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Friday, March 29, 2024

Online fashion brand Zalora set to double sales

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Zalora Philippines, a unit of Southeast Asia regional online fashion brand Zalora, said Tuesday it plans to double sales each year as more consumers turn to online retail stores for comfort and ease in shopping.

“Sales in the past were explosive. When we started out in 2012, sales grew by 400 percent in 2013 and another 150 percent in 2013-2014,” chief executive and co-founder Paulo Campos III told reporters in a briefing at the Bonifacio Global City.

He cited a great potential for online shopping platforms in the Philippine market where Internet penetration is at a young stage and growing phenomenally each year.

Internet penetration in the Philippines stands at 40 percent, or about 35 million people with access to the Internet largely on mobile phones.

It could grow to as high as 70 percent by 2018, driven by mobile Internet access of shoppers in the average age category of 30 to 35 years old.

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Zalora, inspired by the expanding online market space and the volume of Internet traffic it is receiving, is now expanding operations by getting a bigger warehouse in Carmona, Cavite.

The 10,000 square-meter warehouse in Cavite is capable of handling more than 2 million merchandises. It will replace its 6,000 sq. m. warehouse in Parañaque where about 700,000 inventories are being kept.

The company will also expand its own Zalora Express, the inhouse logistics arm, by four more delivery hubs in Iloilo, Bacolod, Cagayan de Oro and Pampanga.

It is now operating about 65 delivery hubs, including 50 in Metro Manila, and five each in Davao City, Cebu City and Zamboanga City.

Campos said more delivery hubs would be positioned in the provinces as the provincial customer base accounted for 60 percent of total purchases from 40 percent of in Greater Metro Manila customers within a span of three years.

He added online shopping was on the uptrend due to the rising disposable income of Filipinos, strong uptake of Internet users and the increased trust on such transactions.

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