Region:Asia
Author(s):Himanshu Gupta
Product Code:KR1054
The report titled “Philippines E-Commerce Logistics Market Outlook to 2025 - Driven by Growth in Internet Penetration along with Introduction of New Age Technologies by Logistics Players" provides a comprehensive analysis of e-commerce logistics services in the Philippines. The report covers various aspects including the market size (by a number of orders and revenue), industry cycle, timeline, market segmentation by channel (e-commerce merchants and 3PL companies), by domestic and international shipments, by area of delivery (intercity and intracity), by mode (air and ground shipments), by delivery period duration (same-day delivery, 1-2 day delivery, 3-4 day delivery and more than 4-day delivery), by type of products, by payment mode (cash on delivery, credit cards, and others) and by return rate. The report also focuses on the e-commerce logistics warehousing sector (warehousing clusters, space, rentals, technology, cost component analysis, etc.) in the Philippines. Moreover, the report also covers the overall competitive landscape and growth drivers and trends, and government role and regulations. The report concludes with market projections for the future for the market, Covid-19 impact, analysts’ take on the future, and case studies highlighting the major opportunities.
The Filipino E-commerce industry has witnessed a moderate rise over the past 5-6 years with an increase in internet penetration into the country. Escalation in the number of smartphones in the country, fast-growing middle-class population, high consumer confidence, changing consumer preferences, etc. has augmented the growth of e-commerce leading to surging demand for e-commerce logistics as well in the country. Manila and some other cities including Central Quezon City, Cebu, and Davao have emerged as the key hub for demand and supply of e-commerce logistics The COVID-19 pandemic has also pushed the demand in the market as the need for social distancing have forced people to rely on online shopping. The growth in E-commerce orders for logistics has been majorly driven by an increase in internet affinity and demand for value-added services.
By Channel: In terms of the total number of shipments, 3PL players have captured the majority of the market share as big marketplaces like Lazada and Shopee are also dependent on these players for the last mile deliveries in 2020. International e-commerce companies prefer to outsource logistics to 3PL companies to avoid the hustle of establishing their own operations.
By Delivery Period: 1-3 day delivery has dominated the market in terms of the number of orders owing to the increasing focus of the companies on providing better services coupled with increasing customer needs for better service. Moreover, the majority of the orders are placed from the Luzon area (mainly Metro Manila), where the products can be delivered within this time duration.
By Type of Products: Consumer electronics and fashion & accessories have dominated the online retail sector in the Philippines in 2020. Beauty and personal care is the third leading e-commerce category in the Philippines.
The warehousing market in the Philippines is still in the growing phase where the majority of the domestic companies are operating through their own in-house operations and are less focused on out-sourcing it to 3PL companies.
E-Commerce warehousing has captured ~6% of the overall warehousing space in the Philippines. The rise of e-commerce within the country has given a major boost to the warehousing market. For instance, Lazada plans to add warehouses in the country in the next 3-5 years. Most of the e-commerce logistics players have their own warehousing space in order to manage all the operations by themselves. E-commerce companies in the Philippines generally prefer to own their warehouses in the top-tier cities & outsource the warehousing requirements to e-com logistics companies in provincial areas. For last-mile hubs, companies either set up their own branches or partner with the existing malls or retail outlets as a pickup and drop facility.
The competition in the e-commerce logistics space in the Philippines is highly concentrated whereby major 4-5 companies hold the majority of the share in the market. The major e-commerce logistics companies include LEL Express, J&T Express, NinjaVan, Lalamove, Entrego, GoGo Xpress, LBC Express, Shopee Xpress, 2GO Xpress, Air21, JRS Express, and few others. The e-commerce market is also highly fragmented as the majority of the market share is composed of the top 3-4 players. Fleet size, number of orders, clientele, number of delivery centers, value-added services, price, and delivery time are the key competing parameters for the e-commerce logistics providers.
Over the forecast period, the Philippines E-commerce logistics market is expected to drive up the demand because of the expected surge in internet penetration, especially its exposure to the youth. Due to the COVID-19 outbreak, there has been a shift from offline sales to online sales, which is expected to ensure substantial growth in the future as well. The e-commerce logistics market in the country is expected to grow on the back of new technologies such as Automation, Blockchain, and the Internet of Things, which will be explored to increase efficiency, improve customer experience and enhance service quality.
By Channel
By Type of Shipments
By Area of Delivery
By Mode
By Delivery Period
By Type of Products
By Payment Mode
Captive and 3PL E-Commerce Warehousing
Warehousing Concentration in Philippines
E-Commerce Logistics Companies Covered
E-Commerce Marketplace Platform Covered
1.1 Executive Summary: E-Commerce Market
1.2 Executive Summary: E-Commerce Logistics Market
2.1 Socio-Economic Landscape of Philippines
2.2 Online Retail Landscape in Philippines
2.3 Offline v/s Online Retail: A Comparison
2.4 Philippines E-Commerce Retail Industry Overview (2/2)
2.5 Demand Infrastructure: Ecosystem of Major E-Commerce Players
2.6 Government Initiatives to Boost E-Commerce
2.7 Cross Comparison- Major E-Com Players basis Key Product Sold, Peak Days & Volume Growth-2019, Avg. Basket Size per Order, Shipment Profile Order Split by Cities, Logistics Service Req. & in-house logistics, Logistics Partners, Delivery Cost Absorption, Payment Options, Shipment Profile Order Split by Delivery Period, Avg. Logistics Cost per Order, No. of Shipments per Day, Shipment Split by Domestic & Cross Border Transactions, No. of Units Per Order per day, No. of Unique Visitors, Yearly Traffic on Website, GMV in PHP Mn, Market Share
3.1 Industry Cycle
3.2 Supply Infrastructure: Ecosystem of Major E-Commerce Logistics Players
3.3 Timeline of Major E-Commerce Logistics Players
3.4 Operating Models in Philippines E-Commerce Logistics Market (2/2)
3.5 Cost Component (Basis First Mile, Mid Mile and Last Mile)
4.1 Philippines E-Commerce Logistics Market Size-2020, Seasonal Demand and Growth Drivers
5.1 By Channel (E-Commerce Merchants and 3PL Companies)
5.2 By Domestic and International Shipments
5.3 By Mode (Air and Ground Shipments)
5.4 By Delivery Period (Same Day, 1-3 Day, 3-5 Day, >5 Day Delivery)
5.5 By Type of Product (Consumer Electronics & Media, Fashion & Accessories, Food & Personal Care, Home Care & Furniture, Toys & Baby Products, Others)
5.6 By Payment Mode (COD, Credit Cards, Others)
6.1 Ecosystem of Major Warehousing Players in Philippines
6.2 Overview of Warehousing Sector in Philippines
6.3 Warehousing Rentals in Metro Manila Region (Payback Period, Land Price, Rentals)
6.4 E-Commerce Warehousing Market Overview
6.5 Warehouse Concentration across Philippines
7.1 Competition Overview: E-Commerce Logistics Market
7.2 Cross Comparison of Major Players basis Strength and Weakness
7.3 Cross Comparison- Major E-Commerce Logistics Players basis Network Ownership, Network Coverage, Business Strategies, Year, Annual 7.4 E-Commerce Shipments Delivered in Mn, Approx. Revenue from E-Commerce Shipments in PHP Bn, Annual Growth in Number of Shipments over 2019, Shipment Split by Delivery Period, No. of Employees, Fleet Size, No. of Warehouses and Size in SqM, No. of Delivery Centers and Hubs, Major B2C Partners
8.1 Cross Comparison basis Pricing for Delivery from Metro Manila to Different Regions (Metro Manila, Luzon, Visayas, Mindanao)
8.2 Cross Comparison basis Pricing for Different Weights (0.1-1 kg, 1-3 kg, 3-5 kg, >5 kg)
8.3 Lazada Express
8.4 2GO Express
8.5 GoGo Xpress
8.6 Ninjavan
8.7 JRS Express
8.8 LBC Express
8.9 J&T Express
9.1 Government Role and Logistics Constraints
9.2 SWOT Analysis
9.3 Trends & Developments
10.1 E-Commerce Logistics Future Market Size, 2020-2025F
10.2 Philippines E-Commerce Logistics Future Market Segmentations, 2020 and 2025F
10.3 By Type of Shipments Methods (Domestic & International) and Channel (E-Commerce Merchants & 3PL)
10.4 By Delivery Mode (Ground & Air) and Payment Methods (COD, Credit Cards & Others)
10.5 By Delivery Time (Same Day, 1-3 Day, 3-5 Day, >5 Day)
14.1 Business Framework for E-Commerce Warehousing (2/2)
14.2 Customer Cohort for E-Commerce Warehousing
14.3 Customer Journey and Promotion Strategy
14.4 Marketing Strategy
14.5 GTM Strategy (2/2)
14.6 Potential Risk Factors for Overall Warehousing Sector
14.7 Future Technology Investments for E-Commerce Logistics
14.8 Future Technology Investments for E-Commerce Warehousing
15.1 Ninjavan
15.2 E-Com Express
15.3 Saee - KSA
15.4 Euler Motors
15.5 DOT by EV Logistics
15.6 E-Trio: India Based EV Provider
15.7 Amazon Transportation Service
15.8 Grab & Shopee Philippines
16.1 Research Methodology
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