e-commerce bubble 2016
TRANSCRIPT
How will a potential e-commerce bubble affect you and your business?By Pawoot Pom Pongvitayapanu
• Founder & CEO TARAD.com• President of Thai E-Commerce Association• CEO of efrastructure group
Speaker Profile
■ Social: Pawoot is Thailand IT and E-Marketing GURU. Now we be consultant for Government and big corporate. All people accepted his online marketing knowledge and abilities.
■ Current:
■ Education: 2007 – 2009: Master Degree 2 : Executive MBA : Sasin Graduate Institute Chulalongkorn University
2000 – 2001: Master Degree 1 : Internet & E-Commerce : Assumption University
1993 – 1998: Bachelor Degree : Architecture : Rangsit University.
■ Name: Pawoot (Pom) Pongvitayapanu
CEO & Founder e-frastructure inc.
Managing Director & Founder TARAD DOT COM Co ., Ltd. (Rakuten Group)
Director & Founder Winter Egency (TARAD Solution Co.,Ltd)
Director & Founder Zocial inc
President & Founder Thai E-Commerce Association
Columnist Bangkok Biz News Newspaper, SME Magazine
Teacher UTCC, Sriphathum, University.
Who is efrastructure GroupExpertOnline&InternetCompanyinThailandmorethan15 Years
1999
Build up ThaiSecondhand.com 1st E-Classifieds in ThailandApril 8, 1999
2001 2009Setup TARAD.com CompanyThe largest B2C Shopping Mall
TARAD.com join with Rakuten GroupSplit TARAD Solution from TARAD.com
Start Up with 3 FriendsYear 1999
Join with Rakuten JapanYear 2009
More than 200 staff in group company
2011 2012 2013
Re-Brand from TARAD Solution to Winter Egency
Founded Zocial Inc
Found e-fra inc.Acquired Thaiepay.com, RedRank. Comparison
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2014
One Stop E-Business and Total Solutions(more than 250 employee in group companies)
E-Commerce
E-Payment
E-Logistic
E-Marketing
E-Analytic
E-Education
Agenda
• Can e-commerce in Asia continue to expand at its current rate or is growth unsustainable?
• What initiatives can the industry take to reduce customer acquisition costs?
• Turning revenue into profits: How can we combat increasing marketing costs?
• How can we reduce the investment made into Google & Facebook while acquiring new customers?
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The Unicorn Private Companies Valued At $1B And Above
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Economic Crash.!
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LinkedIn stock's drastic drop of 47% following Q4 earnings
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ASEAN Digital Population 2015
B2C E-Commerce Value (Billion USD)
Source: http://data.worldbank.org, http://www.statista.com, http://www.ekosglobal.com and http://www.ETDA.or.th
Who’s E-Commerce Player in SEA
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10X15
Business Growth
Welcome to…...
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Topline = GMV, Traffic, Order
Price & Promotion War
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Do not ask about Bottom line (Profit)
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Flipkart leads the race here to losing 2.23 rupees for every 1 rupee of revenue. Amazon loses 1.90 and Snapdeal has least amount of losses at Rs. 1.72.
The question is, how long can this sustain
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In my view not very long.
Why they doing that?
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Startup Bubble Competition Graph
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Company A. Company B.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Rev
enue
Time
Exit from Market
Keep Going
Company C.
Company who enter to the right time and have more money will win the game.!
Strategy to enter to market as follower• Huge Investment
• Platform, Operation, Warehouse, Logistic• Everything Free
• Platform Cost, Shipping Free• Huge Resource and Great People > People Cost up• Huge Marketing Spending > Brand awareness• Super Fast Moving
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Who’s the winner?
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Average Cost Per Click Around the World
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US average CPC, between $1 and $2 on the Search network.
Data from http://www.wordstream.com
Average Pay Per Click Trend
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** Data from Salesforce.com report analysed the top 25 countries globally
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** Data from Salesforce.com report analysed the top 25 countries globally
Facebook Ads Performance Cost
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** Data from Salesforce.com report analysed the top 25 countries globally
Summary• E-Commerce competition still keep moving• How have more money, smarter, faster will win
the game• Customer and E-Commerce ECO System will
enjoy this competition• Join the battle or find the right positioning will
be the right solution
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Kob Kun Kub (Thank You)
Pawoot (Pom) Pongvitayapanu• President of Thai E-Commerce Association• CEO of efrastructure group• CEO and Founder TARAD.comE-Mail : [email protected] Let’s connect after this• Facebook.com/pawoot• Instagram.com/pawoot• Twitter.com/pawoot