E-Commerce in the Philippines: Opportunities and Challenges

E-­‐Commerce  in  the  Philippines:  

Opportuni5es  &  Challenges  

Jane:e  Toral  @digitalfilipino  

h:p://digitalfilipino.com  

@digitalfilipino  

Published  4  (PRINTED  Edi5on)  books:  • DigitalFilipino:  An  E-­‐Commerce  Guide  for  the  eFilipino  (2000)  • DigitalFilipino  E-­‐Commerce  Workshop  E-­‐Book  (2004)  • Philippine  Internet  Review:  10  years  of  Internet  History  (2004)  • Blogging  from  Home  (2008)  

(To  be  released  -­‐  2013):  • 2  to  4  books  

@digitalfilipino  

@digitalfilipino  

Be  a  trusted  solu,on.  Build  a  community.  Get  “100”  fans.  

Select  Monthly  Online  Ac,vi,es  (%)     2009   2010   2011  

Visi5ng  Social  Networking  sites     51*   53   82  

Search       58   76   80  

Instant  messaging     63   68   69  

Internet  Portal     54   73   67  

Visi5ng  public  chat  rooms   54   67   65  

Email     63   65   64  

Played  games  online     53   45   54  

Listen  to  songs  in  music  websites   -­‐   -­‐   45  

Downloaded  or  uploaded  music  files  online     25   37   37  

Shared/posted  something  online  that  you  created   15   24   36  

*  Note.  The  2009  figure  for  social  networking  includes  community  groups  /forums  Base:  Past  month  Internet  users  aged  10+  across  Na5onal  Urban  Philippines  Source:  Yahoo!-­‐Nielsen  Net  Index  2010,  2011  

Ac5vi5es  showing  significant  increase  at  95%  confidence  levels  between  2009  and  2011  

Despite  this  stability,  overall  engagement  is  on  the  rise.  Social  networking  now  dominates…  

Follow  the  rules  

•  E-­‐Commerce  Law  •  Data  Privacy  •  Adver5sing  regula5ons  •  Consumer  protec5on  

@digitalfilipino  

h:p:/mul5ply.com/marketplace  

Only  registered  business  can  open  a  shop  here.  

h:p://www.ebay.ph  

h:p://www.cashsense.com  

Sell  via  Facebook  page  using  h:p://apps.facebook.com/cashsense  

h:p://www.xend.com.ph  

We  need  new  business  models.  

A:uned  to  economic  situa5on  and  needs  of  rising  genera5on.  

Erick

Kalugdan

09178943492

[email protected]

Shopinstallment.com  

Lenddo.com  

Credit  score  based  on  quality  of  social  network  connec5ons.  

h:p://bit.ly/streejoodtycoon  

Opportuni5es  &  Challenges  

GFK  Purchase  Funnel    

CONTEXT  

AWARENESS  

FAMILIARITY  OPINION/IMAGERY  CONSIDERATION  PREFERENCE  SHOPPING  PURCHASE  

Source:  Nick  Fontanilla  

@digitalfilipino  

About  Purchase  Behavior  

Peer  reviews  

Mixed  sources  

Percep5ve  reference    

Crowd  

Cogni5ve  fluency  

Product  visualiza5on  

Social  media  

Emo5onal  decision  

Subconscious  decision  Source:  Peep  Laja,  Markitekt  h:p://conversionxl.com/9-­‐things-­‐to-­‐know-­‐about-­‐influencing-­‐purchasing-­‐decisions/  

Source:  Nick  Fontanilla  

The  backdrop  to  e-­‐commerce  in  Philippines  

There  is  an  inherent  reluctance  to  “trade”  through  the  Internet  

Lack  of  ‘accredita5on  and  guarantees'…by  default  modern  trade  actually  encourages  des5na5on  shopping  

Presence  of  counterfeits  and  

knock-­‐offs  

High  reliance  on  inter-­‐personal  rela,onships  

IT  and  Banking  infrastructure  “evolving”  

Tradi,onal  trade  legacy  

Buyers  need  to  ensure  quality  by  physical  inspec5on  

Buyers  feel  the  comfort,  dealing  with  

known  vendors  

Low  levels  of  confidence/trust  in  

transac5ng  online  

Source: Yahoo!-Nielsen Net Index 2011

3 1

2010 2011

Online  Transac,ons  (%)  

Ques5on:  Have  you  purchased  products  online  in  the  past  12  months…  payment  could  be  online  or  offline?  

Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2011

Online  transac,ng  remains  in  it’s  infancy  

Projected  e-­‐commerce  revenue  in  the  Philippines  is  at  P5  billion  pesos  excluding  airline  bookings.  

If  online  booking  included,  that  will  be  an  addi5on  of  es5mated  P17  billion.  (factoring  50%  of  Cebu  Pacific  sales  which  is  online)  

Source: Jack Madrid

We  need  a  data  revolu5on!  Philippine  Informa5on  Society    

Data  Index  

Data  a:uned  to  current  5mes..  Accessible  to  everyone  online…  

Data  providers  as  alliance  partners…  

Resolving  inaccurate  data  

#1  specialist,  expert  claims  verifica5on  

Data  privacy  

E-­‐Payment  in  Government  

Moving  Forward  

Join:  E-­‐Commerce  Boot  Camp  h:p://digitalfilipino.com/

ecom/  @digitalfilipino  

Join:  Digital  Influencer  Boot  Camp  

h:p://influencerbootcamp.digitalfilipino.com  @digitalfilipino  

Join  the  4th  DigitalFilipino  E-­‐

Commerce  Summit  on  

February  22.  

h:p://ecomsummit.digitalfilipino.com  

h:p://slideshare.net/jane:etoral   Let’s  chat  at  h:p://twi:er.com/digitalfilipino