#Philippines: Huge untapped market for #onlineretailers

Philippines: Huge untapped market for online retailers The land of the morning might be the 8th largest market for Facebook due to its population density and easy Internet access; however it does not mean that e-commerce is widely embraced by consumers in Philippines. Reported in the Manila Bulletin, the Philippines may have 28 million people active on Facebook, but only 1% of total retail in the Philippines is done online. This is as for most Filipinos, they still prefer to purchase their products in brick and mortar shops where they can both inspect the goods and pay for their items with actual cash. Quoting Mr. Jack Madrid from Multiply Philippines, the act of purchasing an item off line still dominates the shopping habits in Philippines.

For that matter, he along with other online retailers have banded together to form the Digital Commerce Association of Philippines (DCOM). This is in an effort to raise the profile of digital commerce and hopefully change the buying habits in Philippines. Furthermore Mr. Madrid stated that one of the main barriers for the take up rate of online shopping to take off is the lack of secure payment channels. With PayPal's increasing involvement in Asia combined with the projected global increase in global demand for online shopping, it is forecasted that the Filipinos will take on online shopping in a big way in the near future.

According to a 2011 report by iCD Research, global online retailing is expected to expand almost 500% from 2010 to 2015, reaching US$3.191 billion, up from $549 million in 2010. That year, online retailing grew almost 130% following modest growth in 2009. From 2005 to 2010, music, video, and entertainment software was the fastest-growing category.

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