journey will differ, one constant remains—the importance of building strong consumer relationships while safeguarding privacy.

Also, read The Rise of Zero-Party Data: Enhancing Customer Trust and Personalisation.

The Internet Before Cookies

In the early days of the internet, privacy was more of a default. Websites operated independently, and tracking user activity across platforms was difficult. Users could browse anonymously, leaving little trace of their behaviour. However, this changed in the mid-1990s with the introduction of cookies, initially designed to improve user experience by remembering login details and preferences.

Third-party cookies evolved quickly, becoming powerful tools for tracking user behaviour across websites, enabling advertisers to deliver highly personalised ads. This marked the beginning of an era where cookies became the backbone of programmatic advertising and fueled the growth of digital giants like Google and Facebook.

However, as awareness of privacy issues grew, so did the demand for stronger protections. This led to regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), setting the stage for the eventual phase-out of third-party cookies.

The Golden Age of Third-Party Cookies

Before third-party cookies became widespread, digital advertising primarily relied on contextual targeting—placing ads based on the content of a webpage rather than tracking individual users. For example, a reader browsing an article about hiking might see ads for outdoor gear, not because the advertiser knew their browsing history but because of the relevance of the content. While effective to some degree, this method lacked the precision advertisers desired.

The introduction of third-party cookies changed everything. By enabling cross-site tracking, advertisers could deliver highly personalised ads tailored to users’ browsing habits, interests, and demographics. This precision significantly improved campaign effectiveness, making third-party cookies the cornerstone of programmatic advertising.

However, as third-party tracking became pervasive, privacy concerns followed. Users became increasingly aware of how their data was being collected and used, fueling the demand for stronger privacy protections. These concerns and regulatory pressures like GDPR and CCPA set the stage for the phase-out of third-party cookies and the rise of privacy-first alternatives.

Phasing Out Third-Party Cookies

Google has been preparing to phase out third-party cookies in its Chrome browser for years, but the timeline has shifted multiple times. The latest change delays the complete removal of cookies until 2025. Unlike Safari and Firefox, which have blocked third-party cookies by default, Chrome is taking a more gradual approach, allowing companies more time to adapt.

For marketers, this shift necessitates a pivot toward first-party data strategies and privacy-centric tools like Google’s Privacy Sandbox. These tools, along with alternatives like Adobe’s Real-Time Customer Data Platform (CDP), allow brands to collect and utilise first-party data while respecting privacy concerns. As the digital advertising ecosystem evolves, building strong first-party data strategies will be critical for maintaining effective targeting in a cookieless future.

The Path Forward for Advertisers in a Privacy-first World

The end of third-party cookies demands a fundamental shift in how advertisers collect and utilise data. Three key strategies will be crucial to maintain relevance and deliver personalised experiences in a privacy-first world: first-party data collection, second-party data partnerships, and contextual and interest-based advertising.

First-Party Data Collection

First-party data will be the most valuable asset in a cookieless future. Unlike third-party cookies, which track users across multiple sites, first-party data is collected directly from interactions between users and a brand’s platforms, such as websites, mobile apps, and loyalty programs. By gathering data from their own touchpoints, companies can build a clearer picture of their customers’ preferences, behaviours, and needs without infringing on privacy.

To harness first-party data effectively, brands must prioritise transparency and user consent. Clear communication about what data is being collected and how it will be used is essential. Loyalty programs, personalised content, and interactive experiences are just a few ways brands can incentivise users to share their data willingly. The goal is to build trust while delivering value.

Second-Party Data Partnerships

Brands can also collaborate with trusted partners to access second-party data. Second-party data is essentially someone else’s first-party data, shared in a privacy-compliant way. These partnerships allow companies to expand their understanding of their customers by gaining insights from non-competitive brands that target similar audiences.

For example, a retail brand might partner with a financial services company to better understand consumer spending habits and preferences. These collaborations can create a more holistic view of the customer journey, leading to more effective targeting and personalisation. Ensuring these partnerships comply with privacy regulations and maintain user trust is critical.

Contextual and Interest-Based Advertising

As third-party cookies disappear, contextual and interest-based advertising will become increasingly important. Contextual advertising places ads based on the content of the webpage rather than the user’s browsing history. This method respects user privacy while providing relevant ad experiences based on context.

Interest-based advertising, which targets ads based on general user interests rather than specific tracking, is another avenue for advertisers to explore. Both approaches allow brands to deliver relevant messages without relying on invasive tracking techniques.

As a renowned digital marketing expert, Neil Patel emphasises, “First-party data is your golden ticket for a post-cookie world. Build trust with your users and give them a reason to share their information willingly.” This sentiment underscores the importance of shifting to more transparent, privacy-respecting data collection and advertising methods.

Strengthening Consumer Relationships in a Privacy-Focused World

As digital advertising shifts toward privacy-centric models, building trust and fostering strong consumer relationships is more crucial than ever. The loss of third-party cookies has made it imperative for brands to earn customer loyalty through transparent and respectful data practices. In this new era, trust isn’t just a nice to have; it’s a fundamental requirement for success.

Consumers are increasingly cautious about sharing their personal information, especially regarding data breaches and invasive tracking practices. According to a study by Edelman, 81% of consumers say trust is a key factor in their purchasing decisions, and companies that fail to uphold strong privacy standards risk losing customer loyalty.

Brands can no longer rely on behind-the-scenes tracking to personalise ads. Instead, they must build direct relationships with consumers, encouraging them to share their data willingly. This shift puts trust at the heart of digital marketing strategies. When customers trust a brand, they’re more likely to provide the information needed to deliver personalised experiences.

Practical Steps to Improve Transparency, Consent, and Control

Clear Communication: Transparency begins with clear and concise communication about data collection practices. Brands should inform users exactly what data is being collected, how it will be used, and how long it will be stored. Avoid complex legal jargon and make privacy policies easy to understand.

User Consent and Control: Empower users by giving them control over their data. Implement robust consent management frameworks that allow users to opt in or out of data collection. Ensure that users can easily access, modify, or delete their data anytime.

Value Exchange: Provide tangible value in exchange for user data. Whether personalised offers, exclusive content, or enhanced experiences, brands must show customers that sharing their data is worthwhile. Loyalty programs and personalised recommendations are examples of effective value exchanges.

Examples of Companies Excelling in Consumer Relationship Management

Apple: Known for its strong stance on privacy, Apple has made transparency a cornerstone of its brand. With initiatives like App Tracking Transparency (ATT), Apple puts control in the hands of its users, allowing them to decide which apps can track their data. This approach has earned Apple significant consumer trust, differentiating the company in a crowded market.

Patagonia: Patagonia is a prime example of how ethical practices can build customer loyalty. The outdoor apparel brand’s commitment to environmental responsibility and social impact extends to its data practices, where transparency and respect for privacy are integral. By aligning their values with their actions, Patagonia fosters strong, trust-based customer relationships.

Spotify: Spotify has implemented clear privacy controls and provides users with detailed information about how their data is used. The platform offers personalised experiences tied to users’ data, making the value exchange evident. By emphasising transparency and value exchange, Spotify has built a loyal customer base that willingly shares their data in exchange for personalised experiences.

Future-Proofing Your Digital Advertising Strategy

As third-party cookies fade into the background, brands must adopt a forward-looking, privacy-centric approach to digital advertising. The future of marketing lies in strategies and technologies that prioritise user privacy while maintaining effective targeting and personalisation. Future-proofing your advertising strategy will require embracing new methods, tools, and platforms that aren’t dependent on cookies or specific identifiers.

Key Elements of a Privacy-Centric Approach

Consent Management: Implement robust systems that allow users to easily manage their data and privacy settings.
Data Minimisation: Only collect the data necessary for specific, consented purposes, reducing the risk of data breaches and enhancing user trust.
Security Measures: Invest in strong data protection measures to safeguard user information from unauthorised access.

Adopting Technologies Not Dependent on Cookies

Marketers must now explore alternative technologies to deliver personalised experiences without tracking users across the web. Several emerging technologies are designed to achieve this, helping brands adapt to a cookieless future:

First-Party Data Tools: These tools allow brands to leverage data directly from customer interactions, such as website behaviour, app usage, and CRM data. By focusing on first-party data, brands can build accurate profiles of their users while ensuring privacy and compliance.

Contextual Advertising Platforms: Unlike behavioural advertising, contextual advertising places ads based on a webpage’s content rather than user tracking. This approach ensures relevance while respecting user privacy, making it an essential strategy in the absence of cookies.

Interest-Based Advertising: Interest-based models allow advertisers to target groups of users based on general interests rather than specific identifiers. This broadens the reach while maintaining user privacy, as no personal data is tracked or stored.

Tools and Platforms for Effective Targeting

Several tools and platforms are emerging to help brands transition to a privacy-first digital advertising ecosystem. These technologies enable brands to continue targeting and personalising experiences, even in a cookieless environment:

Google’s Privacy Sandbox: Designed to create a more private internet while enabling targeted advertising, Google’s Privacy Sandbox offers APIs like Federated Learning of Cohorts (FLoC) and Topics. These tools allow advertisers to target ads based on group behaviour rather than individual tracking. By replacing third-party cookies with less invasive methods, Privacy Sandbox aims to balance privacy with ad relevance.

Adobe’s Real-Time Customer Data Platform (CDP): Adobe’s Real-Time CDP enables brands to collect and activate first-party data across channels while respecting user privacy. The platform offers advanced segmentation and personalisation features that aren’t dependent on third-party cookies. With its privacy-first approach, Adobe Real-Time CDP helps brands deliver personalised experiences while ensuring compliance with global privacy regulations.

Server-to-Server Solutions: Platforms like Marin Software offer server-to-server tracking solutions that bypass the need for cookies altogether. These solutions allow for more secure and accurate data collection, helping brands maintain performance and measurement capabilities in a cookieless world.

A New Era of Digital Advertising

The demise of third-party cookies signals the beginning of a new era in digital advertising that requires a fundamental shift in how brands collect and utilise data. To succeed in this evolving landscape, the importance of first-party data cannot be overstated. By leveraging data directly from customer interactions on their platforms, brands can build personalised experiences while respecting user privacy. Additionally, forming second-party data partnerships provides valuable opportunities for collaboration, allowing brands to expand their reach without compromising compliance.

The future of advertising will also see a resurgence of alternative targeting methods, such as contextual and interest-based advertising. These strategies enable brands to deliver relevant messages without relying on invasive tracking techniques. As consumers demand more control over their data, respecting privacy will be key to maintaining trust and loyalty.

Brands that adapt and innovate in this cookieless world will thrive. Building strong consumer relationships, prioritising transparency, and adopting privacy-centric technologies will ensure long-term success. The landscape may be shifting, but with the right strategies, brands can navigate the change and emerge stronger than before.

In the not-so-distant past, department stores were the crown jewels of retail, sprawling multi-story spaces that offered everything from fashion to home goods under one roof. They were more than just places to shop; they were social hubs where families spent weekends and holiday traditions were built. In cities like New York, London, Tokyo, and Mumbai, iconic department stores stood as symbols of prosperity and consumerism.

However, the retail landscape has undergone a seismic shift. Once considered indomitable, department stores are now facing an existential crisis. According to a report by Coresight Research, 2019 saw over 9,300 store closures in the United States alone, with department stores accounting for a significant share of these. This trend is not confined to the U.S. In the UK, household names like Debenhams have shuttered their doors after centuries of operation. Meanwhile, in Asia, traditional department stores were losing ground to both e-commerce giants like Alibaba and localised speciality retailers that better cater to modern consumer preferences.

The challenges are multifaceted. The rise of e-commerce has redefined convenience, offering consumers the ability to shop anytime, anywhere. Statista projects that global e-commerce sales will exceed $6.3 trillion by 2024, a clear indicator of where consumer dollars are heading. Additionally, shoppers today are more value-conscious and experience-driven, favouring specialised retail stores or direct-to-consumer (DTC) brands that offer unique products and personalised service over the one-size-fits-all approach of traditional department stores.

Globally, the fallout is clear: department stores that were once anchors of shopping malls are now vacant spaces, struggling to find relevance in a rapidly changing market. To survive, these retail giants must adapt to new consumer behaviours, rethink their business models, and leverage market research to understand the nuances of each region they operate in. The question is, can they evolve quickly enough to meet the demands of the modern shopper?

The Rise and Fall of Department Stores Globally

Historical Importance

Department stores have long been cornerstones of the retail world, shaping shopping habits and consumer culture across continents. In the United Kingdom, stores like Harrods and Selfridges didn’t just sell products; they sold experiences. They were destinations in their own right, drawing tourists and locals alike with their grandeur and extensive product ranges. These institutions became emblematic of British retail, often tied to the country’s broader cultural identity.

Across Europe, luxury department stores like Galeries Lafayette in Paris and KaDeWe in Berlin set the standard for high-end shopping. These establishments weren’t just retail spaces; they were symbols of elegance and affluence, where the latest fashion trends were showcased and where consumers were treated to a level of service that justified premium prices. In Asia, large retail chains such as Isetan in Japan and Lane Crawford in Hong Kong mirrored this success, becoming household names by offering a mix of local and international products tailored to the tastes of their diverse clientele.

For much of the 20th century, department stores thrived as the primary shopping destinations. They were pioneers of retail innovation, introducing concepts like fixed pricing and catalog shopping. Their influence extended beyond commerce, often driving urban development and becoming central to the social fabric of their communities.

The Decline

But the story of department stores is not just one of past glory—it is also one of recent decline. The very factors that once made department stores successful are now contributing to their downfall. The rise of e-commerce has fundamentally changed consumer behaviour, offering an unprecedented level of convenience and choice. According to Statista, global e-commerce sales reached a staggering $5.8 trillion in 2023, up by almost $1 trillion from the previous year. This growth came at the expense of physical stores, particularly large department stores, which struggled to compete with the ease and efficiency of online shopping.

In the UK, the closure of Debenhams and the downsizing of House of Fraser reflect a broader trend of declining foot traffic in traditional retail spaces. Similar patterns are observed in the United States, where once-dominant players like Sears and J.C. Penney have either closed down or drastically reduced their presence. Even in Asia, where department stores like Sogo and Takashimaya once reigned supreme, the landscape is changing rapidly. Younger consumers, especially in countries like China and South Korea, are gravitating towards digital platforms like Tmall and Coupang, which offer a wide array of products with just a few clicks.

The decline isn’t just about e-commerce. There’s a broader shift in consumer preferences. Today’s shoppers are more informed and selective, often seeking out niche products that reflect their personal values and tastes. This has fueled the growth of specialised retailers and direct-to-consumer brands that can offer a more curated shopping experience. Additionally, the rise of discount retailers, which provide value-oriented consumers with cheaper alternatives, has further eroded the market share of traditional department stores.

Globally, department stores are being squeezed from all sides. To remain relevant, they must not only adapt to the digital age but also redefine their role in a world where consumer expectations are higher than ever before. The challenge lies in balancing tradition with innovation—a task that few have managed to achieve successfully. The coming years will reveal whether these retail giants can pivot fast enough to survive or if they will become relics of a bygone era.

Changing Consumer Preferences Around the World

Shift Toward E-commerce

The rapid growth of e-commerce has been a game-changer for the retail industry, reshaping how and where consumers shop. However, the impact of this shift has not been uniform across regions. In the United States, e-commerce has become the dominant force in retail, with online sales accounting for nearly 15% of total retail sales as of 2023, according to the U.S. Census Bureau. This surge has been driven by a combination of convenience, competitive pricing, and a wide range of product options available at the click of a button. For department stores, this has meant a significant reduction in foot traffic and, by extension, sales.

Europe is witnessing a similar trend, though with regional nuances. Countries like the UK and Germany are leading the charge, with e-commerce penetration rates of 30% and 20%, respectively, as reported by Statista. Here, consumers have embraced online shopping, particularly during and after the pandemic, causing traditional department stores to rethink their strategies. In contrast, Southern European countries like Italy and Spain have been slower to adopt e-commerce, though the trend is gaining momentum.

The e-commerce landscape in Asia is even more dynamic. China, the world’s largest e-commerce market, saw online sales contribute to nearly 50% of total retail sales in 2023, according to China Internet Watch. Platforms like Alibaba’s Tmall and JD.com have become the go-to shopping destinations, especially among younger consumers who value speed, variety, and the convenience of mobile shopping. Japan and South Korea are also key players in the e-commerce boom, with well-established digital infrastructures supporting a seamless online shopping experience.

Emerging markets like India present a different picture. While e-commerce is growing rapidly, driven by increasing internet penetration and smartphone usage, it still accounts for a smaller percentage of total retail sales compared to more developed markets. However, the trend is accelerating, with platforms like Flipkart and Amazon India expanding their reach, offering a significant challenge to traditional retail formats, including department stores.

Rise of Discount and Specialised Retailers

As e-commerce reshapes the retail landscape, the rise of discount retailers and specialised stores has further eroded the market share of traditional department stores. In Europe, discount chains like Lidl and Aldi have seen significant growth, appealing to consumers who are increasingly price-sensitive due to economic uncertainties. These stores offer a streamlined selection of products at lower prices, often undercutting the offerings of department stores. The success of these value-oriented retailers reflects a broader shift in consumer priorities, where cost savings and convenience often trump brand loyalty.

In Asia, the story is somewhat different. While discount retailers are gaining ground, the region has also seen a boom in specialised stores that cater to niche markets. In Japan, for instance, stores like Muji and Don Quijote have carved out a strong presence by offering unique, curated product selections that resonate with local tastes. In South Korea, beauty and skincare retailers like Innisfree and Olive Young have capitalised on the K-beauty trend, drawing consumers away from the one-size-fits-all approach of traditional department stores.

The Appeal of Direct-to-Consumer (DTC) Brands

Adding to the competitive pressures on department stores is the growing appeal of direct-to-consumer (DTC) brands. These brands have disrupted the traditional retail model by cutting out the middleman and selling directly to consumers, often through their own online platforms. This approach not only allows them to offer lower prices but also to build a more personal connection with their customers.

In the United States, DTC brands like Warby Parker and Glossier have set the standard for this model, offering high-quality, design-driven products that attract a loyal customer base. Their success has led many to open physical stores, not to replace their online presence but to complement it, creating a seamless omnichannel experience. Europe has seen a similar trend, with brands like Allbirds and Veja establishing their own stores, often in prime locations previously dominated by department stores.

In Asia, DTC brands are also making waves, though the approach is slightly different. Brands like Xiaomi have successfully integrated their online and offline strategies, using physical stores not just as sales points but as experiential hubs where consumers can interact with products before purchasing online. This strategy has proven effective in markets like China and India, where the combination of digital convenience and physical touchpoints resonates with consumers.

Across the globe, the rise of DTC brands highlights a key shift in consumer preferences: today’s shoppers value personalised experiences, transparency, and direct engagement with the brands they buy from. For department stores, this means that simply offering a wide range of products is no longer enough. To compete, they must rethink their business models, focusing on creating unique, tailored experiences that meet the evolving expectations of the modern consumer.

The Impact on Shopping Malls Globally

Vacant Spaces in Different Markets

The decline of department stores has left a visible mark on shopping malls across the globe, with vacant anchor spaces becoming increasingly common. In the United States, the situation is particularly stark. Once a staple of American retail, department stores like Sears, Macy’s, and J.C. Penney have either closed a significant number of their locations or drastically scaled back their presence. According to a report by Green Street Advisors, as of 2023, there are over 500 vacant department store spaces in the U.S., with more closures expected in the coming years. These vacancies are not just isolated incidents but part of a broader trend reflecting the struggles of brick-and-mortar retail in the face of e-commerce and changing consumer preferences.

Image credit: The Telegraph

In Europe, the scenario is somewhat similar, though with regional variations. The UK, for instance, has seen a significant number of department stores, including Debenhams and House of Fraser, close their doors, leaving behind large, empty retail spaces in malls and high streets. In Germany and France, the situation is less severe, but the pressure is mounting as consumers increasingly shift to online shopping. The impact is less pronounced in Southern Europe, where traditional shopping habits have been slower to change, but even here, the cracks are beginning to show.

Asia presents a more complex picture. In countries like Japan and South Korea, department stores have long been fixtures in urban centres, often occupying prime real estate. However, even in these markets, the rise of e-commerce and specialised retail is taking its toll. While the scale of vacancies is not as dramatic as in the West, the trend is unmistakable. In China, where rapid urbanisation and a booming middle class once fueled the growth of large department stores, the shift to online shopping has led to a surplus of retail space in some areas. Malls that once thrived on the presence of major department store anchors are now grappling with how to fill these voids.

Creative Reuse of Spaces

Faced with the growing problem of vacant department store spaces, mall owners around the world are getting creative. In the United States, some of the most innovative solutions have involved turning these large, empty spaces into mixed-use developments. For example, the transformation of a former Macy’s in Seattle into a tech office for Amazon showcases how these spaces can be repurposed to meet the needs of a changing economy. Other malls have opted to convert vacant department stores into fitness centres, grocery stores, or even medical facilities, catering to the evolving demands of local communities.

In Europe, the approach has often been to integrate vacant spaces into broader mixed-use developments. Malls in cities like Berlin and Paris have started incorporating residential units, offices, and co-working spaces into their layouts, creating vibrant, multi-functional environments that attract a diverse range of visitors. This trend is particularly evident in the UK, where the repurposing of former retail spaces into entertainment venues, including cinemas and bowling alleys, is becoming increasingly common. The success of such initiatives reflects a broader recognition that malls must evolve beyond pure retail to remain relevant in today’s economy.

Asia, too, has seen a wave of creative reuse of vacant department store spaces, though the strategies vary by region. In Japan, for instance, some malls have transformed these areas into experiential zones, offering everything from virtual reality gaming centres to themed cafes that draw younger crowds. In South Korea, the emphasis has been on blending retail with entertainment and cultural experiences. A notable example is the transformation of a former department store space in Seoul into a large-scale bookstore and cultural complex, offering a mix of shopping, dining, and events that appeal to a broad audience.

In China, where the scale of vacant retail space is significant, the response has often involved turning these areas into community hubs. Some malls have introduced indoor playgrounds, art galleries, and even public libraries in place of traditional retail spaces, creating destinations that serve broader social functions. This trend is not just about filling space but about reimagining the role of malls in urban life, positioning them as centres of community and culture rather than just places to shop.

Globally, the challenge of vacant department store spaces has spurred a wave of innovation, with mall owners experimenting with new concepts and business models to attract visitors. The success of these initiatives will depend on their ability to meet the needs of modern consumers, who are increasingly looking for experiences that go beyond traditional retail. As malls evolve, the repurposing of these once-iconic spaces will play a crucial role in shaping the future of retail and urban development.

The Future of Brick-and-Mortar Retail Worldwide

Adapting to Regional Realities

As the retail landscape continues to evolve, brick-and-mortar stores are not standing still. Retailers around the world are adapting to the new realities of consumer behaviour, though the strategies vary significantly by region. In North America, the focus has been on creating hybrid retail models that blend online and offline experiences. For example, retailers like Walmart and Target have invested heavily in omnichannel strategies, integrating their physical stores with robust e-commerce platforms. These efforts include curbside pickup, same-day delivery, and in-store pickup for online orders, all designed to meet the expectations of convenience-driven consumers.

In Europe, the adaptation has often taken the form of enhancing the in-store experience to offer something that online shopping cannot. High-end retailers in cities like Paris and Milan are doubling down on luxury experiences, offering personalised services, exclusive events, and curated product selections that attract affluent shoppers looking for more than just a transaction. Meanwhile, in markets like Germany and the Netherlands, there’s been a push towards sustainability, with retailers emphasising eco-friendly products and practices to appeal to increasingly environmentally conscious consumers.

Asia presents a different set of adaptations. In Japan and South Korea, where technology is deeply integrated into daily life, retailers are leveraging digital innovations to enhance the shopping experience. Smart mirrors, augmented reality (AR) fitting rooms, and mobile payment systems are becoming standard features in stores, creating a seamless, tech-driven shopping environment that appeals to digitally savvy consumers. In China, retailers are experimenting with “new retail” concepts, where the lines between online and offline shopping are blurred. Alibaba’s Hema supermarkets are a prime example, offering a fully integrated experience where consumers can shop in-store, order online for home delivery, or even dine within the store, all while earning loyalty points that can be used across Alibaba’s ecosystem.

The Role of Market Research Globally

In this rapidly changing environment, market research has become an indispensable tool for retailers looking to stay ahead of the curve. Understanding evolving consumer needs and preferences is crucial, and this requires a nuanced approach that takes into account regional differences. Market research provides retailers with the data and insights needed to develop strategies that resonate with their target audiences, whether it’s through consumer surveys, focus groups, or advanced analytics.

Globally, market research is helping retailers identify emerging trends and opportunities. In North America, research has highlighted the growing importance of convenience and speed in consumer decision-making, leading to the expansion of services like same-day delivery and buy online, pick up in-store (BOPIS). In Europe, studies have shown a rising demand for sustainable products, prompting retailers to source eco-friendly materials and reduce their carbon footprints. In Asia, market research has revealed the increasing influence of social media on purchasing decisions, driving retailers to invest in influencer marketing and social commerce platforms.

By leveraging these insights, retailers can tailor their offerings to meet the specific needs of different markets, whether that means expanding their online presence, enhancing in-store experiences, or developing new product lines. Market research not only helps retailers understand what consumers want today but also anticipates future trends, allowing them to stay competitive in a constantly evolving landscape.

International Case Studies

Around the world, department stores are experimenting with various strategies to modernise and revive their brands. In the United States, one of the most talked-about efforts is the partnership between Amazon and Saks Fifth Avenue’s parent company, Hudson’s Bay Company, to acquire Neiman Marcus. This deal aims to leverage Amazon’s digital expertise to revitalise the luxury department store, integrating online and offline channels to create a seamless shopping experience. By combining Amazon’s vast data capabilities with Saks’ high-end brand image, the partnership seeks to attract a new generation of luxury consumers.

In Europe, the transformation of Selfridges in London offers another example of how department stores are adapting to the future. Selfridges has invested heavily in creating a destination experience, blending retail with entertainment, art, and dining. The store regularly hosts exclusive events, pop-up shops, and art installations, all designed to attract visitors beyond just shopping. This approach has helped Selfridges maintain its status as a must-visit location in London, even as other department stores struggle.

Image credit: Selfridges

Asia is also seeing innovative approaches to department store revitalisation. In Japan, Isetan Mitsukoshi has introduced a series of digital innovations to its stores, including AI-powered personal shopping assistants and mobile apps that enhance the in-store experience. These efforts are part of a broader strategy to attract younger, tech-savvy consumers who are accustomed to the convenience of online shopping but still value the tactile experience of browsing in a physical store. Similarly, in China, Intime Department Store, owned by Alibaba, has embraced the “new retail” model, integrating online and offline channels to create a holistic shopping experience that appeals to the country’s digitally driven consumers.

These case studies highlight the different paths that department stores are taking to remain relevant in a rapidly changing retail environment. While the challenges are significant, these examples demonstrate that with the right strategies and a deep understanding of consumer behaviour, brick-and-mortar retail will still be relevant in the future of global commerce.

Strategies for Survival Across Regions

Embracing Omnichannel Retail:

In the face of mounting challenges, the adoption of omnichannel strategies has become a lifeline for department stores worldwide. Omnichannel retailing is not just about having both a physical and an online presence; it’s about seamlessly integrating these channels to create a unified customer experience. This approach is crucial in a world where consumers expect flexibility—whether they want to shop online, pick up in-store, or have their purchases delivered the same day.

Image credit: Nordstrom

In North America, retailers like Nordstrom have been pioneers in implementing omnichannel strategies. Nordstrom’s “buy online, pick up in store” (BOPIS) service is a prime example of how traditional department stores can leverage their physical locations to complement their digital offerings. The company’s investments in mobile apps and in-store technology have also paid off, allowing them to offer services like curbside pickup and personal shopping experiences that are coordinated through digital platforms. These efforts have helped Nordstrom maintain a competitive edge in a market increasingly dominated by e-commerce giants.

Europe has also seen successful implementations of omnichannel strategies. In Germany, Otto Group, one of the continent’s largest e-commerce players, has effectively integrated its online and offline operations. By leveraging its extensive logistics network, Otto offers consumers a variety of fulfilment options, including home delivery and in-store pickup. The company has also focused on building a strong digital infrastructure, allowing it to respond quickly to changing consumer demands and market conditions. This flexibility has been key to its survival and growth in a highly competitive retail environment.

Image Credit: South China Morning Post

In Asia, where mobile technology is deeply embedded in everyday life, the integration of online and offline channels has taken on unique forms. In China, for instance, Alibaba’s Hema supermarkets are at the forefront of the “new retail” movement, blending the convenience of e-commerce with the immediacy of physical shopping. Customers can shop in-store, scan products with their smartphones for additional information, and even have their groceries delivered to their homes within 30 minutes. This model has proven highly successful in meeting the expectations of China’s tech-savvy consumers, and it offers a glimpse into the future of retail globally.

Focusing on Customer Experience:

While omnichannel strategies are essential, they are only part of the equation. To truly thrive, department stores must also focus on enhancing the in-store experience. In a world where consumers can buy almost anything online, the physical store needs to offer something more—whether it’s personalised service, unique product offerings, or an environment that encourages exploration and discovery.

In the UK, department stores like John Lewis have taken this approach to heart. Known for its exceptional customer service, John Lewis has doubled down on creating a welcoming and supportive shopping environment. The store offers personalised shopping services, where customers can book appointments with expert advisors who help them find exactly what they need. Additionally, John Lewis has invested in experiential retail, offering in-store workshops, events, and interactive displays that make the shopping experience more engaging and enjoyable.

Image credit: Shoppers Stop

In India, where retail is deeply intertwined with cultural and social practices, enhancing the in-store experience means understanding and catering to local preferences. Department stores like Shoppers Stop have successfully adapted by offering a mix of traditional and modern products, along with services that resonate with Indian consumers, such as personalised tailoring and home delivery of goods purchased in-store. By blending local sensibilities with global retail practices, Shoppers Stop has managed to maintain its relevance in a rapidly changing market.

Japan presents another interesting case study on the importance of customer experience. Department stores like Isetan and Takashimaya are renowned for their meticulous attention to detail and customer service. In a country where the consumer is king, these stores go to great lengths to provide a superior shopping experience. From offering impeccably wrapped purchases to having knowledgeable staff who can guide customers through their product selections, Japanese department stores have turned shopping into an art form. Additionally, they have incorporated cultural elements into their offerings, such as seasonal events and displays that celebrate traditional Japanese festivals, making the in-store experience not just about shopping but about cultural engagement as well.

Globally, the focus on customer experience is becoming increasingly important as consumers seek out more than just products—they are looking for connections, community, and a sense of belonging. Department stores that can tap into these needs while also offering the convenience and flexibility of omnichannel shopping are the ones that will survive and thrive in the years to come. The key is to understand the unique cultural and regional dynamics at play and to tailor the shopping experience accordingly, ensuring that every visit to the store is memorable and meaningful.

Final Thoughts

The decline of department stores is not just a retail issue—it’s a reflection of deeper shifts in consumer behaviour and societal values. As we’ve explored, the rise of e-commerce, the growing appeal of discount and specialised retailers, and the increasing importance of omnichannel strategies have fundamentally altered the retail landscape. Consumers today are more empowered, more informed, and more demanding than ever before. They seek convenience, value, and personalised experiences, and they are not afraid to abandon brands that fail to meet these expectations.

The future of retail, and indeed the future of malls, hinges on the ability of retailers to adapt to these changes. The days of the traditional department store, with its sprawling floor plans and one-size-fits-all approach, are numbered. In their place, we will likely see a new breed of retail spaces—ones that are smaller, more specialised, and more attuned to the needs and desires of modern consumers. These stores will not just be places to shop but places to experience, to connect, and to engage with brands in meaningful ways.

The path forward for department stores that wish to remain relevant is clear but challenging. They must embrace innovation, leveraging technology to create seamless omnichannel experiences that cater to the digital consumer. They must also double down on the in-store experience, offering something that online shopping simply cannot—whether it’s personalised service, unique products, or an environment that fosters exploration and discovery.

But perhaps most importantly, retailers must listen to their customers. This is where market research plays a crucial role. Understanding the evolving preferences, behaviours, and expectations of consumers is not just an advantage—it’s a necessity. Retailers who invest in deep, ongoing market research will be better equipped to anticipate trends, adapt their strategies, and ultimately survive in a market that is more competitive than ever.

In the end, the future of malls and department stores will be shaped by those who are willing to innovate, to take risks, and to put the customer at the center of everything they do. The retail world is changing, and those who fail to change with it will find themselves left behind. But for those who rise to the challenge, the opportunities are endless. The question is: who will step up and redefine the future of retail?

The electric vehicle revolution is not just a global phenomenon—it’s driving full speed into the Philippines. According to the Electric Vehicle Association of the Philippines (EVAP), the number of electric vehicles in the country is set to soar to 6.6 million by 2030, with a staggering 3.6 million electric motorcycles and 300,000 private electric cars leading the charge. This projected growth positions the Philippines as a key player in the shift toward sustainable transportation, reflecting a collective commitment to cleaner, greener alternatives. As Filipino roads prepare to welcome this new wave of eco-friendly vehicles, the question is no longer if but when we will fully embrace this electric future.

Understanding the nuances of this shift, particularly in emerging markets like the Philippines, is crucial for auto industry leaders. The Philippine EV market presents unique opportunities and challenges, making it a focal point for brands aiming to lead the future of mobility.

Overview of the Current State of EVs in the Philippines

The Philippines is on the global warming frontline, with its archipelagic structure contributing to heightened susceptibility to rising sea levels, changing weather patterns, and exacerbated extreme events, including typhoons and deadly heat and humidity, all of which aggravate the risk to its large energy infrastructure.

The Philippines is also one of the fastest-growing developing countries. Poverty is in decline, access to energy is rising, and, with that, demand for energy services. However, fossil fuels still dominate the energy system, accounting for 78% of power generation in 2022.

The electric vehicle market in the Philippines is gaining momentum, reflecting the country’s commitment to sustainable and innovative transportation solutions. Although still in its early stages compared to more mature markets, the adoption of electric vehicles is showing significant promise. The government has been actively promoting EV adoption through various policies and incentives, aiming to reduce the nation’s carbon footprint and dependence on fossil fuels. The establishment of the Electric Vehicle Industry Development Act (EVIDA) has provided a strong regulatory framework supporting the growth of the EV market.

Key Players and Popular EV Types in the Philippine Market

Several key players are shaping the Philippine EV landscape. International brands such as Nissan and Hyundai are leading with their electric car models. At the same time, local manufacturers like the Electric Vehicle Association of the Philippines (EVAP) and startups focus on producing electric tricycles and motorcycles. These local innovations cater to the affordability and practicality needed in the Philippine market.

A Nissan study found that 46% of Filipino respondents would consider an EV for their next purchase, making the country a key market for Nissan’s electric models.

The types of EVs gaining popularity in the Philippines reflect its consumers’ diverse needs and preferences. Electric motorcycles and scooters are increasingly favoured for their affordability, efficiency, and suitability for navigating congested urban areas. Brands like NIU and Yamaha have introduced models that are well-received for their performance and reliability. Electric tricycles (e-trikes) are particularly popular in urban and rural areas, offering an eco-friendly and cost-effective alternative to traditional tricycles. Although the adoption rate for electric cars is slower, there is growing interest among affluent consumers and businesses committed to sustainability, with models like the Nissan Leaf and Hyundai Kona Electric gradually making their presence felt in the market.

Hyundai has made significant progress with electric models like the award-winning Hyundai Ioniq 5. The sleek design and impressive range of up to 451 km make it popular for consumers seeking sustainable yet high-performing vehicles.

Rising Demand for Electric Vehicles in the Philippines

The demand for electric vehicles in the Philippines is on a robust upward trajectory, driven by favourable market conditions, consumer preferences, and government initiatives. Recent data indicates that the Philippines is witnessing a significant surge in EV adoption. In 2023, EV registrations increased by 50% compared to 2022, reflecting a growing awareness and acceptance among Filipino consumers. This growth is particularly evident in the two- and three-wheeler segments, which saw a combined 60% increase in sales over the past year.

Electric motorcycles and scooters are projected to constitute 25% of the country’s total two-wheeler market by 2025.

Several factors are driving this consumer demand:

Environmental Concerns: Increasing awareness about environmental issues and the negative impact of fossil fuels pushes consumers towards greener alternatives. The public’s growing concern for air quality and climate change is a significant motivator for adopting EVs.
Government Policies and Incentives: The Philippine government has proactively promoted EV adoption through the Electric Vehicle Industry Development Act, which offers tax incentives, import duty exemptions and other benefits. These measures have made EVs more financially accessible to the average consumer.
Rising Fuel Costs: The fluctuating and often high gasoline prices encourage consumers to consider more cost-effective and stable alternatives like EVs. EVs’ lower operating and maintenance costs than traditional vehicles add to their appeal.
Urbanisation and Traffic Congestion: The dense urban areas and chronic traffic congestion in cities like Manila make two and three-wheeler EVs a practical solution. These vehicles are more manoeuvrable and suitable for short-distance travel, addressing the daily commuting needs of many Filipinos.

Consumer behaviour in the Philippines reflects a growing inclination toward sustainable and cost-efficient mobility solutions. Consumers increasingly recognise EVs’ long-term cost benefits, while the expansion of charging infrastructure, particularly in urban areas, has alleviated some of the range anxiety that previously deterred potential buyers. Advancements in battery technology, vehicle performance, and the appeal of a modern and environmentally conscious lifestyle are further driving EV adoption.

“The Philippines is poised to become a major player and manufacturing hub in the EV market, leveraging our resources and strategic position in Southeast Asia”.

Edmund A. Araga, president of EVAP via Business World Online

Regulations and Incentives for EV Adoption

The Philippines government has been instrumental in fostering the growth of the electric vehicle market through a series of supportive regulations and policies. These measures promote sustainable transportation, reduce carbon emissions, and make EVs more accessible and appealing to the general public. The cornerstone of the Philippines’ regulatory framework for EVs is the Electric Vehicle Industry Development Act, which provides a comprehensive set of policies, including tax incentives, establishing a nationwide network of EV charging stations, fleet conversion mandates, and local government initiatives.

Owning an EV in the Philippines comes with several tangible benefits, thanks to these supportive policies:

Cost Savings: EV owners benefit from reduced operational costs. The lower cost of electricity compared to gasoline translates to significant savings in fuel expenses. Additionally, EVs require less maintenance due to fewer moving parts.
Tax Breaks and Financial Incentives: The exemption from excise taxes and import duties makes the initial purchase of EVs more affordable. Furthermore, EV owners can avail of discounts on vehicle registration fees and exemptions from certain traffic management schemes.
Environmental Impact: EVs contribute to reducing air pollution and greenhouse gas emissions, aligning with the values of environmentally conscious consumers and contributing to a healthier environment.

Successful Government Initiatives and Their Impact

E-Trike Project in Mandaluyong City: The Asian Development Bank (ADB) and the Philippine government partnered to launch the e-trike project in Mandaluyong City—the initiative aimed to replace gasoline-powered tricycles with electric ones. As a result, 100,000 e-trikes were deployed, significantly reducing emissions and fuel costs for drivers. The project demonstrated the practicality and benefits of e-trikes, paving the way for broader adoption across the country.
EV Charging Stations in SM Malls: SM Supermalls, one of the largest mall chains in the Philippines, has proactively supported EV adoption by installing free EV charging stations across their locations. This initiative not only provides convenience to EV owners but also encourages more consumers to consider purchasing EVs. The availability of charging stations in popular shopping destinations helps alleviate range anxiety and promotes the practical use of EVs in daily life.
Quezon City’s Green Fleet Initiative: Quezon City has launched a program to convert its public transport fleet to electric vehicles. The initiative includes deploying electric buses and jeepneys, supported by charging infrastructure development. This project aims to reduce the city’s carbon footprint and improve air quality, serving as a model for other cities in the Philippines.

Two and Three-Wheelers: The Leading Segment in EV Adoption

Two- and three-wheelers play a critical role in the transportation landscape in the Philippines. These vehicles are essential for daily commuting and represent the country’s largest electric vehicle market segment. The adoption of electric two and three-wheelers is driven by their affordability, practicality, and suitability for the country’s urban and rural environments.

Two and three-wheelers are integral to the Philippine transportation system, especially in densely populated urban areas and rural communities. These vehicles are favoured for their manoeuvrability, lower operating costs, and ability to navigate traffic congestion. Motorcycles, scooters, and tricycles are commonly used for personal, delivery, and public transportation.

Affordability: The lower purchase price and maintenance costs of two and three-wheelers make them accessible to a larger population segment. This affordability is a significant factor in their widespread adoption.
Fuel Efficiency: Traditional two and three-wheelers are already more fuel-efficient than cars, but electric variants offer even greater savings by reducing fuel costs to a fraction.
Urban Mobility: In crowded cities like Manila, the ability to weave through traffic and find parking easily makes two and three-wheelers the preferred choice for many commuters.
Environmental Impact: Electric two and three-wheelers contribute to reducing air pollution, a pressing issue in many Philippine cities. Their adoption aligns with national goals for sustainability and reduced carbon emissions.

Success Stories of 2 and 3-Wheeler EV Adoption

BEMAC Electric Tricycles in Manila:

BEMAC, a leading manufacturer of electric tricycles (e-trikes) in the Philippines, has successfully deployed thousands of e-trikes in Metro Manila. These e-trikes have replaced traditional gasoline-powered tricycles, significantly reducing emissions and operating costs for drivers. The initiative has been supported by local government units and private sector investments, showcasing a successful public-private partnership model in promoting sustainable transport.

Gogoro Electric Scooters in Makati: Gogoro, a Taiwanese electric scooter company, has made significant inroads into the Philippine market, particularly in urban centres like Makati. Gogoro’s battery-swapping stations provide a convenient and efficient solution for scooter riders, allowing them to replace depleted batteries with fully charged ones quickly. This innovative approach has been well-received, increasing city dwellers’ adoption rates for efficient and eco-friendly transportation options.

Market Analysis and Future Projections for 2 and 3-Wheelers in the Philippines

The market for electric two and three-wheelers in the Philippines is poised for substantial growth.

The 2 and 3-wheelers segment is expected to grow at a compound annual growth rate (CAGR) of 15% over the next five years.

Several factors drive this growth:

Government Support: Ongoing government incentives and policies favouring EV adoption will continue to boost the market. Subsidies, tax breaks, and the development of charging infrastructure are key drivers.
Consumer Awareness: Increasing awareness of EVs’ environmental and economic benefits is influencing consumer preferences. Educational campaigns and demonstrations of EV capabilities are further enhancing market penetration.
Technological Advancements: Improvements in battery technology, vehicle performance, and charging infrastructure are making electric two and three-wheelers more appealing. Longer battery life, shorter charging times, and enhanced safety features are attracting more consumers.
Corporate and Fleet Adoption: Businesses are increasingly adopting electric two and three-wheelers for delivery and logistics purposes. This trend is particularly notable in the e-commerce and food delivery sectors, where operational efficiency and cost savings are paramount.

Encouragement from Retail and Commercial Sectors

The retail and commercial sectors in the Philippines are crucial in promoting the adoption of EVs. By offering incentives and supporting infrastructure, these establishments are making it easier and more attractive for consumers to switch to electric mobility. Malls, in particular, are at the forefront of this movement, leveraging their reach and influence to drive EV adoption.

Role of Malls and Commercial Establishments in Promoting EVs

Malls and commercial establishments have become key players in promoting EVs in the Philippines. They are convenient hubs for daily activities, making them ideal locations for introducing EV-friendly amenities and services. By integrating EV charging stations and offering incentives, these establishments support the government’s sustainability goals and enhance the shopping experience for environmentally conscious consumers.

Accessibility: By providing EV charging stations, malls allow EV owners to charge their vehicles while they shop, dine, or watch a movie. This convenience reduces range anxiety and encourages more consumers to consider EVs.
Visibility: Charging stations in prominent locations within malls increase the visibility of EVs, normalising their presence and educating the public about their benefits.
Incentives: Malls often offer additional incentives, such as free or discounted parking for EVs, further incentivising the switch to electric vehicles.

Malls Offering Free Charging Stations and Other Incentives

SM Supermalls: SM Supermalls, one of the largest mall chains in the Philippines, has been a pioneer in supporting EV adoption. They have installed free EV charging stations across several locations, including SM Megamall, SM Aura, and SM Mall of Asia. These charging stations are strategically placed in accessible areas, allowing EV owners to conveniently charge their vehicles while shopping. Additionally, SM Supermalls offer incentives such as free parking for EVs, making the switch to electric vehicles more appealing to consumers.
Ayala Malls: Ayala Malls has also embraced the green initiative by installing EV charging stations in its properties, such as Greenbelt and Glorietta. Ayala Malls provides free charging services and has partnered with electric vehicle manufacturers to host awareness campaigns and test-drive events. These initiatives help educate the public about the benefits of EVs and provide firsthand experience, encouraging more people to consider switching to electric mobility.

Impact of Such Initiatives on EV Adoption Rates

The initiatives by malls and commercial establishments have significantly impacted EV adoption rates in the Philippines. By providing convenient and accessible charging infrastructure, these establishments reduce one of the major barriers to EV ownership — range anxiety. The presence of charging stations in popular locations reassures potential buyers that they will have reliable access to power, a crucial factor in their decision-making process.

Increased Consumer Confidence: The availability of charging stations in malls boosts consumer confidence in owning an EV. Knowing they can easily charge their vehicles while going about daily activities makes owning an EV more attractive.
Enhanced Public Awareness: The visibility of charging stations and the associated promotional campaigns help raise public awareness about EVs. Educational events and test drive opportunities provided by malls and their partners inform consumers about the benefits of EVs, contributing to a more informed and receptive market.
Higher EV Adoption Rates: The combination of convenient charging options and incentives has led to higher EV adoption rates. As more consumers experience the benefits of EV ownership, word-of-mouth and positive reviews further drive demand.

Recommendations for Accelerating EV Adoption

To further accelerate the adoption of electric vehicles (EVs) in the Philippines, it is essential to implement strategies that address existing barriers and promote the benefits of EV ownership. Insights from market research provide a valuable foundation for developing these strategies, highlighting the critical role of government subsidies and incentives, as well as the need for auto brands to leverage these insights to reach prospective clients effectively.

Insights from Market Research on Effective Strategies for Promoting EVs

Market research reveals several effective strategies for promoting EV adoption in the Philippines:

Public Awareness Campaigns: Educational initiatives informing consumers about EVs’ environmental and economic benefits are crucial. These campaigns should highlight the long-term cost savings, reduced carbon footprint, and enhanced driving experience associated with EVs.
Infrastructure Development: Expanding the charging station network is essential, particularly in urban areas and along major highways. Collaboration between the government, private sector, and auto manufacturers can accelerate the development of this infrastructure.
Incentives and Benefits: Providing tangible incentives, such as tax breaks, rebates, and discounts on vehicle registration, can make EVs more financially attractive. Additional perks like free parking and access to carpool lanes can also enhance the appeal of EVs.
Partnerships and Collaborations: Developing partnerships between auto manufacturers, energy companies, and technology providers can lead to innovative solutions and services supporting EV adoption. For example, offering bundled packages that include the vehicle, home charging equipment, and installation services can simplify the purchasing process for consumers.

Importance of Government Subsidies and Additional Incentives

Government subsidies and incentives are pivotal in making EVs more accessible and appealing to consumers. These measures can significantly reduce the upfront cost of EVs, which is often a major barrier to adoption.

Key incentives that can drive EV adoption include:

Tax Incentives: Waiving or reducing taxes on EV purchases can lower the initial cost, making them more competitive with traditional internal combustion engine (ICE) vehicles.
Import Duty Exemptions: Exempting EVs from import duties can further reduce costs, encouraging manufacturers to import EVs and consumers to purchase them.
Subsidies and Rebates: Providing direct financial incentives, such as subsidies and rebates, can make EVs more affordable for a wider range of consumers. These incentives can target specific segments, such as low-income households or small businesses, to ensure broader adoption.
Infrastructure Grants: Offering grants and funding for the development of charging infrastructure can accelerate the establishment of a comprehensive network of charging stations, addressing range anxiety and making EV ownership more convenient.

How Auto Brands Can Leverage These Insights to Reach Prospective Clients

Auto brands can leverage the insights from market research and government incentives to reach and engage prospective clients effectively:

Tailored Marketing Campaigns: Develop marketing campaigns highlighting EVs’ financial and environmental benefits. These campaigns should address common concerns, such as range anxiety and charging infrastructure, providing clear and reassuring information.
Partnerships with Retail and Commercial Sectors: Collaborate with malls, commercial establishments, and other high-traffic locations to provide charging stations and promote EVs. These partnerships can enhance visibility and accessibility, encouraging consumers to consider EVs.
Customer Education Programs: Offer educational programs and workshops that provide potential buyers with hands-on experience and information about EVs. Test drive events, informational sessions, and online resources can help demystify EV technology’s benefits.
Incentive Programs: Create incentive programs that align with government subsidies and additional incentives. Offer financial incentives, trade-in programs, and flexible financing options to make EVs more affordable and attractive.
Collaborative Initiatives: Engage with government bodies, energy companies, and technology providers to develop integrated solutions supporting EV adoption. For example, bundled packages, including the vehicle, charging equipment, and installation services, can simplify purchasing.
Community Engagement: Engage with local communities to promote the benefits of EVs and support local initiatives. Sponsorship of community events, participation in green fairs, and collaboration with local governments can build trust and awareness among potential buyers.

Final Thoughts

The future of electric vehicles in the Philippines is bright, with significant growth potential driven by supportive government policies, increasing consumer awareness, and proactive efforts by the retail and commercial sectors. The country’s unique market dynamics, particularly the prominence of two and three-wheelers, present a distinct opportunity for auto industry leaders to innovate and capture this burgeoning market.

For auto industry leaders, now is the time to engage with the evolving EV landscape. By partnering with market research firms, you can gain deeper insights into consumer behaviour, market trends, and the effectiveness of various promotional strategies. These insights are invaluable for developing targeted marketing campaigns, optimising product offerings, and making informed business decisions that align with the needs and preferences of Filipino consumers.

As a global market research agency with offices in 10 countries, including the Philippines, we have a strong foothold in the Asian market and extensive experience analysing market trends and consumer behaviour. Our expertise can help you navigate the complexities of the Philippine EV market and identify growth opportunities. Contact us for comprehensive market analysis, strategic recommendations, and actionable insights to empower your brand to lead the electric vehicle revolution in the Philippines. Together, we can drive sustainable transportation and create a greener future.

Hawaii, a prime example of overtourism, has taken significant measures, including removing a World War II landmark. In April 2024, the Honolulu City Government announced that the island’s famous Haiku Stairs, often referred to as the Stairway to Heaven, would be removed. This drastic measure highlights a pressing issue that many 2024 travel trend reports overlooked: the severe impact of overtourism.

Many other countries have also recently dominated headlines for their struggles with overtourism, highlighting a critical point: the travel trend reports 2024 missed the severe consequences of overtourism on local communities.

Travel brands must reassess their roles in promoting sustainable and responsible travel.

The Predicament of Overtourism

Overtourism occurs when visitor numbers exceed a destination’s sustainable capacity, leading to overcrowding, environmental degradation, and strained resources. This phenomenon is often driven by the popularity of destinations amplified by social media, marketing campaigns, and budget travel options.

Many global examples of locals bear the brunt of overtourism in their cities and towns.

In Spain, Barcelona’s Gothic Quarter and La Rambla Street have become so crowded with tourists that the local quality of life has significantly diminished. Residents frequently complain about noise pollution, increased living costs, and losing community spaces to tourist-centric businesses.

Similarly, in Japan, the influx of tourists to locations such as Kyoto and Tokyo has led to overcrowded public transport and the disruption of daily life. The iconic Mount Fuji, a symbol of natural beauty and cultural heritage, now faces environmental threats due to the sheer volume of visitors. These cases highlight the urgent need for a balanced approach to tourism that considers the well-being of local communities and the preservation of natural and cultural assets.

Sustainable Travel Efforts

Sustainable travel initiatives aim to minimise tourism’s negative impact on the environment and local communities while promoting economic benefits and cultural exchange. These initiatives encourage responsible tourism practices, such as reducing waste, conserving natural resources, and respecting local customs and traditions.

Thailand’s Phi Phi Island, a popular tourist destination, faced severe environmental degradation, prompting the government to close Maya Bay in 2018 for ecological recovery. After nearly four years, the area reopened with strict regulations to preserve its natural beauty. These measures included limiting the number of daily visitors, banning single-use plastics, and enforcing guidelines for responsible snorkelling and diving practices. The successful rejuvenation of Phi Phi Island demonstrates that with proper management and a commitment to sustainability, popular destinations can recover from the adverse effects of overtourism and continue to thrive.

Impact on Local Communities

The adverse effects of overtourism on local populations are profound and multifaceted. They disrupt the very fabric of the communities that attract visitors, extending beyond environmental degradation and strain on infrastructure to deeply impact residents’ social and economic well-being.

Overcrowding leads to increased traffic congestion, longer wait times for public services, and a general sense of chaos in daily life. Noise pollution from throngs of tourists can disrupt the peace residents cherish. The influx of visitors often commodifies local culture, where traditions and customs are commercialised to cater to tourists, diluting their authenticity and significance.

Economic pressures mount as overtourism drives up the cost of living. Housing prices and rents can skyrocket, making it difficult for locals to afford to live in their communities. This phenomenon, known as “tourist gentrification,” often forces residents to move to less desirable areas, leading to a loss of community cohesion.

Small, local businesses that once served residents’ needs may be replaced by tourist-oriented shops and restaurants, further alienating the local population.

Examples of local pushback against overtourism are becoming increasingly common. In Barcelona, residents express frustration through protests and actions such as using water guns to spray tourists. Locals complain their city has been transformed into a “theme park” for tourists, with everyday amenities overshadowed by tourist attractions. The strain on public services and infrastructure and the commercialisation of cultural landmarks have sparked a growing movement among residents to reclaim their city.

Similarly, the sheer volume of tourists has led to significant disruptions in Tokyo. The local government has had to take measures to protect community spaces and maintain order. For example, barriers were erected at a popular convenience store to prevent tourists from taking photographs of Mount Fuji, as it had become a major inconvenience for store patrons. This action reflects a broader sentiment among Tokyo residents that their needs and daily routines are being compromised for the sake of tourism.

The situation in Mallorca, part of Spain’s Balearic Islands, exemplifies the severe impact of overtourism on local communities. Tourism generates 45% of the Balearic Islands’ GDP, underlining its economic significance. However, the influx of visitors, which reached a record 17.8 million last year, has stretched public services to breaking point and severely impacted residents’ quality of life. Protests have become a common sight in Palma de Mallorca, where thousands recently took to the streets under banners reading “Enough saturation, the city for those who live in it” and “This isn’t tourismophobia, it’s numbers: 1,232,014 residents, 18 million tourists.”

Image Credit: Al Jazeera

The protestors, organised by around 80 groups, have called for measures such as imposing a tourist tax and regulating tourist rental flats. They argue such regulations would generate resources to manage tourism better and support local populations. Suggestions include limiting the number of tourist accommodations and ensuring residents have a say in managing tourism.

These examples underscore the urgent need for a more balanced approach to tourism management. Local communities must be actively involved in planning and implementing tourism policies to safeguard their interests. Travel brands, too, are responsible for promoting respectful and sustainable tourism practices. By fostering a deeper understanding of the local culture and environment among travellers and by supporting initiatives benefitting visitors and residents, the negative impacts of overtourism can be mitigated.

Innovative Solutions for Mitigating the Effects of Overtourism

Addressing the challenges posed by overtourism requires innovative solutions to balance the needs of tourists with those of local communities. Several cities and travel brands have pioneered effective measures to manage visitor numbers and mitigate the adverse effects of overtourism, creating models that can be replicated globally.

Examples of Positive Measures: Copenhagen, Denmark

Copenhagen exemplifies forward-thinking tourism management. The city has implemented initiatives to reduce the negative impact of high visitor numbers while enhancing the experience for tourists and residents.

Green Kayak Initiative: Copenhagen encourages tourists to help clean the city’s waterways by offering free kayak rentals in exchange for collecting trash during their paddle. This program keeps the canals clean and raises awareness about environmental conservation among visitors.
Localhood Campaign: This campaign aims to disperse tourists from the overcrowded city centre by promoting lesser-known neighbourhoods and attractions. By highlighting these areas, Copenhagen alleviates pressure on popular sites and distributes tourism’s economic benefits evenly across the city.
Litter Collection Rewards: Tourists who pick up litter can receive free public transport rides and entry to local attractions. This incentivises responsible behaviour and fosters a sense of stewardship among visitors, contributing to a cleaner and more pleasant environment.

The Role of Travel Brands in Mitigating Overtourism

Travel brands are pivotal in addressing overtourism through sustainable practices.

Here are strategies and real-life examples:

Strategies for Airlines

Promoting Lesser-Known Destinations:

Airlines can help disperse tourist traffic by highlighting and offering direct flights to lesser-known destinations. By creating appealing travel packages and providing information about off-the-beaten-path locations, airlines can encourage travellers to explore beyond the usual tourist hotspots.

Example: In 2019, Ryanair launched a campaign to promote lesser-known European cities such as Kaunas in Lithuania and Brno in the Czech Republic, encouraging travellers to explore these hidden gems instead of the traditional hotspots.

Encouraging Off-Peak Travel:

Airlines can offer incentives such as discounted fares for travel during off-peak seasons. This can help balance visitor numbers throughout the year, reducing the strain on popular destinations during high season and providing a steadier flow of income for local economies.

Example: JetBlue offers its “Blue Pass,” which allows unlimited travel during specific off-peak periods. This helps to balance the tourist influx by spreading travel across different times of the year.

Supporting Sustainable Aviation Practices:

Implementing more fuel-efficient technologies, investing in sustainable aviation fuel, and optimising flight paths can reduce air travel’s environmental impact. Airlines can also educate passengers on the benefits of carbon offset programs and encourage participation.

Example: In 2019, KLM Royal Dutch Airlines launched the “Fly Responsibly” campaign, encouraging passengers to offset their carbon emissions and promoting sustainable aviation fuel use.

Strategies for Hotels

Implementing Eco-Friendly Practices:

Hotels can adopt various sustainable practices, such as reducing water and energy consumption, minimising waste, and sourcing local and sustainable products. Green certifications can attract environmentally conscious travellers and set a benchmark for industry standards.

Example: Marriott International’s “Serve 360” sustainability and social impact platform aims to reduce waste, conserve water, and support sustainable practices across its global properties. By 2025, Marriott plans to reduce landfill waste by 45%.

Supporting Local Communities:

By employing local staff, sourcing products from local suppliers, and collaborating with local artisans, hotels can ensure that tourism revenue benefits the local economy. This supports community well-being and provides guests with an authentic cultural experience.

Example: Six Senses Hotels Resorts Spas emphasises local hiring and sourcing. Their properties often feature locally made products and hire local staff, ensuring that tourism benefits the surrounding community.

Managing Guest Behaviour:

Hotels can educate their guests on responsible tourism practices, such as respecting local customs, minimising waste, and engaging in sustainable activities. Information on less-visited attractions and eco-friendly tours can also help distribute tourist numbers more evenly.

Example: The Ritz-Carlton has implemented the “Community Footprints” initiative, which includes educating guests about local customs and sustainable practices. They provide information on eco-friendly activities and encourage guests to engage in community-based tourism.

Strategies for Tour Operators

Designing Sustainable Itineraries:

Tour operators can develop travel itineraries emphasising sustainability, including visits to eco-friendly attractions, community-based tourism projects, and conservation initiatives. This approach reduces the environmental impact of tours, supports local economies, and educates travellers on sustainable practices.

Example: Intrepid Travel offers small group tours that focus on responsible travel. They include community-based tourism experiences, promote local businesses, and ensure their tours have a minimal environmental footprint.

Limiting Group Sizes:

Smaller tour groups can lessen the environmental and social impact on destinations. Tour operators can create more intimate and personalised experiences less disruptive to local communities and environments.

Example: G Adventures limits the size of its travel groups to 12-16 people. This approach reduces the destinations’ environmental and social impact while providing a more intimate and personalised travel experience.

Promoting Responsible Travel:

Tour operators can educate their clients on the principles of responsible travel. This includes respecting local cultures and traditions, supporting local businesses, and participating in conservation efforts. By fostering a sense of stewardship among travellers, tour operators can help ensure tourism has a positive impact.

Example: Responsible Travel, a UK-based tour operator, focuses exclusively on sustainable tourism. It offers trips that support conservation efforts and benefit local communities and educates its customers on the principles of responsible travel.

Importance of Balancing Tourist Satisfaction and Local Well-Being

Balancing the needs and desires of tourists with the well-being of local communities is crucial for sustainable tourism.

Ensuring that tourism benefits both visitors and residents involves several key considerations:

Preserving Cultural Heritage:

Tourism should enhance rather than erode the cultural heritage of destinations. This means promoting and respecting local traditions, ensuring that tourism revenue supports cultural preservation, and preventing the commodification of cultural practices.

Example: Bruges, Belgium, has implemented visitor caps and restricted tourist accommodations to preserve its cultural heritage and prevent overcrowding. These measures help maintain the city’s charm and residents’ quality of life.

Maintaining Environmental Integrity:

Protecting natural environments is essential for the long-term sustainability of tourism. Travel brands should promote eco-friendly practices, support conservation efforts, and minimise their environmental footprint to preserve the beauty and biodiversity of destinations.

Example: The Galápagos Islands have strict regulations on the number of visitors and the activities allowed. These measures protect the islands’ unique ecosystems while providing a high-quality experience for eco-conscious travellers.

Ensuring Economic Benefits:

Tourism should provide tangible benefits to local economies. This includes creating jobs, supporting local businesses, and investing in community infrastructure. Equitable distribution of tourism revenue can help reduce economic disparities and foster a sense of shared prosperity.

Example: The Icelandic Tourist Board’s “Inspired by Iceland” campaign encourages tourists to travel responsibly and respect local communities. The campaign highlights the economic benefits of sustainable tourism practices and promotes local businesses.

Enhancing Tourist Experiences:

Satisfied tourists are more likely to return and recommend destinations to others. Travel brands should strive to provide high-quality, meaningful experiences that respect local communities and environments. This includes offering educational opportunities, personalised services, and unique cultural interactions.

Example: Airbnb’s “Experiences” platform offers travellers unique, locally-led activities that provide a deeper connection to the destination. By promoting authentic interactions and supporting local hosts, Airbnb enhances the travel experience while benefiting the local economy.

Final Thoughts

Reflecting on overtourism’s complexities reveals the travel industry’s need to address its multifaceted impact. While travel trend reports focus on travellers and destinations, the severe consequences on local communities and environments necessitate a holistic approach to ‘travel trends.’

Travel brands are uniquely positioned to lead this change by adopting sustainable and community-focused strategies. Travel brands can create a more balanced and sustainable tourism industry by prioritising local populations’ well-being and preserving natural and cultural resources.

This involves promoting lesser-known destinations, encouraging off-peak travel, and supporting eco-friendly practices.

Ultimately, the goal is to ensure tourism remains a positive force, benefiting visitors and their communities.
For a deeper dive into the evolving landscape of travel and tourism, including insights into the other five emerging trends, download our comprehensive report, “Navigating Emerging Trends in Global Travel and Tourism.” Discover how to stay ahead of the curve and drive positive change in the industry by accessing the report here.

Many brands risk falling behind in the rapidly evolving e-commerce sector. With the e-commerce industry moving beyond just selling products online to crafting comprehensive, personalised shopping experiences, this shift” focuses on bridging the digital and physical worlds gap.

In this next-level e-commerce phase, success hinges on integrating digital commerce at the core of business operations, catering to consumers’ ever-increasing high expectations. Brands are expected to harness digital tools to become indispensable to their customers, offering a depth of engagement that surpasses the conventional online shopping experience.

In 2024, retail e-commerce sales are estimated to exceed 6.3 trillion U.S. dollars worldwide, and this figure is expected to reach new heights in the coming years.

-Source: Statista

Leading brands already see the benefits of aligning with these changes, unlocking new value by deepening their commitment to digital commerce strategies. However, some are still on the sidelines, hindered by concerns over costs, the complexity of multiple channels, or the scale of transformation required.

So, how do brands navigate the scope and complexity of e-commerce to build a positive shopping experience around their products? A big part of this is embracing the latest e-commerce trends.

We’ve identified ten key trends poised to redefine e-commerce and catalyze growth for your brand in 2024 and beyond. These trends are set to transform the way people shop and sell online.

Trend 1: Tailored Shopping Experiences Through Personalisation

There is no one-size-fits-all approach in e-commerce anymore. Consumers expect interactions tailored to their preferences and behaviours, marking a significant shift toward personalisation. This trend enhances the shopping experience, fosters brand loyalty, and increases sales.

Personalisation Strategies and Technologies

E-commerce companies are leveraging cutting-edge technologies and strategies to offer personalised shopping experiences. Personalisation encompasses various aspects, from customised product recommendations to individualised email marketing campaigns. Market research, data analytics, cookies, and behavioural tracking tools are pivotal in gathering insights into customer preferences, enabling brands to effectively tailor their offerings and communications.

The Role of AI and Machine Learning in Personalisation

AI and machine learning analyze vast amounts of data to identify patterns, predict customer behaviour, and automate personalised content delivery. AI algorithms can recommend products based on browsing history, purchase patterns, and even social media activity, ensuring each customer interaction feels uniquely tailored to the individual’s interests and needs.

Several brands have set benchmarks in utilising personalisation to enhance customer experience. Amazon uses its recommendation engine to suggest products, demonstrating how understanding customer behaviour can increase engagement and sales. Spotify provides personalised playlists, showing that personalisation extends beyond physical products to digital experiences, and Netflix tailors its viewing suggestions based on previous interactions, exemplifying personalisation in content consumption.

Walmart Innovates with AI for Personalised Online Shopping and InHome Replenishment

Retail giant Walmart has significantly advanced in tailoring shopping experiences through its online platform. Walmart’s use of big data analytics to personalise customer interactions stands out, particularly in how it leverages shopping history and preferences to offer relevant product suggestions.

Most recently, in January 2024, Walmart revealed the future of retail at the Consumer and Electronics Show (CES) with a sneak peek into Walmart InHome Replenishment, which will use AI and Walmart’s decades of order fulfilment expertise

to ensure customers’ online shopping carts are filled with the right items at the right time and delivered to a refrigerator in a kitchen or garage.

Source: Walmart.com

Walmart’s approach is to integrate AI to optimise the online grocery shopping experience. Customers receive recommendations based on past purchases and consider factors such as dietary preferences and even local weather forecasts, suggesting items that might be needed based on current or upcoming conditions.

“Walmart’s purpose is to help people live better, and today, more than ever, technological advances make it feel like anything is possible.”

Doug McMillon, president and CEO, Walmart Inc.

Walmart’s mobile app takes this personalised shopping experience further by recognising when a customer is in-store and offering features like a store map and the location of items on their shopping list. This online and offline personalisation blend enhances customer satisfaction and streamlines shopping.

Trend 2: Green Commerce: Ethical and Sustainable Shopping

Modern consumers are increasingly informed and concerned about their purchases’ environmental and ethical implications. They seek transparency and are more likely to support brands that demonstrate a commitment to sustainability, from product sourcing to packaging and delivery. This shift in consumer behaviour signals a broader expectation for e-commerce brands to act responsibly and sustainably. Our recent global sustainability study, published in a report titled The “Green Brand,” shows that 60% of eco-conscious consumers globally agree businesses must engage in sustainable practices.

Brand Image and Customer Retention Benefits

Adopting sustainable and ethical practices enhances a brand’s image, contributing to a positive reputation in the market. Brands prioritising these values often see increased customer loyalty, as consumers prefer to associate with brands that reflect their values. Sustainability also differentiates a brand in a crowded marketplace, attracting new customers and retaining existing ones.

Sustainable Business Practices in E-commerce

E-commerce brands are implementing various sustainable practices, including using eco-friendly packaging, optimising supply chains to reduce carbon emissions, and offering products made from sustainable or recycled materials. Digital platforms also enable brands to minimise their carbon footprint and offer transparency in their operations, aligning with sustainability goals.

Case Study: Koi Footwear – A Leap Towards Sustainable Fashion

Image Courtesy: One Tribe

Koi Footwear, a brand celebrated for its eccentric and environmentally conscious approach, stands out in the fashion industry with its 100% vegan leather products. The brand’s dedication to pushing boundaries with its alternative, vibrant designs makes it a great example of sustainability in fashion.

Koi Footwear embarked on an ambitious climate action campaign to boost its online sales while staying true to its eco-friendly ethos.

Their focus? To reduce their carbon footprint.

Their challenge: Boosting online sales with sustainability.

Koi Footwear sought to offer customers a meaningful shopping experience that aligned with its sustainability goals and contributed to reducing its carbon footprint in creative ways.

For this, they collaborated seamlessly with One Tribe, a company helping businesses reduce their carbon footprint, to craft their first climate action campaign. This initiative allowed customers to contribute to rainforest conservation through purchases from their Planet Protectors product range, a move that was both impactful and well-received by their community.

The solution: Engaging the community through social media.

The collaboration saw the birth of the Planet Protectors range, a curated collection of products promoting sustainable shopping habits. Koi Footwear leveraged vibrant and engaging social media content to bring attention to this collection, emphasising the climate-positive actions behind each purchase.

A key feature of the campaign was the establishment of a Climate Impact Page, showcasing real-time statistics on the campaign’s environmental impact, including the number of trees protected, CO2 stored, and emissions removed. This initiative not only aligned Koi Footwear with several United Nations Sustainability goals but also offered a tangible way for customers to see the direct impact of their purchases.

The results? A tangible impact and increased sales.

The campaign translated into significant gains for Koi Footwear, with each product sold protecting approximately 60 square meters of rainforest. The real-time climate impact Tree Counter has become a testament to the brand’s commitment to the planet, enhancing customer engagement and satisfaction.

Image Courtesy: One Tribe

With a surge in social media engagement, Koi Footwear successfully connected with its eco-conscious audience. The campaign dramatically increased online sales and conversion rates and reduced the brand’s carbon footprint.

By safeguarding five trees for every item sold, Koi Footwear set a new standard for sustainability in the fashion industry, proving that eco-conscious actions can go hand in hand with commercial success and customer satisfaction.

Trend 3: Enhancing the Online Shopping Experience through AR

Augmented Reality is revolutionising the e-commerce industry by offering immersive and interactive shopping experiences. This technology overlays digital information onto the physical world, enabling consumers to visualise products from the comfort of their own homes or within a store environment. AR’s transformative potential lies in its ability to bridge the gap between online shopping’s convenience and the tactile engagement of in-store experiences.

Benefits of AR in E-commerce

Enhanced Product Visualisation: AR allows customers to visualise products in 3D and their own space, increasing confidence in purchase decisions. This helps customers get a better feel for the product, reducing the uncertainty often accompanying online shopping.

Reduced Returns: AR reduces e-commerce return rates caused by mismatched expectations, leading to satisfied purchases, lower costs for retailers, and a smaller carbon footprint for shipping and returning goods.

The Edamama Brand Example

Image Source: Edamama

Edamama, a Philippines-based e-commerce brand, has integrated AR technology into its platform to improve customer experience and product visualisation, aiming to boost sales. A key achievement for Edamama was efficiently delivering 20,000 SKUs to customers, showcasing the effectiveness and scalability of their AR-enhanced operations.

The AR initiative also played a crucial role in securing $5 million in funding for Edamama. This influx of capital was a testament to investors’ confidence in the brand’s innovative approach and potential for future growth. The funding further enabled Edamama to expand its product offerings, invest in marketing, and refine the AR experience.

Trend 4: Seamless Shopping Across Channels with Omnichannel Strategies

A seamless omnichannel experience is vital for meeting today’s consumer expectations. Customers move fluidly across channels, seeking convenience, efficiency, and personalised interactions. An effective omnichannel strategy eliminates the silos between different shopping channels, allowing for a unified customer journey that significantly enhances satisfaction and loyalty.

Integration of Digital and Physical Shopping Channels

Integrating digital and physical shopping channels means that whether a customer shops online, through a mobile app, or in a physical store, the experience is consistent. Inventory visibility across channels, the ability to buy online and pick up in-store, and easy returns are just a few examples of how retailers can create a cohesive shopping environment that caters to the modern shopper’s needs.

Mobile and Social Media’s Roles in Omnichannel Strategies

Mobile devices and social media play pivotal roles in omnichannel strategies. They serve as touchpoints connecting the digital and physical worlds, offering opportunities for engagement at various stages of the customer journey. Mobile apps, for instance, can send push notifications about in-store promotions. At the same time, social media platforms can showcase products, gather customer feedback, and even facilitate purchases directly through social commerce features.

A Retailer’s Success Story in Omnichannel Commerce: Charles & Keith

Charles & Keith is a Singapore-based fashion retailer known for its trendy footwear and accessories. The brand has successfully integrated its online presence with physical stores, offering seamless shopping experiences to customers. It provides various convenient shopping and delivery options through its website, mobile app, and social media channels. Customers can check the availability of products in real-time across all stores and online, increasing their satisfaction and loyalty. By embracing omnichannel strategies, Charles & Keith has become a leader in Singapore and beyond, demonstrating the powerful impact of harmoniously blending digital and physical channels.

Trend 5: Leveraging AI and Automation for E-commerce Efficiency

Artificial Intelligence and automation are transforming e-commerce, streamlining operations, enhancing customer service, and refining marketing strategies. These technologies are futuristic concepts and practical tools deployed today to improve efficiency, personalise shopping experiences, and drive growth.

AI’s Impact on Operations, Customer Service, and Marketing

Operations: AI optimises e-commerce operations by automating inventory management, order processing, and logistics. This automation reduces human error, improves efficiency, and can significantly cut costs.

Customer Service: AI-powered chatbots and virtual assistants provide round-the-clock customer service, handling inquiries, solving problems, and making recommendations. This immediate response to customer needs enhances the shopping experience and boosts satisfaction.

Marketing: AI’s ability to analyze vast amounts of data enables highly targeted and personalised campaigns. Predictive analytics can forecast consumer behaviour, allowing brands to tailor their marketing efforts to individual preferences and increase the likelihood of conversion.

Applications like Predictive Analytics and Chatbots

Predictive Analytics: E-commerce brands use predictive analytics to anticipate customer needs, personalise recommendations, and optimise inventory based on predicted trends. This foresight can lead to more effective stocking strategies and tailored marketing messages.

Chatbots: Chatbots are being increasingly deployed on e-commerce sites to interact with customers in real-time. They can answer questions, guide users through shopping, and even handle transactions, providing a seamless and interactive shopping experience.

Some Use cases of AI in e-commerce:

AI-Driven Product Recommendation
Optimised Product Pricing
Enhanced Customer Engagement
Fraud Purchases Detection
Improved Social Media Listening
Virtual Product Visualisation
Customer Sentiment Analysis
Visual Product Search
Optimised Inventory Management
Product Content Generation
Smarter Business Automation

Trend 6: Short-Form Video to Captivate Audiences

Short-form video content has surged in popularity across social media platforms, becoming a powerful tool for e-commerce brands looking to engage and captivate their audience. This trend capitalises on the consumer preference for quick, engaging, and easily digestible content, making it a critical component of digital marketing and product showcasing strategies.

These videos can introduce new products, highlight features, share customer testimonials, or promote special offers. They are beneficial for demonstrating product use or visual appeal, giving customers a clearer idea of what to expect. This format is also perfect for storytelling, allowing brands to share their values and mission in a way that resonates with viewers.

The Engagement Power of Short-Form Video Content

Short-form videos are effective at grabbing attention in the noisy online environment.
The concise nature of these videos leads to direct and impactful content, resulting in higher engagement rates.
Videos are shared more frequently than other types of content, which can expand brand reach and virality.
Short-form videos can convey emotions and brand personality more effectively than text or images, creating a stronger connection with the audience.

e.l.f. Cosmetics: Mastering Short-Form Video in E-commerce

e.l.f. Cosmetics was founded in 2004 by Joseph Shamah and Scott Vincent Borba. The brand is known for its commitment to offering high-quality, vegan, and cruelty-free beauty products at affordable prices. Their approach to growth focuses on exceptional value, innovation, and community engagement. They have become popular among Gen Z due to their direct strategies and adept use of short-form video content, particularly on TikTok.

e.l.f.’s strategic foray into TikTok set the stage for one of the most influential campaigns in the platform’s history. By launching an original song, #eyeslipsface, e.l.f. not only showcased its products in a creative and engaging way but also tapped into the power of community creation. With 7 billion views, the campaign’s success marked a significant moment in digital marketing, demonstrating the unmatched potential of short-form video content to engage consumers, drive brand awareness, and foster a passionate brand community.

In March 2024, e.l.f. collaborated with Liquid Death, a canned water brand, to release the e.l.f.. x Liquid Death Corpse Paint Vault makeup kit, which sold out within 24 hours.

So what can e-commerce brands learn from e.l.f.?

Bold Engagement: Identify and boldly engage with your target audience through the platforms they frequent.
Brand Personality: Utilise your brand’s unique voice and personality to connect with and entertain your audience.
Data-Driven Decisions: Employ data analytics to tailor your digital experience, ensuring relevance and resonance with your consumers.
Active Listening: Maintain a pulse on your community’s preferences and sentiments, allowing for adaptive and responsive marketing strategies.

Trend 7: Social Commerce Integration

Social commerce, the fusion of e-commerce with social media platforms, reshapes how brands connect with consumers online. This trend leverages the vast user base of social networks, turning them into vibrant marketplaces where discovery, interaction, and purchase happen seamlessly within the same ecosystem.

The global revenue generated by the social commerce market in 2023 was $1.25 trillion, a 30.8% increase from the previous year.

-Source: Yaguara.com

The Streamlined Journey from Discovery to Purchase

By integrating direct shopping capabilities—such as shoppable posts, stories, and in-app stores—these platforms allow consumers to make purchases without leaving the app. This integration facilitates a smoother shopping experience, leveraging the platforms where consumers already spend much of their time.

Social commerce simplifies the buyer’s journey from product discovery to purchase. Customers can learn about new products through influencer endorsements, targeted ads, or organic social media content and then immediately buy those products through embedded links or integrated storefronts. This streamlined process significantly reduces the steps to purchase, potentially increasing conversion rates and enhancing customer satisfaction by offering convenience and immediacy.

A Global Brand’s Successful Strategy in Social Commerce: Xiaomi

Xiaomi has mastered social commerce using platforms like Weibo and WeChat for flash sales and social media campaigns. By engaging with its community, Xiaomi creates anticipation for new product launches, gathers feedback, and fosters loyalty. Its success demonstrates the effectiveness of integrating social media and e-commerce strategies, making it an essential element of modern digital marketing.

Trend 8: The ROPO Effect: Research Online, Purchase Offline

Consumers increasingly turn to online resources to compare prices, read reviews, and seek product information before purchasing in-store. This behaviour is driven by the desire for informed purchasing decisions, leveraging convenience and vast online information. Despite the rise of e-commerce, many shoppers still prefer the tactile experience and immediate gratification of buying in physical stores, especially for certain product categories like clothing, cosmetics, and electronics.

The Research Online Purchase Offline effect profoundly impacts retail and omnichannel strategies, prompting brands to integrate their online and offline channels more seamlessly. Retailers now focus on providing detailed product information, customer reviews, and price comparison options online while ensuring a cohesive and branded experience across all channels. This integrated approach helps maintain customer engagement and facilitates a smoother transition from online research to offline purchase.

Strategies for Leveraging Online Information to Increase Offline Sales

Retailers can leverage online information to boost offline sales by:

Offering in-store availability checks on their websites.
Encouraging online reservations for in-store pickups.
Providing exclusive online coupons that can be redeemed in physical stores.
Utilising geo-targeted ads to drive online researchers to nearby stores.

These strategies enhance the customer shopping experience and increase foot traffic to physical stores.

Think with Google: Illustrating the ROPO Effect

The Research Online, Purchase Offline (ROPO) effect represents a significant consumer behaviour trend. This phenomenon, where consumers research products online before purchasing in physical stores, has become increasingly prevalent. A collaboration with Görtz, a renowned footwear retailer, offered insights into the ROPO effect’s impact on retail sales, revealing the substantial influence of online research on offline purchasing behaviours.

This case study, attributed to research conducted by Think with Google, delves into the ROPO effect’s intricacies and implications for retailers.

The primary goals of this study were to:

Quantify the extent to which consumers research online but purchase offline (ROPO).
Compare the incremental in-store sales against the sales generated online.
Garner insights on the ROPO effect’s significance for retailers.

The approach to understanding the ROPO effect involves:

Analyzing the Görtz ROPO phenomenon through relevant search queries that triggered Görtz’s AdWords advertisement.
Tracking the redemption of discount coupons offered on a landing page, applicable for online and offline purchases.

The findings highlighted the ROPO effect’s impact:

For every 100 coupons redeemed in the online shop, an additional 51 coupons were redeemed in-store following online research.
For every €1 of online sales, another €0.93 of revenue was generated offline.

These results highlight a critical insight for retailers: many consumers engage in online research before making in-store purchases, contributing to a considerable volume of offline revenue.

Trend 9: Product Discovery through Image and Voice Search

The advent of image and voice search technologies is reshaping how consumers find products online, marking a significant shift towards more intuitive and natural search methods. These technologies streamline the search process and offer a more interactive and convenient shopping experience, catering to modern consumers’ expectations for efficiency and ease of use.

Image and voice search technologies significantly enhance the shopping experience by making product discovery quicker and more intuitive. Voice search, for example, is ideal for hands-free situations and can deliver instant results, making it perfect for quick queries. On the other hand, image search appeals to shoppers looking for a specific product or style they’ve seen but can’t easily describe, allowing them to use a photo to find similar items online. These technologies also personalise the shopping experience, as they learn from individual search habits to provide tailored results.

SEO Strategies for Image and Voice Search

To optimise image and voice search, brands should focus on natural language processing and high-quality, relevant imagery. For voice search, this means incorporating long-tail keywords and questions people will likely ask in conversation. For image search, using clear, high-resolution images and tagging them with descriptive, keyword-rich file names and alt attributes is crucial. Structured data markup can also help search engines understand the context of images and content, improving visibility in search results.

Trend 10: Product Videos to Boost Buyer Confidence

Product videos have become an indispensable tool in e-commerce, offering a dynamic way to showcase products and help customers make informed purchasing decisions.

Videos offer a richer, more engaging way to present products than static images or text descriptions alone. They can convey a product’s look, feel, and use in a way that boosts buyer confidence and understanding, potentially reducing hesitation and increasing conversion rates.

Videos help bridge the gap between online shopping and the physical retail experience by demonstrating a product in action. Customers can see a product’s actual size, functionality, and quality, which helps to align expectations with reality and builds trust in the brand.

Strategies for Creating Engaging Product Videos

Creating compelling product videos involves more than just showcasing the product. It’s about telling a story that resonates with your audience. Highlighting key features, benefits, and differentiators in a concise and visually appealing way is crucial. Including customer testimonials or how-to guides within product videos can also add value and encourage engagement.

Nordstrom, a retail brand, sets a remarkable example in e-commerce by strategically using product videos. Distinguishing itself from competitors, Nordstrom’s videos often feature a salesperson who meticulously describes and demonstrates the products. This personal touch brings the in-store shopping experience online and significantly enhances product understanding and buyer confidence.

Nordstrom’s knowledgeable staff presents items, offering insights into product features, benefits, and styling options. Incorporating salespeople in product videos bridges the gap between online and physical retail. It adds authenticity and trustworthiness and reinforces Nordstrom’s reputation for exceptional customer service and quality products.

Source: Nordstrom

Nordstrom’s success in leveraging product videos showcases the brand’s commitment to innovation and customer satisfaction, proving the human element remains a powerful component of the retail experience.

Final Thoughts

The convergence of technology and consumer behaviour pushes e-commerce toward a more personalised, accessible, and interactive future. The journey from merely selling products online to creating comprehensive, engaging shopping experiences is challenging and rewarding, with the potential to redefine how e-commerce brands connect with their customers.

Discover the full potential of these trends and how to leverage them for your e-commerce company by accessing the report now: The Future of Online Shopping.

San Francisco, known for the iconic Golden Gate Bridge and historic cable cars, may soon add driverless vehicles to its list of must-see attractions.

As one of the pioneering cities in testing autonomous vehicles (AVs), San Francisco offers a glimpse into the future of urban mobility.

Tourists and residents are beginning to experience the novelty of cruising the city’s hilly streets without a human driver behind the wheel. This growing presence of AVs in San Francisco reflects a broader trend poised to transform the automotive industry globally.

AVs also known as self-driving cars, use a combination of sensors, cameras, radar, and artificial intelligence to navigate and operate without human intervention. These vehicles are designed to understand their environment, make decisions, and control the vehicle’s movement. The development of AVs has progressed through various levels of automation, from basic driver assistance systems to fully autonomous vehicles capable of handling all driving tasks.

The Importance of Autonomous Vehicles in the Context of Technological Advancements

AVs represent a significant technological advancement with the potential to revolutionise transportation. Key technological innovations, such as machine learning, advanced sensor technology, and high-performance computing, have driven the progress in AV development. These technologies enable AVs to process vast amounts of data in real time, allowing for safer and more efficient driving.

The importance of AVs extends beyond transportation, impacting various aspects of society and the economy. AVs promise to reduce traffic accidents caused by human error, enhance mobility for those unable to drive, and optimise traffic flow, reducing congestion and emissions. Furthermore, integrating AVs with smart city initiatives can lead to more sustainable urban environments.

Global Market Overview of Autonomous Vehicles

TheAV market has been experiencing rapid growth and transformation.

The global AV market is projected to grow at a compound annual growth rate (CAGR) of 27.7% from 2024 to 2032, reaching a value of USD 1,075.95 billion by 2032 (Mordor Intel) (Expert Market Research). This growth is driven by advancements in AI and sensor technologies and increased investment from the private and public sectors.

Key Players and Stakeholders in the AV Industry

The AV industry comprises a mix of traditional automotive manufacturers, tech companies, and specialised AV firms.

These brands heavily invest in research and development (R&D) to enhance AV capabilities and ensure safety and reliability. Collaborations and partnerships are common, with notable agreements such as Veoneer Inc. and Qualcomm Technologies Inc. working on Advanced Driver Assistance Systems (ADAS) and Toyota partnering with Pony.ai for the development of robotaxis (Mordor Intel) (Grand View Research).

ChatGPT

Company	Key Activities
Volkswagen AG	Produced 771,100 battery electric vehicles (BEVs) in 2023, a 35% increase from 2022
Toyota Motor Corporation	Continues to invest in autonomous technology through partnerships, such as with Pony.ai for robot axis
General Motors Company	Focuses on self-driving technology through its subsidiary Cruise LLC
Ford Motor Company	Collaborates with Argo AI to develop self-driving technology
Daimler AG (Mercedes-Benz)	Partners with Luminar Technologies to enhance its LiDAR systems for AVs
Tesla Inc.	Continues to lead in electric vehicle production with significant advancements in autonomous driving technology
Waymo LLC (Google Inc.)	Collaborates with Jaguar Land Rover and Stellantis to integrate its self-driving technology
Uber Technologies Inc.	Works with Aurora Innovation Inc. to develop autonomous driving capabilities
BMW AG	Partners with Intel’s Mobileye to advance its AV technology
Nissan Motor Co., Ltd.	Focuses on developing robotaxis in collaboration with DeNA Co.

Significant Technological Advancements Driving the AV Market

Several technological advancements are critical to the development and deployment of AVs:

Artificial Intelligence and Machine Learning: AI algorithms are essential for processing vast amounts of data from sensors and making real-time driving decisions.
Sensor Technologies: Lidar, radar, and advanced cameras enable AVs to perceive their environment accurately.
High-Performance Computing: Enhanced computing power allows AVs to analyze data and respond swiftly to dynamic driving conditions.
Connectivity: Vehicle-to-Everything (V2X) communication facilitates interaction between AVs and surrounding infrastructure, improving safety and traffic management.

These advancements are improving the functionality of AVs and increasing their adoption in various applications, including logistics, public transportation, and personal mobility (Precedence Research) (Expert Market Research).

Global Market Size, Growth Rate, and Future Projections

The global AV market is expected to grow substantially over the next decade. In 2029, its market size is forecasted to reach USD 114.54 billion (Mordor Intel). By 2032, the market size is projected to hit USD 2,353.93 billion, reflecting a CAGR of 35% from 2023 to 2032 (Precedence Research).

The transportation sector dominates the market, accounting for 87.7% of the revenue share. This sector includes ridesharing, logistics, and delivery services, where AVs are key to enhancing efficiency and reducing costs. The defence sector is also growing, driven by the need for unmanned military systems with reconnaissance and combat capabilities (Grand View Research).

Implications of AV Adoption for the Automotive Industry

The advent of autonomous vehicles (AVs) is set to transform traditional automotive manufacturing processes significantly. Traditional automakers increasingly integrate advanced technologies such as AI, machine learning, and IoT into their production lines. This integration facilitates the development of smarter, more efficient manufacturing processes. Automakers are shifting from assembly-line production to more flexible manufacturing systems that adapt to new AV technologies and components, such as advanced sensors and AI systems.

Additionally, the need for specialised components for AVs, like lidar systems, high-performance computing units, and advanced battery technologies, is driving automakers to form strategic partnerships with tech companies and component manufacturers. For example, Tesla and NVIDIA collaborate on integrating powerful GPUs to enhance autonomous driving capabilities.

Impact on Supply Chain Dynamics

The rise of AVs is reshaping the automotive supply chain. Traditional supply chains, which relied heavily on mechanical components, now incorporate more electronic and digital parts. This shift is leading to increased collaboration between automakers and technology firms. The complexity and sophistication of AV systems require a more integrated supply chain, emphasising the need for just-in-time delivery of high-tech components.

Supply chains are also becoming more globalised. For instance, many AV components are sourced from different parts of the world, necessitating robust logistics and supply chain management systems to ensure timely delivery and quality control. Companies invest in advanced supply chain analytics and blockchain technology to enhance transparency and efficiency.

Changes in Automotive Design and Engineering

Vehicle design and engineering are undergoing significant changes due to the introduction of AVs. Traditional vehicle designs, which focus on driver-centric controls and interfaces, are evolving to accommodate autonomous technologies. Interior designs are being reimagined to provide more comfort and convenience for passengers as the need for traditional driving controls diminishes.

Engineering efforts now focus on integrating sophisticated sensor arrays, advanced driver-assistance systems (ADAS), and robust AI-driven software. This shift requires new engineering disciplines and robotics, AI, and data analytics expertise. For example, vehicles with Level 4 and 5 automation require complex algorithms and fail-safe systems to ensure safety and reliability.

Influence on Vehicle Safety Standards and Regulations

The deployment of AVs necessitates a reevaluation of existing vehicle safety standards and regulations. Governments and regulatory bodies worldwide are working to establish frameworks that ensure the safe operation of AVs. These regulations cover vehicle testing, certification, cybersecurity, and data privacy.

For instance, the U.S. National Highway Traffic Safety Administration (NHTSA) and the European New Car Assessment Programme (Euro NCAP) are developing new safety assessment protocols for AVs. These protocols include rigorous testing of autonomous systems’ reliability, response to emergencies, and resilience to cyber-attacks. Such regulatory measures are crucial for gaining public trust and ensuring the safe integration of AVs into public roads.

Shift in Consumer Behavior and Preferences

The introduction of AVs is expected to significantly shift consumer behaviour and preferences. As AV technology matures, consumers will likely prioritise convenience, safety, and efficiency over the traditional driving experience. This shift could lead to declining private car ownership and increased demand for shared mobility solutions like ride-hailing and car-sharing services.

Consumers are also becoming more environmentally conscious, and AVs offer the potential for reduced emissions through optimised driving patterns and the integration of electric powertrains. This trend encourages automakers to develop autonomous and eco-friendly AVs, aligning with the growing demand for sustainable transportation solutions.

Economic and Environmental Benefits

The widespread adoption of AVs promises substantial economic and environmental benefits. Economically, AVs can reduce transportation costs by improving fuel efficiency, reducing the need for drivers, and optimising logistics operations. The sharing economy, facilitated by AVs, can lower the total cost of vehicle ownership and provide more affordable transportation options.

Environmentally, AVs can contribute to significant reductions in greenhouse gas emissions. Autonomous driving systems optimise routes and driving patterns, lowering fuel consumption and emissions. Also, integrating electric powertrains in AVs can further enhance their environmental benefits. For example, studies suggest that AVs could reduce CO2 emissions by up to 10% through optimised driving and vehicle platooning (Precedence Research).

The Current Status of AV Technology and Market in the US

The United States is at the forefront of autonomous vehicle (AV) technology development and deployment. As of 2023, the U.S. AV market is highly dynamic, with substantial investments from private companies and government entities. Key focus areas include urban mobility solutions, logistics, and advanced driver assistance systems (ADAS). The market is expected to grow robustly, with projections indicating significant Level 4 and Level 5 autonomy advancements by 2030.

Major Companies and Startups in the AV Space

Waymo (Alphabet Inc.): A pioneer in AV technology, Waymo has extensively tested its self-driving vehicles in states like California and Arizona.
Tesla Inc.: Known for its Autopilot and Full Self-Driving (FSD) systems, Tesla continues to innovate and push the boundaries of autonomous driving.
Cruise (General Motors): Focused on urban mobility, Cruise is developing AV technology for ride-hailing services.
Aurora Innovation: A startup with significant investments from Amazon and partnerships with companies like Toyota and PACCAR to develop self-driving technology for passenger and commercial vehicles.
Argo AI: Backed by Ford and Volkswagen, Argo AI is working on integrating AV technology into vehicles for ride-hailing and logistics.

Government Policies, Regulations, and Funding Initiatives for AVs in the US

Federal AV Guidelines: The U.S. Department of Transportation (USDOT) has released several versions of federal guidelines to ensure safe testing and deployment of AVs. The latest version, “Automated Vehicles 4.0,” outlines a unified approach to AV development across various federal agencies.
NHTSA Regulations: The National Highway Traffic Safety Administration (NHTSA) has proposed updates to vehicle safety standards to accommodate AV technology, including exemptions for specific automated systems.
Funding and Grants: The federal government has allocated significant AV research and development funding. This includes grants from the USDOT’s Automated Driving Systems (ADS) Demonstration Grants program, which supports large-scale testing and deployment projects.

Consumer Adoption Rates and Public Perception of AVs in the US Automobile Market

Consumer adoption rates and public perception of AVs in the U.S. are evolving.

Surveys indicate a mix of excitement and apprehension among consumers:

Adoption Rates: While fully autonomous vehicles are not yet widely available to the public, there is growing acceptance of semi-autonomous features such as Tesla’s Autopilot and GM’s Super Cruise. These features are becoming more common in new vehicles, increasing consumer familiarity with AV technology.
Public Perception: Public perception remains cautious, with safety being a primary concern. High-profile incidents involving AVs have heightened scrutiny, but ongoing technological improvements and successful pilot programs are helping build trust. In a recent news story on NVBC, in San Francisco, one of the nation’s largest testing grounds for driverless vehicles, school crossing guards say they have had to rush out of crosswalks to avoid being hit by self-driving cars. Educational campaigns and transparent communication from AV companies are essential to improving public confidence.

Impact on the US Automotive Industry and Job Market

Automotive Industry: The shift toward AVs drives vehicle design, manufacturing, and services innovation. Traditional automakers are investing heavily in AV technology to stay competitive. This transformation leads to new business models, such as Mobility-as-a-Service (MaaS), which includes ride-hailing and car-sharing services utilising AVs.
Job Market: The transition to AVs will create new job opportunities in technology, data analysis, and cybersecurity. However, it may also disrupt traditional roles in driving and logistics. Policymakers and industry leaders are working on strategies to manage this transition, including reskilling programs and new regulatory frameworks to support workers affected by automation.

Overview of the AV Market in the UK

The UK is positioning itself as a leader in the autonomous vehicle (AV) market, with a forecasted market value of nearly £42 billion by 2035. The country aims to harness the economic potential of AVs to create up to 40,000 new jobs and significantly improve transportation efficiency and safety. The UK government has invested in AV technology, emphasising innovation and developing connected and autonomous vehicles (CAVs).

Key Players and Technological Hubs

Oxbotica: Specialises in autonomous vehicle software and has conducted trials in urban environments such as Oxford, London, and Birmingham.
Five: Another leading AV company focusing on developing safe and reliable self-driving technology.
Wayve: A startup known for using deep learning and computer vision to develop AV technology.

Technological hubs like the Connected Places Catapult and various innovation centres in cities like London, Cambridge, and Birmingham are fostering the growth of AV technology by providing platforms for collaboration between industry, academia, and government.

Regulatory Framework and Government Support

The UK government has established a comprehensive regulatory framework to support the development and deployment of AVs. The new Automated Vehicles Bill, introduced in November 2023, aims to ensure the safety and reliability of self-driving vehicles on British roads. This legislation sets rigorous safety standards, establishes clear legal liability, and prohibits misleading marketing practices regarding AV capabilities. The government has also invested over £200 million in CAV research and development, supporting numerous projects and startups.

Public Trials, Pilot Projects, and Adoption Rates

The UK has proactively conducted public trials and pilot projects to demonstrate AV capabilities. Notable projects include:

Project Endeavour: Led by Oxbotica, this project involves highly automated trials in Oxford, London, and Birmingham, showcasing AVs in various urban environments.
Streetwise Project: Conducted in London, this trial saw self-driving vehicles carrying commuters to and from work, highlighting the practical applications of AV technology.

Public adoption rates are gradually increasing, and ongoing efforts are being made to educate and build trust among consumers regarding the safety and benefits of AVs.

Implications for the UK Automotive Industry and Transportation Infrastructure

Automotive Industry: The shift toward AVs is driving changes in vehicle design, manufacturing processes, and business models. Traditional automakers invest in AV technology and collaborate with tech companies to stay competitive. This transformation is expected to create new job opportunities in tech-driven roles while potentially reducing the demand for traditional driving jobs.
Transportation Infrastructure: The deployment of AVs necessitates updates to transportation infrastructure, including implementing smart traffic management systems and dedicated AV lanes. These changes aim to improve traffic flow, reduce congestion, and enhance overall transportation efficiency.

AV Market Landscape in Key Asian Countries

China: China is a global leader in developing and adopting AV technology. The country has seen rapid growth in its electric vehicle market, which complements the development of AVs. By the end of 2021, the penetration rate of EVs in China exceeded 20%, facilitating the integration of autonomous functionalities. Several cities, including Beijing and Shanghai, have established intelligent connected vehicle (ICV) demonstration zones, where companies like Baidu and Pony.ai conduct extensive AV trials, including robo-taxi services.

Japan: Japan is also at the forefront of AV technology, driven by major automotive manufacturers like Toyota, Nissan, and Honda. These companies are focusing on integrating advanced driver assistance systems (ADAS) and gradually moving toward higher levels of autonomy. Japan’s ageing population and dense urban environments are key drivers for adopting AVs, aiming to enhance mobility and reduce traffic accidents.

South Korea: South Korea has a robust AV development ecosystem supported by companies like Hyundai and Kia. The government has designated specific areas for AV testing and development, such as the Sejong autonomous vehicle test bed. South Korea focuses on creating a smart transportation system incorporating AVs for personal and commercial use.

Leading AV Auto Companies and Technological Innovations in Asia

Baidu: A pioneer in AV technology in China, Baidu has been conducting extensive trials of its Apollo autonomous driving platform.
Pony.ai: Known for its robo-taxi services in China, Pony.ai is expanding its operations to include commercial vehicle applications.
Toyota: Actively involved in AV development, Toyota focuses on integrating autonomous technology into its existing vehicle lineup and collaborating with tech companies to advance ADAS and full autonomy.
Hyundai: South Korea’s Hyundai invests heavily in AV technology, with projects ranging from personal autonomous vehicles to commercial applications like autonomous trucks and buses.

Government Initiatives and Regulations for AVs in Key Asian Markets

China: The Chinese government has implemented several policies to support AV development, including favourable regulations for testing and commercialisation, significant investments in AV infrastructure, and partnerships with private companies to advance technology.
Japan: Japan’s government is focusing on creating a regulatory framework that supports AV testing and deployment, with specific initiatives to promote the integration of AVs in public transportation and logistics.
South Korea: The South Korean government fosters AV development through supportive regulations, investment in AV test beds, and collaboration with local and international companies to advance technology and infrastructure.

Consumer Adoption and Market Potential of AVs in Asia

Consumer adoption of AVs in key Asian countries:

China: Consumer enthusiasm for AVs in China is high, with many residents in cities like Shanghai and Beijing already using robo-taxi services. The market potential for AVs in China is substantial, driven by technological advancements and a supportive regulatory environment.
Japan: Adoption rates are growing, particularly among the elderly, who benefit from enhanced mobility options. Public perception is generally positive, with increasing acceptance of AV technology.
South Korea: Consumer interest in AVs is rising, supported by government initiatives and successful trials. The potential market for AVs in South Korea includes personal and commercial applications, promising significant growth in the coming years.

Impact on the Automotive Industry and Urban Mobility in Asia

Automotive Industry: The shift toward AVs drives innovation in vehicle design, manufacturing, and business models. Traditional automakers invest in AV technology to remain competitive while new players and startups emerge, creating a dynamic and competitive market.
Urban Mobility: AVs have the potential to revolutionise urban mobility by reducing traffic congestion, enhancing road safety, and providing more efficient transportation options. In cities like Beijing and Shanghai, AVs are already integrated into public transportation systems, improving overall mobility and accessibility.

Asia is a crucial region in the global AV market, with significant advancements and a supportive regulatory environment driving the growth of autonomous vehicles. The collaboration between governments, automakers, and tech companies fosters innovation. It paves the way for the widespread adoption of AV technology, promising a transformative impact on the automotive industry and urban mobility.

Challenges and Barriers to the Adoption of Autonomous Vehicles

Technological Challenges and Limitations

Complexity of AI and Machine Learning: Developing AI systems that can handle the vast array of real-world driving scenarios is highly complex. Ensuring these systems can safely process and respond to unexpected situations remains a significant challenge.
Sensor and Data Processing: Autonomous vehicles rely heavily on sensors such as Lidar, radar, and cameras. Ensuring these sensors work flawlessly in all weather conditions and seamlessly integrate with data processing systems is difficult.
Real-Time Decision Making: AVs must make split-second decisions, requiring immense processing power and sophisticated algorithms to ensure safety and efficiency on the road.

Regulatory Hurdles and Legislative Differences

Lack of Standardised Regulations: Different countries and even regions within countries have varying AV testing and deployment regulations. This lack of standardisation complicates the development and rollout of AVs on a global scale.
Evolving Legal Frameworks: As AV technology advances, laws and regulations need to be continuously updated to address new challenges, such as liability in the event of an accident and cybersecurity standards.
Approval Processes: The approval processes for testing and deploying AVs can be lengthy and bureaucratic, slowing innovation and commercialisation.

Safety and Security Concerns

Cybersecurity Threats: Autonomous vehicles are vulnerable to cyber-attacks, compromising their control systems and posing significant safety risks. Ensuring robust cybersecurity measures is essential.
Reliability and Redundancy: Ensuring the reliability of AV systems and incorporating redundant systems to prevent failures is critical to maintaining safety.
Public Trust: Building public trust in the safety of AVs is challenging, especially following high-profile accidents involving autonomous vehicles.

Ethical and Societal Implications

Decision-Making in Critical Scenarios: AVs must be programmed to make ethical decisions in critical situations, such as choosing between two potential accidents. This raises complex moral questions.
Job Displacement: The widespread adoption of AVs could lead to significant job losses in driving-related professions, necessitating retraining and support for affected workers.
Data Privacy: AVs collect vast amounts of data, raising concerns about how this data is used, stored, and shared and how to protect user privacy.

Infrastructure Requirements and Challenges

Road Infrastructure: Current road infrastructure is not optimised for AVs. Upgrades such as smart traffic signals, dedicated lanes, and enhanced road markings may be necessary to support autonomous driving.
Communication Networks: Reliable and fast communication networks (e.g., 5G) are crucial for AVs and traffic management systems to communicate with each other. Developing this infrastructure is costly and time-consuming.
Maintenance and Support: Ensuring the infrastructure is regularly maintained and upgraded to keep up with advancing AV technology presents ongoing challenges.

Future Outlook and Opportunities for the Autonomous Vehicle Market

Predictions for the AV Market in the Next Decade

The AV market is poised for significant growth over the next decade. By 2030, the global AV market will reach approximately USD 2.35 trillion, growing at a compound annual growth rate (CAGR) of around 31.3% from 2023 to 2030 (McKinsey & Company). This growth will be driven by continuous advancements in AI, machine learning, and sensor technologies and increasing investments from the public and private sectors.

Potential for Growth and Market Expansion

The AV market is set to expand rapidly across various sectors, including personal transportation, logistics, and public transit. Key regions like North America, Europe, and Asia-Pacific will lead this expansion, with significant contributions from countries like the United States, China, and Japan (McKinsey & Company).

Emerging markets in Southeast Asia, including Singapore and Thailand, will grow substantially as they develop the necessary infrastructure and regulatory frameworks.

Emerging Technologies and Their Integration with AVs

5G Communication Networks: The deployment of 5G networks will enable faster and more reliable communication between AVs and infrastructure, enhancing safety and efficiency.
Edge Computing: This technology will allow AVs to process data locally, reducing latency and improving real-time decision-making capabilities.
Blockchain: Implementing blockchain technology can enhance the security and transparency of data transactions in AV ecosystems.
Internet of Things (IoT): IoT integration will facilitate better vehicle-to-everything (V2X) communication, improving traffic management and safety.

New Business Models and Opportunities for Innovation

Mobility-as-a-Service (MaaS): AVs will drive the growth of MaaS platforms, offering on-demand transportation services that reduce the need for private car ownership.
Robo-Taxis and Autonomous Fleets: Companies will deploy AV fleets for ride-hailing and logistics, optimising operations and reducing costs.
Subscription-Based Models: Automakers may offer AV technology through subscription services, allowing consumers to access the latest advancements without purchasing new vehicles.
Data Monetisation: The vast amounts of data generated by AVs will allow brands to develop new services and business insights.

Long-Term Impact on Global Transportation and Mobility

Safety Improvements: AVs are expected to reduce traffic accidents caused by human error significantly, enhancing overall road safety.
Traffic Efficiency: Optimised driving patterns and better traffic management will reduce congestion and improve traffic flow in urban areas.
Environmental Benefits: Integrating AVs with electric powertrains will lower emissions and reduce transportation’s environmental footprint.
Urban Planning: Cities must adapt their infrastructure to accommodate AVs, leading to more efficient and sustainable urban environments.

As technology evolves, AVs will transform transportation, offering safer, more efficient, and environmentally friendly mobility solutions. The collaboration between governments, industry stakeholders, and consumers will be crucial in realising the full potential of autonomous vehicles in the coming decade.

Obesity in the UK

Government Interventions: Global Case Studies

Tobacco Advertising Ban (UK, 2003)

Sugar Tax (UK, 2016)

Alcohol Advertising Restrictions (Norway)

Portugal’s Junk Food Restrictions

European Union

Defining Junk Food Under the UK Ban

Criteria for HFSS Products

List of Affected Categories

Impact on the Food and Beverage Industry

Short-Term Effects

Long-Term Effects

Case Study on Product Reformulation

Impact on Advertising and Expected Financial Loss

Financial Impact on the Advertising Industry

Advertising Strategy Shifts

Case Studies: Transitioning from Traditional Advertising

Long-Term Consumer Behavior and Health Impacts

Predicted Consumer Shifts

Consumer Demand for Healthier Products

What Can Brands Do to Adapt?

Reformulation and Innovation

Corporate Social Responsibility (CSR) and Health Initiatives

The Role of Market Research in Helping Brands Adapt

Identifying Reformulation Opportunities

Testing New Product Ideas

Reevaluating Packaging Design

Understanding Consumer Attitudes Toward Health and Wellness

Evaluating Marketing Effectiveness

Seizing the Opportunity: The Future of Food and Beverage in a Health-Conscious World

Key Takeaways for Brands

The Future of the Food and Beverage Industry

Worldwide Beauty Trends and Its Impact on Thailand

The Bangkok Post reports about one-third of Thai men between 25 and 34 have purchased foundation or lipstick within the last year.

Thailand’s Male Grooming Market

Market Overview

Market Growth and Demand

Consumer Demographics

Cultural Shifts and Influences in Thailand

Redefining Masculinity

Influence of K-pop and J-pop

Local Celebrity Endorsements

The Role of Male Beauty Influencers in Thailand’s Grooming Boom

Opportunities for Global Beauty Brands

Market Entry Strategies

Case Study: G&M Cosmetics’ Entry into Thailand

Product Innovation

Case Study: Better Way (Thailand) Co., Ltd.

Distribution and E-commerce

The Internet Before Cookies

The Golden Age of Third-Party Cookies

Phasing Out Third-Party Cookies

The Path Forward for Advertisers in a Privacy-first World

Strengthening Consumer Relationships in a Privacy-Focused World

Practical Steps to Improve Transparency, Consent, and Control

Examples of Companies Excelling in Consumer Relationship Management

Future-Proofing Your Digital Advertising Strategy

Adopting Technologies Not Dependent on Cookies

Tools and Platforms for Effective Targeting

A New Era of Digital Advertising

The Rise and Fall of Department Stores Globally

Changing Consumer Preferences Around the World

The Impact on Shopping Malls Globally

The Future of Brick-and-Mortar Retail Worldwide

Strategies for Survival Across Regions

Final Thoughts

Overview of the Current State of EVs in the Philippines

A Nissan study found that 46% of Filipino respondents would consider an EV for their next purchase, making the country a key market for Nissan’s electric models.

Electric motorcycles and scooters are projected to constitute 25% of the country’s total two-wheeler market by 2025.

“The Philippines is poised to become a major player and manufacturing hub in the EV market, leveraging our resources and strategic position in Southeast Asia”.​

Regulations and Incentives for EV Adoption

Successful Government Initiatives and Their Impact

Two and Three-Wheelers: The Leading Segment in EV Adoption

Success Stories of 2 and 3-Wheeler EV Adoption

Market Analysis and Future Projections for 2 and 3-Wheelers in the Philippines

The 2 and 3-wheelers segment is expected to grow at a compound annual growth rate (CAGR) of 15% over the next five years.

Encouragement from Retail and Commercial Sectors

Role of Malls and Commercial Establishments in Promoting EVs

Malls Offering Free Charging Stations and Other Incentives

“The Philippines is poised to become a major player and manufacturing hub in the EV market, leveraging our resources and strategic position in Southeast Asia”.