The Philippines is one of the top emerging markets for the eCommerce industry. Online retail has seen a remarkable growth in the Philippines due to the success of discount driven online sites such as Lazada, CashCash Pinoy, Groupon and Zalora. The online retail market in the country is projected to grow at a rate of 189.2% during the period 2013-2018.
It’s no surprise that a lot of local and international eCommerce companies are looking for potential in the Philippines and Cebu, the Philippines’ second largest city, is the perfect place for investors. Let us turn the spotlight to the city nicknamed “Queen City of the South.” Below are just a few reasons why Cebu is now being tagged as the rising eCommerce hotspot in the Philippines:
Cebu is home to a well-educated and highly competent workforce. Cebu’s many colleges and universities have contributed to the strengthening of a workforce that is highly-educated and highly skilled.
The boom of the business process outsourcing (BPO) industry has trickled down to Cebu, from being previously concentrated in Manila. These companies significantly help the economy because more and more people are being given jobs with good pay. In fact, the majority of people in Cebu are employed in the BPO industry. Cebu is also now home to an impressive list of local and multinational companies -from call centers to IT development, accounting and legal work, among many others.
Cebuanos spend time making money and ample time spending it, wisely. Young professionals love the night life, nearby beaches, and shopping to vent out work-related stress, making e-commerce an ideal industry in the region to complement their busy and fast-paced lifestyle.
The Philippines e-commerce market has a tremendous potential in terms of future growth because of a large number of people becoming adaptive towards online shopping trends with the help of rising internet and social media penetration rate in the country. According to the The Philippines E-Commerce Market Outlook to 2018, inconsistencies that current exist in internet service across the country will be taken care of in the coming years leading to more people getting internet access and an even greater increase in online activities.
Timothy Go, Head of Operations of A-Solutions, which provides digital storefronts for businesses, said the Filipino demand for e-commerce will continue to grow because consumers have come to value the convenience of online shopping.
“We have a growing population that is getting access to more disposable income and they have access to the Internet. They are aware of what is happening abroad and many are slowly wishing the same products and services could be enjoyed locally. As we’ve seen online retail grow dramatically over the past two years — I think this is a testament to where the industry is going,”
Livability is an integral part of any countries’ economic development. That being said, Cebu has been tagged as one of the most livable cities not only in the country, but in the whole of Asia. Recent statistics suggest that more than 200,000 foreigners are currently residing in Cebu. Some are spending their retirement in the region while others are working in multinational companies. It is predicted that retirement services and facilities are to be established in the coming years. Foreigners and expats are accustomed to eCommerce, online shopping etc. further increasing the demand for eCommerce services in the region.
Additionally, Cebuanos are well-known for their love of color and entertainment. Their home-grown Sinulog Festival is considered as one of the most colorful and anticipated festivals in the world. The unique tradition, culture and religious roots adds flavor to Cebu and draw in travels from all around the world.
These are just three reasons that make Cebu stand-out among other Philippine cities when it comes to the possibility of e-commerce business immersion. There are a lot of other exciting things that you will learn when you come and visit it personally.
For those who have been lucky enough to walk the streets of this beautiful and vibrant city, what are the other things that you think make Cebu the top Ecommerce hotspot in the country?