Who is purchasing what and who is developing your customer offer?

Kimberli J. Lewis, SIINDA

What we already know & what we do not pay attention to!

2

Top 10 e-commerce countries in turnover (€ bn)

USA € 315,4

China € 247,3*

UK € 107,1

Japan € 81,3

Germany € 63,4

France € 51,1

Australia € 26,9

Canada € 18,0

Russia € 15,5

South Korea € 15,2

3

* B2C & C2C goods and services excluding insurances

*Source: European B2C E-Commerce Report 2014

Cross-border B2C e-commerce

4

USA 45%

UK 37%

China / HK 26%

Canada 18%

Australia 16%

Germany 14%

*Source: European B2C E-Commerce Report 2014

Average spending per e-shopper

5

Asia – Pacific € 406,1 bn +16,7%

North America € 333,5 bn +6,0%

Europe € 363,1 bn +16,3%

Latin America € 37,9 bn +24,6%

Africa € 2,3 bn +11,9%

MENA € 11,9 bn +32,6%

Others € 18,7 bn +1,8%

€ 857

*Source: European B2C E-Commerce Report 2014

What are online shoppers buying?

*Source: Mediascope Europe, iab Europe6

Online search is most important to them when deciding, which brand of the

following products to purchase…

Travel tickets 57% 61%

Electrical goods 62% 53%

Holidays 53% 55%

Mobile handsets, contracts 54% 47%

Financial products/services 51% 45%

Clothes & accessories 36% 49%

Insurance 46% 36%

Toiletries/cosmetics 27% 44%

2012 Spend Online buying trends –a look at the EU in 28 markets

• 187.000 Mio € spent online in Europe across a 6 month period

• Average of 13 purchases made per person

• 554 € is the average amount spent per person

13 / € 578

13 / € 511

*Source: Mediascope Europe, iab Europe7

Online shoppers are advanced internet users

• EU Online shoppers spent 21,7 hours online per week

• This 46% more time than average EU online usage (total EU 14,8 hours)

*Source: Mediascope Europe, iab Europe

22,3 h 21,2 h

Since 2010 time spent online amongst online shoppers has increased by 41%

8

Connectivity through mobile phones is increasing e-commerce

• 25% of online shoppers shop online via web browser on a mobile phone

• 22% shop online via a mobile app

*Source: Mediascope Europe, iab Europe

21% h 29%

19% h 24%

9

Mobile purchase in Asia divided by gender 2013

10*Source: Google shopping Asia Study, acommerce Asia

61%

38% 37%

52%55%

53%

31%

48%51%

60%

Indonesia Philippines Singapore Thailand Vietnam

Women

Men

Purchasing habits lead to buying habits in Thailand

11*Sources: aCommerce client data, Google Analystics, Jan-Jul 2014

22%

63%

Men Women

Women shop 41% more on mobile than men

So what does this mean when

• 85% of purchasing decisions are made by women in EU, US and Australia

• 57 - 78% of purchasing decisions are made by women in Asia and the number is growing

12

And women ……….

• Have increased their internet spend by 20% in 2013

• Spend 4,4 hours per week in online shops;3,5 hours per week by men

• And the Amazon phenomenon shows: 56% of women leave the online shop before check out and check to see if they find a better price but 72% end up purchasing

• It has been proven women text 14% more than men

*Source: bvh, Rascasse13

It can only mean one thing!

Therefore, it should play an important part in product development because of purchasing patterns, and in the development of

technology because of usage.

14

Gender plays an important part in the development of e-commerce- online purchasing

And why?

15

Sightseeing - Bangkok

Sightseeing – Bangkok – walking – shopping –male tourist guide – Lumphini Park

Gender behavior is related to purchasing behavior, which is related to search behavior

Men shop less

• Female unique visitors will browse 7 pages before checking out or exiting, while men browsed a maximum of 6

16*Source: aCommerce client data, Google Analystics Jan-Jul 2014Photo: Instagram Miserable man shopping

Number of sources women used when makinglast purchase decision (country average)

17*Source: TNS Female Shoppers Study, Q4 2012. n=8.000

Korea4,4

Singapore5,8

China5,9

Philippines6,2

Indonesia6,4

India6,6

Thailand7,1

Malaysia7,9

Combined6,3

What do women like when shopping online?

Important buying factors for for women are:

• Search, search and search

• Multiple offers and price comparison

• Multiple options

• Recommendations and reviews

• Abundant information available

• Being able to select the preferred payment method

• Being allowed to return the purchase for free

• Extremely user friendly website & easy to navigate

18

What else do they like?

Women like social media aspects sites more:• 65-70% women use social media sites

• Most look for discounts, deals, couponsWomen like to Follow brands 73-82% women depend on recommendations

• 49-60% use branded websites

It’s about social and being interactive • 60% were ready to buy, seeking prices and deals, when online

• 56% were looking for a brand name or features

• 50% were comparison shopping

19*Source: Gender social media study 2013

Women, who searched online forlast purchase by market

20*Source: TNS Female Shoppers Study, Q4 2012. QD2c: Role of research (n=8004). All markets, categories. Based on last purchase occasion

48%

48%

53%

53%

54%

54%

57%

61%

SINGAPORE

PHILIPPINES

CHINA

THAILAND

MALAYSIA

INDONESIA

INDIA

KOREA

Customer Structure 2013* differentiated by Gender -who is spending the money ?

*Source: bvh21

14.693

4.358

2.359 2.458 1.636

126 238 279 153 583

12.034

9.649

5.616

3.172 2.931

706 396 269 115 526

Men Women

*revenue in million €

Gender - who else thinks this is important?

• Nielsen – Women of Tomorrow/Global Online Survey (spanned 21 countries )

• Google shopping Asia Study

• DigitaslBI - Connect commerce

• acommerce asia - Gender and e-commerce Thailand

• Der Handel.de - Female buying drives e-commerce

• Techinasia - Women power in china

• Bvh - Customer structure

• Google TNS Female Study

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What other target groups are drivingthe future of our business?

• Baby Boomer Generation: age 50-69

• Generation X: age 33-53

• Generation Y:

• The Millennials / Generation next: age 19-39

• Generation Z: age 0-19

23

Generational market groups Generation pays a role in current and future product development “future now”

Millennials make up the majority of online purchase intenders

Will browseonline

Will buyonline

Generation Z (under 20) 6 – 9% 5 – 9%

Millennials (21 – 34) 49 – 59% 52 – 63%

Generation X (35 – 49) 25 – 28% 25 – 30%

Baby Boomers (50 – 64) 7 - 13% 6 – 13%

Silent Generation (65+) 1 – 3% 1 – 3%

24*Source: Nielsen Global Survey of E-commerce, Q1 2014

Global average percent of the population ranges that make up online purchase intenders for 22 categories

Individuals ordering goods or services online, by age (3 groups)

25*Source: European Commission, Digital Agenda Scoreboard

The generation view tells us:Consumers are moving from search to in-store

26

Search 88%

Purchase20%

In-store72%

of smartphone users report that they use their smartphones

before purchasing in store.

92% in China/France88% in Spain,87% in Italy,

82% in the Netherlands

of smartphone users purchase from their

mobile

76% in China, 35% in the US, UK,

Germany & Singapore

of smartphone users have used their mobile

in store.

95% in China, 80% in Singapore,

Italy/US 72%

*Source: DigitasLBi

Digital In-StoreConsumers are increasingly taking for granted that they find in-store the services that are available online

*Source: DigitasLBi27

Average of consumers

Have used in-store multi-media shopping aids Worldwide 42%China 73%

Were decisive in their buying decision Worldwide 14%China 36%

Think new digital in-store technologies are generally very useful

Worldwide 73%USA 80%

Think that in-store sales advisors would be more efficient if they had tablets providing all available product information

Worldwide 74%China 92%

Singapore 87%

Digital In-StoreTechnology is enhancing the in-store experience

• 95% of Chinese consumers are willing to receive personalizedoffers on their mobile phone whilst shopping in-store

• 78% of German consumers are willing to use an app on theirmobile that enables them to easily find a product in asupermarket

• 75% of shoppers in Singapore would try on clothes virtually usinga digital mirror

• 80% of Chinese consumers are willing to use a mobile app toorganize their shopping according to their shopping list

*Source: DigitasLBi28

So what does this tell us?

• Women purchase more and surpass men

• When purchasing, Millennials want integrated experiences

Are you paying attention to these trends in your product and technology development?

29

And what about “Generation Z”?

30

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Gen Z Gen X Gen Y Younger Boomers Older Boomers Golden Gen

Average share of income spent online (U.S. 2013)

*Source: Forrester, U.S. Cenius, BI Intelligence

They poised to drive a surge in e-commerce growth! Are you thinking a step ahead?

In the context of your business,what does this all mean?

• The advertising customer is your customer!

• The user is their customer and your customer!

• The transaction is what counts

• So regardless of what your solutions are,they need to lead to transactions

• Do you have the right processes and peopleto determine what the user wants?

31

Customer

Trans-actions

Solutions

Processes/People

Process

Look at theworldwide trendsand copy them

Local marketresearch

Customer focusgroups

R & D departments Input from sales

Mostly Sometimes Ususally not

32

How do you determine which new products & services you will launch in your market?

*Source: ALSMA SIINDA Survey 2014

What do the ALSMA companies thinkis important in product launch decisions:

Opening newmarkets

Identifying usergroups that willspend money

High profitmargin morethan reach

Reach morethan high profit

margin

Identifying newtarget markets

Growingexisting

customer base

Identifying newhigh potential

customer bases

Most important Moderate importance Low importance

33*Source: ALSMA SIINDA Survey 2014

Who leads the product development effortin ALSMA companies?

12,5%

0,0%

6,3%

12,5%

68,8%

Director of R & D Sales directors

Marketing directors Technology department

Executive team

34*Source: ALSMA SIINDA Survey 2014

Who makes the decision about products

in ALMSA companies?

Board CEO Director of businessdevelopment

Director of marketing Team decision

Mostly Sometimes Ususally not

35*Source: ALSMA SIINDA Survey 2014

The age breakdown of the people in ALSMA companies

Marketing Businessdevelopment

products

Sales Executive teamall departments

R & D Technologydevelopment

22-32 ys 33-44 ys 45-55 ys over 55 ys

36*Source: ALSMA SIINDA Survey 2014

This is what the ALSMA member workforce looks like

51,33 48,67 48,07 50,4345,33

54,67

69,33

30,73

63,08

36,92

74,33

27,50

37*Source: ALSMA SIINDA Survey 2014

But who is making the decision in the end?

38

6%

32%

50%

12%

31%

69%

68%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

over 55 ys

45-55 ys

33-44 ys

22-32 ys

Women

Men

Executive Team

NA

12%

25%

62%

27,5%

72,5%

12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

over 55 ys

45-55 ys

33-44 ys

22-32 ys

Women

Men

Prod. develop. done in technology

Where else are products being developed?

39

NA

10%

62%

18%

36%

64%

12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

over 55 ys

45-55 ys

33-44 ys

22-32 ys

Women

Men

Prod. develop. done in R & D

Where else are products being developed?

40

Is your team diverse enoughto understand the market trends?

41

Kimberli J. Lewis

CEOGlobal Business Therapy s.r.o

Consulting, Executive Team Coaching

26 Years International Business Experience

25 Years Executive Management

20 Years International CEO Experience

Leadership Training

29 International, European & German Awards for Management, Sales & Marketing

Author

Bringing Women into the Board Room,

Ponytale Talk, It’s All About You! Winning career strategies for women

Graduate Degrees Business Harvard University

Education/Human Development George Washington University

Masters Candidate Organizational Management and Team Coaching Middlesex University

International Certified Executive Coach(Henley Business University London)

Certified Team Coach (Academy of Executive Coaching London)

NLP and Myers Briggs practitioner