Shopping on social media seen hitting $1.2T by 2025

January 6, 2022 | 12:01 am

SHOPPING on social networks such as Facebook, TikTok and WeChat is going to grow three times faster than sales from traditional channels over the next three years, according to a study released by Accenture.

Social commerce, defined as transactions that take place entirely within the context of a social-media platform, will reach $1.2 trillion by 2025, up from $492 billion in 2021, the consulting company said in the report. The trend is being driven primarily by Gen Z and Millennial consumers, who are expected to account for 62% of the spending.

The most popular products sold via social networks include clothing, consumer electronics and home decor. Beauty and personal care is also seeing growth, with online influencers playing a significant role.

The trend offers good news for mom-and-pop shops: More than half of so-called social buyers surveyed said they are likely to support small businesses over larger retailers and would likely to buy from them again. This may allow new brands to build loyalty and gain traction.

Accenture also found that around 3.5 billion people used social media in 2021, spending on average two and a half hours engaged with it per day. The market for social commerce is far less saturated in the US and the UK than in China, where 80% of social media users make social-commerce purchases, according to Accenture.

China is expected to remain the most advanced market for social commerce in size and maturity, Accenture said, with the highest growth being posted in developing markets such as India and Brazil.

The study is based on an online study of 10,053 social media users in China, India, Brazil, the US and the UK conducted from Aug. 12 to Sept. 3. It also carried out in-depth interviews in those markets earlier during 2021. — Bloomberg

Sotto, 36ers game postponed anew due to COVID protocols

January 6, 2022 | 12:01 am

KAI SOTTO will have to wait a little longer for the continuation of his National Basketball League (NBL) debut with the Adelaide 36ers following another game postponement still due to the team’s coronavirus disease 2019 (COVID-19) protocols.

As per the NBL announcement on Wednesday, it has moved the scheduled match between Adelaide and the Perth Wildcats tomorrow at the Adelaide Entertainment Center to next Wednesday under the directive of government and health authorities.

It’s the third 36ers game to be postponed after their matches against Perth anew on Dec. 28 and South East Melbourne on Jan. 2 have been moved to still-to-be-determined dates.

A member of the Adelaide squad tested positive for COVID-19 last week, prompting all players and staff to be considered as close contacts.

“The health and safety of the players, coaches, clubs, staff and fans is the league’s number one priority when considering these matters,” said the NBL, adding that further testing will be implemented.

Mr. Sotto, the 7-foot-3 Filipino wunderkind, had just made his debut for the 36ers prior the series of postponed matches after missing the first four games due to knee soreness.

He registered one point, three rebounds, two assists and two blocks in limited play as Adelaide bowed to the Cairns Taipans, 93-67, following a two-game win streak.

The 36ers, who ruled the NBL Blitz preseason games, hold a 2-3 card. — John Bryan Ulanday

PLDT group says services fully restored in more typhoon-hit areas

January 6, 2022 | 12:01 am

THE PLDT group on Wednesday said it had fully restored services in the provinces of Antique, Iloilo, Eastern Samar, Northern Samar and Western Samar in the Visayas.

The group also reported full restoration of services in Agusan del Norte and Camiguin in Mindanao.

“The group has… ramped up restoration activities in Palawan, Bohol, Cebu, Leyte, Southern Leyte, Negros provinces, Dinagat Islands, Misamis Oriental and Surigao provinces,” it said in an e-mailed statement.

Customers in areas where services have been restored could still experience service issues due to the lack of enough commercial power and accidental cuts during road clearing, the group noted.

Restoration of network services in Visayas cities and municipalities hit by Typhoon Odette was at over 90% as of Wednesday.

The group said it reestablished network coverage in over 98% of Bacolod.

“Network services also continue to provide vital communications links for most of Mindanao, with the restoration of 98% of wireless services and 99% of fixed services. Coverage includes Dinagat Islands and Siargao — two of the badly-hit areas in the region. In Palawan, 83% of wireless services and 90% of fixed services have been restored,” said PLDT, Inc. and its unit Smart Communications, Inc.

The group also assured its customers of continued service amid stricter community quarantine rules due to the Omicron variant of the coronavirus disease 2019 (COVID-19).

“We are fully prepared to serve our customers amid mobility restrictions. Our customers can be reassured that we can address their inquiries offline and online through our physical stores, virtual booking sites, official social media accounts, and other channels,” said Alfredo S. Panlilio, PLDT and Smart president and chief executive officer.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Dining In/Out (01/06/22)

January 6, 2022 | 12:01 am

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Chatime Milk Tea at Shell Acienda Silang

WHILE loading gas, and having the oil, tires and water level checked, one can add an order or two of Chatime Milk Tea (including its new flavor, Choco Malty Overload) at the Shell Mobility Station in Acienda Silang, Cavite. The purveyor of bubble tea will be opening more Chatime branches at Shell Mobility Stations, with a potential of over 1,000 new locations, according to a statement. Taiwan’s largest bubble tea brand, Chatime was founded in 2005 and has since grown exponentially serving millions of customers all over the world. In the Philippines, it was introduced in 2011 and is now recognized as one of the leading milk tea brands in the country with over 150 stores in Metro Manila and the provinces. Chatime brings to the Shell Mobility Station in Acienda, Silang its core drinks, such as the signature Pearl Milk Tea.

Milo launches #MILOBreakfastEveryday campaign

MILO has launched its #MILOBreakfastEveryday campaign that encourages parents to level-up the nutrition of their kids’ breakfasts. During a media roundtable held last month, brand representatives shared data-driven and research-based insights on the importance of having a nutritious breakfast. “Breakfast is the most important meal of the day as it provides 20-35% of the daily energy we need. For kids especially, skipping breakfast may result in energy and nutrient deficiency, and even weakened immunity, so eating breakfast consistently every morning is an investment that has profound benefits in the short and long run. Moreover, adding a nutritious beverage like MILO can significantly increase the meal’s energy, B-Vitamins, Vitamin C, Iron and Calcium,” said Charisma Sy, Corporate Nutritionist of Nestlé Philippines in a statement. The new normal is difficult to navigate and this is true for both parents and kids, but everything is possible with a champion mindset, and a winning breakfast habit, says Milo. Visit https://www.youtube.com/watch?v=9nVk-beKLnI to learn more about the Milo Breakfast Habit.

Headline inflation rates in the Philippines (Dec. 2021)

January 6, 2022 | 12:00 am

PHILIPPINE INFLATION in December eased to its lowest in 12 months, due to the slower increase in the prices of food and transport, but the full-year inflation still exceeded the central bank’s 2-4% target band. Read the full story.

How PSEi member stocks performed — January 5, 2022

January 6, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, January 5, 2022.

Typhoon damage to fisheries P3 billion, tops in agri industry

January 5, 2022 | 10:54 pm

FISHERIES remained the most affected sector of agriculture, sustaining P3 billion worth of damage due to Typhoon Odette (international name: Rai), the Department of Agriculture (DA) said.

The overall agricultural damage was P10.8 billion, affecting 356,486 farmers and fishermen over 399,531 hectares of agricultural land in the Visayas and Mindanao.

The volume of lost production was estimated at 239,656 metric tons (MT).

Rice was the next-most affected commodity with losses valued at P2.2 billion, with crop damage reported across 93,096 hectares. The estimate of lost production volume was 124,704 MT.

Coconut and high-value crops sustained damage of P1.5 billion each, across 240,240 hectares and 6,131 hectares respectively.

Damage to irrigation and agriculture facilities was reckoned at P489.6 million, including shallow tube wells, rain shelters, crop nurseries, greenhouses, vermi-composting facilities, and fertilizer processing centers.

Livestock and poultry reported P468.2 million in losses, affecting almost 1.5 million head of chicken, swine, cattle, carabao, goat, duck, sheep, and horse, among other livestock.

The government will be providing at least P2.9 billion in aid to farmers and fisherfolk.

The DA said its regional field offices are still undertaking assessments of damage to the agri-fisheries industries. — Luisa Maria Jacinta C. Jocson

Fisherfolk call for suspension of closed fishing season policy in typhoon-affected provinces

January 5, 2022 | 10:54 pm

AN ORGANIZATION of small fishermen has expressed its opposition to importing fish for typhoon-hit areas, calling instead for aid to restore its members’ livelihoods and the lifting of an order imposing a closed fishing season on key fishing grounds.

The Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (PAMALAKAYA) said in a statement on Wednesday that the plan to import frozen fish for areas hit by Typhoon Odette (international name: Rai) will not address the livelihoods lost due to the typhoon.

“Instead of imports, we call for a quick and concrete rehabilitation of the livelihood of hundreds of thousands of fisherfolk whose fishing gear and boats were swept away by the recent typhoon. This action would restore the wheels of production and stabilize the supply and prices of fish in the typhoon-hit areas,” PAMALAKAYA National Chairman Fernando L. Hicap said.

The Department of Agriculture (DA) approved a plan to import 11,015 metric tons of frozen small pelagic fish for wet markets in typhoon-hit areas to keep fish prices from rising due to lack of supply.

PAMALAKAYA proposed that the DA expedite its rehabilitation efforts for coastal communities to help the fishermen rebuild their livelihoods.

It said imports will negatively impact fisherfolk income by “driv(ing) down farmgate prices.”

“The immediate impact of imports will be felt by small fisherfolk whose local products will be outcompeted by imported fish,” Mr. Hicap added.

PAMALAKAYA also urged the government to lift Fisheries Administrative Order (FAO) 167-3, which in November imposed a three-month closed fishing season in 33 coastal towns in Regions V, VI, and VII. The FAO will be in force until February.

“The existing closed fishing season creates an artificial shortage of fish and inflation that affects both fisherfolk and consumers,” Mr. Hicap said. “The rehabilitation of livelihood of affected fisherfolk should be accompanied by the lifting of the existing closed fishing season, instead of resorting to imports that do nothing but harm to our already battered fishing industry.”

Meanwhile, the Bureau of Fisheries and Aquatic Resources (BFAR) said in a statement that it welcomed the imports, which it said will help speed up rehabilitation efforts in the typhoon zone.

The BFAR said it “expresses its strong commitment to fast-track the recovery of the fisheries sector in the areas affected by Odette.”

“However, while the rehabilitation of fisheries-related livelihoods is underway, ensuring the availability of safe and affordable fisheries commodities for consumers in these areas is also paramount,” the BFAR added. — Luisa Maria Jacinta C. Jocson

Roxas Boulevard repairs targeted to begin mid-Jan.

January 5, 2022 | 10:51 pm

THE planned closure of a portion of Roxas Boulevard is targeted for the middle of this month to allow for the repair of a damaged drainage structure, the Metropolitan Manila Development Authority (MMDA) said on Wednesday.

The repairs might start in “one or two weeks,” MMDA Chairman Benjamin D. Abalos, Jr. said at the Kapihan sa Manila Bay virtual forum, referring to the planned closure of the thoroughfare, a major route used by trucks to access the Port of Manila.

“Kasi ang problema baka mag-collapse ‘yung kalye eh (The problem is that the street might collapse),” he noted. The Department of Public Works and Highways (DPWH) is repairing the damaged box culvert that was constructed in the 1970s.

“Nag-collapse ito dahil ginawa ito 1970 pa (The culvert collapsed because it was constructed in the 1970s), so it’s a 50-year-old culvert.”

Mr. Abalos said in December that the agency had yet to determine whether a portion of the southbound direction of Roxas Boulevard fronting HK Sun Plaza would be totally or partially closed to vehicular traffic.

“The structural integrity is at stake. Hence, we are appealing for the public’s understanding of the inconvenience the road closure would cause. This is temporary. The construction is only for three months,” he said in a statement.

Mr. Abalos and officials from the Department of Transportation, DPWH, Philippine Ports Authority, and International Container Terminal Services, Inc. also met last month to discuss solutions for trucks and trailers which will be affected by the closure.

“One of the possible solutions that we are eyeing is for the container vans to be carried on barges for transport from MICT (Manila International Container Terminal) to the Cavite Gateway Terminal in Tanza, Cavite,” Mr. Abalos said.

The move is expected to reduce the number of trailer trucks using the road by 25%.

“’Yung mga trailer trucks doon (Cavite) na lang susundo. ’Yung byaheng Cavite, ang tantya namin that’s only about 25% or 20%, pero at least makokonti, mababawasan (The pickup point for containers will be in Cavite. We expect the reduction in truck traffic to be only 20-25%, but at least there will be a reduction,” Mr. Abalos said during the forum Wednesday.

The Confederation of Truckers Associations of the Philippines has said that instead of closure, the MMDA and the DPWH should allow the use of some of the northbound lanes.

“Our suggestion is for two out of the four northbound lanes to be used as southbound lanes, so there would be no congestion going to South Superhighway,” the truckers’ group President Maria B. Zapata said in a phone interview last month.

She said the planned road closure is worrisome because many operators who use the road could be affected.

To such proposals, Mr. Abalos replied: “Sabi ko pwede bang kalahati ng kalye? Sabi nila (DPWH), ‘Chairman baka habang sinisemento mag-crack, because of the pounding at ma-compromise ang (structural) integrity… (When we explored the possibility of using half the road, the DPWH replied that the newly-paved road work will crack, compromising the structural integrity of the project) For the meantime, we should brace ourselves for secondary or tertiary roads.”

DPWH South Manila district engineer Mikunug D. Macud said previously that the department is hoping to start work by the first week of January.

Total closure at that time would mean the completion of rehabilitation works by the first week of March, he said in a phone interview last month. — Arjay L. Balinbin

Coal supply instability seen adding to urgency of energy transition

January 5, 2022 | 10:51 pm

air-pollution-climate-change — PEXELS-PIXABAY

A CONSUMER rights and energy advocacy group on Wednesday said the Department of Energy (DoE) must press ahead with the renewable energy transition, citing risks to the imported coal supply.

“Consumers keep getting caught in a web of power stability woes and volatile prices all because we depend on a finite and largely imported energy source,” Gerry C. Arances, convenor of the Power for People (P4P) coalition, said.

The concern was raised after Indonesia, one of the world’s top exporters of thermal coal, which is the type used by power plants, imposed a temporary ban on coal exports on Saturday to ensure adequate supply for its own power generators.

P4P said the effects of the ban will eventually show up in consumers’ monthly bills.

“We can be sure that more of (these incidents) will happen in the future for as long as we insist on using fossil fuels, even as our country’s vast indigenous renewable energy capacity waits to be harnessed,” Mr. Arances added.

Coal accounts for more than half of the power generated in the Philippines in 2020, with imported coal having an 86% share of thermal coal used in the country. Of the coal imports, 96.88% is sourced from Indonesia, the DoE estimated in 2020.

The export ban imposed by Indonesia, which is also China’s largest overseas supplier of coal, has driven up global coal prices. Indonesian coal miners were due to meet with their government on Wednesday to review the export freeze.

“We need to get off reliance on global fossil fuel supply — coal or otherwise — fast. We have repeatedly told the DoE this, and we hope Indonesia’s predicament is now making the message clear. We must begin by putting a stop to any new coal plant still in our pipeline,” Mr. Arances said.

BusinessWorld has contacted Energy Undersecretary Felix William B. Fuentebella on Wednesday, seeking comments on the call for tightening the ban in the country and the possible effects of the Indonesia coal export ban on the country’s energy security, but has not received a response immediately.

Mr. Arances added that exemptions and limitations in the ban on new coal-fired plants have cleared the way for additional coal capacity of about 9 gigawatts — one of the largest plants being in Atimonan, Quezon.

In October 2020, the DoE announced it is not approving new coal-fired power plant projects to facilitate a shift to a more flexible power supply mix. — Marielle C. Lucenio

DoE considering intermediate upgrade of biodiesel mix to 3%

January 5, 2022 | 10:50 pm

THE Department of Energy (DoE) said on Wednesday that Typhoon Odette (international name: Rai) will not delay plans to increase biodiesel blend to 5% (B5) biofuel content, but added that it is considering an intermediate increase to 3% (B3) first.

“We see no delay on the implementation of the B5 plan due to Typhoon Odette, although Energy Undersecretary Donato D. Marcos is calling for a meeting with the National Biofuels Board (NBB) to discuss increasing the current biodiesel mix of B2 to B3 first before we proceed to B5,” Energy Undersecretary Felix William B. Fuentebella said at a media conference.

The NBB is a cabinet-level body tasked with ensuring that biofuel policy is consistent with economic growth targets.

The Biofuels Act of 2006 (RA 9367) requires the use of biofuels and an increase in their share of the energy mix to help reduce dependency on imported fuel.

The DoE’s Biofuels Roadmap of 2018 to 2040 had hoped to increase the biodiesel mix to 5% in 2020, but such a move was hindered by the pandemic due to doubts about the reliability of the biodiesel supply during the lockdown.

The Philippine Biodiesel Association (TPBA) said in a statement on Wednesday a shift to B3 and eventually B5 is expected to take place without adverse market reactions.

TPBA said the supply of coco-biodiesel is sufficient to meet any surge in demand, adding that the association’s combined capacity is 877 million liters, which exceeds the demand to be created by any shift to B5 of 650 million liters per year.

The biodiesel mix currently uses crude coconut oil, which a study conducted by the University of the Philippines (UP) found could reduce the carbon dioxide footprint of fuel users by as much as 78% compared to diesel fuel.

The UP College of Engineering and Agro-Industrial Technology in Los Baños came to this conclusion after testing a sample provided by Chemrez Technologies. The finding is valid over a full lifecycle of use compared to diesel fuel.

House Committee on Energy Chairman Juan Miguel M. Arroyo has said that raising the blend to B5 to mitigate greenhouse gas emissions is both a responsibility and a patriotic duty that will benefit the economy and coconut farmers. — Marielle C. Lucenio

Power suppliers to Bohol capital drawing sufficient energy from grid — NGCP

January 5, 2022 | 10:49 pm

THE National Grid Corp. of the Philippines (NGCP) said on Wednesday that distribution utilities in Bohol are now drawing power sufficient to sustain stable operations for the power bank that transmits electricity to the provincial capital Tagbilaran.

From the initial 4.8 megawatts (MW) of generated load Tuesday, Bohol 1 Electric Cooperative, Inc., Bohol 2 Electric Cooperative, Inc., and Bohol Light Comp., Inc. increased their load to 9 MW on Wednesday, partially energizing more parts of the province.

“This means that more people are now having their electricity reconnected,” Energy Undersecretary Felix William B. Fuentebella said at a news conference.

Bohol now has a capacity of 47% or 28 MW at peak demand. Actual peak demand before Typhoon Odette (international name: Rai) was 113 MW.

The grid operator has energized one of the three affected transmission lines.

Mr. Fuentebella said that though transmission lines have been repaired, energy actually transmitted is another matter. Lines will only be able to transmit power when distribution utilities and electric cooperatives are able to draw energy from them.

The NGCP hopes to fully restore all transmission lines in Bohol by Jan. 31. The timeline of full power restoration, including the rehabilitation of electric cooperatives and distribution utilities, will be the focus of the Energy department this week, he said.

The DoE said that most of the downstream oil industry will restored this week in the typhoon zone of the Visayas and Mindanao.

Mr. Fuentebella said that 42 retail stations in Cebu and eight retail stations in Palawan will be the focus of restoration efforts this week.

Mr. Fuentebella said some retail stations may have suffered severe damaged, and the DoE will look into whether they can be put back into operation. — Marielle C. Lucenio