acommerce echelon indonesia 2015
TRANSCRIPT
The Future For Asia’s E-commerce ScenePaul Srivorakul, Group CEO of aCommerce
The Market
3
The Alibaba effect: The largest IPO creates an Ecommerce investment frenzy in Asia
$25B IPO
Ecommerce Deal Volume in Asia
Investors don’t want to miss out on the next BIG THING (China)
The rapid growth of e-commerce in India
India warehousing requirementsInfrastructure will demand a large proportion of investment in e-commerce
Next Game Changers in 2025 (Frost & Sullivan)
Ecommerce Deal Share in Asia
9
Ecommerce is the highest value generating sector
Out of the 82 current “unicorns,” 18 are in Asia, and 9 are in Ecommerce
Company Sector Country Valuation (US$ Billion)
Xiaomi Hardware China 46.00
Flipkart Ecommerce India 10.60
Meituan Ecommerce China 7.00
Snapdeal Ecommerce India 5.00
Kuaidi Transportation China 4.00
Vancl Ecommerce China 3.00
Coupang Ecommerce Korea 2.00
Dianping Restaurant Reviews China 2.00TrendyGroup Fashion Hong Kong 2.00
Koudai Shopping Ecommerce China 1.40
Lazada Ecommerce Singapore 1.20
Sogou Search China 1.20
Lashou Group Ecommerce China 1.10
Olacabs Transportation India 1.00
GrabTaxi Transportation Malaysia 1.00
Mogujie Ecommerce China 1.00
Xunlei File Sharing China 1.00
Yello Mobile Mobile Korea 1.00
In S.E. Asia, 5 of 10 biggest funding rounds are in 2014 in Ecommerce
• aCommerce (US$10.7M)
• Luxola (US$10M)
• Redmart (US$23M)
• Tokopedia (US$100M)
• Lazada (US$249M)
• Zalora (US$120M)
Increasing regional trade in Asia
ASEAN’s Position
• Strong economic growth
• Centrally located between India and China
• A population of 618m
• Located close to major trade networks
• Strong growth in consumer demand
• Growing e-commerce
ASEAN’s market potential is MASSIVE
ASEAN is at an Inflection point for E-commerce
13
Growing Marketplaces & E-tailers in S.E. Asia
CountryB2C
Marketplaces
B2C Multi-brand
Retailers
B2C Private Sales &
Daily deals
C2C Marketplaces & Classifieds
Singapore
Thailand
Indonesia
Philippines
Trends
Engagement
Data
Monetization
15
Ecommerce evolving into a customer-acquisition strategy for a BIGGER internet horizontal play
Amazon | Apple | Google | Facebook | Ebay | Alibaba | Rakuten | Tencent | Baozun | DaumKakao | LINE | Yahoo | Microsoft | Disney | Garena
Ecommerce Internet Companies
Media (Content)News, Blogs, Portals, Community, Video, Social Networks,
Apps, Forums, Ratings & Reviews
Marketing (Ads)Adnetworks, Affiliate, Social, RTB, Video, Retargeting,
Search, Display, Text, Native Platforms
Commerce (Sales)Ecommerce, Verticals, Digital Goods, Subscription,
Flash, Vouchers Marketplaces, Payments
Logistics (Fulfillment)In-store Pick up, Cross-Border, O2O,
Warehousing, Delivery, COD
Ecommerce Internet Monetization Funnel
• Rakuten acquires Webgistics (Logistics), LinkShare (Advertising) and Viki (Media)
• Paytm (Payments) building out horizontal marketplace, and FlipKart acquires Adiquity (Adveristing)
• Snapdeal acquires FreeCharge (Payments) and also rumored to be buying Komli (Advertising), Invests GoJavas (Logistics)
• Tencent (Media & Gaming) partners with JD.com (Ecommerce)JD.com sets up MVNO (Infrastructure)
• Alibaba invests in InTime Malls (O2O), acquires Adchina(Advertising) and investing in Youku (Media), Singpost (Logistics)
• Google acquiring BufferBox Lockers (Logistics) and launching Google Express Same-day Delivery (Logistics)
Moving up/down the value chain
18
BIG companies testing Ecommerce
LINE Groceries & Prompt Pay
Twitter Buy Button
Facebook Buy Button
Ecommerce Landscape
Commerce Landscape (LUMA)
China Online Market: B2C vs C2C
Alibaba Leads… but not in all categories
China Ecommerce Channels
24
Increase complexity and Fragmentation
25
(CROSS BORDER TRADE)
(PRICE COMPARISON)
MultiChannel Ecommerce Explosion & Opportunity
Lazada Group traffic source
Desktop is 50% and quickly dropping
M-commerce is BIG, but different behaviorLess browsing & impulse buying, higher spend in commodities
Cross Border Trade Fastest growing segment in Ecommerce
Fedex Acquires Bongo
Delivery firms in China get into e-commerce
Source: Mastercard Online Shopping Survey 2013
Over the next 5 years, 65% of transactions will start online and finish offline
Online-to-Offline (O2O)
Matahari | Macy’s | InTime
Source: aCommerce Google Analytics Data, Feb-May18 2014
Type of payment options
Transactions by devices
65 %
COD CREDIT CARD
35%
60%
Desktop Mobile Tablets
35%
5%
Payment Options & Transactions by Devices
Market CapWoman targeted site
$2B (2014)
Raises $100M (2014)
Vertical “Woman” Ecommerce
Raises $100M (2015)
Raises $37M (2015)
China B2C Market in 2013 764B Yuan ($32B USD)
China B2B Market in 2013 7,100B Yuan ($1,170B USD)
B2B vs B2C in China32TIMES
BIGGER
B2B vs B2C in Korea
B2B Ecommerce is $250M Market in Indonesia
Ecommerce everywhere will change everything
Internet aCommerce is changing MARKETING
Transaction
Customer Product
Marketing
Sales
Content
Location
Transactions
Internet aCommerce is changing RETAIL
Internet aCommerce is changing FULFILMENT
Internet aCommerce is changing PAYMENTS
Internet aCommerce is changing DELIVERY
Thank [email protected]