While international players account for 93 percent of activity in the Philippine eCommerce scene, local players lead in the social media marketplace by accounting for 75 percent of activity in Facebook, Instagram and Twitter combined.
This is based on the iPrice Group’s Philippines’ Map of eCommerce Q2 2018 findings. The eCommerce aggregator attributed the trend to Filipino consumer’s online shopping preference for brand familiarity.
The behavior, according to iPrice Group, is bolstered by the Kantar Worldpanel survey findings in which 84 percent of Filipino consumers responded that they prefer to purchase from well-known and trusted brands despite the abundance of low cost alternatives available in the market. This specific Filipino consumer behaviour mainly affects the local players as majority of it have just started their respective operations in the digital marketplace.
The Map of eCommerce ranks Philippines’ top 50 eCommerce players based on their average quarterly traffic, mobile application ranking and social media following. The quarterly traffic data was taken from similar web. The mobile app ranking data was taken from App Annie and the social media following data was taken from their respective Facebook, Twitter and Instagram handles.
There are only eight players that make up the international eCommerce share of traffic and these are the giant eCommerce: Lazada, Shopee, Zalora, eBay, Sephora, Sophie Paris, My Sale and Melissa Philippines.
Out of the eight players mentioned, the four eCommerce: Lazada, Shopee, Zalora and eBay tops as the 1st to 4th most visited eCommerce marketplace in the country. Notably, Lazada’s streak performance in the Philippines makes the majority of overall eCommerce marketplace traffic activity with 68 percent share.
In specific, Lazada Philippines’ lead in traffic at the least is triple the size of its closest competitor, Shopee. This trend is unique to the Philippine markets as its SEA counterparts namely: Malaysia, Vietnam and Thailand markets are leading with less than half of the overall eCommerce marketplace traffic activity with 45, 20 and 47 percent, respectively. For Indonesia and Singapore markets, local players- Tokopedia and Qoo10 hails as the most visited eCommerce marketplace.
The local players total traffic share only accounts for 7 percent of the country’s overall marketplace traffic activity while there are more local players in the overall eCommerce share of traffic.
The most visited local eCommerce in the country is BeautyMNL placing 5th overall with less than a million-traffic followed by Kimstore in 9th place. Galleon, O Shopping and Takatack which were previously in Q1 2018’s top eCommerce all dropped one notch placing 7th, 8th and 11th respectively. Only Argomall managed to accelerate two notches placing 6th overall.
Interestingly, the iPrice report found that majority of the local players experienced inconsistency in traffic activity as there are occasions of leaps and slips in traffic ranking. In particular, the following eCommerce with the major leap in traffic are Seek the Unique, Apartment 8 Clothing, Zeus, Straight Forward Clothing, Great Value Plus, Bayan Mall, TV Shop, Mall Hallo Hallo and CesaPH which increased its traffic ranking for about 7 notches in average.
The following eCommerce with major slip in traffic are Adobomall, Watch Portal, Goods, Mommy Mundo, Bigmk, Abubot, which in averaged decreased traffic ranking for about 8 notches.
Despite the local players’ low reception in website traffic, its social media activity for Instagram and Twitter attracted more followers with 70 and 51 percent of the overall eCommerce marketplace social media followers.
Meanwhile, the social media activity for Facebook is mainly taken over by international players as it share of social media followers account for 77 percent of the overall eCommerce marketplace.
As more local players are slowly increasing its market reach through social media platforms, it should also prioritize in building eCommerce branding. Currently, the Philippine government is aiding the industry by helping local players in venturing to digital marketplace however it lacks a definitive support to competitively perform against the international big players.