In recent years, The Philippines has made significant progress in developing its logistical capabilities, a trend that’s been backed by steady economic growth. Real GDP has risen 6.4% on average from 2010 to 2019 to cap off 84 consecutive quarters of positive growth. Although the economic impact of COVID-19 has momentarily halted this prosperity, the currently observed trends and official predictions going into the next few years suggest incredibly positive conditions for investment in logistics, especially as eCommerce popularity continues to grow.
The Philippines: a Growing Power in Logistics
Despite the pandemic, the Philippines’ logistical prowess is on the rise. In 2020, investment pledges for the transportation and storage sector rose nearly 9-fold to reach 372 million dollars. In this same year, the Philippines jumped 11 places to reach 60th of 160 countries on the Logistics Performance Index. On top of this, the Philippines’ longstanding struggle with their high logistics cost (currently 27%) appears to be approaching resolution as Pierre Carlo Curay, the president of the Supply Chain Management Association of the Philippines, recently assured that this cost would be decreased to about 10% in the next few years (Manila Times).
The Rapid Growth of eCommerce
In the same announcement, Curay emphasized eCommerce, calling it the biggest opportunity trend in Philippines logistics (Manila Times). Indeed, the 2019 eCommerce revenue of 953 million dollars is expected to reach 4.4 billion dollars this year. With annual revenue growth projections exceeding 16% annually, this figure is expected to hit 7.6 billion dollars by 2025. With this increase comes greater demand for storage space and micrologistics solutions, especially in areas where most warehousing space is occupied. This gap in supply and demand, therefore, creates a significant opportunity in converting existing spaces into facilities that can provide these solutions to eCommerce providers.
The MBE Opportunity: Solutions SMEs need in the Philippines
As a worldwide provider of pack & ship, micrologistics, printing and marketing solutions, Mail Boxes Etc. has a business model that would nicely accommodate the current trends in logistics investment and eCommerce growth in the Philippines. Right now, many small and medium businesses are adapting to the new eCommerce atmosphere and would greatly benefit from MBE’s added-value services and strong partnerships with leading logistics providers like FedEx and UPS. By obtaining a Master License and investing in this opportunity, you would be able to establish the Mail Boxes Etc. franchise countrywide, gaining access to MBE’s worldwide network of over 1,700 centers. Grab this opportunity while the time is right and consult your MBE advisor about bringing the MBE franchise to this high-potential country.