Industry & Retail
From The Report: Philippines 2018
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A pillar of one of Asia’s rising economies, the Philippine industrial sector posted another strong performance in 2017, growing by 7.6% despite recent geopolitical turbulence related to the 2016 election. Manufacturing output increased by 8.5%, bolstered by expansion in each of its core segments of electronics, food and beverages, chemicals and furniture. Riding the wave of consumer confidence that has remained relatively steady since the presidential election in 2016, the Philippine retail sector scores well in global rankings for development potential. With a population of over 105m and a growing consumer middle class, per capita GDP reached around $7700 at purchasing power parity in 2017, moving ahead of India. This chapter contains an interview with Inanc Balci, CEO and Co-founder, Lazada Philippines.

Articles from this Chapter

Overview

Top notch: Manufacturing and commodities trend upwards, inviting higher levels of investment
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A pillar of one of Asia’s rising economies, the Philippine industrial sector posted another strong performance in 2017, growing by 7.6% despite recent geopolitical turbulence related to the 2016 election. Manufacturing output increased by 8.5%, bolstered by expansion in each of its core segments of electronics, food and beverages, chemicals and furniture. Meanwhile, the construction industry has continued to develop under the government’s $158bn Build, Build, Build infrastructure investment…

Interview

Reaching further: Inanc Balci, CEO and Co-founder, Lazada Philippines, on expanding opportunities for e-commerce businesses
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Interview:Inanc Balci Which regulatory areas require overhaul and fine-tuning for the local e-commerce industry to realise its growth potential? INANC BALCI: The e-commerce market presents two challenges in the Philippines. The first one is logistics related; the second one is payments related. It would help if the regulatory framework governing these two areas is updated. However, we support the current momentum in the government to resolve these issues, and we are very optimistic regarding…

Analysis

Production clusters: Government blueprint seeks to improve supply chains
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Faced with a highly competitive environment in which rival markets are looking to capitalise on rapid technological progress to establish superiority in new fields of advanced manufacturing, the government has launched a multi-pronged strategy to ensure Philippine industry keeps pace. Overseen by the Department of Trade and Industry (DTI), the Inclusive Innovation Industrial Strategy – known locally as i3S – directs state support into 12 major industries in which officials have calculated…

Overview

Gearing up: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution
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The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are presenting emerging markets with opportunities such as improved productivity, as well as risks, namely reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as the Gulf states, that have the resources to invest in new technologies, and those with better established manufacturing sectors, such as the countries in Southeast Asia, appear best placed to reap the benefits of the 4IR. Many…

Overview

Showcasing progress: Rising confidence levels benefit retailers across segments
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Riding the wave of consumer confidence that has remained relatively steady since the presidential election in 2016, the Philippine retail sector scores well in global rankings for development potential. With a population of 106.5m in 2018 and a growing consumer middle class, per capita GDP reached around $7700 at purchasing power parity in 2017, moving ahead of India. Furthermore, the rising smartphone penetration rate and increasingly sophisticated consumer habits are adding to the nation’s…

Analysis

Digital marketplace: Large players move into position to enter e-commerce
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High smartphone penetration and social media usage suggest strong growth potential for the Philippines’ nascent e-commerce segment in the medium to long term, though online activity is still low as a share of total retail sales. This opens the possibility for disruption in an industry long dominated by traditional brick-andmortar shops – an opportunity these very same businesses are best-placed to capitalise on, according to the Philippine Retailers Association (PRA). Currently, online…