THE PHILIPPINES could be one of the biggest markets for e-commerce due to its demographic makeup, an online shopping platform said.
On the sidelines of the 10.10 Brand Summit, Shopee Philippines Head of Public Relations Erin M. Tagudin told reporters of the Philippines’ growth potential.
“We do think that there is a great opportunity for e-commerce now, especially now that the government is looking at it,” she said.
“We are very happy that the industry is booming, and we do feel that the Philippines is going to be one of the biggest markets,” she added.
She said that the optimism stems from the growing number of Filipinos shopping online.
“I can say that in terms of population, the Philippines is big in shopping. But of course, Indonesia is still number one in terms of population,” she added.
Citing a UK study, Ms. Tagudin said that the Philippine e-commerce market is expected to grow 19.6% this year to P1.3 trillion.
It is also expected to post a compound annual growth rate of 13.2% between 2024 and 2028.
“This surge can be attributed to the increasing preference for online shopping and more robust interest penetration bolstered by the growing middle class,” she said.
She said the 15% increase in the annual household income of Filipinos in 2023, as reported by the Philippine Statistics Authority signaled an opportunity for brands to capture a slice of the increasingly affluent market.
“This aligns with the trend we’ve observed among our users who spend more on categories that (suit) their lifestyle when shopping for branded items in Shopee Mall,” she said.
She said that the top four product segments in the Philippines are lifestyle, fashion, electronics, and beauty.
“This presents an opportunity for brands, especially in these categories, to attract these increasingly economically empowered consumers and ultimately expand their market,” she added. — Justine Irish D. Tabile