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Technology Featured Southeast Asia

PH digital economy to reach $20b by end of 2022: report

Manila, Philippines – The trio Google, Temasek, and Bain & Company has finally released its overview of the SEA region’s digital economy for 2022. Titled ‘Through the waves, towards a sea of opportunity,’ the latest iteration of the annual e-Conomy SEA report projects that the Philippine digital economy is on track to hit $20b Gross Merchandise Value (GMV) by the end of the year. This is a $3b growth from last year’s $17b projected value. 

It is also projected to reach $35b GMV by 2025 and $100b to $150b GMV by 2030.

Despite the partial resumption of in-store shopping, e-commerce accounted for 70% of the overall Philippine digital economy. It is expected to reach $14b GMV by 2022 with a 17% growth from last year and is expected to amount to $22b GMV by 2025 as it continues to steer the local digital economy.

Aside from e-commerce, food delivery and video-on-demand round up the top three digital activities of Filipinos, showing an adoption rate of 88%, 69%, and 58% respectively amongst digital urban users.

Moreover, projections include transport and food delivery reaching $1.9b GMV, travel growing at $1b GMV, online media reaching $3.1b GMV, and digital financial services such as lending and remittance hitting $6b this year.

The report also stated that the Philippines will attract more investors across sectors in the years to come, as its digital investment sector grew 63% from last year. Digital financial services in the country continue to attract investor interest, garnering 56% of total investor funding in 2022. 

“The Philippine digital economy remains resilient despite headwinds and continues to provide boundless opportunities as it is projected to reach $20 billion GMV by end of year. This year’s e-Conomy SEA report also suggests that the country will be a leading investment destination with over 70% of investors expecting deal activity to increase in the period of 2025 to 2030,” said Bernadette Nacario, country director at Google Philippines.

Willy Chang, associate partner at Bain & Company, also said “The Philippines’ digital economy is one of the more attractive investment hubs in the region. Across internet sectors there remains tremendous whitespace for growth as the ecosystem drives greater digital inclusion in the country, particularly outside of metro areas.”

“The seventh edition of the e-Conomy SEA report shows that the digital future of the Philippines is bright as it has the fastest growing digital investments sector this year in the region,” said Department of Trade and Industry Secretary Alfredo Pascual.

e-Conomy SEA is an annual research programme that combines Google Trends, Temasek, and Bain & Company’s insights and analyses of the digital economies of six countries in SEA: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

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Main Feature Marketing Featured Southeast Asia

Kantar releases top FMCG brands chosen by Indonesian consumers

Jakarta, Indonesia — Kantar Indonesia, Worldpanel Division announces the launch of the 2020 Indonesia Urban Brand Footprint Ranking. Brand Footprint is an annual study by Kantar that measures which brands are the most chosen ones by consumers. Brand Footprint covers FMCG sectors, e.g. food, beverages, home care, dairy, health and beauty products. Indonesia Urban ranking covers 85% of total Urban households and represents 30 million within the urban areas of Indonesia.

“Opportunities for brands to grow is there; however, brands cannot afford to expect growth to happen organically. Brands will still need to ensure that they remain relevant to the consumer and earn their growth”.

Venu Madhav, General Manager of Kantar Indonesia, Worldpanel Division

Key findings of Brand Footprint Indonesia Urban:

  • Local brands manage to establish a stronger presence, where 4 of the top 5 brands are coming from local manufacturers. Local players’ ability to adapt fast to the latest consumer trends enable them to be more productive in launching new innovations to the local market.
  • Food category dominates the top 10 rankings, while top players from household products, beverage, personal care and dairy also manage to secure several positions as well.
  • Instant noodle is the most chosen category in Indonesia Urban. It has become a significant part of the Indonesian community’s daily life. Aside from the familiar taste, affordable price and vast nationwide distribution, also makes instant noodle an all-Indonesian favourite.
  • Indomie continues to be the number one chosen FMCG brand by consumers in 2019 with 7% Consumer Reach Point (CRP) growth. Almost all Indonesian Urban households have purchased this brand around 3 – 4 times a month. Indomie also holds a strong presence on the global level, in the 9th position in Global Brand Footprint 2019 ranking. It is also the only Asian brand among the Global Top 10 brands.
  • So Klin comes next – holding the second position in the list. Strong penetration and continuous innovations to offer new benefits become the primary factors for the brand to become the most chosen Home Care brand in Indonesia Urban.
  • Kapal Api keeps up its number 3 spot in the Brand Footprint. Kapal Api continues to establish its dominance to stay ahead of the market and be number one in the beverage sector by maintaining a large buyer base.
  • Royco is securing the 4th position within the top 10 brands through its large buyer base, making it as the most chosen food additive brand in Indonesia Urban.
  • Playing in several categories is one of the key levers that many players do, Indofood (6th), Frisian flag (7th) and Lifebuoy (8th) manages their positions in the top 10 by playing in several categories that help them to have strong brand awareness.
  • Downy and Sunlight are rising and successfully entering the top 10 list this year. They innovate new products with new benefits and are well received by consumers

“Brands need to engineer and fight the growth. For any brand, the best way to find new shoppers is to pull on as many strategic levers for growth as possible. It can be increasing buyer base through attracting non buyers, more geographic location, creating more categories and encourage shoppers to purchase more frequently.”

Fanny Murhayati, Marketing Director of Kantar Indonesia