E-commerce helps firms, particularly MSMEs and start-ups, to create their direct-to-consumer platforms as an industry that connects the country and levels the playing field. As a result of this democratization, the e-commerce market doubled last year and is anticipated to rise to US$24 billion (PHP1.2 trillion), or 5.5 percent of GDP, by 2022.
LOCAD CEO and co-founder Constantin Robertz revealed key trends in their seminal whitepaper Key E-Commerce Trends of 2022, which was discussed in the digital event “E-Commerce Trends 2022: What Online Entrepreneurs Need to Know” on April 26 to help entrepreneurs get ahead of the curve and set themselves up for success.
Customer expectations, for example, are skyrocketing, with more money being spent online than ever before, and direct-to-consumer (D2C) presence in ASEAN steadily increasing. Robertz outlined a few key elements that organizations considering e-commerce should consider in order to attract these customers.
“Delivery can be a make or break for a business in this country. Despite the product being really good, if the delivery is horrible, it becomes a 1-star rating,” says Manila Athletica CEO Aencille Santos.
Opportunity for all
Meanwhile, Nelly Dillera, Executive Director of the Department of Trade and Industry (DTI) – Philippine Trade and Training Center (PTTC), stressed the importance of teching up MSMEs in the country while developing a secure and reputable e-commerce ecosystem that they can rely on.
“The holy grail of e-commerce is to trade beyond traditional borders, outside of the regular domain, starting locally, then moving nationally, regionally, and globally. These movements serve as the ultimate test of retail, digital, or online,” Dillera said.
Any entrepreneur can become the next e-commerce celebrity, according to one idea that emerged from the event. It’s the best environment for side hustlers who are creating large SME firms that produce jobs and considerable sales all the way up to their largest brand reach.
The government’s assistance is undeniably important in assisting the growth of MSMEs.
“We’ve been fortunate to have been in partnership with government agencies such as DTI-PTTC in educating small business owners. We believe that continuing with these partnerships, webinars, and capacity-building projects, together with the private sector, will be helpful for MSMEs to grow even further. Ultimately, we can grow individually, when we grow together,” Robertz said.
Price of peace of mind
Obtaining and keeping clients will be one of the most difficult issues for organizations in 2022. Consumers regard better product availability and faster delivery time, in addition to price, as determining factors in their allegiance to a business, with 42% admitting they transfer between e-commerce websites.
Indeed, according to Robertz, among the six main e-commerce trends for 2022, providing great customer experience to acquire and retain customers is a low-hanging fruit for many MSMEs looking to grow their businesses.
“By ensuring better product availability and faster delivery, an e-commerce business, no matter how small, can become a preferred shopping destination for customers,” he added.
E-commerce enabler Etaily CEO and co-founder Alexander Friedhoff pointed out, “It’s all about meeting and exceeding the customer expectations, and authentically engaging with customers where they are.”
Nuprene Brand Manager James Fernando added the importance of fulfillment in meeting customer expectations to fuel growth, “Fulfillment if not done well, could definitely be a really difficult situation for any business — whether it’s a big or a small one. For small businesses, a good experience in terms of ordering online results in repeat purchases, and if you don’t have repeat purchases, your customer acquisition cost goes up.”
In this highly competitive sector with demanding customers who ask for nothing but the best, a brand can stand out by positioning online shopping as a “full experience,” says Santos.
“From the time that you log in to your app, to clicking, browsing the products, checking out, and delivery, up to the Kuya driver coming to your house and delivering the parcel — that entire thing is worth reviewing by the customer,” she said.
She cites as an example the reviews on major online shopping sites that are peppered with customers lauding the courier or the rider who delivered their orders.
The surge of new players, discerning consumers, and the ubiquity of online shopping indicate proves the Philippines is primed for an online financial revolution. To become a globally-competitive economy, SMEs can offer customers their unique services and products, complemented by e-commerce capabilities that they do not have to build on their own.
As Robertz said, “It is very important that each of us entrepreneurs focus our time and attention on what moves a needle for our business. And to find partners, platforms and support for the areas that we don’t really necessarily need to focus on.”
