The Philippine e-commerce industry is a consumer-driven industry which makes it one of the many promising e-commerce markets globally. According to a report by the online platform eMarketer, the Philippines tops the list of fastest-growing countries in terms of online retail sales growth.
Although the COVID pandemic slowed things down for the international as well as the national economy, it propelled online entrepreneurship in the country due to which the online market has seen a major boost. In the past few years, the Philippine e-commerce industry has seen a major boost and it is projected to reach new heights in upcoming years.
While the Philippines’ e-commerce industry has a long way to go to reach its potential peak, it is one of the most promising e-commerce markets in the world that is constantly growing. Below we have discussed in detail a few reasons behind the continuous growth and rise of e-commerce industry in the Philippines:
High Internet And Mobile Penetration Rates
The internet penetration rates in the Philippines remain unmatched even though the internet is expensive and slower as compared to other countries in the region. Compared to average speeds in the region, the internet speeds in the Philippines are very low but that doesn’t stop Filipinos from using the internet. Along with this, the widespread use of mobile devices has made it even more convenient for Filipinos to shop online, as they can do so from anywhere, at any time.
Connectivity setbacks are not an issue for Filipinos and it is estimated that about 70% of the total population are active internet users and about 80% of the total population are active social media users. These numbers are wild and it is no surprise that the e-commerce industry is continuously growing in a country having such a huge number of active internet users.
Additionally, social media platforms like Facebook, Twitter, Omegle, Instagram, etc are also very much popular around the country, providing a cost-effective platform for e-commerce businesses to reach out to target audiences. Even on other social platforms like Chatiw, you will still be able to find a lot of Filipinos.
Steady Growth Of Middle-Class Population
The middle-class population of the Philippines is growing steadily which is a good thing for the e-commerce market. It was reported by the World Economic Forum that the Philippines is set to exceed the spending power of Italy’s middle-class population by the year 2030 because of the growing economy of the country.
As the middle-class people in the country start to have more disposable income, they spend more on consumer goods and services, especially on online products which have led to online shopping becoming popular across the country.
The economy of the Philippines is on track to reach new heights and as the Philippines has a large, young tech-savvy population, it is not a surprise that the spending power for online purchases continues to grow stronger and stronger.
Growing Consumer Confidence In Online Shopping
Another major factor contributing to the growth of the e-commerce industry in the Philippines is that consumer confidence is increasing in online shopping. We are seeing a change in trend and more and more consumers are turning to online platforms to shop and buy stuff instead of buying them physically since online shopping is more convenient & comfortable, and they can make large purchases without any hassle.
Online Payment Options
The growing confidence in online shopping is further supported by the increasing number and availability of online payment options such as mobile wallets, mobile banking, online funds transfers, etc which have made it easier for consumers to make secure payments online. Online payment options have been a game changer for the e-commerce industry worldwide and the Philippines’ e-commerce industry is no different than the rest of the world.
The Support From The Philippine Government
A major contributing role in the rapid growth of the Philippines’ e-commerce industry is the role of the government of the Philippines. The Philippine government is one of few governments across the world that has recognized the potential of the e-commerce industry in its very early days. In fact, the Electronic Commerce Act was enacted in the country as early as the year 2000.
Moreover, the e-commerce market is also being supported by the government’s efforts on all levels to promote the development of a digital economy in the country. The government is making sure that it is implementing the right policies and initiatives that will help the e-commerce industry and encourage more businesses to switch to an online marketplace. For this reason, the government has established various e-commerce parks and hubs in various parts of the country.
