How small, niche online retailers can take on the giants in the Philippines

Photo credit: NewsExaminer

There’s definitely no stopping the popularity of online shopping in the Philippines today. From desktops to smartphones, Filipinos have embraced the convenience of ecommerce so much, that the industry is expected to reach a revenue of $4.69 billion by 2020. But this should come as no surprise.

Filipinos have long been early adopters of all things new or trending. In the world of social media for instance, Pinoys lead the world with the most time spent online, averaging 53 hours a week. This is in part due to the number of Filipinos with friends and family abroad. Aside from social media though, some of the other online activities that Pinoys actively engage in include entertainment, career/financial-related tasks, and learning.

But Filipinos can’t chat all day. So what do they do during idle times?

That’s an opportunity that many big online retailers want to take advantage of. And with more and more Filipinos getting their hands on smart devices – coupled with lower mobile data offers – it’s not astonishing that the next wave to hit the Philippines is online shopping.

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In 2012, the Nielsen Group has found that Filipino shoppers have switched their shopping carts for baskets. With plenty of convenience stores and grocery shops opening just blocks away from residential areas, most Pinoys don’t feel the need to buy in bulk anymore.

Forgot something? Your community sari-sari store is always there to the rescue. From small food items to common school supplies, the average Filipino shopper can purchase daily necessities on a whim.

This change may also be spotted in online shopping.

Plenty of online shops

Although Lazada currently holds the largest market share at 80 percent (for non-food and non-travel categories), they are still in competition with some of the country’s best e-retailers such as Zalora, Hallo-Hallo, eBay.ph, and Go Buy to name a few. That’s why Filipinos are so comfortable with online shopping: there are plenty of options.

Deals

Choice isn’t the only driving force behind e-shopping’s popularity in the Philippines. One of strongest pulls for the average shopper is the deals. Nielsen reported that while most Filipinos stick to a budget or a shopping list, nine out of ten admitted that they bought more than they planned for. This opens up doors for retailers to try all sorts of promotions: from freebies to ‘buy 1 take 1’ offers.

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