Contribution from e-commerce has been raised to 4.3 percent of gross domestic product GDP this year from previous 3.4 percent target with 750,000 enterprises joining the bandwagon by end this year, the revised e-commerce roadmap for the Philippines showed.
Trade and Industry Secretary Ramon M. Lopez revealed this at the launch of the new e-Commerce Roadmap Philippines 2022, which has been updated in light of the pandemic that has boosted e-commerce n the country given that Filipinos now accept the digital life as the new normal.
From a baseline of P599 billion ($12 billion) that e-commerce contributed to the domestic economy in 2020—or 3.4% share to the GDP, the target has been increased to P850 billion (US$17B) by 2021—or 4.3% share-- and P1.2 trillion ($24B)—or 5.5 percent share-- by 2022.
Further, Lopez hopes to increase the number of e-commerce enterprises from 500,000 in 2020 to 750,000 by 2021 and 1 million by 2022.
At the same time, Lopez said the new e-Commerce Roadmap seeks to address the challenges that the pandemic has revealed in the country’s e-commerce system.
“We hope that with today’s launch of our e-Commerce Roadmap, we can move to address these challenges,“ said Lopez.
The new Roadmap has 20 strategies and 22 action agenda that revolve around a simple formula of -- Speed + Security + Structure = Sales.
This formula, Lopez said, was derived and synthesized from the numerous sessions conducted with stakeholders.
The roadmap also highlights four key initiatives as BASTA E-COMMERCE, MADALI (market access, digitalization; logistics integration); building trust; Tayaan ang Pilipino; and whole of government approach.
“Our economic growth can also take advantage of the e-commerce opportunities that had been
brought to light by the pandemic. We started the journey of the e-Commerce Roadmap in August 2019, mindful already at that time that e-commerce was the wave of the future. But when the pandemic struck, we saw e-commerce adoption in the Philippines boom,” he said.
Because of the community quarantine lockdowns, many Filipinos people saw the convenience of buying online.
In addition, the Business Name Registration System (BNRS) of the DTI reported a significant increase in the number of online sellers that registered their business names last year. From 1,700 from January to March 2020, the number of online businesses zoomed to around 88,000 by year’s end. Moreover, for the month of January 2021, online business registration has already hit 93,318.
“This is a clear indication of Filipino resilience as many of our countrymen adapted to the challenging times,” said Lopez.
In April and May of last year, at the height of the quarantine period, the e-commerce sector banded together in true Bayanihan spirit to support DTI’s Reboot Package for Online Enterprises to assist
micro and small businesses. The marketplace platforms, last-mile delivery providers, fintechs, telcos, and from Google and Facebook all contributed to this joint effort. Lopez cited these efforts and for sharing information, softened onboarding policies and terms, provided discounts, and contributed time and effort in upskilling our Micro, Small, and Medium Enterprises (or MSMEs) through the very successful CTRL BIZ: REBOOT NOW program.