Copyright © Tractus Asia Ltd. 2018

Prepared for:

Date:

Designated person:

Building Business in Asia

Exporting to Asia Through Cross Border E-Commerce (CBEC)

Washington, DC

26 February 2018

2018 SIDO Annual Forum

2

Copyright © Tractus Asia Ltd. 2017

Chinese government policies are driving growth in CBEC

$78.51

$100.17

$115.47

$127.16 $137.31

$144.15

2016 2017 2018 2016 2019 2020

2020 CBEC sales forecast - US$137.3 billion

3

Copyright © Tractus Asia Ltd. 2017

China’s Top-4 marketplaces account for 72.7% of all CBEC sales in China

24.2%

20.3%

15.7%

12.5%

4

Copyright © Tractus Asia Ltd. 2017

Engaging a third-party agency is a common way for SMEs to sell on-line in China

Cu

sto

mer

Co

mm

un

icatio

n

Customs

5

Copyright © Tractus Asia Ltd. 2017

$5.3 B(2016)

$14 B(2017)

$27 B(2020)

US$27 billion India’s 2020 CBEC Market Forecast

Indian online consumers shop

cross border mainly from US,

UK, and CHINA

Consumer

ElectronicsApparels &

Accessories

Beauty &

Personal Care

Home &

Furnishings

Toys, Games

and MediaHealthcare

US$2,200

Average Annual CBEC Spend

38%

CBEC Transactions

Demographics and economic fundamentals are driving CBEC in India

6

Copyright © Tractus Asia Ltd. 2017

• Sales - US$4 billion

• Major S/H– Softbank

• Owns eBay India

1

2

3

4

• Sales – US$3 billion

• Investing US$5 billion to

grow India business

• Sales - US$4 billion

• Major S/H – Alibaba

• Sales – US$1 billion

The top 4 e-commerce marketplaces account for over 90% of CBEC sales into India.

44%

33%

9%

5%

7

Copyright © Tractus Asia Ltd. 2017

U.S.

Exporter

Research for

suitable

marketplace

Appoint a Third

Party Seller (TPS)TPS manages seller

registration,

storefront listing,

marketing, and

sales

Customer

Bonded Warehouse

Direct to

Customer

Fulfillment

Logistics Company

(DHL, UPS, FedEx, etc.)

INDIAN

CUSTOMS

Communication with the Customer

In India, marketplaces can act as one-stop shops for web presence, agency and fulfillment services

In-Country

Fulfillment

Amazon Easy Ship™ Service or Flipkart’s Advantage service

WS Retail

Logistics Company

(DHL, UPS, FedEx, etc.)

8

Copyright © Tractus Asia Ltd. 2017

Singapore and Thailand lead in CBEC purchases

67%

49%

48%

38%

33%

4%

Singapore

Thailand

Malaysia

Philippines

Vietnam

Indonesia

% of E-Commerce that is

Cross Border Purchases

15% CAGR (2016-2020)

US$8.7 billionASEAN-6 2020 CBEC Market Forecast

Source: Consumer Barometer Survey

40%of E-Commerce

transactions are

cross-border

Source: Frost & Sullivan

9

Copyright © Tractus Asia Ltd. 2017

Thailand’s Top-3 marketplaces account for 84% of CBEC

1.9

10.5

3.5

12.2

CBEC Sales Overall Sales

2016 2017(billion US$)

9.3 M

10.6 M

70.6 M

Key CBEC platforms by monthly traffic (Oct 2017)

2017 CBEC of US$3.5 billion

Source: PayPal

Source: ASEANup

10

Copyright © Tractus Asia Ltd. 2017

CBEC through Lazada’s marketplace in Thailand

Seller International

Courier

Custom

s

Local

Marketplace

Delivery

by LEX

Customer

Seller

Pays Cost

of Landed

Duty Paid

Overseas (USA) Cross-Border Domestic (Thailand)

Lazada

Warehouse

Courier pays

Customs

Duties of

Behalf of

Seller

Lazada Pays Seller After

Receiving Payment Minus Fees

Customer Order

11

Copyright © Tractus Asia Ltd. 2017

Thank you

Shanghai

Hong Kong

Yangon

Bangkok

Ho Chi Minh City

Singapore

Jakarta

Chennai

New Delhi

Los Angeles

Copyright © Tractus Asia Ltd. 2017