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- Moxii Round Up - October 2, 2023
Moxii Round Up - October 2, 2023
Gabriel Menor
October 01, 2023
The first Monday of October! Congratulations on making it this far into the year. Ecommerce is also in for an exciting year with the Philippines’ possible new loan, Alibaba group’s new strategy and the billion dollar festivals coming to India.
World Bank approves $600M loan for Philippine tech shift
🇵🇭 Internet Islands - The Philippines has one of the biggest digital user base in Asia. The country has an internet penetration rate of 73.1% in 2023 and 84.4 million social media users.
💤 Sleeping Giant - Despite these numbers, cash still dominates over the counter, government service and fee payments (~90% of transactions). World Bank also reports that 1/3 of adults don’t have a transaction account with a financial body
💵 What’s in store - The country’s first Digital Transformation Development Policy Loan (DIPL) was set up to digitize operations and infrastructure, service delivery and encourage digital payments. The loan is said to:
Support the growing ecommerce industry
Improve competitiveness
Strengthen digital skills
Raise efficiency
Lower operating costs
These reforms will help the authorities expand the reach of digital financial services to underserved and unbanked segments of the population, including women, and facilitate the transition from a predominantly cash-based economy to a digital one. To boost business growth in digital services, this development policy loan will also support reforms that promote the uptake of e-commerce by consumers and businesses and promote competition in digital services markets,
Alibaba’s logistics arm goes for IPO
🚚 Meet Cainiao: The logistics company is the largest provider of cross border ecommerce in the world and serves as Alibaba’s fulfillment partner, managing a global fulfillment system that aims to soon offer 1 day shipping in China and 3 days for global.
📦️ Bigger and Better - Part of Alibaba’s new strategy is to have its groups file for their own IPOs. Cainiao’s IPO is an effort to further boost its already impressive global logistics network and delivery efficiency.
Here’s some quick numbers on Cainiao’s IPO:
🔻 Alibaba will reduce its stake from 70% to 50% (Source: CNN)
📈 Revenues are up 34% compared to the same period in June 2022 (Source: CNN)
🏦 Joint sponsors include CITIC Securities, Citibank and JPMorgan (Source: China Daily)
🪙 Share sale is reported to be $1B (Source: South China Morning Post)
Brands ready up for India’s festive season
Image from: Canva
🛍️ Tis the season - India’s festive season is a gold mine for businesses. Spanning from October to November, Major ecommerce brands like Amazon and Flipkart are expecting tens of millions of shoppers in the coming months. Gross merchandise value in this time span is expected to hit $1.08 billion or ₹90,000 crore.
🏃 Brands take position - Redseer estimates 140 million shoppers in the coming months. Brands are readying their discounts and promos, which Varun Tangri, CEO of QueueBuster says is a key strategy for ecommerce companies.
Here are some more quick facts about the festivals:
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