Ayala to tap Zalora e-platform
MANILA, Philippines - Ayala Corp., the country’s oldest conglomerate, is hoping to tap the huge potential of the logistics platform of Zalora Philippines to take advantage of the growing e-commerce in the country.
In a briefing following the company’s annual stockholders meeting yesterday, Ayala Corp. chairman Jaime Augusto Zobel de Ayala said a key component of the e-commerce platform is the logistics part, which is about bringing goods to the last mile.
In February, the Ayala Group acquired a 49 percent stake in the online fashion retailer, marking its foray into the e-commerce space.
“When we look at Zalora we look at it as an e-commerce play but underneath that, Zalora delivers 80 percent of its goods to the last mile. That’s 6,000 deliveries a day. It’s also two-way. There is a very efficient payments system. So today, it serves Zalora but obviously, there are potential businesses that it can get into. We’re not sure where it leads but it would be interesting to look at it,” Ayala Corp. CFO TG Limcaoco said.
Zobel said digitization is changing the way the conglomerate is doing business as well as the consumer landscape in the Philippines.
He said the Ayala Group, which comprises Bank of the Philippine Islands, Integrated Microelectronics Inc., Globe Telecoms and Ayala Land are all investing heavily toward digitization.
Other conglomerates are already investing in the logistics and e-commerce sector as a strategy for growth.
Logistics is considered less regulated compared to other sectors.
The holding firm reported a net income of P26 billion last year,17 percent higher than previous year, putting the company on track to hitting its P50 billion profit goal by 2020.
Ayala Corp. has allotted P185 billion for capital expenditures this year, up from P174 billion in 2016. It has invested over P700 billion in cumulative capital expenditures across its portfolio of businesses.
The group’s other businesses include Manila Water, AC Energy, AC Infra, AC Education, AC Industrials and AC Automotive.