ups the changing face of retail in industry 4...ups –the changing face of retail in industry 4.0...

UPS – The Changing Face of Retail in Industry 4.0

Luke Norris, Head of Marketing, UPS Vietnam

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Retail before Industrial Revolution 4.0

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Powering the future of Production and

Enterprise Innovation

The Birth of Ecommerce

Addressing market demands with Smart Logistics

July 26, 2018 4

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Smart Logistics - The Backbone of Omni-Channel Retailing

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Asia - the epicenter of the global ecommerce market

July 26, 2018 6

Source: Shopify Plus, Statista

The 10 largest ecommerce markets in 2017 (in USD billion)

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Vietnam’s growing tech-savvy population

UPS Pulse of the Online Shopper™ Study

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Asia Pacific Study

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

The 2018 Pulse of the Online Shopper Study focuses on consumer behaviors, preferences and perceptions

July 26, 2018 9E-commerce to Green Commerce

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Key Themes

Constants:

• Areas of the retail experience that remain important year of year and influence purchasing behaviours. These are satisfaction with today’s shopping experience, shipping and logistics

Movers:

• Areas where consumers have shown significant growth over the past few years. These are mobile, international shopping and store engagement

Emergers:

• New areas of retail that may play a role in the shopping experience of the future. These include alternative delivery locations and marketplaces

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Constants

July 26, 2018 11

UPS Pulse of the Online Shopper Study™

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Constants > Asian consumers are the least satisfied with all aspects of the shopping experience

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Constants > Online shoppers in Asia and Europe prefer to ship online purchases back to retailers

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45%

33%

29%

Shipped back toonline retailer

Returned to physical store

Importance of free shipping on returnswhen selecting online retailers

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Constants > 7 in 10 shoppers across Asia, Europe and U.S. have made additional purchases when processing a return

Movers

UPS Pulse of the Online Shopper Study™

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Movers - Smartphones play an important role as a source of product information, reviews, and comparison.

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Source: UPS Pulse of the Online Shoppers™ Asia Study

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

July 26, 2018 17

Movers > Importance of Physical Stores

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Movers > The physical store still plays a key role in the customer’s shopping experience

UPS Template 18

43%

43%

41%

39%

39%

Exclusive discounts for members

Products I want to touch and feel

Solving immediate problems

Superior customer service

Unique products

Satisfaction with the in-store shopping experience

Importance of factors when making the decision to go in-store vs online (Asia)

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

UPS Template 19

Movers > Physical Store Engagement

Emergers

UPS Pulse of the Online Shopper Study™

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Emergers > Free vs Paid Shipping

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Emergers - There is greater demand for alternative delivery locations

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Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Key Takeaways For Retailers

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Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.

Despite uncertainties in global trade, Vietnam has plenty to offer as a growth market

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With low cost, high quality alternatives and supportive government

policies and investments, Vietnam has high appeal

as a growth market.

1Growth market

3Automated

stock replenishment

2Immersive shopping

experience

A more immersive shopping experience

through omni-channel retailing, where online

and physical assets work seamlessly together.

By synchronising

stocktake, purchasing,

and shipping, retail

businesses can

minimise human input

and increase efficiency.

Thank you