Jhon Nikko M.

Dimazana

APPMATH – S53

Position Paper: New Trends in E-Commerce

The rapid growth of E-commerce in the Philippines can be attributed to tech-savvy shoppers
who value convenience and broad selection of products. However, E-commerce in the Philippines and
the ASEAN region in general is still considered to be in its infancy compared to E-commerce in China and
US.

According to Professor Jack Xu, the biggest factors that help E-commerce are strong
infrastructure and a secure payment system. These fueled the incredible growth of online businesses in
China. I agree with Professor Xu when he gave a rating of 2 to the E-commerce in Philippines in a scale of
1 to 5, 5 being the highest. Connectivity in the Philippines is still a big opportunity area until today
despite the advances in technology. Globally, our internet infrastructure is lagging. Moreover,
fraudulent payment transactions are also very common in PH. This negatively impacts the attractiveness
of online businesses.

Clearly, the PH government should intervene in making the internet infrastructure in the
country stable, fast and cheap. This will not only increase the demand of online products and services,
but it will also impact other businesses especially the BPO industry. Also, to help E-commerce businesses
gain wider acceptance in the country, the government should address the payment security issues either
by enforcing stricter regulations or by mandating secure payment platforms for those who are engaging
in online transactions.

Another important point in the forum that I agree with is the new trend on Social E-commerce.
It is true that most of the time, people buy new products because it was introduced to them by
someone they follow online, a celebrity, a family member or a friend. This trend should be leveraged by
entrepreneurs and businessmen especially those who are in E-commerce business. Information flow
strongly affects the buying decisions of online consumers. If people saw things that interest them, there
is a possibility that they will like to see more of these kinds. This is the basis of the advertising model of
successful online businesses. They use short videos, news clips, twits, etc. to entice customers to visit
and search through their page and ultimately to make them buy their products online.

E-commerce has introduced a new business model which according to Professor Xu is called
“Attention Economy”. People’s attention is the holy grail of every marketer. Once they’re able to
capture attention, it’s almost equivalent to a sale. This business model is rapidly gaining popularity
online. Businesses invest a great deal of money just to build an enticing online page. However, Philippine
local businesses have not fully adapted this business model yet. Professor Xu cited that even the leading
retailer in the country, SM has not yet achieved an enticing online page. If local businesses in the
Philippines were to compete globally, they need to embrace E-commerce and come to terms with the
rapidly changing trends in the online business.