digital commerce + fulfillment insights asia

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*Parent Company Singapore Post Rating report by Standard & Poor

FULL SERVICE

ECOMMERCE LEADER

$4.3B Market Capitalization*

1000+ eCommerce Clients

50 5 8 Logistics

Centers

Call

Centers

Languages &

Dialects

Apparel fulfilment specialist

ENABLING ECOMMERCE IN APAC STRATEGIC ADVANTAGES OF A FULL SERVICE PROVIDER

Value Proposition

• One-stop-shop for regional

market entry within 12 weeks.

• Large consumer database for

rapid consumer acquisition.

• Coverage across the US and all

APAC markets

• Complements marketplaces like

Alibaba, eBay and Rakuten.

Why do customers buy online? (in your target market)

Confidential 4

Product

Range &

Access

Convenience

Reliable,

Fast &

Affordable

Delivery

Price

2016 eCommerce Sales ($Bn)

North

America

($548)

Western Europe

($438)

Asia-Pacific

($770)

LatAm

($69)

Easter

n

Europe

($71)

MARKET SIZE

APAC ECOMMERCE MARKET High Growth & Ripe for eCommerce

6 6 Sources: eConsultancy, HBR

A digitally advanced region set for vast development.

Digital Evolution

Index

ECOMMERCE IN SEA IS STILL TINY

8 - 3%

0.5 – 1.5%

7

% of online vs total retail by region

Korea ~15%

China ~10%

UK ~9%

US ~10%

Australia ~7%

SEA ~1%

Sources: Custora report derived from 72 million customers from 86 US retailers across 14 industries, June 2013

RJ Metrics Summer 2012 E-commerce Benchmark

CLV is slightly higher for

customers originating

from FB than Google

US$148 US$159

CUSTOMER LIFETIME VALUE DRIVERS

8

9

APAC ECOMMERCE TRENDS

9

Very Fragmented Markets

Dominant Mobile Penetration

Marketing Costs Increasing

eCommerce is not limited to

metropolitan areas = high CLV

Acquisition not only via search

BUSINESS MODELS

SCALABILITY

OMNI-CHANNEL EVOLUTION

PHASE I – B2B & B2C convergence

The omni-channel project was implemented in two

distinct phases. Phase I focused on the fulfillment of

B2C orders from the customer’s B2B warehouses and

making all inventory that is available B2B visible to the

B2C eCommerce site.

This phase was implemented in all five markets and

increased the available products for sale online by more

than 120% without increasing inventory investments or

exposure.

As a result, consumers were able to shop for a

significantly larger range of products on the customer's

sites across Southeast Asia.

Phase II was focusing the integration of the customer’s

retail network. This enabled the following capabilities:

• Ship from store and making all retail inventory

available online to B2C consumers.

• Endless isle which enabled retail assistants to place

orders for items that were out of stock in the respective

retail store.

• Pickup and return in store which allowed consumers

to freely exchange and pre-order products. This also

drove more consumers to store and allowed for

additional upsell opportunities.

These capabilities increased the available products online

by another 80%.

Our technology is also able to route orders based on

optimal customer experience and overall fulfilment cost.

PHASE II – STORE INTEGRATION

OMNI-CHANNEL TECHNOLOGY

CRM

ANALYTICS

DEMAND

SOCIAL

Support

Online & Offline Customers

User/Role

Database 1:1

Marketing Products Shopping

Cart Checkout

Shared

catalog

Payment

web

service Pricing

Fraud web service

Tax web

service Storefront

manager

Content

manager

Transportation

Tracking Shipments Orders Returns

Stores, B2B, B2C Whs

ERP& OMS

Order

Processing Data mgmt Returns

INFRASTRUCTURE

Big Data

Highly

Available

Partner Ecosystem

Open API

Secure

Scalable

End to end monitoring

across the

supply chain

& processes

B2C B2B

OMNI-CHANNEL LAUNCH - O2

PHASE

I launch

PHASE

II launch

Majority of US monobrands are leapfrogging

to Asia Pacific with eCommerce (mostly direct shipping)

15 Source: SP eCommerce Research

16

MARKET ENTRY Localize your operations for maximum return

16

#1 Ship Cross-

Border

Cross-Border DDP

#2 Go Local

- Local top sellers

- Local payments

- Local delivery &

returns

- Local content

- Omni-channel

enablement

Smaller but

easier- SEA

- Singapore

- Malaysia

- Thailand

- Indonesia

Free

Returns

Free

Shipping

Listing

Est Del.

Time

Local

Cust.

Support

Conv.

Rate +22% +47% +22% +36%

Repeated

Sales +47%* +12% - -

Big but hard -

North Asia

- China

- South Korea

- Japan

- India

17

SUMMARY

17 17

• Select the right countries – more than one!

• Test before you jump & take phased

approach but localize quickly

• In China, start with tmall & own.com

• Move! Establish your presence ASAP

Have a great conference

Contact Details:

E: [email protected]

SingPost eCommerce Pte. Ltd.

107 Eunos Avenue 3, #06-02

Singapore 409837

+65 6841 2000

Thank You

Mr. Marcelo Wesseler, Chief Executive Officer, SP eCommerce