Women-owned businesses in the Philippines were outselling those of men’s by 106 percent in terms of gross merchandise value (GMV) before the pandemic, according to a report released by the International Finance Corp. (IFC) yesterday.
However, the coronavirus disease 2019 (COVID-19) has reversed or reduced their successes, the study said.
According to the Women in e-commerce in Southeast Asia report published by IFC, the average GMV of women-owned businesses has since dropped to 79 percent of men’s.
Reversing this trend will be key to ensuring that women can compete in the digital economy after COVID-19, the study said.
The report leverages data from e-commerce company Lazada as well as vendor surveys for a unique and comprehensive view on the impact of the digital economy on women.
“E-commerce penetration is still quite low in the Philippines and as a result, there is more than enough room for healthy competition,” Ray Alimurung, chief executive officer of Lazada Philippines, said in the report.
“In fact, it’s the growth of the industry that is going to help the platforms operating within it to grow. It is similar to the popular saying ‘A rising tide will lift all boats’,” he added.
The report said in the Philippines, women sellers on Lazada’s platform owned two thirds of businesses.
“During the pandemic, more women-owned businesses in the Philippines started selling on the Lazada marketplace, increasing the share of women-owned businesses on the platform from 60 percent before the pandemic to 66 percent during the pandemic,” the report said.
“However, as new women-owned businesses joined the platform, the average GMV of women’s businesses dropped from 106 percent of men’s businesses before the pandemic, to 79 percent of men’s during the pandemic,” it added.
The report said the decrease in average women’s GMV relative to men’s is consistent with an increasing body of evidence showing how COVID-19 has disproportionately and negatively impacted women entrepreneurs.
“Given the relatively high share of women-owned microenterprises active in Lazada Philippines, it is clear that supporting women-owned businesses to regain parity or surpass men’s GMV is crucial for the growth of e-commerce in the Philippines,” it said.
The report also said widespread differences between men and women in digital and financial inclusion continue to hold back women entrepreneurs.
Key findings of the report showed that despite notable progress in recent years increasing women’s financial inclusion, 61 percent of women in the Philippines do not own a bank account.
“Further expanding financial services to women through agent banking, mobile banking, e-money, and fintech services that extend the reach of the financial system are important for providing women with greater access to the digital economy,” the study said.
The study also showed that women in the Philippines were particularly reliant on personal savings for start-up finance.
Meanwhile, women entrepreneurs on Lazada in the Philippines have obtained insurance coverage more often than men.
“These higher-than-average findings for women-owned businesses may indicate that the women selling on e-commerce platforms are more financially sophisticated than the market as a whole,” the report said.
Also, the study finds that Southeast Asia’s e-commerce market could grow by over $280 billion between 2025-2030 by increasing the number of women selling on online platforms and by providing them with better training and financial support. – Angela Celis
