March 02, 2017

Zalora PHL eyes collaboration with Ayala Malls, Globe

 ZALORA Philippines plans to build a collaboration with its minority shareholder, the Ayala group, to capture a bigger slice of the growing e-commerce market in the country.

“Let’s just say that we’re very, very, very bullish. We will try to grow at pace with the market which will be challenging given how fast the market is growing,” Zalora Philippines cofounder and CEO Paul Campos III told reporters on Wednesday in Makati City.

Last week, Ayala Corp. announced it was acquiring a 43.3% ownership stake in BF Jade E-Service Philippines, which operates Zalora Philippines. Other Ayala companies -- Ayala Land, Inc., BPI Capital Corporation and Globe Telecom, Inc.’s Kickstart Ventures, Inc. have also taken smaller stakes.

Mr. Campos expects the Ayala investment to further drive the company’s growth, as the Philippine e-commerce market is expected to expand in the next 10 years. 

According to Business World, the Philippine e-commerce market is expected to be valued at $9.4 billion by 2025, at a 34% compounded annual growth rate (CAGR). In 2015, the country’s e-commerce market was valued at $500 million. 

Zalora Philippines expects the partnership with Ayala Land can acquire new local and international brands, as Ayala Land is the second largest mall operator in the country.

The online fashion platform also sees partnerships with Globe, such free mobile app access to subscribers, exclusive offers, and integration of payment products and services.

With BPI, Zalora is looking at possibly creating a co-branded credit card, as well as installment payment options and rewards for the bank’s customers.

"Mr. Campos said they also want more brands to use Zalora for exclusive collections and advance launches, similar to what it did with Kamiseta’s Kris Aquino collection and Happy Skin’s Disney Princesses makeup line," the business daily said.

Zalora Philippines’ Web site recorded over 90 million page visits in 2016, from 50 million in 2015.