The “social commerce” industry in the Philippines is tipped to surge by 30 percent in 2022 with gross merchandise value (GMV) estimated at $682 million and, from then on grow by 27 percent yearly to reach $2.7 trillion by 2028, according to Research and Markets.
GMV refers not only to the value of the goods sold online, but also includes any fees that may be added or incentives that may be deducted, which sellers might take into account separately.
The research firm said in a report this industry was gaining increasing ground on traditional e-commerce channels and physical retail outlets in the Philippines amid a growing number of consumers flocking to social media platforms to discover and purchase products from social networking sites.
“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 company said.
Research and Markets added that the social commerce industry in the Philippines was growing in parallel to that of the market in Southeast Asia, where 45 percent of the e-commerce market is done through the social media segment.
With several local and regional startups continuing to compete for market share in the country, the report predicts that the Philippine social commerce sector will continue over the next four to eight quarters.
“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,” Research and Markets said.
The report cites Belo Medical Group and Shopee Philippines among brands that are tapping into the commercial potential of TikTok, while Samsung Philippines is already using the platform to drive engagement and purchasing intent of consumers.