PH e-commerce market seen to expand by 15% this year
MANILA -The Philippine e-commerce market is projected to grow by about 15 percent this year amid the continued pickup in online shopping despite the reopening of brick-and-mortar stores, according to logistics solutions provider Locad.
Locad CEO and co-founder Constantin Robertz, in an event in Pasay on Wednesday, estimated that gross merchandise value (GMV) would amount to $16 billion in 2023 from $14 billion last year. The projection, if realized, shows exponential growth from just $3 billion in 2019.
Across Southeast Asia, e-commerce GMV is estimated to reach $153 billion this year from $131 billion in 2022.
“With a thriving local e-commerce scene and a promising global outlook, Filipino and regional brands face opportunity to grow through cross-border commerce,” Robertz said.
He noted that e-commerce platform Shopee was still the most preferred online marketplace in the Southeast Asian region. Lazada, meanwhile, has the highest spend per shopper at P2,500.
Robertz said that TikTok Shop was “quickly rising as a relevant channel in the Philippines and Southeast Asia.” Locad noted there were 20 million Filipino TikTok shoppers as of the first quarter. Sales from TikTok Shop in the region were projected to amount to $12 billion this year, up from $4 billion to $5 billion in GMV last year.
Top retail categories for the popular social media platform include fashion, apparel, shoes, beauty and personal care.
In January, Locad raised $11 million from a “series A” funding round led by Reefknot Investments, a firm backed by Temasek and logistics company Kuehne & Nagel.