HH Galaxy and SJ Conso Inc., with extensive 7-year local expertise, join forces to establish HH Galaxy Philippines. With a focus on international brand product sales, HH Galaxy Philippines aims to capitalize on the booming post-pandemic e-commerce market in the Philippines and expand into the Southeast Asian market.
Seizing the opportunity in the post-pandemic era, the global e-commerce market is poised for growth, and HH Galaxy sets its sights on the Philippines. With plans to establish HH Galaxy Philippines in the second half of 2023, the company will leverage the 7-year local expertise of its partner, SJ Conso Inc. By adopting a localized business approach, HH Galaxy Philippines aims to introduce international brands into the Philippine market. Jimmy Yeh, General Manager of HH Galaxy Philippines and head of SJ Conso Inc., emphasizes their commitment to hiring local talents, as they serve as the vital link between the company and the local market, enabling them to quickly grasp market trends.
Jimmy Yeh, General Manager of HH Galaxy Philippines
Unleashing the Power of the Philippine E-commerce Sector
Expanding into the international market is a crucial strategic move for businesses to broaden their market reach. “But first, we need to ask ourselves, why the Philippines?” Jimmy expressed. Before venturing into the Philippine market, HH Galaxy had already conducted extensive market research, comparing the current state of various Southeast Asian countries. They comprehensively analyzed population dividends, smartphone penetration rates, internet usage, e-commerce market trends, and potential. Among these countries, the Philippines emerged as an unmissable new frontier.
First and foremost, with a population of over 100 million people, the Philippines ranks second only to Indonesia in Southeast Asia. The average age is approximately 26, indicating a predominantly youthful population that drives a substantial domestic consumption market. Furthermore, Filipinos generally exhibit a high level of receptiveness to new innovations. “This aligns perfectly with HH Galaxy’s goal and strategy of introducing international brands to the Philippines,” Jimmy emphasized.
Furthermore, the internet penetration rate in the Philippines is high, with nearly 80% of the population having internet usage habits. The number of smartphone users is also substantial, reaching approximately 90 million. According to statistics from 2022, on average, each person owns about 1.72 smartphones. Jimmy explained, “Having two smartphones and two SIM cards per person is quite normal due to the affordability of intra-network calls.”
In other words, shopping through smartphones on the internet is convenient and easy, and the e-commerce market in the Philippines has been growing year by year. According to a market analysis report published by eMarketer, the e-commerce market in the Philippines generated sales of $28.5 billion in 2022, showing a growth of approximately 30-40% compared to 2021. It is estimated that the market will continue to grow by at least 30% in the whole year of 2023. Therefore, the potential of the e-commerce market in the Philippines should not be underestimated.
Moreover, from a channel perspective, the two major e-commerce platforms in the Philippines are Shopee and Lazada. Jimmy observed through website traffic data from SimilarWeb that currently, Shopee and Lazada account for approximately 80% of the total visits to all e-commerce platforms, with both platforms having an equal share. “In the future, HH Galaxy plans to list our products on both platforms, which would allow us to reach about 90% of consumers. This will significantly boost our market presence,” Jimmy explained.
“We insist on hiring local people because they are our closest connection to the local market, enabling us to quickly grasp market trends.”
– Jimmy Yeh, General Manager of HH Galaxy Philippines
The Swift Growth of E-commerce Platforms
The e-commerce market in the Philippines has experienced rapid growth in recent years and has made significant progress. “Seven years ago, it would take two weeks for a purchased television to arrive, while Taiwan’s PChome was already challenging with 24-hour delivery. It was really unfamiliar,” recalled Jimmy. However, now, in the Greater Manila area, delivery takes only three days. “The global pandemic has catalyzed the development of e-commerce in the Philippines. When online shopping became the only sales channel, platforms had to find ways to increase their logistics capacity to cope with the surge in orders during the pandemic.”
Despite entering the post-pandemic era, e-commerce sales have not returned to their original state but have gradually grown in line with the habits of Filipino consumers. “This is a significant opportunity, but it still requires effort to seize,” said Jimmy. It is not only important to be familiar with local consumer preferences and introduce products that meet market demand but also crucial to address payment and logistics aspects. “Because the key to the e-commerce market lies in both payment and logistics. Both are indispensable.”
Although Shopee and Lazada have the highest website traffic among e-commerce platforms in the Philippines, the overall market remains highly competitive, with many other platforms eyeing their positions. Jimmy observed and analyzed, “It is precisely because of this competition that e-commerce platforms are putting more effort into solving payment and logistics issues, making payment more secure and convenient, and improving the speed and convenience of logistics.”
Perfect timing for HH Galaxy to enter the Philippine market
“Now is the perfect time for HH Galaxy to enter the Philippine market!” Jimmy emphasized that the e-commerce platforms in the Philippines have gradually improved their logistics and payment systems, and consumers have become accustomed to using online channels. Therefore, HH Galaxy can leverage its advantages in the Taiwanese e-commerce market and its understanding of brand requirements to gradually introduce international brands into the Philippine market through online channels.
In addition, HH Galaxy Philippines can benefit from the mature software technology, operational experience and logistics of HH Galaxy in Taiwan, combined with the 7-year experience of SJ Conso Inc. in the Philippines. This will provide HH Galaxy Philippines with a solid foundation in e-commerce operations from the beginning. Jimmy stated, “HH Galaxy focuses on selling products and bridging the last mile between brands and consumers. With our sales capabilities, we will establish a strong presence in the Philippines.”
HH Galaxy Philippines is currently poised for launch and is expected to be officially established in the second half of this year. Jimmy has set a goal: “The international brand sales market in the Philippines is currently in a state of intense competition, with no single company dominating the majority of the market. Therefore, HH Galaxy has unlimited potential in the Philippines, and our goal is to secure the leading position in selling international brand products.”
