E-commerce penetration is gaining momentum as more shoppers buy, and more merchants sell online, making the local e-commerce market a billion-dollar industry in just six years. This is according to Inanc Balci, co-founder and CEO at Lazada Philippines.
Inanc Balci, CEO at Lazada Philippines
“E-commerce was a small market going back six years when I first came here, and since then it has become a billion-dollar industry in the Philippines,” said Balci. “It is early days for the industry but what we’re looking at is its growth – one and a half percent of all retail sales in the Philippines comes from e-commerce.”
The Lazada CEO is also optimistic for the local e-commerce industry, believing that the Philippines will soon become the largest e-commerce market in Southeast Asia.
“We expect it to grow bigger and much faster than when you look at compatible countries in the region. We see that these countries are ahead of the Philippines as it started late but it’s growing very fast. I, one hundred percent, believe the Philippines soon is going to be the largest e-commerce market in Southeast Asia,” Balci said.
In Lazada’s experience, visits are growing. From 3.8-million in 2012, these grew to 74-million in 2016 and further increase to 150-million in 2017. Balci said that the 63-million active monthly Facebook users in the Philippines are potential customers that can help increase e-commerce penetration.
To boost e-commerce penetration, Lazada’s strategies include: holding sale events like the Online Revolution (with discounts said to reach 95% off original prices), and investing in logistics infrastructure (Lazada now has 38 hubs and two warehouses; and is getting electric bikes to help deliver items within Metro Manila).
Also, through a collaboration with Freenet, the free Internet platform of Voyager Innovations, customers using Lazada mobile app can browse and shop without being charged for data consumption. To get additional discounts, shoppers can also sign-up for a PayMaya account and enjoy additional 20% off (or maximum discount of P400) with the code PYMYNOV upon checkout for the whole month of November.
