Skip to content The Philippines is one of the fastest-growing and most dynamic markets in Southeast Asia, with a population of over 100 million and a GDP of $376 billion in 20201. The country has a vibrant and diverse economy, driven by sectors such as services, manufacturing, agriculture, and remittances. The country also has a young and tech-savvy population, with a high penetration of mobile devices and social media. According to Statista, there were 76.8 million internet users and 74.6 million social media users in the Philippines in 20202.
These factors have created a fertile ground for the development of marketing and ecommerce technology in the Philippines, which have seen significant growth and innovation in recent years. Marketing and ecommerce technology refer to the tools, platforms, and solutions that enable businesses to reach, engage, and sell to their customers online. Some examples of marketing and ecommerce technology are:
- Online marketplaces: These are platforms that connect buyers and sellers of goods and services, such as Lazada, Shopee, Zalora, and Carousell. Online marketplaces offer convenience, variety, and competitive prices to consumers, and access, exposure, and scalability to sellers. According to eMarketer, online marketplaces accounted for 58.4% of the total ecommerce sales in the Philippines in 2020, amounting to $5.3 billion3.
- Social commerce: This is the practice of selling and buying products and services through social media platforms, such as Facebook, Instagram, and TikTok. Social commerce leverages the power of social networks, influencers, and user-generated content to create trust, engagement, and conversions. According to GlobalWebIndex, 38% of internet users in the Philippines purchased a product or service via social media in 2020, making it the second-highest rate in the world after Indonesia4.
- Digital marketing: This is the use of digital channels and technologies, such as websites, email, search engines, and online advertising, to promote and communicate a brand, product, or service to potential and existing customers. Digital marketing enables businesses to reach a large and targeted audience, measure and optimize their performance, and increase their brand awareness and loyalty. According to Statista, digital advertising spending in the Philippines reached $465 million in 2020, and is expected to grow at a compound annual growth rate (CAGR) of 11.8% from 2020 to 20255.
- Ecommerce logistics: This is the process of storing, packing, shipping, and delivering products and services ordered online, from the seller to the buyer. Ecommerce logistics involves various actors and activities, such as inventory management, warehousing, fulfillment, delivery, and returns. Ecommerce logistics is crucial for ensuring customer satisfaction, retention, and loyalty, as well as operational efficiency and profitability. According to Mordor Intelligence, the ecommerce logistics market in the Philippines was valued at $1.4 billion in 2020, and is projected to grow at a CAGR of 21.7% from 2020 to 20266.
The trends and opportunities for marketing and ecommerce technology in the Philippines are driven by several factors, such as:
- The COVID-19 pandemic: The pandemic has accelerated the adoption and usage of marketing and ecommerce technology in the Philippines, as consumers and businesses shifted to online channels to cope with the lockdowns, restrictions, and health risks. According to a report by Bain & Company and Facebook, the number of online shoppers in the Philippines increased by 8 million in 2020, reaching 40 million, and is expected to reach 53 million by 20257.
- The government support: The government of the Philippines has been supportive of the development of marketing and ecommerce technology in the country, by implementing policies and initiatives that foster a conducive and competitive environment. For instance, the government launched the E-Commerce Philippines 2022 Roadmap, which aims to increase the contribution of ecommerce to the GDP from 1.6% in 2020 to 5.5% in 2022, by addressing the challenges and gaps in the ecommerce ecosystem8.
- The innovation and competition: The marketing and ecommerce technology sector in the Philippines has witnessed a surge of innovation and competition, as local and foreign players enter and expand their presence in the market. For example, in 2020, Alibaba-backed Lazada launched LazMall, a premium online shopping platform that offers authentic and quality products from leading brands and sellers. In the same year, Singapore-based Shopee partnered with Google to launch Google Shopping Ads, a service that allows sellers to display their products on Google Search and Google Shopping.
The marketing and ecommerce technology sector in the Philippines is expected to continue to grow and evolve in the coming years, as more consumers and businesses embrace the benefits and opportunities of online commerce. The sector also faces some challenges and risks, such as cybersecurity, data privacy, infrastructure, regulation, and consumer behavior. Therefore, it is important for the stakeholders and participants of the sector to collaborate and innovate, to overcome the obstacles and seize the potential of the market.
