The Digital Economist

The  Philippines'  young demographics remain as a key driver of domestic consumption. The Philippine Statistics Authority (PSA) census tallied the total population of the country in 2017 at 104.92 million. This figure translated to an annual average population growth of 1.55%.  The Philippines has one of the youngest populations within the APAC region with a median age of 24 years old. Majority of the population are also of working age (between 15-64 years old) which accounts for 64% of the country’s total population and is expected to grow by 16.8% between 2017 and 2026, outpacing all major markets in the region over the same period.

The young demographics of the country, the rising disposable income of its young population, remain as key drivers of domestic consumption. There are other factors that drive the retail industry to grow such as: Increased consumer spending due to reduced unemployment rate brought by the BPO and the overseas work.  This increase in income of the households is boosting retail sales. Easy Bank Loans: Bank is offering credit with easy terms to the retail companies and financing up to 60% of capital.  There is a high availability of financing channels. Increase in Demand is leading to the growth of Organized Retail:   Entry of foreign brands and consumers desire to try new brands is driving retail industry; this increases the availability of product options. Omni Channel , the rise in a multi-channel sales approach that provides the customer with an integrated customer experience. The customer can be shopping online from a desktop or mobile device, or by telephone, ...

The Philippines remains at the forefront of the Asia Pacific (APAC) growth, underpinned by solid macro fundamentals that are driving sustained positive economic expansion. The country posted a 6.7% Gross Domestic Product (GDP) growth at the end of 2017.  Strong investment in infrastructure and construction, and solid household consumption, stimulated by low inflation and interest rates, boosted the economic growth of the country.  Beyond these indicators, the potential gains from the demographic dividend combined with the large volume of mall space and competitive occupancy costs remain as its two distinct advantages, overall, which should help the country become one of the attractive retailer destinations in APAC.

Although many prefer online shopping, it only amounts to 39% e-commerce penetration, as of end of 2017. According to We are Social and Hootsuite, e-commerce shoppers in the Philippines spent an average of $37 (Php 1,900)  in 2017. 

What does the Philippine Retail Industry looks like? It is composed of diverse players, tapping on what appeals to the market considering the psychographics of Filipino consumers: Awareness of Global brands among Filipinos. With the advent of smartphones, access to internet and information, Filipinos are now more knowledgeable about the products available in the market. Changing Global Retail Landscape. More foreign brands want to invest in the Philippine Market.  In the 2017 report of Cushman & Wakefield: How Global Brands are Shaping the Metro Manila Retailer Landscape,  foreign brands view Philippines to be one of the key focus markets within the Asia Pacific region due to the rising disposable income of its young population and increasing demand for household consumption. Increasing preference for online shopping. With the convenience and product options e-commerce has to offer, more and more shoppers are now going online. Franchising of Brands. Franchising...

What does it looks like? The Philippines with its solid macroeconomic fundamentals; young working population, rising disposable income of its young population, is an attractive destination for global brands. Economic activities that are a driving sustained positive economic expansion. Rising disposable income triggering the demand move in upward slope. This rising disposable income and increase in demand for a variety of commodities attracts foreign brands to enter the Philippine retail landscape. In a research conducted by the Business Insider in United States, 8,053 retail outlet closures were announced in 2017, and more than 3,800 will close in 2018. These figures are driven by the increasing preference for online shopping. While many retail stores in the United States and elsewhere in the world have been affected over the last few years, rendered obsolete by the consumer’s growing preference for online shopping among other factors, the Philippines meanwhile h...

Retail ecommerce sales in Asia-Pacific grew 31.1% in 2017 to $1.349 trillion. Gains were fueled by retailer competition, falling prices and mobile shopping uptake among consumers. Nearly 83% of sales came from China alone—the biggest e-commerce market in the world. Total retail sales in Asia-Pacific increased 7.7% in 2017, matching to $9.268 trillion. Several markets experienced higher consumer spending and e-commerce activity, as well as improving export business. 

This year’s growth in internet users has been driven by more affordable smartphones and mobile data plans. More than 200 million people got their first mobile device in 2017, and two-thirds of the world’s 7.6 billion inhabitants now have a mobile phone. Social media use continues to grow rapidly, and the number of people using the top platform in each country has increased by almost 1 million new users every day during the past 12 months. More than 3 billion people around the world now use social media each month, with 9 in 10 of those users accessing their chosen platforms via mobile devices. The 2018 Digital Report shows a detailed analysis of the headlines for digital economy. The number of internet users in 2018 is 4.021 billion, up 7 percent year-on-year. The number of social media users in 2018 is 3.196 billion, up 13 percent year-on-year. The number of mobile phone users in 2018 is 5.135 billion, up 4 percent year-on-year.

It is a transformative time in retail. The shopper is clearly in the driver’s seat, enabled by technology to remain constantly connected and more empowered than ever before to drive changes in shopping behavior. “Everywhere commerce” has taken root, allowing consumers to shop however, wherever, and whenever they want—whether in stores, online, by mobile, voice activation or click-and-collect. Total retail sales worldwide from 2015 to 2020. Total global retail sales in 2020 are projected to amount to 27.73 trillion U.S. dollars. E-Commerce Share of Total Global Retail Sales from 2015-2021 (Statistica): •  Retail e-commerce sales as a percent of global retail sales from 2015 to 2021. •  In 2017, e-retail sales accounted for 10.2 percent of all retail sales  worldwide. This figure is expected to reach 17.5 percent in 2021. Roughly 45 percent of all internet users now use e-commerce sites, but penetration varies considerably between countries.

Study shows that as early as 6 months, babies can be taught Language (native or English), Math, and Science. This is thru visual, auditory, and sensational methodology. Though the methodologies of teaching babies can be taught in training and seminars, it will take long years just to train teachers to have the  skill-set to  teach babies effectively.  Teaching babies as early as 6 months old requires time, a certain level of care, patience and love.  So guess who is the best person to do this? The parents. This concept is backed-up with the idea that a child's mind was a "tabula rasa", or blank slate. Tabula rasa refers to the epistemological idea that individuals are born without built-in mental content and that therefore all knowledge comes from experience or perception. Tabula rasa is a Latin phrase often translated as "blank slate" in English and originates from the Roman tabula used for notes, which was blanked by heating ...

What is Gig Economy? A Gig Economy is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements. The trend toward a gig economy has begun. (whatis.techtarget.com/definition/gig-economy) Investopia defines Gig Economy as a temporary, flexible jobs are commonplace and companies tend toward hiring independent contractors and freelancers instead of full-time employees. A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career. In 2016,  it is  estimated that there are between 1 million to 1.5 million Filipinos doing freelance work.  Having said that, the  Department of  Information  and  Communications Technology ( DICT)  has a program called Rural Impact Sourcing (RIS).   It was created to promote and develop the Philippine impact sourcing ecosystem by discussin...

It is for the greater interest of our citizenry to bring jobs to workers in the countryside who would have otherwise gone abroad. The opportunity to give people in rural areas a chance earn more than a decent income can happen through freelancing and working as digital workers. Thus giving rise to a new definition of an OFW as an — Online Freelance Worker. Are you ready to be an OFW?!!! Department of  Information  and  Communications Technology ( DICT) has a program called Rural Impact Sourcing (RIS).  It was created to promote and develop the Philippine impact sourcing ecosystem by discussing opportunities, showcasing Filipino talents, and championing freelancing work.   http://dict.gov.ph/tech4ed/dict-boosts-skills-training-online-jobs-nationwide-through-tech4ed-rural-impact-sourcing-program/ An  online job  fair, also known as a virtual  job  fair or electronic  job ...

IT CAN HELP YOU ON:  • ACCESSIBILITY   • GLOBAL REACH  •  24 HOURS  X 7 DAYS OPERATION 3.5 Million Search Queries $751,522 Spent Online 990,000 Tinder Swipes 452,000 Tweets Sent 40,000 Hours Listened 900,000 Logins 342,000 Apps Downloaded 16 Million Text Messages 46,200 Posts Uploaded 4.1 Million Videos Viewed 156 Million Emails Sent 1.8 Million Snaps Created 50 Voice-First Devices Shipped 15K GIFs Sent via Messenger 120 New Accounts Created

In the Digital Economy, e-commerce brings some new technology and new capabilities to business, but the fundamental business problems are those that merchants have faced for hundred or even for thousands of years: Merchants must have something to sell, make it known to potential buyers, accept payment deliver the goods or services, provide appropriate service after the sale.   E-Commerce is not only for big companies. It is the great equalizer of all enterprises. The Micro, Small to Medium sized Enterprises (MSMEs) should consider e-commerce and expand their market reach. It is imperative that MSMEs should engage on e-commerce. With the advent of cross-border trading, international and intra-regional trade will increase exponentially.   Now a days,  It is vital that micro, small to medium enterprises to go online, and automate their business to compete with international brands. Those with manual processes that have slow, redundant, unreliable, ine...

From ancient times to present times, civilization have surfaced and communities have emerged. With this development comes allocation of scarce of resources to satisfy unlimited needs and wants of man. Inventions and discoveries took place; crude hunting weapons;  domesticating plants and animals for human consumption; smelting metals; masonry; architecture;  production and trading of goods and services; better communication and transportation;  then comes the industrial revolution. Historians say that industrial revolution started in  Great Britain. In 17th century Britain, the beginnings of an agricultural revolution would eventually lead to an industrial revolution, changing the country – and the world – forever.  Industrial Revolution Stages Stage 1: Mechanization, water power, steam power The First industrial revolution was the transition to new manufacturing processes in the period from about 1760 to sometime between 1820 and 1840.  ...