Online retail sales growth lags in Philippines
The Philippines is lagging behind its neighbours in online retail sales growth, says a new report.
Despite having the second-largest population of Southeast Asia, the Philippines has turned in the lowest B2C e-commerce sales growth figures, according to Research & Markets’ Philippines B2C E-Commerce Market 2018 report.
Among hurdles to overcome to foster growth in the online retail sector are comparatively low internet use, few credit card holders and restricted consumer confidence in online shopping.
Online retail sales in the Philippines are expected to rise at a double-digit rate for the next few years even in the face of challenges, says the report. An increasing share of the large population is connecting to the internet, many though mobile devices.
M-commerce is contributing to the rise in online retail, with mobile making up about three-quarters of connections to e-commerce websites. The Philippine government has done its part to help expand online retail sales by aiming to create a favourable administrative environment.
Leading online merchants in the Philippines include Lazada and Shopee, both with headquarters in Singapore. Local companies Ayala Group and JG Summit are expanding their online presence.