Digital transformation could unlock P5 trillion in annual economic value by 2030

Digital transformation could create up to P5 trillion in annual economic value by 2030—or about 27 percent of the country’s GDP in 2020—but the country must address roadblocks to become resilient and to be able to take advantage of the opportunities.

In a virtual briefing last October 19, officials from strategic economics consultancy AlphaBeta reported that the Philippines’ internet economy was estimated at $7.5 billion in 2020 and was expected to grow 30% annually to reach $28 billion by 2025.

According to the study—which was commissioned by Google Philippines—technology applications such as e-commerce and mobile apps can help businesses manage the long-term economic implications of the COVID-19 pandemic while staying resilient against future “black swan” events. Out of the P5 trillion digital economic opportunity, these applications can generate up to P3.5 trillion.

To fully capture this digital opportunity, the Philippines must take action in three areas: enhance digital skills training and education; accelerate digital adoption and innovation; and promote digital trade opportunities.

The report also revealed that businesses derive P363.4 billion in annual benefits from Google tools and services through increased revenues, while application developers earn P384 million in annual revenue through Google Play.

Moreover, “by enabling businesses to unlock new revenue streams and expand their businesses through the use of Google Ads, AdSense, and YouTube, Google indirectly supports over 110,000 jobs in the Philippines,” the study added.

“By providing businesses access to global markets, equipping businesses with digital capabilities to conduct electronic transactions, and facilitating remote work, technology can help businesses manage the long-term economic implications of the COVID-19 pandemic and while staying resilient against future similar events,” Google Philippines Country Director Bernadette Nacario said.

“Digital transformation plays an important role in economic recovery and the Department of Trade and Industry (DTI) commends Google for its contributions to the country,” said Sec. Ramon Lopez of the DTI.

“Even before the pandemic, Google and the DTI have been digitizing small businesses through the MSME Caravan campaign and for the past two years alone, we are able to train more than 46,000 MSME business owners and their employees. We will continue to work closely with our partners from the public and private sectors to fully unlock the opportunities of our rising digital economy and empower Filipinos to succeed and grow online,” he added.

One of the businesses that benefited from the digital training workshop is Germano’s Chilli, which continues to thrive until today. It started in 2008 to recreate the experience of eating chili garlic from restaurants to people’s homes. The concept was fairly new at that time and the business struggled with brand awareness. 

“I remember when no stores would carry our products and I’d go home from bazaars with only three to five bottles sold. I didn’t let this experience demotivate me and I grew the business little by little, until I attended a seminar hosted by Google Philippines in 2018,” said Gerome Panlilio, owner of Germano’s Chilli.

“The seminar introduced me to the free Business Profile (formerly Google My Business) on Google Search and Maps. Through this free feature, my products became discoverable on Google Search, enhancing awareness and driving inquiries for Germano’s Chilli. Like everyone else, the pandemic challenged our business, but we were able to pivot and serve customers online using the knowledge and tools I got from Google’s training workshop. In fact, the export demand for my products remains stable and its sales continue to perform well in major supermarkets.”

Before the pandemic, Germano’s Chilli’s online sales only peaked at 3%. In the past year and a half, it increased to 15%. Gerome is also using Business Profile (formerly Google My Business) to closely communicate with his customers abroad. “Last August, I had a shipment to the UK but due to pandemic-related logistical problems, the shipment got delayed and is still in transit to date. Thankfully, my customers are able to reach me via Business Profile to get updates about the stocks’ delivery status and even order from me directly,” Gerome added.

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Digital transformation could unlock P5 trillion in annual economic value by 2030
Source: Showbiz Hollywood News