THE Philippine Internet economy is projected to expand 6 percent this year to reach $7.5 billion in value, as the country grew its number of online users, especially in rural areas, at the heat of the Covid-19 lockdown.
Based on the e-Conomy SEA Report 2020, the Philippines is seen to enlarge its e-commerce market by 6 percent to $7.5 billion, from $7.1 billion last year. As such, the country is poised to reach its forecast of breaching $28 billion by 2025.
However, when compared with its Southeast Asian rivals, particularly Vietnam and Indonesia, the Philippine e-commerce growth during the Covid-19 pandemic is too little, too slow.
The report indicated Vietnam’s Internet economy is estimated to jump 16 percent this year to $14 billion, from $12 billion last year. On the other hand, Indonesia is projected to increase the value of its online market by 11 percent to $44 billion, from $40 billion.
Singapore is the lone economy in the region penciled to witness a decline in its e-commerce, by 24 percent—to $9 billion, from $12 billion—on the cancellation of travels booked online.
The report also showed the Philippines is one of three Southeast Asian countries that saw a rise in digital consumers from the rural areas. Majority of new e-commerce users in Indonesia, Malaysia and the Philippines came from non-metro locations.
Broken down, 54 percent of new digital users in the Philippines were traced in the provinces, while the remaining 46 percent live in the urban areas.
Further, the Philippines, as well as Thailand, registered the most number of digital consumers who said they will keep on using online services even in the pandemic aftermath at 95 percent. The region painted a rosy picture for sellers in e-commerce platforms, as nine in 10 new digital consumers in the region said buying online is the way forward in the new normal.
Proving the shift to online is real, the report highlighted the average time spent online per day among Southeast Asians increased to 4.7 hours during the lockdown, from 3.7 hours prior, and steadied at 4.2 hours when the movement restrictions were lifted.
According to the report, nearly half of respondents said they plan to keep accomplishing their transactions online to avoid exposure to the virus. If there’s one thing that may force them to return to buying in physical stores, it’s the issues with delivery that come along from ordering goods and services online.
“Consumers and SMEs [small and medium enterprises] have adopted digital financial services like never before,” the report read.
The report concluded behavioral changes made in the pandemic are here to stay. Likewise, it argued the shift to digital during Covid-19 lockdowns will boost adoption of online platforms by consumers, as well as penetration into digital sites by firms.
The e-Conomy SEA Report is an annual study conducted by Google, Temasek and Bain & Co. to present the developments and project the growth of e-commerce in Southeast Asia, mainly, in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Image credits: AP/Elise Amendola