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More Filipino consumers using business messaging platforms

By Patricia B. Mirasol, Reporter

MORE Filipino consumers are using online messaging platforms to reach businesses, with firms also recognizing the importance of engaging with customers, a study showed.

A 2022 study on business messaging by Meta and Boston Consulting Group (BCG) found that over 40% of Filipinos messaged businesses more frequently now versus before the coronavirus pandemic.

Three in five Filipino consumers also chat with businesses at least once every two to three weeks. This trend was similar across all age groups, particularly among millennials and Gen Zs who message businesses up to eight times a month.

Filipino consumers (71% of respondents) were likewise among the leading adopters of using messaging to chat with a business.

The study titled “Business Messaging: The Quiet Channel Revolution across Tech” surveyed 6,500 respondents across Asia-Pacific (APAC), including Australia, Korea, Indonesia, Taiwan, Thailand, Vietnam, and the Philippines.

“The Philippines has leapfrogged many markets in terms of adoption and engagement online,” said Anthony Oundjian, managing director and senior partner at BCG, in an Aug. 16 media round table.

Mr. Oundjian said bulk of the growth of e-commerce in the country happened during the pandemic.

“I think that Filipinos remain among the most engaged and the faster to adopt new services, once the supply side is ready,” he added.

In the region, one in three consumers in APAC said they chat with businesses at least once a week. Nearly two-thirds (or 65%) prefer contacting businesses through chat rather than through e-mails or calls.

Meanwhile, almost all (or 97%) of businesses recognize that messaging apps are important for success. The study showed businesses have been finding more ways to use messaging to connect with customers, whether it be for inquiries, lead generation, consultative support, re-marketing, or after-sales.

There are differences in customer messages received across industries, Mr. Oundjian said.

“[For] food and beverage, messages are around basic inquiries, feedback, and recurring notifications,” he said. “For products [geared] for mothers and kids, there is more of an [exchange of advice] on the relevance of the products, and the fit to their specific needs, so there’s more personal engagement that can also translate to lead generation and sales.”

More than half of the firms interviewed said they used business messaging for after-sales service. An average of 69% also reported using messaging to process orders and transactions.

“It’s very important that each business thinks about what’s relevant for them, what works, and what can be scaled,” Mr. Oundjian said.

He added that many of the questions in the study (such as how many times respondents went online) were non-platform specific, except for those that asked particulars (such as the respondents’ preferred channels).

“Pretty much anyone who starts messaging sees a dramatic increase in their sales,” said John M. Rubio, country director at Facebook Philippines.

Almost every Filipino is on Facebook multiple hours a day, he said at the Meta-organized event. The Philippines is the leading country worldwide on Messenger, he added.

“More and more people are starting to share stories, do reels…” Mr. Rubio said. “We [have the] ability to stitch that audience and connect them with [business] customers.”

He noted how neighborhood shops can create a storefront on Facebook within a day.

“To get yourself discovered on Facebook, on Instagram, and then be able to immediately translate that discovery into a potential purchase — a direct connection with the customer — is unparalleled by any other platform,” he said.

What’s in a name? Illinois hopes to make invasive carp fish more palatable

Ina Mae’s Copi Po Boy from Chef Brian Jupiter — PHOTO FROM CHOOSECOPI.COM

ILLINOIS is rebranding an invasive carp in the hopes of encouraging people to eat it —  and solving a decades-old issue that has been threatening the ecosystem of the US state’s waterways.

“We’ve launched a new name, ‘copi,’ to help people consume this delicious fish and help us do our work in keeping them out of the waterways,” said Kevin Irons, assistant chief of fisheries for the Illinois Department of Natural Resources (DNR).

Mr. Irons and the DNR want everyone to start calling the abundant fish formerly known as Asian carp “copi.”

“Names mean something,” said Mr. Irons. “Back in the ’70s, there was a fish called ‘slimehead,’ under-utilized, but when you go to a restaurant and get orange ruffi, everybody’s like, ‘oh, this is awesome.’ So, a name means something and it’s the same fish,” said Irons.

The state of Illinois even launched a new website, choosecopi.com, where facts, nutritional information and recipes for the fish are provided.

“Anything you do with ground meat you can do with copi,” said Dirk Fucik, owner of Dirk’s Fish and Gourmet Shop in Chicago.

Mr. Fucik says he’s been selling the fish in his store since 2010. “So, burgers are most popular for us here, but… we’ve done sausage, tacos, all that kind of stuff. Everything we’ve made people like.”

Since 2004, over $600 million in state and federal funds have been fed into fixing the problem of the invasive carp.

Irons says Illinois also intends to ask the US Food and Drug Administration to formally change the name and is planning to register “copi” as a trademark. — Reuters

SPNEC to use raised funds to buy land for solar plant

SOLAR Philippines Nueva Ecija Corp. (SPNEC) is allotting proceeds from its various capital raises to secure 2,500 hectares for its 3.5 gigawatts (GW) of solar farm project in Nueva Ecija and Bulacan.

“By the end of this year, our planned share issuances should result in the consolidation of ingredients that would enable SPNEC to expand its flagship project,” said Leandro L. Leviste, president and chief executive officer of SPNEC, in a media release on Wednesday.

SPNEC claimed that its expansion of operations in the area would be the world’s largest solar farm with a combined capacity of 4 GW and would also surpass the capacity of the total grid-connected operating solar plant in the Philippines at over 1.3 GW.

The company has secured an expansion of operations in the same area of land for its 500-MW solar project, for which the first 50 MW and the transmission for the full 500 MW are under construction.

According to SPNEC, the scale is made possible by Solar Philippines Power Project Holdings, Inc. (SPPHI), its parent firm, which secured land and permits for the said project in 2016, when (SPPHI) applied for its first Department of Energy solar energy service contract in the area.

In an earlier disclosure, SPNEC said that it targets to complete its asset-for-share swap deal with SPPHI by the end of this year, with its stock right offering to be completed in September.

SPPHI and SPNEC signed the share-swap agreement for the issuance of around 24.37 billion shares at P2.50 apiece. Once executed, SPNEC would acquire shares of SPPHI in a portfolio of projects. — Ashley Erika O. Jose

TDF yields climb on tepid demand, rate hike bets

BW FILE PHOTO

YIELDS on term deposit climbed on Wednesday as the longer tenor on offer was undersubscribed, with the market awaiting the Bangko Sentral ng Pilipinas’ (BSP) policy meeting, where it is expected to raise rates anew.

Total bids for the central bank’s term deposit facility (TDF) reached P290.814 billion, barely filling the P290-billion offer but below the P335.344 billion in tenders last week.

Broken down, the seven-day papers fetched bids amounting to P204.946 billion, higher than the P170-billion auctioned off by the central bank. This was also above the P196.194 billion in tenders logged in the previous auction.

Banks asked for yields ranging from 3.49% to 3.75%, a narrower and higher margin compared with the 3.38% to 3.6888% band seen a week ago. This caused the average rate of the one-week papers to rise by 12.9 basis points (bps) to 3.6913% from 3.5623%.

Meanwhile, demand for the 14-day term deposits amounted to just P85.868 billion, below the P120-billion offering as well as the P139.150 billion in tenders recorded on Aug. 10.

Accepted rates for the papers were from 3.5% to 3.75%, marginally slimmer than the 3.48-3.75% range seen last week. With this, the average rate of the two-week papers inched up by 2.57 bps to 3.7019% from 3.6762% in the previous week’s auction.    

The central bank has not auctioned off 28-day term deposits for more than a year to give way to its weekly offering of securities with the same tenor.

The term deposits and the 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

“The results of the TDF auction reflect market participants’ continued preference for the shorter tenor given expectations of another rate hike by the BSP and the issuance of retail Treasury bonds,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement on Wednesday.

“In addition, higher loan releases by banks point to lower excess liquidity for placement with the BSP’s deposit facilities. Going forward, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” Mr. Dakila added. 

Yields on the term deposits were higher a day before an expected rate hike from the BSP, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Investors are happy because yields are moving closer to the inflation rate. In relative value, yields are becoming more active for investors,” Bank of the Philippine Islands Lead Economist Emilio S. Neri, Jr. said in an interview on Wednesday, adding that there is excess liquidity in the market.

BSP Governor Felipe M. Medalla on Wednesday said the Monetary Board could hike benchmark rates by as much as 50 bps at their Aug. 18 meeting and that they are not ruling out further increases this year.

A BusinessWorld poll held last week showed 16 out of 18 analysts expect the BSP’s policy-setting Monetary Board to hike rates anew on Thursday, with most analysts forecasting a 50-bp increase as inflation remains elevated.

Headline inflation quickened to 6.4% in July, a near four-year high. This was also faster than the 6.1% in June and 3.7% a year ago.

For the first seven months, inflation averaged 4.7%, higher than the 4% seen in the same period in 2021 and the central bank’s 2-4% target for the year but lower than its 5% forecast.

The Monetary Board has raised rates by a total of 125 bps since May, including a 75-bp off-cycle hike last month. — Keisha B. Ta-asan

Globe Business seeks digital transformation partnerships with more MSMEs

By Arjay L. Balinbin, Senior Reporter

GLOBE GROUP’s Globe Business on Wednesday said it is currently reaching out to more micro, small and medium enterprises (MSMEs) in the country to accelerate their digital transformation.

“Globe Business seeks to go beyond the surface by helping MSMEs with innovations that accelerate business growth, expertise that guides businesses forward, and… care that supports their journeys, so they can achieve more business breakthroughs,” said KD D. Dizon, head of MSME Group at Globe Business, during a virtual media event.

“We recognize the pain points of these MSMEs. To help them prevail, we provide innovative solutions that accelerate business growth,” she added.

MSMEs, which make up 99% of the country’s businesses, help reduce unemployment by creating jobs. They employ 63% of the country’s total work force.

“We believe that if we help them succeed, we also help our nation succeed,” Globe Telecom, Inc. President and Chief Executive Officer Ernest L. Cu said.

Among Globe’s digital offerings are business-grade connectivity plans from GPlan Biz and GFiber Biz.

GPlan Biz is one of Globe’s connectivity plans intended for MSMEs.

“Aside from its basic mobile connectivity features, [GPlan Biz] allows users to use GCash for business to purchase digital solutions or pay suppliers conveniently, among others,” Globe Business said.

“Subscribers can enjoy unlimited 5G network for six months as well as unlimited text and call to all mobile networks and landlines nationwide,” it added.

Meanwhile, GFiber Biz Plus is a business-grade broadband plan that promises seamless online activity for MSMEs.

“It also comes with two pieces of Wi-Fi mesh that help strengthen internet coverage in different parts of an establishment, and unlimited calls to all mobile networks and landlines nationwide, allowing entrepreneurs to be worry-free of top-up call charges,” Globe Business said.

Vehicle Tracker is another digital solution that allows MSMEs to manage their fleet and ensure safe delivery with real-time monitoring feature.

Globe Business also introduced its Cloud Payroll, which automates employee records and fast-tracks payroll processing, as well as ChatGenie, which lets MSMEs manage their transactions across different channels on one platform.

Filipino recipe book distributed to indigent families

PAGHILOM sa Pagkain, a printed recipe book focusing on daily nutritional needs, was distributed to indigent Filipino families residing in Barangays 42 and 45 of Pasay City and Barangay 745 of Manila to help them receive proper nourishment amid the trying times. In celebration of the recent National Nutrition Month, the 28-page book provides alternative ingredients and cooking methods to traditional Filipino dishes. It features easy-to-follow cooking instructions for wholesome meals such as Tortang TOkra, KaMalunggay Tuyo sa Gata, Gulay Tempura, Pechay Baguio Guisado, Pakbet Kubo, and Meaty Potato Green Beans. It likewise includes procedures in preparing healthy merienda options such as Pancit Bihon, KamoBasa Chips, Turones de Kamote-Malungay, Munggo Croquette, and Beefy Omelette. Produced by the Center for Social Action of the De La Salle-College of Saint Benilde, the recipes, which utilize basic ingredients that are available and affordable in the local markets, were created by registered nutritionist-dietitian and Benilde School of Hotel, Restaurant, and Institution Management educator Dr. Teddy Manansala. Paghilom sa Pagkain also includes Pinggang Pinoy, a visual tool that uses a familiar food plate model to picture the right food group proportions on a per-meal basis to meet the energy and nutrient needs of adults. Pinggang Pinoy was developed by the Food and Nutrition Research Institute of the Department of Science and Technology in collaboration with the World Health Organization, Department of Health, and National Nutrition Council to aid Filipino adults to adopt healthy eating habits through dietary lifestyle messages.

CTA declines to review marketing firm’s refund claim

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has denied TKH Marketing’s appeal to refund an item shipment due to an excess value-added tax (VAT) payment worth P1.5 million.

In a 15-page decision on Aug. 8 and made public on Aug. 15, the CTA Special Third Division said it did not have jurisdiction to decide on the refund claim.

“Clearly, petitioner (TKH Marketing) failed to fulfill the requirements of the law in claiming a VAT refund, thereby resulting in the lack of jurisdiction of this court,” CTA Associate Justice Maria Belen M. Ringpis-Liban said in the ruling.

“In other words, the burden of collecting the subject VAT remains with the CIR (commissioner of internal revenue). As such, it is the CIR who has the authority to decide on the refund claim of petitioner pursuant to Section 4 of the NIRC of 1997.”

A district collector granted a refund of the excess VAT payment in the amount of P958,725 and required the firm to properly liquidate and apply for a tax credit certificate pending the approval of the commissioner of customs (CoC).

The CoC affirmed the district collector’s decision and forwarded the appeal to the CIR.

The refund claim was then reviewed by the CIR, which the official denied since the appeal was filed beyond the two-year prescriptive period under the country’s revenue code.

“As stipulated therein, recovery of tax erroneously or illegally collected may, within 2 [sic] years after the payment of the tax or penalty was made, be claimed as tax credit or refund,” the CIR said in a letter to the CoC.

Under the country’s revenue code, refund of taxes or penalties are allowed unless the taxpayer files the administrative claim in writing with the CIR within two years after the payment.

The marketing firm argued the tax court and the Bureau of Customs had jurisdiction over the issue.

The court noted that the protest filed with the district collector cannot be treated as a claim for a refund since only the CIR has jurisdiction over these claims.

In a separate letter, the Bureau of Internal Revenue said the CTA did not have jurisdiction over the petition, reiterating the late filing of the claim.

“If the court has no jurisdiction over the nature of an action, its only jurisdiction is to dismiss the case. The court could not decide the case on the merits,” said the tribunal. — John Victor D. Ordoñez

Cebuana Lhuillier aims to expand network, services

BW FILE PHOTO

CEBUANA LHUILLIER plans to strengthen and expand its business in the country by offering products and increasing its branches in provinces to bring financial services to the underbanked and unbanked.

“We already have more than 3,000 branches across the archipelago, with 500 branches due to open before the year ends. On top of these branches, we have a network of 25,000 domestic partners nationwide and 1.7 million international partner doors for our money transfers business,” Cebuana Lhuillier Integrated Marketing and Communications Group Head Emirosco “Michael” R. Sena said in an interview with BusinessWorld last week.

“This expansion to more than 3,000 branches is based on market need, targeting areas where immediate cash solutions are needed,” he added.

Mr. Sena said the limited availability of locations, especially in rural areas, remains a challenge in the pawnshop chain’s current network expansion.

He said even as a lot of transactions have shifted online, their clients still want to go to physical branches.

“Our experience in the last three years proved that the ‘next normal’ is not purely online, because the reality is, here in the Philippines, many rural communities are still dependent on the physical branches in doing their transactions,” Mr. Sena said.   

“What we’re doing in ensuring that our products and services are easily available through online platforms while also making sure that we have a strong network of physical branches that will complement and complete the online-offline journey in transactions,” he said.

This strategy of using both online and offline platforms or technology and brick-and-mortar stores to deliver its services is called “TechBrick” by Cebuana Lhuillier President and CEO Jean Henri Lhuillier, the company said in a statement on Wednesday.

“Cebuana Lhuillier’s core mission is to break the barriers in finance through effective financial solution offerings. Our TechBrick strategy allows us to make our products and services available on demand, while optimizing our robust network reach in over 3,000 branches in the country,” Mr. Lhuillier said.

The company developed the Cebuana Xpress app for pawning transactions, the Quikz mobile remittance app, and the eCebuana app, which gives customers access to banking services within the Cebuana Lhuillier ecosystem.

It has also made its microinsurance products available online via ProtectNow, a web-based e-commerce platform.

Mr. Sena noted in the interview that the market has become homogenous since the coronavirus pandemic as there is no single brand that captures the market.

“Rather, transactions now flow from one channel to another, from one provider to another,” Mr. Sena said.

EXPANDED PRODUCTS
The official said Cebuana Lhuillier also plans to expand its microinsurance business to add more lifestyle products, including life, health insurance, and pet insurance, among others.

The company is also working on expanded access to purchasing jewelry, pushing for jewelry as a form of micro-investment, Mr. Sena said.

“In essence, what we’re trying to do is open a complete portfolio of products and services that will complement every Filipino’s financial inclusion journey, from loans to microinsurance, from money transfers to saving and even microinvestments (jewelry selling), eventually encouraging each and every one of our kababayans to save and invest for their future,” he added. 

He noted that the pawnbroking industry has evolved through the years. Pawnshops such as Cebuana Lhuillier now offer micro financial services such as remittances and bills payment and also serve as cash agents.

“Pawnshops also became financial touch points for the Filipino masses, for small businesses, and even an access point for government amelioration programs. This became more evident during the pandemic where Filipinos flocked to pawnshops for quick access to cash,” Mr. Sena said.

“As the business evolved through the years, what remained consistent was our mission of financial inclusion for every Filipino. It is this mission that serves at the core of the many innovations introduced by Cebuana Lhuillier through the years, as we strive to provide access to essential financial services to the Filipino masses anytime, anywhere,” he added. — Keisha B. Ta-asan

Apple suppliers to make Apple Watch, MacBook in Vietnam — Nikkei

APPLE, INC.’s suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter.

Apple’s Chinese suppliers Luxshare Precision Industry and iPhone assembler Foxconn have started test production of Apple Watch and MacBook in Northern Vietnam, the report added.

Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year, and is also planning to assemble iPad tablets.

India, the world’s second-biggest smartphone market, along with countries such as Mexico and Vietnam are becoming increasingly important to contract manufacturers supplying American brands, as they try to diversify production away from China.

Apple, Foxconn and Luxshare Precision did not immediately respond to a Reuters request for comment.

Last week, Taiwanese contract manufacturer Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fueled boom.

Like other global manufacturers, Foxconn — formally called Hon Hai Precision Industry Co. Ltd. — has dealt with a severe shortage of chips that hurt production, as bottlenecks from the pandemic lingered and the Russia-Ukraine war further strained logistical channels. — Reuters

Rich-poor income gap slightly narrowed in 2021

AROUND 2.3 million Filipinos have been plunged into poverty between 2018 and 2021, as the coronavirus pandemic left lasting scars on the Philippine economy, according to the Philippine Statistics Authority (PSA). Read the full story.

Rich-poor income gap slightly narrowed in 2021

How PSEi member stocks performed — August 17, 2022

Here’s a quick glance at how PSEi stocks fared on Wednesday, August 17, 2022.

Peso weakens vs dollar ahead of Fed minutes, central bank meet

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THE PESO retreated versus the greenback on Wednesday as market players expect the US Federal Reserve to remain hawkish to keep rising prices under control.

The local unit closed at P55.86 per dollar on Wednesday, depreciating by three centavos from its P55.83 finish on Tuesday, based on data from the Bankers Association of the Philippines.

The peso opened Wednesday’s session steady from Tuesday’s close at P55.83 versus the dollar. Its weakest showing was at P55.91, while its intraday best was at P55.70 against the greenback.

Dollars exchanged dropped to $918.65 million on Wednesday from $1.02 billion on Tuesday.

“The peso weakened from hawkish expectations prior to the release of Fed policy minutes overnight,” a trader said in an e-mail.

Investors are betting on the US central bank to continue raising rates aggressively as inflation remains high.

The minutes of the Fed’s July review, where it hiked rates by 75 basis points (bps) for a second straight meeting, are expected to provide hints on the direction of policy rates in the world’s largest economy.

The Fed will hold its next meeting on Sept. 20-21. Fed funds futures traders are currently pricing in a 60% chance of a 50-bp increase and a 40% probability of a 75-bp hike.

It has raised rates by 225 bps since March.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message the local unit weakened due to market concerns over local sugar supply, which could affect food prices.

President Ferdinand R. Marcos, Jr. is looking into allowing food manufacturers to directly import sugar amid tight domestic supply and high prices.

For Thursday, the trader said the peso may recover against the dollar as the Bangko Sentral ng Pilipinas (BSP) is expected to deliver a rate hike of as much as 50 bps at its policy meeting.

The Monetary Board has raised rates by a total of 125 bps since May, including a 75-bp off-cycle hike last month, as it sought to keep rising inflation in check.

Headline inflation quickened to 6.4% in July, which was a near four-year high. This was also faster than the 6.1% in June and 3.7% a year ago.

For the first seven months, inflation averaged 4.7%, higher than the 4% seen in the same period in 2021 and the central bank’s 2-4% target for the year but lower than its 5% forecast.

For Thursday, both the trader and Mr. Ricafort expect the peso to move from P55.75 to P55.95 versus the dollar. — K.B. Ta-asan

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