Helping SMEs Succeed in Digital Trade: Lessons from European & ASEAN Trade Promotion Organisations

Europe's B2C e-commerce market reached approximately 911 billion euros in 2025 and is expected to hit one trillion by 2026 or 2027. However, growth is uneven: Western and Northern Europe are highly mature with near-universal online shopping penetration, while Southern and Eastern Europe still have significant growth potential and are currently recording the highest growth rates.

Jesse Weltevreden cited the total B2C e-commerce turnover in Europe as around 911 billion euros in 2025, with expectations of reaching the trillion-euro mark in 2026 or 2027 . He noted that Western and Northern Europe are very mature markets with high penetration and turnover rates, whereas Southern and Eastern Europe still have a lot of potential for growth and are showing the highest growth figures .

European governments are primarily focused on policy-level interventions such as protecting domestic sellers from foreign competition, particularly from China, and legislating on sustainability, consumer protection, and fair use. Jesse Weltevreden argues that governments should create the right environment for trade rather than becoming commercial actors themselves by setting up platforms.

He observed that competition is increasing across Europe, particularly from sellers and platforms outside Europe, especially from China, and that the government is mainly focusing on creating a level playing field to protect European sellers and traders . He further argued that government support should focus on providing the right context to stimulate traders to go online, rather than setting up commercial platforms, as government-funded platforms tend to fail once funding stops .

Despite being a large economic bloc, Europe remains fragmented in terms of digital commerce, with significant differences in consumer preferences, payment methods, and logistics infrastructure across member states. This means that SMEs wishing to sell cross-border within Europe must develop localised strategies for each country, which demands considerable skills and resources.

Jesse Weltevreden stated that Europe is still not a single digital market, as consumer preferences, payment preferences, and logistics differ significantly across countries . He noted that an SME in Europe wanting to sell cross-border needs a localised strategy for every country, making international success difficult and requiring a lot of skills .

Jesse Weltevreden warns that while AI is a significant driver of future international trade, it is important to remain realistic and not be swept up in the hype around generative AI. He argues that trade promotion organisations should help SMEs identify and adopt the right AI tools for their specific business problems, including more traditional forms of AI that offer substantial value in e-commerce contexts.

He drew parallels with past technology hypes such as the metaverse and voice commerce, cautioning that not all technologies will have the same market impact . He specifically highlighted that in e-commerce, traditional AI forms such as predictive modelling, machine learning, computer vision, and recommendation systems offer significant business value that is often overlooked in favour of generative AI .

Despite the proliferation of AI tools globally, user adoption is highly concentrated among a very small number of platforms. This paradox suggests that most AI solutions fail to attract meaningful user bases, and that trade promotion organisations and SMEs must be selective and strategic in their choice of AI tools.

Jesse Weltevreden noted that there are more than 100,000 AI solutions in the world, yet the top four AI tools attract more than 50% of total users, with many tools attracting very few or no users at all .

European SMEs face a dual challenge: an extremely high regulatory burden that is difficult to comply with, and intensifying competition from large foreign platforms, particularly from China and the United States. Jesse Weltevreden argues that this creates a significant opportunity for business support organisations and trade promotion organisations to help SMEs develop the right skill sets to succeed internationally.

He stated that the regulatory pressure in Europe is extremely high and very hard for SMEs to comply with . He also highlighted that there is a lot of competitive pressure coming especially from China and the US, and argued that this creates an opportunity for TPOs and governments to help SMEs with the right skill sets to sell across borders .

Unlike ad hoc government projects that often collapse when funding ends, trade promotion organisations have existed for a long time and are likely to remain, providing the institutional continuity needed to sustain digital trade support. Joe Schembri argues that this makes TPOs a more reliable vehicle for digital trade facilitation than short-term government initiatives.

Joe Schembri noted that TPOs are different from government itself in that they have been there for a long time, are likely to remain, and therefore provide continuity as an interface between the private and public sectors . He linked this to Jesse Weltevreden's earlier observation about government-funded platforms failing once funding stops .

Over the past decade, trade promotion organisations have significantly expanded their digital support services, moving beyond simple information provision to advisory roles. This includes assisting SMEs in accessing major marketplaces such as Amazon and Alibaba, building digital skills, upgrading online presence, and navigating regulatory compliance in e-commerce.

Joe Schembri described how TPOs assist their SME clients to be on platforms such as Amazon and Alibaba, and also help them build capacity by upgrading their online presence and developing skills, including in AI . He noted a growing trend towards advisory services, with TPO personnel offering advice on compliance and the complexities of doing e-commerce, and highlighted the eMarketplace services by ISEX in Spain as one exciting example .

Joe Schembri identifies personalisation and advisory services as the two areas where AI can deliver the most immediate and tangible benefits for trade promotion organisations. He argues that AI should be used to enhance existing services that companies already want, rather than being adopted for its own sake.

He argued that over the last few years TPOs have become more focused on offering personalised services tailored to the diagnosed needs of companies, and that AI will make this even better . He also stated that AI will significantly help trade advisors in their work, and emphasised that the approach should be to use AI to improve existing valued services such as personalisation, rather than adopting AI for the sake of it .

Joe Schembri observes that most TPOs in Europe have gone through multiple rounds of digital initiatives, learning and adapting from earlier failures before arriving at effective services. He cautions that the same iterative approach will be necessary with AI, warning against rushing to launch AI projects simply to appear current.

He noted that TPOs' current digitisation initiatives were rarely their first attempt, and that adaptation over time is natural and necessary because take-up of technology takes time and TPOs often do not get it right the first time . He warned that TPOs should not treat AI as a single project to be launched all at once, drawing a parallel with how digitisation evolved through learning from failures , and urged TPOs to experiment and improve as they go along rather than going all out just to call something AI .

The PHX Source is an online discovery platform developed by the Philippine Department of Trade and Industry that gives each onboarded exporter a dedicated microsite with company profiles, promotional videos, and product or service listings. It enables direct communication between buyers and exporters and is used by Philippine trade posts in different countries as an advanced online directory.

Maria Katrina Rivera explained that PHX Source provides each exporter with a microsite containing their company profile, promotional videos, and product or service listings, without pricing details to allow for negotiation . She noted that the platform ensures updated information for buyers to communicate directly with exporters, and is used by Philippine trade posts in different countries as an advanced online directory .

The Philippine DTI has developed digital platforms that provide exporters with easy access to information on free trade agreements and generalised system of preferences, including an AI-powered feature that allows exporters to simulate whether their products qualify for preferential treatment under specific FTAs. The DTI also digitises some trade facilitation processes to help exporters avail of preferential tariffs.

She described TradeLine Philippines and an FTA information portal that provides easy access to information on all FTAs the Philippines has and all GSPs available to Philippine exporters . She highlighted that this platform uses AI to allow exporters to simulate whether their products are of origin under a specific FTA, and that the DTI also digitalises some processes for exporters to avail of preferential tariffs .

Maria Katrina Rivera argues that the biggest challenge in digital transformation is not technology adoption per se, but the need for organisations and individuals to fundamentally rethink their established business processes and workflows. Building trust in digital systems is also a significant barrier, both for SMEs and for regulatory agencies.

She observed that digital transformation is not just about technology adoption but more so about a change in mindset, and that organisations must rethink their long-established business processes and workflows rather than simply replacing paper with online systems . She also noted that both exporters and regulatory agencies are concerned about data security, confidentiality, and the overall trustworthiness of digital systems, and that convincing stakeholders takes considerable time and effort .

The Philippine DTI's approach to AI is guided by the principle of appropriateness: ensuring that the technology adopted is the best fit for the specific industries and companies it serves, rather than simply adopting the latest trends. The DTI also prioritises sustaining and strengthening existing platforms that are already effectively serving exporters.

She noted that Philippine exporters do not want to simply adopt the newest AI or technology available, but rather want the appropriate technology for their industries that is best applicable to their companies . She also stated that it is important to ensure sustainability of platforms already in place, particularly those that are effectively helping exporters access more markets or making exporting easier .

The Philippines' unique geography as an archipelago of over 7,600 islands presents inherent challenges for digital infrastructure, particularly in rural and remote areas. The government has been continuously working to address these connectivity gaps, which are a prerequisite for enabling broader participation in digital trade.

Maria Katrina Rivera highlighted that as an archipelago of 7,641 islands, managing technology and digitalising services is not easy, and there are still challenges in terms of infrastructure for some rural areas in the Philippines that the government has been continuously addressing .

Switzerland Global Enterprise's MySGE platform consolidates a large volume of procurement opportunities from international institutions such as the World Bank and Asian Development Bank into a single portal, automatically translating listings published in other languages. The platform is designed to save companies time and money by allowing them to register only on sites where they have genuine interest, while also providing direct access to human consultants when needed.

Xavier Cornut described MySGE as a unique platform offering marketing sites, business opportunities, step-by-step export guides, and a tender service with 56,000 live projects and tenders, with 1,500 new ones added per day, representing a value of approximately $500 billion . He noted that the platform auto-translates listings published in other languages and allows companies to register only on websites where they already have an interest, saving time and financial burden . He also emphasised the platform's 'digital first, one click away from a human consultant' philosophy .

SGE's approach to platform sustainability involves training its own embassy staff, ambassadors, and diplomats to use and contribute to the MySGE platform, creating a virtuous cycle where both users and SGE personnel can update and benefit from the tool. This human-digital integration is seen as the only way to build something truly sustainable.

Xavier Cornut explained that SGE trains its ambassadors and diplomats to use the platform to spot new tenders and projects in the field and publish them on the platform, so that everyone from the user to the customer to SGE personnel can use and update it . He described this as the only way to really build something sustainable, combining a digital-first strategy with direct access to a human consultant .

Xavier Cornut argues that digital platforms must be designed for self-service by users in order to be scalable and sustainable over time. Platforms that require significant staff effort to maintain, rather than empowering users to manage their own information, are not viable in the long run.

He gave the example of a digital exhibitor directory at SGE that ended up generating more work for the SGE team than for the customers themselves, leading to the realisation that self-service was mandatory for scaling up an offer . He also noted the importance of regularly measuring engagement with digital tools and not shying away from pausing a service if it is not working, describing SGE's quarterly review process for all digital and consulting services .

Xavier Cornut argues that TPOs should invest in training their own staff across a broad range of AI tools, rather than focusing on just one or two, so that they can identify which tools best serve different sectors and client needs. He also argues that TPOs have a role in advising governments on the development of sovereign AI solutions to reduce dependence on foreign technology.

He described how SGE trains its TPO personnel on multiple AI tools through an internal platform, and noted that staff are often surprised to discover which AI best serves the needs of different customers and sectors . He also argued that TPOs should advise governments on which sovereign AI they should create and give incentives to government to develop AI that supports their specific needs .

Xavier Cornut raises digital sovereignty as a major strategic concern for TPOs and governments, arguing that AI and digital tools should be hosted within one's own country or region to avoid vulnerability to disruption. He sees this as one of the biggest topics in the years to come for digital trade and public digital services.

He stated that it is very important to use AI and digital tools that are hosted in Switzerland or in Europe, and that developing digital infrastructure within one's own neighbourhood rather than relying on other countries will be the biggest topic in the years to come . Martin Labbe reinforced this point by noting the recent example of AI services being disconnected from one day to the next and the impact this can have on organisations whose top layer runs on those AI solutions .

When COVID-19 struck Senegal, the Ministry of Commerce rapidly decided to build an e-commerce platform to support vendors across the country, recognising that building from scratch was not feasible and that the private sector needed to be involved. A collaborative governance structure with two colleges — one public, one private — was established, and the platform was ready within six months.

Ndeye Birame Sock described how the Senegalese government decided to build an e-commerce platform quickly during COVID, using existing market solutions and inviting the private sector into the conversation . She explained that collaboration tools were used to bring together stakeholders from payment systems, wireless operators, the local post system, logistics companies, and technology companies . The platform was built within six months, including naming and branding, through a joint effort of both the public and private sectors .

After the initial successful build of the Senegalese e-commerce platform, a fundamental disagreement arose over its long-term governance: the private sector advocated for a public-private partnership run as a startup, while the government preferred to house it within an existing agency. The government's preference prevailed, and the resulting lack of innovation, speed, and expertise ultimately hampered the platform's sustainability.

She described the private sector's preference for an incubator-type public-private partnership model where the government would retain a stake but the platform would be run as a private company . She noted that the public sector won the governance debate, and that the platform subsequently faced challenges due to a lack of innovation, speed, and expertise in executing and solving problems quickly, compounded by internal competition between government agencies .

Ndeye Birame Sock argues that technology adoption in Africa is not primarily an infrastructure problem but rather a question of whether technology meets users' practical needs and communication habits. Technologies such as mobile payments and WhatsApp have been widely adopted because they fit the local context, while e-commerce is increasingly happening through social media platforms such as TikTok.

She noted that in Africa, communication is largely conducted through WhatsApp because of its voice messaging functionality that allows people to speak in their natural language, and that many people skipped earlier technologies to go straight to WhatsApp . She also observed that mobile payments are working much better than wire transfers or cash in most African countries, and argued that when technology works for people, they adopt it, suggesting the issue is not infrastructure but fit .

Despite the existence of the African Continental Free Trade Area, ordinary consumers and traders in Africa largely do not know what it is, how to use it, or what benefits it offers them. Ndeye Birame Sock argues that AI, if deployed in a locally appropriate way, could help close this information and awareness gap more quickly than traditional methods.

She stated that while there is a lot of excitement about the AfCFTA, the actual consumer does not know what it is, does not know how to use it, and does not know what it does for them . She argued that AI, used as a tool in a way that works for the local context, could help narrow this gap faster and assist countries that are trying to catch up .

Ndeye Birame Sock emphasises that the effectiveness of AI depends fundamentally on the quality and relevance of the underlying data, and that Africa is currently poorly represented in AI training data and language models. She argues that AI must be localised to meet people where they are, rather than simply transplanting technology developed for other markets.

She argued that the most important part of any technology is the data and content, and that without the right content, AI will not work . She noted that Africa is still not well represented in AI, that AI does not yet speak African languages in the way it should, and that it is not meeting people where they are . She stressed that AI must be developed in a way that works for the local context rather than simply importing technology from another market .

Martin Labbe frames the discussion by highlighting the enormous scale of global e-commerce, estimated at 28 trillion dollars for 2024, and the fact that digitally deliverable services now account for 56% of services exports. He also notes that in some parts of Europe, 70% of B2B procurement is happening online, signalling a fundamental shift in how trade is conducted.

He stated that global e-commerce is estimated at 28 trillion dollars for 2024, that 56% of services exports are now digitally deliverable, and that in some parts of Europe 70% of procurement is happening online, with many buyers no longer wanting to meet sellers in person .

Martin Labbe draws attention to the fact that public discourse around digital trade tends to focus on B2C e-commerce, while B2B procurement conducted entirely online is actually a much larger and more significant channel. He highlights Switzerland Global Enterprise's tender aggregation platform as an example of how TPOs can support this dimension of digital trade.

He noted that the database of procurement opportunities described by Xavier Cornut is not what is typically discussed when it comes to digital trade, as most people have a B2C view, whereas the B2B part is much more important and substantial, with purely digital engagement becoming the first channel for companies to sell and procure .

Martin Labbe repeatedly draws attention to the pattern of government-supported digital platforms failing once their initial funding runs out, framing this as a key lesson to be learned from across different regional contexts. He uses this theme to connect the experiences shared by panellists from Europe, Senegal, and the Philippines.

He linked Jesse Weltevreden's earlier observations about European platforms failing when government funding stops to Ndeye Birame Sock's experience in Senegal, noting that the problem of resources being available only for a certain amount of time and then running out sounds very similar across contexts . He also framed the discussion of challenges as an opportunity to identify lessons learned for the future and avoid replicating mistakes .

Martin Labbe nuances the 'fail fast' approach often advocated in technology circles by pointing out that public sector organisations are accountable for public funds and cannot always afford rapid failure. This creates a tension between the need for experimentation and the obligation to use public resources responsibly.

He stated that in the public sector, organisations cannot always afford to fail fast and may fail slowly instead, and that they must be conscious that public funding is being engaged, meaning that failing is not always an option .

Martin Labbe introduces the topic of AI as a major upcoming driver of change for trade promotion organisations, inviting panellists to reflect on how TPOs should prepare for AI-enabled digital trade support, particularly given resource constraints. He frames this as a forward-looking question requiring practical, prioritised responses.

He stated that AI is the big topic today and is going to impact trade promotion organisations for the next years to come, and invited all panellists to take out their crystal ball and tell how they see the future of AI-enabled digital trade support from TPOs . He also specifically asked what TPOs should focus on if they have limited resources in the next 24 months .

Martin Labbe reinforces Xavier Cornut's point about digital sovereignty by highlighting the real-world risk of organisations becoming dependent on AI services hosted in foreign jurisdictions, which can be disconnected or disrupted without warning. He frames this as a massive and already present topic for all digital trade stakeholders.

He stated that digital sovereignty is going to be a massive topic for all, noting that it is already in the room, and cited the recent example of certain AI services being disconnected from one day to the next and the impact this can have if an organisation's top layer is running on those AI solutions .

In his closing remarks, Martin Labbe identifies localisation as an extremely important principle that applies not only to Senegal but to all the countries discussed in the session. He uses this point to synthesise the session's discussions and underline a common thread across diverse regional experiences.

He concluded by stating that localisation is an extremely important point that is suitable for Senegal and for all the other countries discussed, drawing on Ndeye Birame Sock's argument that AI and technology must be developed in a way that works for the local context rather than simply importing solutions from another market .

Martin Labbe highlights the importance of involving the private sector in the co-development of government digital platforms, drawing on the example of the PHX Source platform in the Philippines, which was developed with private sector input to ensure its long-term sustainability.

He noted that the PHX Source platform in the Philippines was highlighted as one of those projects co-developed with the private sector, taking into consideration that there should really be sustainability in these kinds of government projects , and invited Maria Katrina Rivera to elaborate further on the platform's functionalities and how buyers can engage through it .