Republic of the Philippines

BULACAN STATE UNIVERSITY

City of Malolos , Bulacan

Tel/Fax (044) 791 – 0153

FINAL OUTPUT

1st Semester AY 2020 - 2021

In partial fulfillment of the requirements for E- Commerce and International Marketing.

Submitted by: Paulo F. Llamas

Marketing Management – 3B

Submitted to: Mr. Christopher Lalic

 IMPACT OF E-COMMERCE IN THE NEW NORMAL

1.1 FOOD INDUSTRY

National and worldwide social media and virtual meetings have become the "new
normal" as people strive to maintain normalcy in their lives despite an epidemic
ban. Here in the Philippines, Hootsuite and We Are Social's Digital 2020 April
Statshot report found that 64% of Filipino Internet users spend more time on
social media, and 23% report increased activity in their online shopping and food
delivery . Amidst the epidemic restrictions consumers are resorting to online
shopping and online food delivery, entrepreneurs have increased the digital
phenomenon for online shopping even more. E-commerce websites such as
Grab Food, and Food Panda are at the forefront of these online shopping
platforms and have an expected increase in sales revenue in millions of pesos.
Technology has already transformed online business transactions into an
endless market where doing business has become more convenient and efficient
for suppliers and sellers. The COVID-19 epidemic has made this market a more
obvious necessity.

Teo and Liu revealed that the perception felt by consumers was negatively
related to their trust in e-commerce. In the case of the COVID-19 epidemic, the
effects of COVID-19 on people's decision to buy groceries online can be
mitigated by the risk of online shopping through personal awareness. Although
many online purchases are safe and reliable due to the development of e-
commerce in China, many people worry about the high risk of infection when
shopping online because they do not know what their food is. Who packaged it
and if so. The courier was infected with a virus. Thus, those who recognize the
high risk of infection from online shopping are less likely to shop online after the
epidemic because of the increase in the number of certified Covid 19s. To find
out if this is the case, we are pushing the choice of online shopping through the
 interaction between certified COVID-19 ratios and dummies for the potential risk
of infection from online shopping.

1.2 EMPLOYMENT

One of the main industries that speaks to the current situation is the e-commerce
sector, which has seen rapid growth in recent months, especially companies that
deal with services such as pharmaceuticals, groceries and household essentials.
This is mainly due to the huge shift of consumers to online shopping, due to the
rules of social disruption and the COVID lockdown. In fact, the online grocery /
home staples segment has grown at an unexpectedly high rate in recent months
and it wouldn't be surprising to see it grow further in the coming months. Growing
consumer demand, coupled with a strong growth track record, has led to a need
for more talent in the e-commerce industry. Companies are looking for
specialized skill sets and candidates who are agile and flexible adapt to changing
standards. We are seeing the emergence of several focused skill sets that have
been in demand for quite some time.

Mental health counselors are one of the most important profiles. As work from
home becomes the new normal for companies, the risk of employees feeling
isolated, depressed, and downsized is also increased. But the good news is that
companies are aware of this and are hiring consultants to help their employees
deal with conflicts, adversities, black outs and any problems they face. Not only
that, companies that have resumed office are increasingly demanding not only in-
home nutritionists but also health consultants. This is mainly to maintain the
health of employees and increase their immunity in a new way from social
distance. In addition, e-commerce companies are working to establish
themselves in terms of customer experience, platform UI, brand offerings and
other features, so they are also employing language experts. If COVID-19
teaches us anything, we need to understand change and adapt to it immediately.
Companies see greater benefits in such employees. Organizations are realizing
 that in order to protect themselves from such a crisis in the future, they need to
create a staff with diverse skills. They now need employees with a transferable
skill / skill set and they can move smoothly from one project / department to
another. The future of work is new, and employees must be ahead of everyone in
order to stay current.

1.3 EDUCATION
Many countries have decided to close schools, colleges and universities. The
crisis is faced by policy makers when it comes to closing schools (reducing
connectivity and saving lives) and keeping them open (allowing workers to work
and run the economy). Short-term illness is felt by many families around the
world: Home education is a major shock not only to parental productivity but also
to children's social life and learning. Classes move to online and non-standard
levels. With so many trials and errors and, of course, uncertainties, student
assessments are also transmitted online. Too many reviews easily canceled.
Importantly, these barriers are not only a short-term problem, but can also have
long-term consequences for those affected and are likely to increase inequality. .

Families are fundamental to education and there is a general consensus that

they make important contributions to children's education, as stated by Bj‫ور‬rkl‫ڈ‬d
and Sullivan (2011). The current global expansion of home schooling, at first
glance, can be seen as quite positive, it is likely to be effective. But this feature is
generally seen as a supplement to school information. Parents complete their
child's math education by practicing counting or highlighting simple math
problems in everyday life. Or light up history lessons with trips to important
monuments or museums. With online content, being the primary driver of
learning is a different matter. And although many parents around the world
successfully attend school, it is unlikely that it will spread to the entire population.

1.4 INFORMATION AWARENESS

 Mobile apps are used to inform people about the early diagnostic features of
COVID-19 and to inform the public about the disease. Healthcare organizations,
IT companies, and universities around the world have introduced mobile apps
that reduce inflows to the hospital / health center. Social media platforms are one
of the fastest methods / mediums of public health awareness, is about what's
happening in the fastest mode worldwide. Other popular platforms are Facebook,
WhatsApp and Instagram, sharing messages with the public about the latest
updates on the situation. The patient and their companions also get involved
through social media and share their experiences in order to raise public
awareness. In addition to official information, some fake news and social media
information about this epidemic is also being exchanged. Such information
creates public health fears. Social media or alternative news creates fears and
rumors about an infectious disease during the blockade. Video-based lectures on
YouTube, Vimeo and Dailymotion share video clips about infectious disease
specialists, coronavirus symptoms, cures, and possible steps to avoid this
epidemic.

1.5 ECONOMY
The Philippines is enjoying strong economic growth and is considered one of the
fastest growing economies in Asia, with real GDP growing an average of 6.3% in
ten years to 2019. However, the onset of the pandemic in COVID-19 pushed the
country's economy into a recession that broke nearly three decades of
uninterrupted growth. The Philippine economy had weathered the Asian financial
crisis and the recent global financial crisis. The epidemic lockdown in the
Philippines has been described as one of the longest, with 75% of the economy
shut down. The economy recorded an 11.5 percent increase in GDP in the third
quarter of 2020, which recovered with a small contraction of 16.9 percent in the
previous quarter. Improvements in the labor market have been reported as the
economy is slowly opening up again. From a record unemployment rate of 17.6%
(equivalent to 7.288 million people) in April, it fell to 9.7% (equivalent to 3.813
million unemployed) in October. Metro Manila, which is the epicenter of the
 outbreak and accounts for 37.5% of GDP, is one of the main concerns during the
epidemic, while the entire Luzon region accounts for around 70% of the country's
GDP. The sector, from retail to real estate to manufacturing, experienced serious
challenges due to increased community quarantine.
The average inflation rate for this year is expected to be between 2.4 and 2.6
percent, while the inflation assumption for 2021 and 2022 remains at 2.0 to 4.0
percent. The government is determined to increase spending on infrastructure to
support economic recovery and stimulate increased demand. The 2020 gross
domestic product (GDP) growth rate assumption has been adjusted from -8.5 to -
9.5 percent after long periods of community quarantine were imposed in various
regions of the country. Despite a lower forecast than originally assumed, further
easing of restrictions as the government improves the capabilities of the health
system keeps the economy on track for full recovery. Therefore, the government
was confident that the economy will recover strongly in 2021 on track to reopen
fully. GDP growth is expected to recover, reaching 6.5 to 7.5 percent in 2021 and
8 to 10 percent in 2022.

ii. ADVANTAGES AND DISSADVANTAGES

2.1 FOOD INDUSTRY

Advantages

Food business players can use digital platforms to create reviews, understand
customers and needs, simplify business processes, identify products that are easy to
sell, catalogs to share products, and stock products. , And incentivize high-performance
employees. To maintain positive cash flow, businesses can focus on take-away
distribution campaigns and use customer databases to communicate promotions via
email or text message to facilitate the use of digital payments. One of the most
important strategies is to focus on take-delivery, as the data shows that most people
change the behavior of customers by choosing take-delivery. You can order from
anywhere, including at home, making ordering so much easier. So, if you want to find
ways to increase sales, reduce operating costs and increase your business' profitability,
e-commerce websites and digital media are an effective way to do that.

Disadvantages

Trade makes it possible to ship products from surplus areas to deficit areas, thus
avoiding shortage and food insecurity associated with the sole reliance on national
production (Baldos and Hertel, 2015; Fitton et al., 2019). However, the COVID-19
epidemic has had a significant impact on the food trade and has hampered the food
supply chain due to export restrictions. Export restrictive policies have increased the
world prices of fixed food products such as wheat, maize and rice, and have led to a
decline in the quantity and quality of food consumed (Files and Madramootoo, 2016).
Consumers were unable to find a product that was not nationally grown or produced. As
the international market involves an infinite number of buyers, producers are weakened
by restrictions and help producers choose the best. When the export restriction policies
were implemented, local sellers could not find a buyer and resulted in excessive supply
and waste and economic losses. Foods that were not locally grown but needed for
processing were unavailable due to constraints, and the potential use of food production
units to meet demand was also negatively impacted.

2.2. EMPLOYMENT

Advantages

Electronic commerce has provided many opportunities. More and more people are
benefiting from the benefits of working online. This has led to increased job creation
around the world, with the number of locations for self-employment increasing at dawn.
Additionally, some online-only organizations allow their employees to work from home.
Some employees will never show up at your office unless they have a meeting. The
opportunities offered by the Internet through email, messaging applications such as
Slack and even Skype, to work or be comfortable from home have increased in different
parts of the world.

a. Commute
Research shows that a lot of time is wasted when employees have to
make a fuss about their work. According to IBM's International Traffic
Study Survey, Nairobi ranks fourth in the worst traffic congestion of the 20
cities surveyed. On average, employees working and visiting in Nairobi
are forced to spend about 2.1 hours, which is more than the average 1.3
hours spent on traffic jams in other cities. However, being able to work
online means avoiding traffic jams with your workplace. You don't have to
worry about getting on a train or bus, which gives you peace of mind and
allows you to get started faster than your co-workers who have to work.

b. Flexibility
Internet, your laptop and your personal time management are essential for
online work. This will make you more flexible and means you can work
anywhere. Want to get up today and work in Paris and have dinner in the
Maldives? Well, you don't have to ask your boss for permission.

Disadvanatages
a. Distraction
Whether it's from your kids or your favorite programming that airs during
work hours, it's easy enough to lose focus when working from home.
When you're online most of the day with gaming and social media
websites, it's easy to get distracted. You can avoid this by practicing self-
discipline
b. Missed networking opportunities
Unless you are an introvert, you may feel isolated and lonely if you are
unable to interact with your colleagues. Not being able to chat with
colleagues about a certain job or task can be boring. Also, I'm less and
less interested in going to networking events.
 c. Internet dependency
All online work is based on the Internet. In the event of a power outage,
you will be forced to miss several hours of work that will affect your
deadlines. Also, if your internet connection is down, you won't be able to
work. Choosing to work online has its ups and downs. It is important to
evaluate and decide if it is worth your time. However, if necessary, you
should learn better time management tips and maintain a high level of
discipline in order to overcome the drawbacks.

2.3 EDUCATION
Advantages
The most frequently used term after the epidemic is the term "new normal." The new
commonplace in education is the rise of online learning tools. The COVID-19
epidemic has paved the way for new ways of learning. Across the globe, educational
institutions are looking for online learning platforms to continue the process of
educating students. The new general is now a transformative educational concept,
and online learning is at the center of this transformation. Today, digital learning is
an essential resource for students and schools around the world. For many
educational institutions, this is an entirely new type of education that they should
introduce. Online learning now applies not only to academic learning but also to
students' learning about extracurricular activities. The demand for online learning
has increased significantly in the past few months and will continue to do so in the
future.

a. Accessibility Of Time And Place

The advantage of online education is that students can take courses from
anywhere they choose. It also enables schools to reach a wider network of
students rather than being restricted by geographical boundaries. In
addition, leline definitions can be recorded, archived and published for
later reference. This way, students can access the learning materials at
any time.
 b. Suit a variety of learning styles
Each student has his or her own learning path and learning style. Some
learners are visual, while others prefer to learn by voice. Similarly, some
students are doing well in the classroom, while others are studying alone
and distracted by large groups. An online learning system with different
options and resources can be personalized in different ways. This is the
best way to create an ideal learning environment that meets the needs of
each student.

Disadvantages
a. Technology Issues
Another important issue in online classrooms is internet connectivity.
Internet penetration has been very high in small cities and towns over the
years, but a consistent relationship with decent speed is a problem. If
students and teachers do not have frequent internet connections,
children's learning continuity can be lost. This is detrimental to the
educational process.

b. Managing Screen Time

Many parents are so worried about the health hazards of their children
that they spend hours staring at the screen. This increase in usage time is
one of the biggest concerns and pitfalls of online learning. The hump in
front of the screen can also cause poor posture and other physical
problems. E-learning requires the use of computers and other such
devices. This means that vision, poor posture, and other physical
problems can affect learners. During the online course, it is recommended
that you send instructions on correct sitting posture, desk height, and
recommendations for regular breaks.
2.4 INFORMATION AWARENESS
Advantages
Social media has the added benefit of rapidly disseminating educational materials
during the Kovid-19 era, for example, Chan et al. Infographic developed on airway
management of suspected or confirmed COVID-19 patients. It was shared via
Twitter and WeChat, receiving transcripts in more than a dozen languages in a few
days for its translation, and allowing distribution to match the infographic for each
health care description. There are many possibilities for the dissemination of
information quickly in relation to preventive measures. A recent study by Bush et al.
100 Most Viewed Videos Rated on YouTube with the word "Coronavirus", with over
165 million views by March 5, 2020, 85% of them related to news channels; Fewer
videos refer to the proposed preventive measures, less than half were found to refer
to recurrent symptoms, however, 90% comment on death status, morbidity and
quarantine. This study exposes us to missed opportunities to disseminate quality
information to prevent infections on platforms such as YouTube and USB. Such
platforms provide an important reflection on the missing opportunities for frequently
encountered symptoms, which are often consulted as a source of information.
When it comes to publications, studies have shown that the proliferation of scientific
literature on social media platforms (Facebook, Twitter, etc.) increases the number
of downloads, questions, and citations to these articles, which COVID-19 pandemic
that have undoubtedly allowed for rapid dissemination of knowledge around the
world, in addition to significant reductions in editorial time, which have gone months
or weeks since its reception.

Disadvatages
The downside is that information transmitted is not up-to-date, peer reviewed,
invalid, incorrect, does not apply to our environment, or may even be false. Another
major obstacle to the dissemination of social media and information is "bubble
filters", a concept invented by Eli Parrister in 2011 , which talks about "personalized
ecosystems" to users, in which algorithms collect data from the same user, their
preferences as ict and those users Give the considered results. These bubbles
 produce a similar content loop that prevents users from looking at other different
sources to compare information . This concept applies to any situation or illness that
is viewed on Internet search engines or on social media platforms such as Facebook
and Twitter. Finally, the worst aspect of social media is the ability to spread lies,
warnings and exaggerated information that can cause fear, stress, depression and
anxiety in people with or without psychiatric illnesses.

2.5 ECONOMY

Advatages
There are enormous potentials in e-commerce, as well as future risks. It is
imperative that all countries ensure the protection of the database. A country that
wants to develop e-commerce must have a proper regulatory act. Another important
factor is the efficiency of the tax system, without the payment system, the function of
electronic commerce would be impossible. The article presents the experience of
global development of e-commerce.

Disadvantages
Potential instability as a result of outbreaks and related behavioral changes can
result in temporary food shortages, rising prices, and market disruption. Such price
increases will be felt by most vulnerable populations, who rely on their food markets
as well as to maintain their livelihoods and access to humanitarian aid. As seen in
the food price crisis of 2007-2008, the impact of additional inflationary protectionist
policies through restrictions on import duties and exports could significantly increase
the number of people facing food insecurity around the world.
 iii. IMPLICATIONS

3.1 FOOD INDUSTRY

The pandemic has also caused marked changes in shopping habits. Confined to
their homes during the quarantine, consumers began cooking and cooking with
abandon. They bought more groceries, meal kits, and other foods online. E-
commerce sales have exploded. Recognizing the need to sell where their customers
shop, grocery retailers and food and beverage companies are expanding their
offerings: adding grocery delivery and curbside pickup, creating online stores and
mobile apps, adding subscription services, and selling through third party markets.

3.2 EMPLOYMENT
The continued growth of the e-commerce sector has fueled the development of new
technologies. Almost all aspects of daily life have been smoothed out by
technological advances. This includes making previously specific information and
learning tools more accessible. This is great news for employees who want to learn
more skills on the job. Jobs that usually require specialized knowledge are now more
accessible through online courses. A study by ADMI found that 50% of those
surveyed found online students to be more experienced. Workers can now access
the media from a variety of outlets to accelerate their experiences or even apply for
future promotions. This improvement can range from learning new skills or helping
with personal development in the workplace.

3.3 EDUCATION
Availability of books:
In the past, the use of technology was not common among people, and students had
to go to the library to get books that fit their projects or projects. If any library has
one or two copies of the same book, and most students want it. Under these
conditions, students had to wait for their turn to receive the book. This practice is
used to postpone the completion of one's assignments. Now, thanks to e-commerce,
students have easy access to their books. They can order books through many
 websites, such as Amazon, Liberty Books. If students do not want to buy, there is
the option to read online, where books are free and they do not have to pay. For
them. Understanding: The term e-commerce is not limited to just buying and selling
products. In many cases, students cannot understand any concept on their own. In
these cases, they can search for the options listed below:
 They can visit websites on the Internet, where multiple articles are available
in a single click.
 They can also listen to lectures of teachers from all over the world.

3.4 INFORMATION AWARENESS

Social media is a great way to connect with your customers and bridge the gap
between online and offline shopping.

 Social media advertising. Advertising on Facebook, Instagram, and other

social websites can increase traffic to your online store.
 Use Pinterest to promote your product. Pinterest is one of the best
options for selling physical items, as many users visit this website for
inspiration. You can use pins and boards to organically build traffic and
place ads on Pinterest.
 Interact with your followers. It's important to stay in touch with your
followers. Monitor your channel and answer questions and comments
quickly.

3.5 ECONOMY

E-commerce allows companies to gain competitive advantage in customer service

improvements. The article presents the characteristics of e-commerce and its role in
economic development. E-commerce has many advantages for buyers and sellers. The
Internet is a powerful tool for establishing customer relationships. E-commerce has a
huge potential, as well as future threats. Ensuring the security of the database is very
important for all countries. A country that wants to do developed electronic commerce
must have a good legislative base. Another important factor is the efficiency of the tax
system, the function of e-commerce that is impossible without payment. E-commerce
sales are up 10% on all retail purchases, with analysts forecasting that it will grow 15%
year-on-year. The need to meet customer demands means more careers in the future.
And in the epidemic, many shoppers switch to online options, increasing the demand for
e-commerce. Many people can benefit from the growing online market. For starters,
content marketing is key to e-commerce sales.

CONCLUSIONS

E-commerce has changed the practices, timing, and technology of marketers,

influencing everything from food industry, employment, education, information
awareness and economy. Fortunately, with the development of e-commerce, the basis
of economic trading is the purchase and sale of goods. Changes are continuing that will
have a significant impact on how companies manage their supply chains. Simply put, e-
commerce has changed the way businesses interact with their customers. This impacts
pricing, product availability, shipping patterns, and consumer behavior. E-commerce
facilitates the basic movement of goods from suppliers to customers. They provide ideal
trade development for doing digital business and increasing global presence. E-
commerce has changed the workflow of the company. Over time, new e-commerce
presents a countless of opportunities and challenges for our economy and society.
Commercial expansion and technological innovation are two instruments of economic
growth. These forces have been incorporated in the evolution of e-commerce. The
macroeconomic impact of e-commerce on national and regional economies and
international trade and its conditions need to be evaluated and analyzed.
REFERENCES

https://home.kpmg/ph/en/home/insights/2020/07/the-new-normal-of-increased-
onlinebusiness-transactions.html

https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0237900

https://www.peoplemattersglobal.com/blog/strategic-hr/future-of-work-in-the-e-
commerce-industry-will-be-different-all-thanks-to-covid-19-27220

https://voxeu.org/article/impact-covid-19-education

https://www.flandersinvestmentandtrade.com/export/nieuws/coronavirus-situation-
philippines

https://www.neda.gov.ph/joint-dbcc-statement-review-of-the-medium-term-
macroeconomic-assumptions-and-fiscal-program-for-fy-2020-to-2022/

https://journals.sagepub.com/doi/full/10.1177/1010539520927261

https://academic.oup.com/fqs/article/4/4/167/5896496

https://suitmedia.com/ideas/the-rise-of-e-commerce-in-food-and-beverage-
industry#:~:text=Ordering%20food%20becomes%20so%20much,from%20anywhere%2
C%20including%20their%20house.&text=Digital%20marketing%20using%20e%2Dcom
merce,customer%20information%20and%20data%20easily.

https://www.fuzu.com/blog/advantages-and-disadvantages-of-working-online

https://elearningindustry.com/advantages-and-disadvantages-online-learning

http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1677-55382020000700120

https://www.researchgate.net/publication/323219206_Role_of_E-
commerce_in_Economy#:~:text=E%2Dcommerce%20allows%20companies%20to,tool
%20for20establishing%20customer20relations
https://understandingecommerce.com/opportunities-and-challenges-of-ecommerce-in-
educational-domains/

https://www.progress.com/blogs/the-growing-importance-of-ecommerce-in-a-post-covid-
19-world.

https://www.researchgate.net/publication/323219206_Role_of_E-
commerce_in_Economy#:~:text=E%2Dcommerce%20allows%20companies%20to,tool
%20for%20establishing%20customer%20relations.