e-commerce in the philippines: opportunities and challenges
DESCRIPTION
Gave this talk at the MSME Seminar on E-Commerce organized by the Philippine Chamber of Commerce and Industry (PCCI) last February 15, 2013.TRANSCRIPT
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.
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