How top eCommerce players are thriving the Philippine’s Online Economy
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The Philippines is growing digitally with an increase in tech-savvy consumers.
As per the Statista reports, the number of online users in the Philippines advanced to 73 million people, which is more than half of the total population.
With most of the services available online, going digital has become evident and is accessed mostly above the age group of 16.
Therefore, bringing many eCommerce merchandises to invest in the Philippines market. Online services like fashion, beauty, booking travel tickets, online media, and food deliveries are thriving businesses in the Philippines economy.
Top players of the eCommerce market in the Philippines
Lazada, Shopee, and ZALORA have consistently maintained their top three positions in the Philippines market, according to the year-end report of 2019.
The domestic sites like Argomall, Beauty MNL, Melissa have been a stable competitor and also hold a market share.
iPrice Group, SimlarWeb, and App Annie have unanimously conducted a report which stated that Lazada holds a massive 59% share of the Filipino market, whereas Shopee holding 33% of the share. These apps were ranked based on market shares, existing apps, and the total number of website visits in the second and third quarters of 2019. These apps also ranked in other Southeast Asian countries such as Singapore, Malaysia, Indonesia, Thailand, and Vietnam.
Lazada is seizing the online market
The online retailers for essential supplies such as food and medicine have seen a surge in order, since the Covid-19 outbreak. RedMart is Lazada’s online grocery store, has witnessed an escalation in sales.
It has been consistent in holding its rank and capturing its monthly average users (MAU), for Q1, Q2, and Q3 of 2019. It is the second-highest downloaded application of last year.
Lazada is consistently levelling its marketing strategy by introducing new technology, tools, and services to offer an enriching experience to the sellers and buyers.
It has also launched the LazMall platform which offers in-app live streaming and providing 100% authentic and branded products to its consumers.
“Lazada is constantly pushing the boundaries of e-commerce and innovating to redefine the shopping experience for both shoppers and brands,” said Jing Yin, co-president, Lazada Group.
Shopee has turned into a most loved shopping mobile app
Shopee is leaving no stones unturned to reach the maximum online users by optimizing its website to a “mobile-first” approach.
It is the most downloaded eCommerce app with more than 60 million downloads and more than 4 million active listings by over 20,000 entrepreneurs as stated by Soh “The Manilla Times Thursday”.
The mobile-driven market approach played a key role in the growth of this app as it allows the sellers to list the products on the mobile app and also makes it smooth for the buyers to make a purchase.
With a greater number of the Philippines population making sales through mobile devices will cite in the expansion of the users.
Zalora is doubling down on investments
Zalora is an online fashion, accessories, and beauty brand headquartered in Singapore is growing annually and is the third most eCommerce competitor in the Philippines.
“We will end the year with more than 50% growth year on year, and we expect that trajectory to continue,” Zalora Group Chief Executive Officer Gunjan Soni told Business World in July 2019.
Zalora has enlisted many brands such as Penshoppe, Nike, Adidas, Marks & Spencer, and many more to become the first pick among the customers. The company has made its niche in Southeast Asia by prioritizing the regional market inside out.
The growth of the Philippines eCommerce market
The Philippine eCommerce market is growing exponentially but still, it has to overcome certain challenges. The country is yet to adopt online payments like eWallets and digital payments.
But due to Covid-19, the country is gradually opening to the e-payments. Logistics is another major concern as the country has more than 7,600 islands.
But with partnering with the local cross-border service provider can somehow solve the problem. In the Philippines, the shopping season generally starts from September to December.
The Bottom Line
Although the country is slowly increasing digitally still the internet connection is slow and expensive in the Philippines.
So, the sellers need to optimize mobile-friendly websites to give the customers smooth browsing experience.
But the good thing is that Facebook is the popular social media widely used in the country giving an advantage to the sellers to advertise and sell the products.
There are some factors supporting eCommerce in the country like the growing middle class. A certain decline in poverty has significantly been noticed.
According to the World Bank, the growth in the economy is estimated to rise by 6.1% by 2020 and 6.2% in 2021. The government is also keen on levying the country’s economy by improving the infrastructure, supporting foreign investments, and inviting digital start-ups to enter the market.
With all these steps, and consistent investment of eCommerce is thriving the country’s economy.
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