There’s no better time than now to start an online business in the Philippines. In a country where more than 60% of the population has internet access and over 76 million people are active social media users, digital marketplaces are growing at a rapid pace.
Given the growth pattern of the Philippine e-commerce industry in the last three years, revenue is estimated to grow at 7.9% each year. According to Statista, revenue is significantly increasing each year, from $745 million in 2017 to $952 million in 2019. In 2020, the revenue is expected to reach the $1 billion mark.
In a 2018 CNN interview with Paulo Campos III, Co-founder, and CEO of Zalora Philippines, he mentioned that e-commerce penetration in the country was about 2%, which meant there is a huge potential for growth in this industry in the future.
The Need for Innovative Digital Marketing Strategy
Filipino consumers’ online shopping habits and expectations are evolving. Businesses need better online communication strategies in response. To reach new prospects and reward existing customers, they need to implement effective digital marketing practices such as:
- Video Marketing – In 2020, businesses can engage their target audience better with video. Digital Marketing experts Eric Siu and Neil Patel advise brands to create more videos than blog posts this year. Why? There is an upward trend in video consumption on Instagram, Facebook, and YouTube. Companies that produced videos in 2019 reported improved customer engagement and lower ad spend.
- Personalized Ad Campaigns – Facebook Messenger ads are huge in the Philippines. The instant messaging platform has more than 32 million users and 10 million of them belong to the 25 to 34 age group. Not only do these millennial buyers have great purchasing power, but they are also social-media savvy and comfortable with online shopping. Showing them well-thought-out ads or simply responding timely to their inquiries can have a great impact on your company’s digital marketing ROI.
- Quality e-commerce website – You can satisfy Filipino online shoppers if your website is easy to navigate with clear product images, complete description, reasonable return policy, reliable customer reviews, and fast checkout. If you can meet all these requirements, your business is off to a good start.
Is your business prepared to take advantage of the growing e-commerce industry in the Philippines? What are your future-proof digital marketing strategies?
Thanks for the interesting insights Aileen! I think this is an interesting fact because all the companies in this era think about probably only india, china or US where the population is massive.