Increasing Online Shoppers Coupled with Growing Middle Class Population has Stimulated Growth in Philippines E-Commerce Logistics Market: Ken Research

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Aug 11, 2021, 10:10 ET

GURUGRAM, India, Aug. 11, 2021 /PRNewswire/ -- Rising Government Support: Recognizing the importance of e-commerce for the Philippines economy, the country's Department of Trade and Industry (DTI) has developed the Philippines E-Commerce Roadmap 2016-2020. Its primary goal is to get online business activities to account for 25% of the country's GDP by 2020, up from 10% in 2015. The government is committed to seeing through this roadmap, and has made headway especially in the areas of:

Infrastructure - improving Internet access, eGovernment systems, eBanking, ePayment, tax systems, consumer protection, and logistics.
Investments - supporting and promoting opportunities such as foreign direct investment and capital flows.
Innovation - helping digital startups enter the commercial market.

Continued Dominance of Cash Based Transactions: One of the reasons behind the relatively slow uptake of e-commerce in the country in the past few years is the continued dominance of cash-based transactions. According to the Philippines' central bank, cash accounted for 99% of all local transactions as of January 2018. In addition, with Philippines being an archipelago of more than 7,600 islands, logistics naturally presents a challenge you will have to prepare for when serving customers in this country. Consumers living in the sprawling capital of Metro Manila enjoy access to huge shopping malls, flagship brick-and-mortar stores, and even quick delivery from large marketplaces like Lazada and Shopee. Moreover, Philippines have one of the slowest and most expensive internet connections in Southeast Asia. 87% of Filipino merchants sell products on social media. Facebook also drives traffic and engagement on Lazada, Shopee, and Zalora.

Impact of COVID-19 on Philippines E-Commerce Logistics Market: COVID-19 has positively impacted the growth of e-commerce market in Philippines. Lockdowns and quarantines have reduced people mobility, with traffic plunging by as much as 80% in Philippines. Lockdowns have increased online consumer activity, with the sector's top players witnessing an increase of more than 2 to 3 million visits a month on apps and websites. E-commerce platform Lazada, Alibaba's most high-profile and costliest investment outside China, had 30.74 million visits per month in the 2nd quarter of 2020, an increase of 3.98 million visits from the 1st Qtr of this year which saw 26.76 million visits per month. Fashion e-commerce sites have taken the biggest hit region wide as clothing and apparel become less of a priority while people are staying home. However, visits to sites selling electronics goods, however, have increased by 59% in 3^rd Qtr of 2020. The Philippines is known to survive with cash-based transactions and brick-and-mortar stores, but perhaps with the rising trend of online shopping in the country due to Covid-19 will allow the country's digital world to catch up to its more developed Southeast Asian neighbors. This trend will see e-commerce players to continue to grow and present potential opportunities for emerging local merchants.

Analysts at Ken Research in their latest publication "Philippines E-Commerce Logistics Market Outlook to 2025 - Driven by Growth in Internet Penetration along with Introduction of New Age Technologies by Logistics Players" observed that the e-commerce and e-commerce logistics market in Philippines has a great potential to grow supported by emerging e-commerce players in the country. Covid-19 outbreak has further accentuated the growth of the market by shifting major retailers on online platform for sustenance in the market. Philippines E-Commerce Logistics Market is expected to grow at a CAGR of 29.0% on the basis of number of shipments delivered over the forecast period 2020-2025.

Key Segments Covered: -

By Channel

3PL Players
E-Commerce Merchants

By Type of Shipments

Domestic Shipments
International Shipments

By Area of Delivery

Intercity
Intracity

By Mode

Air Shipments
Ground Shipments

By Delivery Period

Same Day Delivery
1-2 Day Delivery
3-4 Day Delivery
More than 4 Day Delivery

By Type of Products

Consumer Electronics & Media
Fashion & Accessories
Foods & Personal Care
Home Care & Furniture
Toys & Baby Products
Others (Video Games, Digital Music, Pet Care, Home Gardening, etc.)

By Payment Mode

Cash on Delivery
Credit Cards
Others (Debit Cards, Paypal, GPay, SMART Money, etc.)
Captive and 3PL E-Commerce Warehousing
Warehousing Concentration in Philippines

E-Commerce Logistics Companies Covered

LEL Express
J&T Express
NinjaVan
Lalamove
Entrego
GoGo Xpress
LBC Express
Shopee Xpress
2GO Express
Air21
JRS Express

E-Commerce Marketplace Platform Covered

Lazada
Shopee
Zalora

Key Target Audience:-

3PL Logistics Companies
Integrated Logistics Companies
E-Commerce Marketplace Platform
Retail Companies
Logistics/Supply Chain Industry Associations

Time Period Captured in the Report:-

Historical Period – 2019-2020
Forecast Period – 2020-2025

Key Topics Covered in the Report: -

Philippines E-Commerce Market Overview
Cross Comparison- Major E-Commerce Players in Philippines
Philippines E-Commerce Logistics Market Overview
Cost Component for Philippines E-commerce Logistics Industry
Philippines E-Commerce Logistics Market Size
Philippines E-Commerce Logistics Market Segmentation 2020
Philippines E-Commerce Warehousing Landscape
Philippines E-Commerce Warehousing Clusters
Philippines E-Commerce Warehousing Rentals
Philippines E-Commerce Warehousing Cost Analysis
Philippines E-Commerce Shipments Pricing Analysis
Philippines E-Commerce Logistics Market Growth Drivers
Philippines E-Commerce Logistics Market Trends & Developments
Philippines E-Commerce Logistics Market Government Role and Initiatives
Philippines E-Commerce Logistics Market Logistics Constraints
Philippines E-Commerce Logistics Market SWOT Analysis
Competitive Landscape of Philippines E-Commerce Logistics Market
Philippines E-Commerce Logistics Market Cross Comparison
Philippines E-Commerce Logistics Market Pricing Analysis
Future Market Size and Segmentations, 2020-2025F
Covid-19 Impact on Philippines E-Commerce Logistics Market
Analyst Recommendations
Case Studies
Philippines Express Delivery Market
Philippines Online Retail Logistics Market
Philippines E-Commerce Warehousing Market
Philippines E-Commerce Logistics Industry Cycle
Philippines Online Retail Orders
Philippines E-Commerce Shipments
Philippines Online Shopping Payment Modes
Philippines E-Commerce Shipping Trends
Philippines E-Commerce Delivery Time
Philippines Domestic and Cross-Border E-Commerce
Philippines Cross-Border E-Commerce
Philippines E-Commerce Logistics Players
Major Players in Philippines E-Commerce Logistics
Philippines E-Commerce Logistics Revenue
Philippines E-Commerce Logistics Technology
Philippines Warehouse Rentals
Upcoming Warehousing Clusters in Philippines
Philippines E-Commerce Logistics Pricing
Philippines Online Shipments Pricing
Philippines E-Commerce Logistics Future Projections
Philippines E-Commerce Logistics Future Growth
Upcoming Technologies in Philippines E-Commerce Logistics
Philippines E-Commerce Logistics Case Study
Covid-19 Impact Philippines E-Commerce Logistics
Covid-19 Impact Philippines E-Commerce Market

For More Information on the research report, refer to below link:-

Philippines E-Commerce Logistics Market

Related Report by Ken Research: -

India E-Commerce Logistics Market Outlook to 2025-Driven by Changing Shopping Patterns and Increasing Demand of Fast Delivery Services

The E-commerce Logistics Industry of India is quite concentrated with presence of 10-12 major players in the market. Top 2 players namely E-Kart and ATS captures majority of the revenue share. Companies in this space battle against each other to acquire and retain clients, expand geographical presence, expand service offering and improve unit economics to increase margins. Worth of Mouth and Reputation play an important role in expanding client base in this industry. Delivery Cost, Delivery Time, Network Coverage, Brand Value, Technology Stack, Success Rate are some of the competing parameters each company focuses upon to gain customer trust.

Competition Benchmarking of Top Logistics Players in Indonesia in Transportation, Warehousing, Cold Chain, 3PL, Express, E-Commerce, Automotive, Pharma and Retail Logistics

The logistics sector in Indonesia is expected to grow in the future with a dip in 2020 due to a lockdown for few months that disrupted the Imports and Export Movements by all Modes which is expected to revive back in 2021. Tech startups are filling the gap and capturing new business opportunities. Several key technologies deployed by logistics startups include radio frequency identification (RFID), GPS, cloud computing, and data analytics. New concepts such as micro-warehousing as done by Credible and cross-border e-commerce fulfillment AllSome are gaining popularity in the Indonesian market. The pharma logistics segment and the e-commerce logistics segment are expected to drive growth in the future, given the expected increase in medical products requirements post COVID-19 and continuous funding in Express companies such as SiCepat Ekspres and Aggregator such as Kargo in Indonesia.

China Logistics and Warehousing Market Outlook to 2025 - Led by Growth in Road Freight Services, Improving Infrastructure and Rising Digital Innovations

The Chinese Logistics Market was observed to be in growth stage during the period of 2015-2020 owing to the expanding manufacturing & retail sector, increasing disposable income, growing number of investments and increasing value of exports and imports in the country. The China Logistics Industry has grown at a CAGR of 5.4% on the basis of revenue. The market is booming owing to increasing infrastructure investment, rising digital innovations and growing logistic demand in China. The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by courier & parcel activities and warehousing. Value Added services also contribute a significant proportion to the overall logistics market in China.

Vietnam Road Freight Market Outlook to 2025-Led by High Demand for Trade of Products along with Increasing Freight Throughput with New Technological Trends

Vietnam Logistics market has grown at a very high growth rate over the review period 2015-2019 and was further supported by increase in shift in manufacturing industries towards Vietnam, advancement of technology in the market, introduction of new players in the market. The entry of FDI in the market also contributed towards these high growth numbers. More than 70% of the freight was carried by road in 2019 in Vietnam, making the road freight market one of the most preferred means of transportation over the recent years. Approximately 60% of the total logistics cost is spent on Transportation in Vietnam. The trnapsortatiib of industrial products contributed the highest share of revenue in the road freight industry in 2019. The Red River Delta Region in Vietnam contributes the highest share in the volume of freight carried by road in the country owing to the presence of major manufacturing industries these provinces. Rural connectivity and road infrastructure has been a challenge for the road freight industry for which the government of Vietnam has planned to invest more than $10Bn in coming years.

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