Why the Philippines needs e commerce – A post from the Philippines
The Philippines is struggling to make inroads into the ecommerce world after it failed to become the leader in the e-commerce space in 2016.
This is in contrast to China, which has been making an effort to become a player in the region.
But in a recent report, the Financial Post concluded that the Philippines still has a lot to do before it can take advantage of the emerging ecommerce market.
Here are the top six reasons the Philippines is behind the pack:1.
It doesn’t have a lot of experience in ecommerce.
Despite having one of the fastest growing economies in the world, the Philippines has been largely left out of the e commerce game.
“This is an area that we have been neglecting and it is our opportunity to do something here,” said Michael H. Ramos, chief executive officer of E.
Commerce Manila, a digital agency.
The Philippines is also one of few Asian countries with a very limited understanding of ecommerce, Ramos said.
This has meant that the country is struggling with ecommerce issues that the rest of the world can learn from.
“We know how to use tools.
We know how do we sell to buyers.
But we have a very poor understanding of how we are going to go about building a successful ecommerce platform,” he said.2.
It lacks an established ecommerce business model.
As of March 2016, the country had only eight companies that had an ecommerce presence, according to the country’s Department of Industry and Trade (DIT).
“The Philippines has a long way to go to be the leader,” Ramos said, adding that this is because the Philippines does not have a large business base and is struggling just to get by.3.
It’s not a big country.
“I have never been to the Philippines, but I am familiar with the size of the economy,” said Marcos J. Nava, a former director of the Philippine International Trade Commission (PITC).
“So I am aware of the challenge that the Filipinos have to overcome.”4.
It is a country with a low penetration of the Internet.
“There are many other countries that have a relatively high Internet penetration, such as Vietnam and China,” Ramos explained.
“But the Philippines lacks a strong Internet presence.”5.
It has an antiquated ecommerce model.
“The Filipinos are trying to reinvent the wheel in the marketplace, and they haven’t succeeded in that,” Ramos added.
The Philippines’ ecommerce sector has been struggling since the early 1990s, and many of the companies that have taken off in recent years have come from small, family-run businesses.
This means that many of these companies have not been able to leverage their expertise to help improve the countrys ecommerce ecosystem.6.
It still has not developed a good digital marketing platform.
“While the Philippines launched a few online retailers and some online platforms in the last year or two, we have not had a clear digital marketing infrastructure that has the ability to grow in a way that will help us grow and compete with the global players,” Ramos noted.
In addition, the Philippine government has been hesitant to support the development of e-Commerce Manila and other ecommerce platforms because of its close ties with the United States.