Rising Government Support: Recognizing the importance of e-commerce for the Philippines economy, the country’s Department of Trade and Industry (DTI) has developed the Philippines E-Commerce Roadmap 2016-2020. Its primary goal is to get online business activities to account for 25% of the country’s GDP by 2020, up from 10% in 2015. The government is committed to seeing through this roadmap and has made headway especially in the areas of:
- Infrastructure – improving Internet access, eGovernment systems, eBanking, ePayment, tax systems, consumer protection, and logistics
- Investments – supporting and promoting opportunities such as foreign direct investment and capital flows
- Innovation – helping digital startups enter the commercial market
Continued Dominance of Cash-Based Transactions: One of the reasons behind the relatively slow uptake of e-commerce in the country in the past few years is the continued dominance of cash-based transactions. According to the Philippines’ central bank, cash accounted for 99% of all local transactions as of January 2018. In addition, with the Philippines being an archipelago of more than 7,600 islands, logistics naturally presents a challenge you will have to prepare for when serving customers in this country. Consumers living in the sprawling capital of Metro Manila enjoy access to huge shopping malls, flagship brick-and-mortar stores, and even quick delivery from large marketplaces like Lazada and Shopee. Moreover, the Philippines have one of the slowest and most expensive internet connections in Southeast Asia. 87% of Filipino merchants sell products on social media. Facebook also drives traffic and engagement on Lazada, Shopee, and Zalora.
Impact of COVID-19 on the Philippines E-Commerce Logistics Market: COVID-19 has positively impacted the growth of the e-commerce market in the Philippines. Lockdowns and quarantines have reduced people’s mobility, with traffic plunging by as much as 80% in the Philippines. Lockdowns have increased online consumer activity, with the sector’s top players witnessing an increase of more than 2 to 3 million visits a month on apps and websites. E-commerce platform Lazada, Alibaba’s most high-profile and costliest investment outside China, had 30.74 million visits per month in the 2nd quarter of 2020, an increase of 3.98 million visits from the 1st Qtr of this year which saw 26.76 million visits per month. Fashion e-commerce sites have taken the biggest hit region-wide as clothing and apparel become less of a priority while people are staying home. However, visits to sites selling electronics goods, however, have increased by 59% in 3rd Qtr of 2020. The Philippines is known to survive with cash-based transactions and brick-and-mortar stores, but perhaps the rising trend of online shopping in the country due to Covid-19 will allow the country’s digital world to catch up to its more developed Southeast Asian neighbors. This trend will see e-commerce players to continue to grow and present potential opportunities for emerging local merchants.
Analysts at Ken Research in their latest publication “Philippines E-Commerce Logistics Market Outlook to 2025 – Driven by Growth in Internet Penetration along with Introduction of New Age Technologies by Logistics Players” observed that the e-commerce and e-commerce logistics market in the Philippines has a great potential to grow supported by emerging e-commerce players in the country. The covid-19 outbreak has further accentuated the growth of the market by shifting major retailers to online platforms for sustenance in the market. Philippines E-Commerce Logistics Market is expected to grow at a CAGR of 29.0% on the basis of a number of shipments delivered over the forecast period 2020-2025.
Key Segments Covered: –
By Channel
3PL Players
E-Commerce Merchants
By Type of Shipments
Domestic Shipments
International Shipments
By Area of Delivery
Intercity
Intracity
By Mode
Air Shipments
Ground Shipments
By Delivery Period
Same Day Delivery
1-2 Day Delivery
3-4 Day Delivery
More than 4 Day Delivery
By Type of Products
Consumer Electronics & Media
Fashion & Accessories
Foods & Personal Care
Home Care & Furniture
Toys & Baby Products
Others (Video Games, Digital Music, Pet Care, Home Gardening, etc.)
By Payment Mode
Cash on Delivery
Credit Cards
Others (Debit Cards, Paypal, GPay, SMART Money, etc.)
Captive and 3PL E-Commerce Warehousing
Warehousing Concentration in Philippines
E-Commerce Logistics Companies Covered
LEL Express
J&T Express
NinjaVan
Lalamove
Entrego
GoGo Xpress
LBC Express
Shopee Xpress
2GO Express
Air21
JRS Express
E-Commerce Marketplace Platform Covered
Lazada
Shopee
Zalora
Key Target Audience
3PL Logistics Companies
Integrated Logistics Companies
E-Commerce Marketplace Platform
Retail Companies
Logistics/Supply Chain Industry Associations
Time Period Captured in the Report:-
Historical Period – 2019-2020
Forecast Period – 2020-2025
Key Topics Covered in the Report: –
Philippines E-Commerce Market Overview
Cross Comparison- Major E-Commerce Players in Philippines
Philippines E-Commerce Logistics Market Overview
Cost Component for Philippines E-commerce Logistics Industry
Philippines E-Commerce Logistics Market Size
Philippines E-Commerce Logistics Market Segmentation 2020
Philippines E-Commerce Warehousing Landscape
Philippines E-Commerce Warehousing Clusters
Philippines E-Commerce Warehousing Rentals
Philippines E-Commerce Warehousing Cost Analysis
Philippines E-Commerce Shipments Pricing Analysis
Philippines E-Commerce Logistics Market Growth Drivers
Philippines E-Commerce Logistics Market Trends & Developments
Philippines E-Commerce Logistics Market Government Role and Initiatives
Philippines E-Commerce Logistics Market Logistics Constraints
Philippines E-Commerce Logistics Market SWOT Analysis
Competitive Landscape of Philippines E-Commerce Logistics Market
Philippines E-Commerce Logistics Market Cross Comparison
Philippines E-Commerce Logistics Market Pricing Analysis
Future Market Size and Segmentations, 2020-2025F
Covid-19 Impact on Philippines E-Commerce Logistics Market
Analyst Recommendations
Case Studies
For More Information On the Research Report, Refer to the Below Link: –
Philippines E-Commerce Logistics Market
Related Report by Ken Research: –
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
