3 Catalysts in Philippines E-Commerce Logistics Market: Is the Growth Sustainable? : Ken Research

ByVijay Kumar
Philippines E-Commerce Logistics Industry

Philippines E-Commerce Logistics market is expected to reach almost PHP 67 Bn in terms of revenue delivering nearly, 1 Bn shipments in 2025.

1. With the Support of Government’s Philippines E-Commerce Roadmap (2015-2020), Philippines E-Commerce Logistics Market Recorded More Than PHP 20 Bn in 2020.

Philippines E-Commerce Logistics MarketCross – Comparison: Digital Trends in 2020: Click to Know More

The Country’s Department of Trade and Industry (DTI) developed the Philippines E-commerce Roadmap (2016-2020) with a primary goal of getting online business activities to account for 25% of the country’s GDP by 2020, up from 10% in 2015. The main focus areas are Infrastructure, Investments and Innovation is in the process of building clear rules and support systems for customers and other online merchants.

2. Gadgets & Electronics is the Top E-Commerce Product Category With 33% Share, Followed by Fashion & Footwear With 28% Share in Total Online Purchases.

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Growing awareness among Filipino consumers about global brands as well as preferences for improved and latest fashion trends and technologies has heightened the demand. Moreover, Updated Technology such as GPS Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics will be used for tracking Inventory.  Lately, Gadgets & Electronics is the Top E-Commerce Product Category With 33% Share in Total Online Purchases.

3. Several Government Initiatives Support E-Commerce Market in Philippines to Reach Almost PHP 67 Bn in Terms of Revenue Delivering Nearly, 1 Bn Shipments by 2025.

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  • Bangko Sentralng Pilipinas (BSP), along with other industry stakeholders, launched NRPS to increase retail electronic payment transactions to 20% by 2020 and in due course to also improve the country’s economic competitiveness. Self-governing body of direct clearing participants called the Payment System Management Body or PSMB was created on 31 March 2017 to assist BSP. Launch of 2 specific Automated Clearing Houses (ACHs), PESONet on November 8, 2017 and InstaPay on April 23, 2018.
  • BBB” program consists of around 20,000 infrastructure projects nationwide, including roads, highways, farm-to-market roads, airports, seaports, terminals, evacuation centers, lighthouses, hospitals, schools, government centers, etc. Average percentage of infrastructure budget to GDP was0% or PHP 932 Bn ($19.1 Bn) in 2017-19. In 2020, budget allocation for the “BBB” program was 4.6% of GDP (PHP 972.5 Bn) due to COVID-19.