NEWs Update | At the DigiCon eCommerce Masterclass: Emporia Group CEO dishes on projected market growth of PhP2.2 Trillion by 2028
At the recent DigiCon Revolution at Sheraton Hotel, 15 October, one track on the eCommerce Masterclass shed light on the huge and explosive potential of e-commerce in the Philippines. Titled, The E-Commerce Revolution: 5 Key Drivers to achieve PhP 2.2 Trillion in Digital Commerce Sales by 2028 is truly clickbait material.
Leave it to Arthur Policarpio, CEO of Emporia Group to make such market growth projections from solid and grounded insights. Incidentally, Policarpio is one of the founders of DMAP’s predecessor association, the Internet and Mobile Marketing Association of the Philippines.
Back to the projection. Yes, you read that right: 2.2 trillion pesos by 2028. In a nutshell, Policarpio cited key drivers for this growth as superior customer value; operational excellence; omnichannel strategies; social commerce; and the integration of artificial intelligence (AI).
Key Drivers of E-commerce Growth
Policarpio emphasized that achieving fast and free shipping is essential for driving e-commerce purchases. Free delivery is a critical motivator for consumers, and businesses are increasingly working toward offering fast and cost-free shipping across the Philippines. To enhance customer satisfaction, operational excellence in areas like supply chain management, warehouse optimization, and last-mile fulfilment is vital.
E-commerce players are also urged to adopt an omnichannel approach, integrating various platforms to provide seamless customer experiences. An emphasis on social commerce and the role of AI in optimizing content creation, marketing, and inventory management were highlighted as essential innovations for future growth.
E-commerce Divide in the Philippines
Despite the promising outlook, there remains an e-commerce divide in the Philippines where urban areas, particularly Metro Manila, see faster adoption of e-commerce platforms. Rural areas, on the other hand, are regions in transition and still rely heavily on traditional channels like sari-sari stores. Businesses need to focus on bridging this urban-rural gap and create more diverse and inclusive e-commerce strategies
Six Value Pillars for E-commerce
Policarpio outlined six key value pillars that businesses should focus on for growth:
Fast and Free Shipping – The most significant driver of online purchases.
Convenience – Providing customers with easy-to-use platforms and reliable service.
Assortment and Selection – Offering a wide variety of products.
Availability – Ensuring items are always in stock.
Entertainment – Enhancing the shopping experience through gamification or interactive features.
Value-Added Services – Examples include flash sales, vouchers, and priority delivery services.
In the sea of jargon and to-do lists, Policarpio asks, “What kind of value will you provide your customers now, six months from now, 12 months from now? Because the reality is, there’s so many tools, and it’s not realistic for you to do everything. It’s all about really defining and prioritizing what the value pillars of your brand will be on E-Commerce over the next several months, experimenting, measuring what works, what doesn’t work.”
Emerging Retail Channels and Consumer Preferences
According to Policarpio, fastest-growing retail channels in the Philippines’ fast-moving consumer goods (FMCG) sector are popping all over—these are proximity channels such as sari-sari stores and convenience stores. The modern Filipino is now on the go whose preference is easy access and convenience when shopping everyday items. It is critical for businesses to adapt to this trend. As e-commerce expands, businesses can study offering localized services aligned with these consumer preferences.
It’s all about providing Value. Says Policarpio, “I think a first growth driver is something so basic and cliché, but it’s all about providing superior value to customers. I know from personal experience, sometimes you tend to get lost in the latest jargon, the latest technology, the latest fancy, hot stuff.
But if you’re a marketing guy like me, you get super excited with marketing technologies but tend to lose sight of what really matters. It’s about providing value. It’s that combination of your product plus how consumers experience that product.”
Policarpio concluded by stressing that while there are challenges ahead, particularly in bridging the urban-rural divide, the exponential growth potential in e-commerce is undeniable. Companies that embrace innovation and value creation will be well-positioned to thrive in the booming Philippine market..
Words by Aye Ubaldo
📷 : June De Guzman
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