ecommerce philippines 2022 · 2021. 1. 29. · • e-commerce architecture (operating environment);...

eCommerce Philippines 2022 Roadmap

Key Points

I. The Roadmap Formulation Process • Pre CoVid (August 2019 - March 2020) • CoVid period (March - December 2020)

II. Initial Outputs • eCommerce ecosystem & Architecture • Strategic Framework • Key Message • Priorities

III. eCommerce Philippines 2022 Roadmap • Strategy Map • Strategic Initiatives

(2020)

(2019)

(2019)

(2017)

Do not cite/quote without permission from DTI.

ECOMMERCE PHILIPPINES ROADMAP 2022The Process

Pre-COVID Period (August 2019 – March 2020)

Who? • Platforms • Payment Gateways, • Logistics Service Providers, • Government, • e-Commerce intermediaries, • MSMEs, • Consumers

How? • Thinking Sessions, • FGDs, • Brown Bag Brigade Sessions, • Stakeholder consultations in

the regions, • eCommerce Viber

community

What? • Update on PECR

2016-2020; • e-Commerce Architecture

(operating environment); • defined the e-Commerce

Ecosystem (stakeholders);

eCommerce Philippines 2022 • Monitored Philippine

eCommerce Roadmap 2016-2020

• Set the Vision for 2030 • Developed the framework • Developed the key message

Private Sector (Digital platforms, Fintech, Logistics Service Providers, Banks, Non-Financial Institutions, Intermediaries)

Public Sector (National Government Agencies, GOCCs, BSP)

eCommerce Viber Community

It's about engagement.


Dialogue with DTI Secretary

ATTENDED

165

Kick-off meeting Aug. 6, 2019

E-COMMERCE PHILIPPINES 2022

It’s about direction setting. “We need to

build trust between

online buyers and

online sellers”

DTI Secretary Ramon M. Lopez


Gender Payment Logistics Platform Government Total

Male 9 8 10 5481

55%

Female 5 7 8 46 66 45%

Total 14 15 18 100 147

2020 Focus Group Discussions: • DICT • BSP /Payment Gateways • Logistics and Last Mile Delivery Platforms • Start-up Community • PSA

Focus Group Discussions with key players of ecosystem

It’s about looking at it through various lenses.

ATTENDED

147Focus Group Discussions eCommerce Philippines 2022


Focus Group Discussions / Special Meetings

Gender Government

Male 54

Female 46

Total 100

• DOLE – Gig economy • DICT – Infrastructure/cybersecurity • BSP with Better Than Cash Alliance

(BTCA) • Philippine Postal Corporation • PSA – Statistics • TESDA -Training

FGD Held November 29 , At the UP Law Center , BGC

It’s about adopting a whole government approach


GenderOnline Piracy

October 10

Taxation October 8

Consumer Protection October 10

Data Privacy October 15

Intellectual Property

October 17

Ease of Doing Business

October 21

Male 12 7 11 21 11 11

Female 11 5 5 24 11 9

Total 23 13 16 45 22 20

eCommerce Brown Bag Brigade Sessions

It’s about finding solutions.


ASSESSMENT REPORT CARD*

STATUS NO. OF AGENDA ITEMS

PERCENTAGE OF COMPLETION

Accomplished Agenda item has been completed or launched 37 70%

Ongoing Work on the agenda item has begun but has

not been engaged13 25%

For discussion Work on the agenda item has not begun 3 5%

Total 53 100%

*E-Commerce Program Office-Department of Trade and Industry as of December 2020

It’s about reviewing (and monitoring) our past.


OUTPUTNumber of

Agenda Items

Completed Ongoing Pending Accomplishment Rate

Infrastructure 33 23 10 --- 70%

Innovation 2 2 --- --- 100%

Investments 2 1 1 --- 50%

Information Flow 6 6 --- --- 100%

Intellectual Capital 3 2 --- 1 67%

Integration 4 1 1 2 25%

Implementation and Monitoring 3 2 1 --- 67%

TOTAL 53 37 13 3 70%

PECR 2016-2020: Assessment Report

NOTE: Done – 37 agenda items (70%), Ongoing – 13 agenda items (25%), and Pending – 3 agenda items (5%). As of December 2020.


COVID Period (March – December 2020)

Objective: Quick sensing on the adoption of internet and use of advanced technologies to ensure continued business activities driving overall survival and growth of the economy during the ECQ

Respondents from various industries (e.g. Retail Trade, Logistics, Manufacturing, etc.)

Profile of the Respondents:

Timeline of the Study: Survey was conducted from April 25, 2020 – June 3, 2020

Rapid Assessment Study

RESPONDENTS

1,034DTI – 811 Globe – 223 Businesses across industries and asset

sizes need greater government support on: • internet speed • cybersecurity • ease of doing business • logistics systems and infrastructure.

Smaller businesses seek clear checklists of regulations and requirements; need financial support for technology investments.

Most business respondents have access to computers, internet, and ecommerce services, but are NOT maximizing these tools for their convenience and profit-making.

• 85% w/ computers & smartphones (only 40% satisfied with internet speed and reliability)

• Ecommerce sales: 25% have websites; 25% use ecommerce platforms

• 72% of logistics coordination done in-house manually (texts, email, calls, paper)

• Only 10% has invoices suitable for automated processing


Objective: Solicit views and business insights of executives from e-Commerce platforms on the state of e-commerce and their outlook on the future of e-commerce in the country.

Respondents from Internet Retail, Digital Media, Digital Payments, and Ride Hailing.


Timeline of the Study: (July to October 2020)

RESPONDENTS

15 (executives from the platforms)

Key Informant Interviews

RECOMMENDATIONS

Strengthen the country’s weak internet infrastructure

Grow cashless payments and build more trust in the

virtual trade

Speed up the implementation of the PH Identification System ID

(PhilsSys ID)

Create a central agency that will oversee all key players in the

value chain


Baseline Survey on Digitalization of MSMEsObjective: Measure the level of digitalization of Philippine micro, small and medium enterprises MSMEs based on the 3 categories developed by the ASEAN SME Digitalization study (ie. Basic, Intermediate, and Advanced), for purpose of policy and program development


Timeline of the Survey: (July to October 2020)

RESPONDENTS

400(200 from NCR, 100 from Region 3, 100 from Region 4A)

Level-3Level-2

Level-1Level-0

6%21%

23% 51%

LEVELS OF DIGITALIZATION

Business EmailNo Digital Tools

Business Email & Website

Business Email, Website, & Advanced Tools


METRICS STATUS

25% to the country’s Gross Domestic Product by 2020

Google Temasek estimates 1.98% thare in the country's GDP DTI estimates 3.4%

100,000 Micro, Small, and Medium Enterprises (MSMEs) doing e-commerce *500,000 active online sellers

40% – 50% of internet users doing e-commerce

60% share of individuals using internet. Based on 2019 UNCTAD B2C Report

Fast and competitive internet access Source: Speedtest Global Index (Oct 2020)

Mobile Data Global Average: 39.18 Mbps

Philippines: 17.83 Mbps

Fixed Broadband Global Average: 87.84 Mbps

Philippines: 27.07 Mbps

Cybercrime enforcement and protection

(Source: PNP Anti Cyber Crime Group Operational Accomplishment Report 2019)

From January to November 2019, a total of 2,187 cases were solved out of 4,795 complaints received registering a 45.61% Crime Solution Efficiency.

For the same period, a total of 2437 cases were cleared out of 4,795 complaints received registering a 50.82% Crime Clearance Efficiency.

Online and connected government (G2G, G2B, G2C, G2E)

The Philippines advanced 48 positions in terms of EPI (UN E-Participation Index) ranking from 67th in 2016 to 19th in 2018 out of 193 countries.

(Source: DICT E-Government Masterplan 2022) DICT E-Government Masterplan 2022 was launched in June 2019

It’s about the need to revise the metrics.

Note: *estimates only


It’s about creating our new narrative.


It’s ALSO about understanding the e-Commerce ecosystem and architecture

E-Commerce architecture starts with having proper infrastructure in place as they enable the appearances of platforms

Platforms such as marketplaces and online retailers easily connect buyers and sellers

Enablers make it easy to buyers to purchase and sellers to market. • Access enables traffic to be directed to

platforms • Payment & credit facilitates digital money

transaction • Logistics provides fast and reliable delivery • Training helps nurture the ecosystem

Business friendly regulations in legal, consumer/data protection, trade and tax ensures the well-being of e-commerce economy while safeguard buyers and sellers’ rights

The end goal is to help sellers and buyers reach out to each other without hassle and constraints

REACH

Defining the Players in the PHL eCommerce Architecture

Buyer Seller

ENABLERSAccess Logistics

PLATFORMSMarketplace

INFRASTRUCTURE

Hardware Software

Training Payment & Credit

Online Retailer

Skills / Talent

REGULATOR

Consumer Protection

Data Protection

Trade

Taxation and Tariffs

Labor


Basic e-Commerce Ecosystem

Digital Platforms

Intermediaries

Government

Logistics

Online Sellers (goods and services)

Customers

Payment


Digital Platforms

* Note: This list is just a representation of the ecosystem and is not intended to provide a complete or exhaustive list of providers


Payment

Defining the Players in the Philippine e-Commerce Ecosystem


Payment Networks

OTC/COD Payment Providers

Payment


E-Commerce Merchant Acquirers

Online Payment Aggregators Electronic Wallets



Logistics ServicesDefining the Players in the Philippine e-Commerce Ecosystem


Government




Well-informed sellers and buyers, established security standards, reinforced by improved regulations for internet transactions

S+S+S=S Strategic Framework

SALES

SPEED SECURITY

STRUCTURE

Fast, reliable, and affordable communications network coupled with efficient financial and logistics systems and infrastructure eGovernment, e-commerce institutions,

skills and capacity building


2022 20 Strategies22 Action Agenda

By 2030, e-commerce in the Philippines is “plug and play”— safe, reliable, easy, and efficient, everywhere. For the Filipino, e-commerce and commerce are indistinguishable.

Empowered online consumers

1. Form a strong ecommerce bureau that will champion the whole of government

approach

Provide budgetary support to fund eCommerce initiatives

11. Upskill and reskill Philippine talent to support ecommerce growth

8. Support funding for e-commerce innovation and technology

investments

5. Promote cashless

transactions and increase uptake of digital payments

9. Increase B2B ecommerce transactions

Digitally-enabled enterprisesAvailability of digitally-skilled workers

4. Pursue a future- ready, inclusive, and enabling regulatory

environment

7. Scale up the digital transformation of micro, small and medium

enterprises (MSMEs)

12. Undertake a massive communication campaign across business and market segments under a unified e-commerce

narrative

2. Institutionalize public-private sector partnership to boost ecommerce growth

3. Pursue an advanced knowledge management system that is responsive

to government and business needs

6. Fasttrack the resolution of

complaints and actions against ecommerce fraud and IP/data privacy violations

10. Advance cooperation on cross-border digital trade

VISION

RESOURCES

ORGANIZATION

COREPROCESSES

OUTCOME

Ensure Speed. Enhance Security. Establish Structure. To Expand SALES.

eCommerce Philippines Roadmap 2022

1. Accelerate government efforts in

creating a secure, reliable, efficient, and affordable network of

ICT services

2. Initiate an e-commerce logistics infrastructure and

investment convergence

program

3. Speed up eGovernment

initiatives across the ecommerce

ecosystem

Increased Contribution to the EconomyIMPACT

MISSION


STRATEGY MAP


22 Action Agenda

Infrastructure

Investment

E-Government

Investments

E-Government


Metrics and Targets2022

1. 25% to the country’s Gross Domestic Product by 2020

2. 100,000 Micro, Small, and Medium Enterprises doing e-commerce

3. 40% – 50% of internet users doing e-commerce

4. Fast and competitive internet access

5. Cybercrime enforcement and protection

6. Online and connected government (G2G, G2B, G2C, G2E)

e-Commerce Philippines 2022 PECR 2020

1. Value 2. % Share to GDP 3. Hiring success rate 4. Number of eCommerce enterprises 5. UNCTAD B2C Index Rank • Account ownership at a financial institution or with a mobile-money-

service provider (% of population age 15+) (Source: WB) • Individuals using the Internet (% of population) (Source: International

Telecommunication Union, ITU) • Postal Reliability Index (Source: Universal Postal Union, UPU) • Secure Internet servers (per 1 million people) (Source: Netcraft) 6. Gross merchandise Value 7. Resolution Rate

Review of e-Commerce Roadmap Metrics


Outcomes and Measures of SuccessOutcome Metric 2020 Baseline 2021 Targets 2022 Targets

Outcome 1: Contribution of eCommerce to the Economy Increased

Value Php 599 B ($12 B)

Php 850 B ($ 17 B)

Php 1.2T ($ 24 B)

% Share to GDP1 3.4% 4.3% 5.5%

Outcome 2: Availability of digitally skilled workers employed

Hiring Success Rate2 TBD based on 2021 Job Outlook Survey3

> 2020 hiring success rate

> 2021 hiring success rate

Outcome 3: Increased number of eCommerce enterprises

Number of eCommerce enterprises4 500,0005 750,000 1,000,000

Outcome 4: Empowered Online Consumers

UNCTAD B2C Index Rank6 89 out of 152 (Bottom half)

Upper half (at least 75 out of 152)

Top one third (at least 50 out of 152)

Gross Merchandise Value (GMV) Php 375 B ($ 7.5 B)7 Php 543 B ($ 11 B) Php 788B ($ 16 B)

Resolution Rate8

• DTI: Consumer Complaints Resolution Rate

• PNP: Crime Solution Efficiency Rate

• PNP: Crime Clearance Efficiency Rate

• 99% Consumer Complaints Resolution Rate

• 45.61% Crime Solution Efficiency Rate

• 50.82% Crime Clearance Efficiency Rate

+% +%

Notes: 1. Gross Value of Ecommerce Forecasts and Targets, REID Foundation 2. Hiring success rate = number of trained/graduates over number hired. DTI/

DOLE to conduct job Outlook survey. 3. Job Outlook 2021 Survey to be conducted 4. eCommerce enterprises = E-retailers + online merchants 5. Based on initial information from platforms

6. UNCTAD B2C E-Commerce Index 2019 – ranks 152 countries in terms of (i) Account ownership at a financial institution or with a mobile-money-service provider; (ii) Individuals using the Internet (% of population); (iii) Postal Reliability Index; (iv) Secure Internet servers (per 1 million people) -Singapore (Rank 3/152); Malaysia (Rank 34/152); and Thailand (Rank 48/152) 7. e-Conomy SEA 2020, Google, Temasek Holdings, Bain & Company 8. Complaints Resolution Rate: DTI Consumer complaints resolution; crime solution efficiency; crime clearance efficiency


“All of e-Government” Approach

Market Access Digitalization Logistics Integration


ECOMMERCE PHILIPPINES ROADMAP 2022

The Narrative


• e-Commerce is about maximizing the power of NETWORKS, through technology and internet.

• The Philippine economy and the Filipinos are geared for economic global leadership, especially in e-commerce, due to our large, young, and still growing population that are technology-savvy and use the internet the heaviest.

• We have only just begun. We have just learned how to take advantage of ecommerce. Then, COVID-19 disrupted traditional business models and slowed down the economy. But it forced faster and bigger adoption of e-commerce. And we tasted more benefits digital transactions. And we will not go back to traditional ways of doing business from now on.

• With all the available resources, partners, enablers, e-government efforts, private sector engagement, the required transformation, supported should be MADALI. To Ensure Speed, Enhance Security, Establish Structure, To Expand SALES. Everything should be MADALI.

• We will harness the power Filipino’s creative talent and entrepreneurial spirit with actual funding stake for their innovative and disruptive ecommerce ideas. Tayaan natin ang Pilipino!

• In the future, everything is e-commerce… and e-commerce is easy-commerce.


Easy Summary

ecommerce philippines 2022 · 2021. 1. 29. · • e-commerce architecture (operating environment);...

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