E-commerce to revitalize PH economy
The government’s “stay at home” campaign has created unprecedented challenges for traditional retailers as consumers started to see e-commerce as their most convenient and safest shopping partner during the coronavirus pandemic.
With e-commerce end-to-end customer experience, the Philippine digital retailers are expected to see explosive sales growth during the ongoing health crisis, as experts now predict that the industry will hit up to $6 billion within five years from only $1 billion last year.
As consumer reliance to traditional retail channels started to dwindle under the “new normal,” the government, through the National Economic and Development Authority (NEDA), sees the need to nourish the country’s e-commerce sector.
Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua explains that efficient and affordable e-commerce will help in revitalizing the economy from the devastation wrought by coronavirus pandemic.
As the country’s transitions to the new and better normal, Chua says that online shopping and other Internet-based marketing platforms will play bigger roles as businesses and consumers increase the use of electronic transactions.
Likewise, Chua says that cashless payment system and other financial technology platforms would see an immense rise under the new normal.
Recently, the NEDA-led Interagency Task Force Technical Working
Group for Anticipatory and Forward Planning launched three separate surveys, targeting the consumers, agriculture, industry and services sectors and the general public.
The results of the consumer survey, which generated data from 389,859 respondents, show that more than 50 percent in the private sector experienced a decline in income, largely due to the loss of their source of livelihood.
Moreover, many had difficulty in accessing goods and services because of the closure of business establishments, imposition of early curfews, and lack of public transportation.
“Businesses need to innovate and make full use of technology to resume operations and cater to consumer needs and preferences while still managing risks of COVID-19 infection,” Chua says.
In the “We Recover as One” report, among the recommended legislative actions is to revisit the present Electronic Commerce Act of 2000 by making it more comprehensive in detailing transactions covered by the law.
In particular, the government wants to specify the rights of consumers, and strengthening the penalties imposed on online service providers.
“Businesses need to make online shopping easy, affordable, and secure for consumers so that they need not go out to buy what they need and want,” Chua says.
He adds that investments in information and communications technology (ICT) infrastructure will also have to be boosted to meet the surge of online transactions and the consumers’ expectations for reliable digital connectivity.
Financial institutions are also encouraged to implement better cybersecurity measures and regulations for both consumers and merchants/ establishments.
In addition, changes in consumer preferences such as the rising demand for safe and nutritious food would require strict enforcement of food safety laws, regulations, standards, and sanitation protocols.
To help protect consumers from loss and uncertainty, information and education campaign on insurance policies will also be needed.
“The passage of the Financial Consumer Protection Bill will provide the regulatory framework to protect the interest of financial consumers and reinforce confidence in financial markets,” he says.