5 Benefits of Expanding your Business in the Philippines
In recent years, the Philippines has been a strategic location for business expansion. With over 100 million potential consumer-driven customers, it is not a surprise that global business owners expand their enterprise in the Philippines. This is especially great for online businesses since vast majority of their population are active internet users who are accustomed to shopping products online. To illustrate further, here are 5 benefits of expanding your business in the Philippines:
1. Reaches out to a large, consumer-driven market
The Philippines has a consumer-driven population by over a 100 million. It is a fast-growing market in a cash-based economy. 67% of the Philippines population are active social media users and are heavily influenced by these platforms. The top three major e-commerce websites Filipinos normally buy from are Lazada, Shopee, and Zalora. On these platforms, they are able to do their shopping even while in home lockdowns. When Filipinos are not on these e-commerce websites, they shop from brands who have their own websites since Filipinos are also open to try new, upcoming brands from skincare to gadgets as long as these brands are reliable and have seamless transactions. Depending on your product category, all sorts of businesses—even niche products, can thrive in this country as long as your products serve its purpose and are delivered in a timely manner.
2. E-commerce is booming in the Philippines
Out of the 100 million Filipino consumers, 76% of the population have purchased a product online while 91% have visited an online retail store on the web. Based on a survey done in 2019, the top 5 e-commerce spend by category are Fashion, Electronics, Furniture, Food and Personal Care, and Toys, DIY, and hobbies. If your business falls under any of these categories, you already have a great advantage. With this data and more people buying products online, there is no doubt that e-commerce is booming in the Philippines.
3. Filipinos trust COD and other online payment solutions
With a government mandate to stay at home, Filipinos are obligated to do their shopping online. For safety and convenience, it has been the norm to pay for products and services through online platforms or pay cash through Cash on Delivery Payment Solutions. In fact, 93% of Filipinos opt to pay through Cash on Delivery Payment Solutions when buying online. While it may have been a struggle to convert consumers to shop online in the past, nowadays, there is no need for convincing since 9 out of 10 Filipinos prefer to do their shopping online. With a cash-based economy and a culture of shopping online, the Philippines is truly a strategic country to expand your business.
4. Expand your business through B2B Opportunities
Ever considered enhancing your go-to-market strategy? The B2C market has always been a great vertical growth strategy but going B2B creates a lengthier, horizontal business growth. Sales in going B2B has a longer lifespan and continually develops with every market. In the past year, many Filipinos tried their hand at starting their own business through online selling. Many started selling various products from surgical masks to food. However, there came a time when everybody was selling the same product and getting direct suppliers were difficult to find. If your business could offer wholesale prices and your products are new to Filipinos, Filipino online sellers could be a profitable market.
5. Launching your business in the Philippines without needing a local presence is now possible with the OTTO Platform
If you have an online business, the possibilities of reaching new markets like the Philippines are endless. However, some business owners are afraid of taking risks because of the bottlenecks along the way such as setting up a local presence, logistics, and remittance. The good news is, the OTTO platform does this for you!
OTTO is your local end-to-end fulfillment partner in the Philippines. All you need to do is connect either your Shopify or WooCommerce website, which the OTTO platform can now both handle with their respective plugins, and our services start to work!
OTTO assists from importation of products, to packing, and delivering them to your customers, and to collecting the payment that we will remit to your account. For customers who request to use Cash on Delivery, OTTO can especially accommodate this mode of payment.
Now, launching a business in the Philippines is possible without the hassle of having to set up a local presence.
Expanding your business globally can be a daunting task but you know what they say, the greater the effort, the sweeter the reward. The good news is, migrating consumers from buying in a physical store to buying online isn’t a problem in the Philippines since Filipinos are already accustomed to it. You wouldn’t need to convince them to buy from your website especially if your products are easily available and delivery is a seamless transaction. We hope that these 5 benefits will help you decide to expand your business in the Philippines.