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E-­‐Commerce	
  in	
  the	
  
     Philippines:	
  
  Opportuni5es	
  &	
  
      Challenges	
  



                                     Jane:e	
  Toral	
  
                                    @digitalfilipino	
  
                                h:p://digitalfilipino.com	
  
E-Commerce in the Philippines: Opportunities and Challenges
@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.	
  
Despite	
  this	
  stability,	
  overall	
  engagement	
  is	
  on	
  the	
  rise.	
  
Social	
  networking	
  now	
  dominates…	
  

    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	
  




        Ac5vi5es	
  showing	
  significant	
  increase	
  at	
  95%	
  confidence	
  levels	
  between	
  2009	
  and	
  2011	
  
   *	
  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	
  
Follow	
  the	
  rules	
  
     •    E-­‐Commerce	
  Law	
  
     •    Data	
  Privacy	
  
     •    Adver5sing	
  regula5ons	
  
     •    Consumer	
  protec5on	
  




@digitalfilipino	
  
E-Commerce in the Philippines: Opportunities and Challenges
h:p:/mul5ply.com/marketplace	
  
Only	
  registered	
  business	
  can	
  open	
  a	
  shop	
  here.	
  
E-Commerce in the Philippines: Opportunities and Challenges
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.	
  
Shopinstallment.com	
  




Erick



Kalugdan



09178943492



erick@kalugdan.com
Lenddo.com	
  




Credit	
  score	
  based	
  on	
  quality	
  of	
  social	
  network	
  connec5ons.	
  
h:p://bit.ly/streejoodtycoon	
  
E-Commerce in the Philippines: Opportunities and Challenges
E-Commerce in the Philippines: Opportunities and Challenges
E-Commerce in the Philippines: Opportunities and Challenges
Opportuni5es	
  &	
  Challenges	
  
Source:	
  Nick	
  Fontanilla	
  




 C
 O
 N
 T                       AWARENESS	
  
 E                       FAMILIARITY	
  
                      OPINION/IMAGERY	
  
 X
                       CONSIDERATION	
  
 T	
                     PREFERENCE	
  
                          SHOPPING	
  
@digitalfilipino	
  
                          PURCHASE	
  urchase	
  Funnel	
  	
  
                                 GFK	
  P
About	
  Purchase	
                   Peer	
  reviews	
  
Behavior	
                            Mixed	
  sources	
  
                                      Percep5ve	
  reference	
  	
  
                                      Crowd	
  
                                      Cogni5ve	
  fluency	
  
                                      Product	
  visualiza5on	
  
                                      Social	
  media	
  
                                      Emo5onal	
  decision	
  
                                      Subconscious	
  decision	
  
Source:	
  Nick	
  Fontanilla	
     Source:	
  Peep	
  Laja,	
  Markitekt	
  
                                    h:p://conversionxl.com/9-­‐things-­‐to-­‐know-­‐about-­‐influencing-­‐purchasing-­‐decisions/	
  
The	
  backdrop	
  to	
  e-­‐commerce	
  in	
  Philippines	
  

     Tradi,onal	
                Presence	
  of	
            High	
  reliance	
  on	
     IT	
  and	
  Banking	
  
                               counterfeits	
  and	
          inter-­‐personal	
           infrastructure	
  
    trade	
  legacy	
             knock-­‐offs	
                rela,onships	
                 “evolving”	
  


           Lack	
  of	
  
    ‘accredita5on	
  and	
      Buyers	
  need	
               Buyers	
  feel	
           Low	
  levels	
  of	
  
     guarantees'…by	
             to	
  ensure	
              the	
  comfort,	
           confidence/
      default	
  modern	
  
       trade	
  actually	
       quality	
  by	
              dealing	
  with	
              trust	
  in	
  
        encourages	
               physical	
                    known	
                   transac5ng	
  
        des5na5on	
              inspec5on	
                    vendors	
                     online	
  
          shopping	
  




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


Source: Yahoo!-Nielsen Net Index 2011
Online	
  transac,ng	
  remains	
  in	
  it’s	
  infancy	
  


                                                           Online	
  Transac,ons	
  (%)	
  




                                                                         3
                                                                                                   1




                                                                             2010            2011




    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
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	
  
E-Commerce in the Philippines: Opportunities and Challenges
Join:	
  
       E-­‐Commerce	
  Boot	
  Camp	
  
      h:p://digitalfilipino.com/
@digitalfilipino	
   ecom/	
  
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	
  

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E-Commerce in the Philippines: Opportunities and Challenges

  • 1. E-­‐Commerce  in  the   Philippines:   Opportuni5es  &   Challenges   Jane:e  Toral   @digitalfilipino   h:p://digitalfilipino.com  
  • 4. 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  
  • 6. Be  a  trusted  solu,on.  Build  a  community.  Get  “100”  fans.  
  • 7. Despite  this  stability,  overall  engagement  is  on  the  rise.   Social  networking  now  dominates…   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   Ac5vi5es  showing  significant  increase  at  95%  confidence  levels  between  2009  and  2011   *  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  
  • 8. Follow  the  rules   •  E-­‐Commerce  Law   •  Data  Privacy   •  Adver5sing  regula5ons   •  Consumer  protec5on   @digitalfilipino  
  • 11. Only  registered  business  can  open  a  shop  here.  
  • 15. Sell  via  Facebook  page  using  h:p://apps.facebook.com/cashsense  
  • 17. We  need  new  business  models.   A:uned  to  economic  situa5on  and   needs  of  rising  genera5on.  
  • 19. Lenddo.com   Credit  score  based  on  quality  of  social  network  connec5ons.  
  • 25. Source:  Nick  Fontanilla   C O N T AWARENESS   E FAMILIARITY   OPINION/IMAGERY   X CONSIDERATION   T   PREFERENCE   SHOPPING   @digitalfilipino   PURCHASE  urchase  Funnel     GFK  P
  • 26. About  Purchase   Peer  reviews   Behavior   Mixed  sources   Percep5ve  reference     Crowd   Cogni5ve  fluency   Product  visualiza5on   Social  media   Emo5onal  decision   Subconscious  decision   Source:  Nick  Fontanilla   Source:  Peep  Laja,  Markitekt   h:p://conversionxl.com/9-­‐things-­‐to-­‐know-­‐about-­‐influencing-­‐purchasing-­‐decisions/  
  • 27. The  backdrop  to  e-­‐commerce  in  Philippines   Tradi,onal   Presence  of   High  reliance  on   IT  and  Banking   counterfeits  and   inter-­‐personal   infrastructure   trade  legacy   knock-­‐offs   rela,onships   “evolving”   Lack  of   ‘accredita5on  and   Buyers  need   Buyers  feel   Low  levels  of   guarantees'…by   to  ensure   the  comfort,   confidence/ default  modern   trade  actually   quality  by   dealing  with   trust  in   encourages   physical   known   transac5ng   des5na5on   inspec5on   vendors   online   shopping   There  is  an  inherent  reluctance   to  “trade”  through  the  Internet   Source: Yahoo!-Nielsen Net Index 2011
  • 28. Online  transac,ng  remains  in  it’s  infancy   Online  Transac,ons  (%)   3 1 2010 2011 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
  • 29. 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
  • 30. 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…  
  • 32. #1  specialist,  expert  claims   verifica5on  
  • 37. Join:   E-­‐Commerce  Boot  Camp   h:p://digitalfilipino.com/ @digitalfilipino   ecom/  
  • 38. Join:   Digital  Influencer  Boot  Camp   h:p://influencerbootcamp.digitalfilipino.com   @digitalfilipino  
  • 39. Join  the  4th   DigitalFilipino  E-­‐ Commerce  Summit   on   February  22.   h:p://ecomsummit.digitalfilipino.com  
  • 40. h:p://slideshare.net/jane:etoral   Let’s  chat  at  h:p://twi:er.com/digitalfilipino