MANILA, Philippines, April 18, 2018 /PRNewswire/ -- The optimistic e-Commerce market—Business to Consumer (B2C)—in the Philippines registered remarkable incremental growth in the fourth quarter (ending Dec) of 2017.
The online retail market of the country witnessed 23.1% quarter-on-quarter growth and crossed USD 700 million Gross Merchandising Value (GMV), according to recent report released under Frost and Sullivan's e-Commerce market program.
"Market leader Lazada's order volume rose by 24% whereas Shopee recorded 70% growth during Q4'2017. In total, the market added almost 9 million orders," said Naveen Mishra, Program Director, Frost & Sullivan.
International market participants involved in the sector were primarily responsible for driving the e-Commerce market of the country. Their strong presence in both digital platforms—PC and mobile—followed by aggressive discounts and offers in partnership with partner brands triggered order volumes.
Similarly, with mobile first approach, online stores like Zalora, Globe, etc. were able to expand their customer base at rapid pace and enhanced the market reach by targeting customers from different provinces.
"Besides established market participants, local e-Commerce players like Honestbee, Takatack, Klook, etc. were also willing to penetrate this lucrative market in the country and few of them were able to succeed gradually with web traffic of over a million visitors a month and app downloads of over 100k," Naveen said.
He further added, "Christmas countdown sales and Cyber Weekend sale promotions during the quarter were quite helpful to establish them in the market."
In the context of this research Frost & Sullivan defines "E-Commerce" as the sale of goods via an online medium which have been traditionally purchased via physical retail medium. The research excludes electronic sales of:
- Travel and holiday packages
- Tickets sale related to travel (air, rail and road) and events (sports, music concerts, etc.)
- Revenue generated by online gambling sites
- App store purchases, online gaming services and in-app purchases on such platforms.
- Ride hailing services and delivery of foods, magazines, household goods, and DVD rentals.
The research study primarily focuses on Business to Consumer (B2C) market; however, the coverage includes individual sellers transacting on the e-commerce marketplaces such as Shopee, Lazada, Bukalapak and others. It excludes Person to Person (P2P) platforms (Mudah, OLX etc.) which primarily lists products and where the transaction does not conclude on the platform. Any revenue reported outside of the definition mentioned here is not part of the Frost & Sullivan's numbers reported here.
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SOURCE Frost & Sullivan