DUBLIN--(BUSINESS WIRE)--The "Philippines Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Social commerce industry in Philippines is expected to grow by 30.4% on annual basis to reach US$681.6 million in 2022.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 26.7% during 2022-2028. The social commerce GMV in the country will increase from US$681.6 million in 2022 to reach US$2,744.5 million by 2028.
In the midst of the growing number of consumers flocking to social media platforms to discover and purchase products from social networking sites, the social commerce industry is gaining increasing ground on traditional e-commerce channels and physical retail outlets in the Philippines. The sheer amount of time spent by consumers, especially younger generations, on social networking platforms is making social commerce one of the fastest-growing trends in the Philippines.
The rise of the social commerce industry in the Philippines is parallel to the growth of the market in Southeast Asia. Being one of the youngest communities globally, Southeast Asia is expected to remain one of the largest markets for social commerce over the next four to eight quarters. According to the analysis, social commerce accounted for more than 45% of the Southeast Asian e-commerce market in 2021 alone and is expected to have increased further in 2022.
The publisher expects the growth in the Philippine social commerce sector to continue over the next four to eight quarters as several local and regional startups continue to compete for market share in the country. Notably, the growing investment from large social media platforms, such as Facebook, Instagram, and TikTok, is also expected to support the growth of the social commerce sector in the Philippines.
Moreover, as the social shopping method continues to become more mainstream in the country, the publisher expects a further rise in investment from private equity and venture capital firms in the Filipino social commerce industry. The growing competition in the space is also expected to lead to more mergers and acquisition deals over the next four to eight quarters in the Philippines. Overall, the publisher expects the social commerce industry in the Philippines to record strong growth from the short to medium-term perspective.
Brands are increasingly using social platforms to tap into the growing social commerce trend in the Philippines
In the midst of the growing number of consumers flocking to social media platforms such as TikTok to discover and purchase products in the country, a number of different brands are using social commerce platforms to boost their sales.
- In the Philippines, firms such as Belo Medical Group and Shopee Philippines are already using TikTok to tap into the platforms' potential for commerce. Apart from these two firms, Samsung Philippines is also using the platform to drive engagement and purchasing intent among consumers in the country.
- Notably, Samsung Philippines reported improved brand awareness and engagement after employing a gamified hashtag challenge on the social media platform for launching its smartphone models. The 2021 campaign by Samsung Philippines resulted in a 7.35% increase in ad recall, an 11.25% increase in purchasing intent, and a 9.5% increase in brand preference among consumers in the Philippines.
With several of the brands reporting a positive impact on the consumers when interacting through social commerce platforms, the publisher expects more firms to leverage TikTok and other social media platforms to drive consumer purchase intent in the country from the short to medium-term perspective.
Social commerce startups are adopting different business expansion strategies to expand their market in the Philippines
Social commerce firm Pinduoduo has achieved substantial success in China over the last four to eight quarters. Notably, startups around the globe are looking to recreate the success of Pinduoduo in their own region. Similar trends are visible in the Philippines, wherein the social commerce startups are seeking to recreate the success of Pinduoduo in Southeast Asia.
- Resellee, a social commerce startup in the Philippines, partners with individual sellers and manufacturers, and farmers in the country. The platform connects resellers with manufacturers and farmers, thereby allowing resellers to choose the product they want to add to their stores and market them to potential buyers through the use of different social media platforms.
- Notably, the social commerce platforms offer products across different categories, including fashion and electronics. However, its major focus is on groceries. During the global pandemic outbreak, the firm partnered with the government and farmers to meet the growing demand. In November 2020, the firm also raised US$1 million in its seed funding round from Hofan Capital and Mintech Enterprises.
Scope
Philippines Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Philippines Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Philippines Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Others
Philippines Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
- B2B
- B2C
- C2C
Philippines Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
- Mobile
- Desktop
Philippines Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Domestic
- Cross Border
Philippines Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
Philippines Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
Philippines Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour, 2021
- By Age
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/ncutgi
