Internet Retailing in the Philippines

PROSPECTS

Internet retailing the fastest growing channel in 2018

Internet retailing in the Philippines continued to grow at a strong pace in 2018, albeit from a fairly low sales base, with it remaining a relatively untapped channel. It benefited from the entry of new players, led by Shopee, a possible contender to the e-commerce giant Lazada.

Players focus on building brands

Concerns about the authenticity of products have risen as e-commerce has become more popular. With thousands of sellers, verifying the authenticity of each seller’s products is a challenge.

E-commerce part of retailers’ omnichannel strategies

More and more retailers in the Philippines are integrating e-commerce into their business models. They are either setting up their own platforms, with this being the case with most homeshopping and direct selling retailers, or partnering established e-commerce websites like Lazada and Shopee.

COMPETITIVE LANDSCAPE

Mobile-first approach works for Shopee

Lazada remained the leading e-commerce platform in the Philippines in 2018, although it is facing increasing competition from an aggressive new player, Shopee, which is successfully targeting the mobile channel. Shopee has been around in the Philippines for a few years, having initially focused primarily on C2C transactions.

Facebook Marketplace goes live

In 2018, Facebook Marketplace became available in the Philippines. Marketplace allows users to buy and sell items directly through their Facebook accounts.

Lazada strengthens tools for sellers

Although retailers can easily launch their own e-commerce platforms, Lazada has been emphasising the advantages of partnering a third party platform. Lazada benefits from a strong marketing budget and successfully utilises social media platforms as a strategy for retail innovation, with its Instagram and Facebook pages having large numbers of followers.

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