THE PHILIPPINES, AUGUST 13, 2012: Starting December 1, Multiply users who go to the site for social networking will have to say goodbye as it evolves into an e-commerce site. This transformation will see Multiply leaving netizens’ social networking needs in the hands of other Internet sites who “will do a better job…than we can”, Stefan Magdalinski, chief executive officer of the site, said in an announcement that greets Multiply users when they log in to their account.
This shift began when Filipino entrepreneurs began using the site to sell items. For a couple of years, the founders of Multiply were a little bit perplexed by this trend and even considered it as an aberration. “But in 2009, they realized that what the Filipino entrepreneurs were doing on Multiply was actually its future,” Madrid said.
With regard to online shopping, the Philippines is still in day 1, Madrid said. The Philippine e-commerce share is only about P5 billion, compared to the retail share of about P1 trillion or even more, making e-commerce only less than half percent compared to the United States’ 10% and 3% in the rest of Asia. And this is expected to be 15-20% in the next seven years, Madrid said.
But in the next 12 to 24 months, Madrid said, we would see a tipping point as more online Filipinos realize that the convenience and selection and quality of shopping experience is going to be much easier as more time is spent online.
However, there are still hurdles to overcome like the Filipinos’ reluctance to transact online. But as retailers and online merchants establish their online presence, this will be solved, Madrid added.
“We’re living in very exciting times and I look forward to being one of the drivers in helping Multiply retain dominance of being our biggest online shopping mall here in the Philippines,” Madrid said.
