Looking to make a big splash in Philippine e-commerce? To inform your game plan, take a good look at the opportunities and obstacles for growth in this fledgling but high potential market.
Data from Statista reveals that out of over 100 million in the population, there are over 69 million internet users. About 75 percent of these users are shopping online. These figures are expected to keep increasing. With public and private efforts to improve internet access, Philippine e-commerce is on its way to becoming one of the country’s most profitable markets. From 2016 to 2019, the number of online shoppers increased by over 10 million and industry experts are expecting the same increase by 2022.
Yet e-commerce represents less than 1 percent of total sales in the country. This is in contrast to more mature markets in the Southeast Asian region. Delivering goods also comes as a challenge. The Philippines is an archipelago comprised of 2,000 inhabited islands. With varying terrain and underdeveloped roads in most areas, delivering parcels can be a logistical nightmare.
Despite these initial setbacks, there is immense opportunity to capitalize on this growing market. Some early leaders, like Lazada, Shopee, and Zalora, are some of the prominent names you’ll see. Long established banks, like Banco de Oro and Metrobank, are making moves to get a slice of the e-commerce pie through digital banking platforms. Even e-commerce giants Alibaba and Amazon are getting in on the action.
E-commerce is increasingly becoming a priority area. A few years ago, DTI released its 2016-2020 e-commerce roadmap, and unveiled an updated 2020-2022 plan in 2019.
What aspects of Philippine e-commerce would you like to know more about? Send us a message at [email protected] or call +63.917.8922337 (Philippines). and FilePino experts will gladly fill you in.
