IT consultant forecasts surge in Phl e-commerce

MANILA, Philippines - Digital commerce activity in the Philippines is expected to rise in the next three to four years given the country’s favorable economic prospects, according to a global information technology (IT) consulting firm.

“The Philippines is expected to have great economy in the next three to four years. Growth in online buying could track the economy,” AXON IT chief executive officer Dave Condon said during the Digital Commerce Association of the Philippines Summit 2013.

He noted that about P45-P50 billion was spent online in the Philippines last year, up 40 percent from 2011.

But while the amount has risen from 2011 levels, he said the country still lags behind other developed markets in digital or e-commerce activity as the average purchasing power is still low compared to other nations.

There is room for growth however, as average incomes in the country increase with the expected sustained strong performance of the economy.

“Price points and purchasing power have to reach certain point for the Philippines to go forward,” Condon said.

Access to the Internet, he added, will help drive higher digital commerce activity in the country, as more Filipinos are able to engage in online buying.

Based on AXON IT’s survey of the state of Philippine digital commerce which covered individuals with an average age of 31 years and average income per capita of P23,726, 43 percent have made a purchase after seeing a product or service in the Internet.

Over 95 percent said they were in the “satisfied range” when describing buying or researching products or services online.

The survey also showed that almost 95 percent indicated that they would be somewhere between “somewhat likely” and “very likely” to recommend buying or researching products or services online.

In terms of perception of online buying, more than 84 percent said they see it as “safe” or “very safe”.

The country has over 33 million Internet users.

It is also among the fastest growing markets in the world for smartphones.

DCOM president Jack Madrid estimates that the country has at least 10,000 e-commerce transactions per day.

In line with aim of encouraging e-commerce transactions in the country, DCOM is working with the Department of Trade and Industry (DTI) to come up with a trust mark for online businesses that seeks to increase consumer confidence in transacting in such websites.

The trust mark will be given to online businesses if they meet certain criteria to be agreed upon by the DCOM and DTI.

DTI Secretary Gregory Domingo said the plan is to have the seal and criteria for the grant of such ready within the first half of the year.