Some entrepreneurs have a clear business roadmap towards the industry they want to penetrate into. However, for many new aspiring entrepreneurs, it can be tough figuring out what type of business or product category is the best choice to dabble into, and how to start it.
To help you kickstart your entrepreneurial journey, we’ve identified the top four most profitable business categories and business ideas of each respective category that you can consider starting in the Philippines. These recommendations are based on statistics regarding estimated consumer expenditure and revenue.
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Fashion is a huge market in the Philippines. According to Statista, the fashion industry is expected to generate a revenue of US$2,117.00m in 2023, with an estimated annual growth rate (CAGR 2023-2027) of 15.14%. And by 2027, the projected market volume will hit US$3,721.00m.
Apparel is expected to have the largest number of users in the fashion category in 2023, with an estimated 26.3 million users, closely followed by footwear at 26.2 million. These two categories are predicted to keep expanding and are anticipated to reach approximately 35 million users by the year 2027.
Given these stats, it’s really hard to ignore this business segment if you intend to start a business in the Philippines.
Fashion Business Ideas
As apparel emerges as the most sought-after fashion category, it’s worth exploring some business ideas to gain inspiration.
The popularity of ukay-ukay stores in the Philippines can be attributed to the locals’ fondness for economical clothing options. These stores are renowned for offering branded apparel at a fraction of the original price, making it an ideal choice for budget-friendly shopping.
If the Ukay-ukay business model is aligned with your business strategy, do explore our comprehensive article on starting a ukay-ukay business, including its advantages and disadvantages.
Bespoke tailoring business
If you have a flair for design, starting a bespoke tailoring business can be a lucrative venture. You can create customised clothing pieces for clients based on their preferences and measurements.
However, this fashion business idea requires strong design and tailoring skills, as well as having a strong eye for attention to detail.
Print on demand business
The print-on-demand business model involves selling custom design products via an online store, enabling customers to place orders directly. You get to create a printable design based on customers’ requirements and it will be applied to the clothing product before shipping it to them upon each order placement.
While it may yield comparatively lower profit margins than other clothing business models, print on demand poses minimal risk as it doesn’t involve inventory investment.
For further insight into the print-on-demand business, read our article on how to profit from a print-on-demand business.
Finally, if any of these fashion business ideas pique your interest and you’re considering online selling as an option, take a look at our guide on launching an online clothing business in the Philippines.
Consumer Electronics Business
Consumer electronics represents a substantial market in the Philippines. As per Statista, this segment’s revenue is projected to reach US$10,080.00m in 2023, with an annual growth rate of 0.52%. The leading sector in the market is Telephony, with a market volume of US$5.033.00m in 2023.
Moreover, online sales are expected to contribute 41.3% of total revenue in the Consumer Electronics market by 2023.
The consumer electronics industry presents itself as a promising segment for both offline and online businesses. Below, we will explore some potential consumer electronics business ideas that you can consider as you embark on your entrepreneurial journey.
Consumer Electronics Business Ideas
Mobile phone accessories business
Mobile phone usage is widespread in the Philippines, and it has been the leading sector in the consumer electronics market.
Capitalise on this trend by offering phone cases, screen protectors, chargers, and other phone accessories. It is a relatively low-cost business with a high-profit margin when you are able find the correct suppliers for these mobile phone accessories.
Electronic gadget reselling business
If you have a passion for gadgets, you can start a reselling business for electronic gadgets such as gaming consoles, drones, and smartwatches. You can purchase products from manufacturers or wholesalers and resell them at a higher price to make a profit.
And if you need a guide on the reselling business model, we have you covered with our guide on starting a reselling business in the Philippines.
An e-loading business entails the sale of phone credits or “loads” to customers who require them. It is one of the most affordable small businesses to start, costing just ₱2,000, but has the potential to generate significant extra income and even evolve into a full-time business.
As an easy and low-cost business venture, e-loading offers a great opportunity to earn extra income. This makes it an ideal online business opportunity for students, housewives, sari-sari store owners, and any employee seeking a supplementary income.
If you like to learn more about E-loading business, take a moment to read our article on launching an E-loading business in the Philippines.
Health & Beauty Business
According to Statista, the health and beauty industry is experiencing significant growth, and is currently one of the fastest-growing consumer markets. Revenue in this segment amounts to US$5.79bn in 2023 and is expected to grow annually by 0.90% (CAGR 2023-2027).
This growth is primarily driven by the Cosmetics and Skin Care sector. The main contributing factor to this surge is the generational shift, with younger consumers entering the market.
Considering the substantial revenue and consistent annual growth, tapping into the health and beauty industry can prove to be a lucrative option for your business.
Below are some health and beauty business ideas that you can consider embarking on.
Healthy & Beauty Business Ideas
The beauty industry in the Philippines is continually expanding, and there is a growing demand for cosmetic products. This is largely due to the influence of social media, globalisation and ecommerce, which can have a long-lasting impact on consumer behaviour concerning beauty products.
You can start a business selling a range of beauty products, such as makeup, skincare products, and hair care products.
Do refer to our article on a guide to start a cosmetic business in the Philippines for additional help and insights.
Healthy Food Business
With the increasing demand for health-conscious food options in the Philippines, starting a health food store can be a lucrative business idea.
You can stock a range of healthy and organic food products such as starting a fruit and vegetable business, or low-fat dairy products like milk, yoghurt, and cheese, which are rich in calcium, protein, and vitamins.
Nuts and Seeds Business
The Philippines has a diverse agricultural industry and is known for producing a variety of nuts and seeds such as cashews, peanuts, and sesame seeds. This means that there is a steady supply of raw materials that can be used to create high-quality products.
You’ll be pleased to also know that the segment has a diverse range of products to offer. In addition to cashews, peanuts, and sesame seeds, there are other alternatives such as almonds, walnuts, chia seeds, and flax seeds. These options are rich in healthy fats, protein, and fibre, making them great choices to add to your product offerings.
The Road to Profit
While these ideas for profitable businesses span a variety of industries, it is good to know that every industry demands varying time commitments and initial investments.
And in order to start making profits, it is essential to establish your business first. To assist you in this endeavour, we have crafted a comprehensive manual on selling online in the Philippines. Make sure to read it thoroughly to gain valuable insights!
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