Philippine market features:
Philippine businessmen have a good level of English and many Chinese businessmen. It is a relatively easy emerging market. Many of their habits are similar to those of Americans. The Philippines mainly imports products: electronic products, transportation equipment, fossil fuels / lubricants, industrial machinery and equipment, and other commodities.
China is the largest import source of the Philippines, followed by Japan and the United States.
In the Filipino People's mind, products made in China must be cheap. Based on the above ideas, many Philippine businessmen do not hesitate to shoddy goods and import low-grade products produced in China in order to make huge profits; In the Philippine market, we have also noticed that all products from China are very cheap, but there are some problems in the quality of some products.
Philippine businessmen rarely use letters of credit for payment, unless there is no tariff on the goods. Due to the high tariff rate in the Philippines, especially for vegetables and meat processed products, and the loose foreign exchange management system in the Philippines, Filipino businessmen generally use payment methods such as advance deposit or partial payment in advance to avoid tariffs. Therefore, when importing, Philippine businessmen require their partners to agree to use d / P payment method, or L / C for one third of the payment, and telegraphic transfer for the rest.
When doing business with the Philippines, we must find a shipping company with good reputation and strong strength to prevent illegal freight forwarders or shipping agents from colluding with illegal businessmen to defraud goods. It is best to find Chinese shipping companies with offices in the Philippines, such as COSCO and China shipping company. As a member of the ASEAN Free Trade Area, the Philippines achieved zero tariff in the ASEAN Free Trade Area as scheduled. When doing business with the Philippines, don't forget to use form e, which can help customers save money.
The Philippines has a poor economic situation with a population of more than 100 million. Although it is a country with a population of more than 100 million, its economy is far from that of Indonesia. The population of the Philippines is 1 / 2 of that of Indonesia, and its GDP is less than 1 / 3 of that of Indonesia. The per capita income of the Philippines is relatively low. Doing business with the Philippines requires a lot of attention, not complete trust, but it is prone to some unexpected situations (scams), so we need to be more rational and cautious.
Family and religion are the two most important factors affecting Philippine Society:
Filipino families are generally large, and the personal space that Westerners care about is not so important to Filipinos. Close family ties in the Philippines extend to distant cousins, Godfathers or godmothers and barkada (circle of friends).
Moreover, in the Philippines, many are family businesses. Each member of the family has a strong sense of family belonging, and respecting the elders is regarded as the top priority of family ethics. In the Philippines, when the younger generation sees the elder, they will bend over and bow their heads, touch their forehead with the elder's right hand, and pronounce "mano Po" in their mouth to show their respect.
Filipinos are relatively lazy and not particularly industrious. When a Chinese businessman is on vacation in the Philippines, he goes to the restaurant in the afternoon of a working day. The restaurant is still full. We are not business communication, but more family gatherings. Therefore, the unemployment rate in the Philippines is high. If you attach great importance to the Philippine market, you need to conduct market research in the early stage and run more local markets, Or ask local dealers to help you introduce some enterprises and customers, communicate with them and understand the local customs, religious beliefs and family understanding, which will be helpful to the progress of your business negotiation.
Philippine e-commerce market:
With a population of 105 million, the Philippines ranks second among Southeast Asian countries, and the common language is English. The Internet population increased from 55 million in 2015 to 68 million in 2019. GDP per capita is USD 3100.
In terms of e-commerce market, the scale has increased from US $500 million in 2015 to US $3 billion in 2019, and is expected to reach US $12 billion by 2025. What is obviously different from other Southeast Asian countries is that Filipinos especially like to sell products through social media (other countries also have, but the Philippines has more).
According to the Ninja van survey, up to 72% of sellers choose Facebook and 46% choose instagram for sales. Obviously, social media plays an important role in the Philippine e-commerce market.
In addition, the survey also found that only 20% of sellers only choose one sales channel, with the largest number of sellers with two to three sales channels. In the channel selection of 20% of single channel sellers, independent stations account for 41%. In terms of package volume and delivery times, independent stations are also much higher than other sellers.
If you choose to be a seller in the Philippines, you should not only sell in lazada and shopee, but also work hard on social media and independent stations.
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