THE Philippines’ e-commerce sector is forecast to hit $60 billion in gross merchandise value (GMV) by 2030 and remains the centerpiece of the country’s digital economy, says a report from Google, Temasek, and Bain & Company.
Bain & Company Manila founding member Bennet Aquino on Tuesday presented the Google e-Conomy SEA 2024 report, focusing on the Philippine perspective and anticipating that, by yearend, the e-commerce market in the country will be valued at $21 billion, or 23 percent higher than the $17 billion last year. “We expect e-commerce to be a substantial and a material contributor to the Philippines’ digital economy moving forward,” Aquino said at the report’s launch in Taguig City, adding that the projected growth is “astounding” for a market or a sub-sector that has matured rapidly in recent years.
He also cited the rise of video commerce and its importance in consumer purchases. This year, Aquino said the Philippines has seen the role of video products from discovery to purchase decision process, with players leveraging video content at various stages of the purchase funnel.
While e-commerce has traditionally been dominated by fashion and electronics, Aquino pointed out that new categories, such as bulky goods, white goods, furniture and groceries, have emerged.
“That’s something obviously very important, alongside geographic expansion, with e-commerce players really starting to strike partnerships with last-mile providers,” he said.
Furthermore, the report highlighted the importance of balancing growth with profitability, a challenge that e-commerce players are addressing by utilizing video commerce, in-app ads, and advanced technologies like machine learning (ML) and artificial intelligence (AI).
Aquino said these tools help optimize promotional strategies, manage marketing and operational costs, and enhance engagement.
This ninth edition of the e-Conomy SEA report declared the Philippines the fastest growing digital economy in Southeast Asia.
The report covers five other countries — Thailand, Vietnam, Malaysia, Singapore, and Indonesia — all of which showed remarkable growth in the digital economy.Google Regional Director for the Philippines Jackie Wang said Southeast Asia’s growing young and tech-savvy population continues to attract digital businesses. As the fastest-growing digital economy in the region, Wang noted, the Philippines is also excelling in digital payments, transport and food sectors. He concluded the country is on an upward trajectory, driven by strong collaborations.
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