The Philippine e-commerce is expected to expand by at least 47.3 percent in 2021 to $4.42 billion in terms of revenues, the Lobien Realty Group said Friday.
Lobien associate director and chief market officer Steph Ng said in a virtual briefing sales from electronics and various media products would push sales to new record levels.
“Revenues are expected to hit more than $4 billion this year. The e-commerce market here in the Philippines is continuously growing given the wider reach of the Internet,” she said.
Transactions from electronics and media sales may reach $1.15 billion by the end of 2021, based on the realty firm’s estimates.
Ng said about 71 percent of the country’s population have access to the internet and about 70 percent of those are online shoppers.
“The pandemic has contributed greatly to the number of people doing online transactions, which is why digital payments have become the new normal. So both buyers and sellers are trying to avoid physical contact which is why they prefer cashless transactions,” she said.
Lobien said the logistics sector in the Philippines was projected to grow by 8.2 percent annually from 2020 to 2025. By 2024, the logistics sector would have reached $1.1 trillion in industry value.
The Philippines is ranked 60th out of 168 countries in the logistics performance index of the World Bank in 2018.
Ng cited major retail and corporate conglomerates for heavily investing into logistics, like Ayala Corp., the SM Group of Companies and Filinvest Land Inc.
“The increase in e-commerce sales will be the main driving force behind the growth in the logistics and warehousing industry,” Ng said.
