Electronic commerce enabling firm aCommerce is confident that the online shopping market in the country would continue to grow significantly this year. The Southeast Asia-based company believes that by yearend, e-commerce transactions would account for 5.5% of the overall retail market in the Philippines. That is about double the current contribution of online shopping to the local retail pie.
aCommerce Group CEO Paul Srivorakol said they are currently observing a shift in consumers’ behavior. “They now realize that buying goods online is more practical than personally dropping by physical stores,” he explained.
Expanding PH operations
The company’s bullish outlook could also be cited for its decision to increase its business capacity in the country beginning this year. In fact, aCommerce General Manager Quito San Agustin disclosed that the firm is presently looking for a larger site for its fulfillment center (more like a warehouse for e-commerce platforms).
“We’re looking at 10,000 square meters. That’s the growth we see happening in 2018,” San Agustin said during a recent press conference. aCommerce currently operates two fulfillment centers locally, each measuring about 1,000 square meters.
aCommerce also expects the number of its client-brands in the Philippines to increase to about 30 to 40 this year from the current lineup of 25. The company has already teamed up with several local logistics firms to facilitate end-to-end distribution of its clients’ products to consumers nationwide.
Currently, aCommerce covers four major merchandise categories: electronics, home and living, fashion, and consumer goods. The company disclosed that so far, electronic products account for the biggest chunk of its transactions in terms of sales, while consumer goods take the bigger pie in terms of volume.
aCommerce offers localized retail, marketing, and distribution solutions for more than 260 brand clients in Southeast Asia. Its biggest operations is in Indonesia, where it employs more than 900 personnel. It also operates in Thailand and Singapore and is set to start business in Vietnam and Malaysia this year.
The company is poised to grow its presence in the region this year especially after recently obtaining a $65-million capital funding from an investor. aCommerce said a portion of that fresh fund would be channeled to the planned expansion of its Philippine operations.