Retail in Asia

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The Philippines e-commerce market to grow by 20 percent in 2024

The Philippines e-commerce market is expected to grow by 19.6 percent to reach PHP 1.3 trillion (USD 24.1 billion) in 2024, thanks to a growing consumer preference for online shopping and strong internet penetration.

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The prediction comes on the back of a recent surge in Filipino online sales, with the Southeast Asia market recording a compound annual growth rate (CAGR) of 28.6 percent between 2019 and 2023 to reach PHP1.1 trillion ($20.1 billion) in 2023, according to GlobalData.

The research firm said The Philippinese-commerce market is growing at a fast pace, supported by a large young population, increasing confidence in online payments, improving logistics, and the availability of secure alternative payment solutions in the country.

Moreover, online shopping festivals such as Black Friday, Cyber Monday, and Single’s Day have also contributed to the overall growth, the research firm added.

The government is also launching initiatives to boost e-commerce sales in the region. In June last year, the Department of Trade and Industry launched the One Town One Product Philippines program, in partnership with e-commerce and logistics provider SOMAGO.

International brands are also venturing into the Philippines e-commerce arena. In August 2023, Chinese e-commerce platform Temu launched its operations in the Philippines to compete with companies such as Lazada, and Shopee.

Meanwhile, social media is also playing a key role as an e-commerce selling platform,  TikTok shop, with millions of users, leads the way in social commerce by enabling direct product purchases on the platform.

“The uptrend in e-commerce sales is likely to continue over the next few years supported by the evolving consumer preferences, government initiatives, rise in social commerce and the entry of new e-commerce companies,” said Shivani Gupta, senior banking and payments analyst at GlobalData.

“The e-commerce market is anticipated to increase at a CAGR of 13.2 percent between 2024 and 2028 to reach PHP2.2 trillion (USD 39.5 billion) in 2028.”