Electronic commerce in the Philippines will grow much faster than earlier projected as the pandemic is expected to create a shift in consumer shopping behavior, further boosting online shopping, according to Paolo Campos, co-founder and chief executive officer of Zalora Philippines.
At a webinar sponsored by the German Chamber of Commerce of the Philippines Inc. recently , Campos said from 2019, e-commerce in the Philippines was poised to grow four-fold to $12 billion in 2025.
But he said: “We believe this will be further accelerated because of what’s happened during this COVID-19 (new coronavirus disease) period.
He cited a Global Web Index survey which showed 48 percent of Filipinos plan to do more online shopping after the outbreak, higher than the global average of 46 percent.
Campos also sees the last quarter of the year will post growth levels significantly beyond than in the same period in 2019. Fourth quarter is traditionally the peak in retail.
As of July 5, Campos said offline mobility for retail and recreation areas in the Philippines is still down 57 percent , though this is a significant improvement from 90 percent in mid-April at the height of the community quarantines.
“Although the current situation has led consumers to delay some of their non- essential purchases, the survey has shown how the increase in time spent at home has influenced the top categories Filipino consumers have identified that they would prioritize among the delayed purchases,” Campos said.
As expected, Campos said, a shift in purchases is apparent as consumers are now giving more importance to health and personal care.
“There has been a huge demand from customers to have easier and safer access to essentials during the quarantine period, combined with great interest from brands to go online,” Campos said.
In response, Zalora which is predominantly a fashion and lifestyle retail platform, launched in April the essentials segment with key brands across food, beverage, personal care/toiletries, medicine, vitamins, personal protective equipment, household supplies categories.
The company has retained is omnichannel strategy as it sees offline presence remains vital despite rising e-commerce adoption.
