Internet and CloudEcommerce Series – Part 1

Ashwinee Kumar

June 2015

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Agenda

1. Internet and Mobile - Facts and Trends2. Ecommerce business3. Omni channel

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Internet and Mobile

• 3 billion Internet users were likely by May 2015. • Mobile Internet penetration is forecast to reach 71% by 2019. • Usage per device is forecast to more than triple by 2019. • 192 countries have active 3G mobile networks, which cover almost 50% of the global

population. • Smartphone sales are the majority of mobile handsets sold worldwide; tablet sales will

soon exceed total PC sales. • While there are at least five mobile platforms, Android has an 84% share of

smartphones, and 72% of tablets.• There are well over 1 million apps available, which have been downloaded more than

100 billion times. • Time spent using apps exceeds time spent on mobile browsers, and in the US, at least,

exceeds time spent on desktop and mobile browsers combined.• In 2015 U.S. mobile commerce sales will total $104.05 billion, up 38.7% from $75.03

billion in 2014, reveals data from the 2016 Mobile 500. 30% of overall ecommerce

“WE ALWAYS OVERESTIMATE THE CHANGE THAT WILL OCCUR IN THE NEXT TWO YEARS AND UNDERESTIMATE THE CHANGE THAT WILL OCCUR IN THE NEXT TEN. DON’T LET YOURSELF BE LULLED INTO INACTION” - Bill Gates, 1996

“640K ought to enough for anybody” – Bill Gates, 1981

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Internet, Cloud and Mobile Trends • Wi-Fi as a network, rather than an extension• Shift from Retail to eTail• Shift from Omni channel platform to Unified commerce platform• Increase share of Mobile commerce in ecommerce - Increased transaction on Native

apps compared to Mobile Web browser• Internet of Things going to significantly change our lifestyle

• “things” connected to the Internet exceeded the global population in 2008 and is forecast to rise to exceed 50 billion in 2020

• Wearable devices• Smart cities• Unmanned cars

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Internet Users

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US retailers

Rank Store 2013 US Sales Grth 12v13

1 Wal-Mart $334,302,000 1.7%

2 Kroger $93,598,000 1.6%

3 Costco $74,740,000 5.2%

4 Target $71,279,000 -0.9%

5 The Home Depot $69,951,000 6.6%

6 Walgreen $68,068,000 1.3%

7 CVS Caremark $65,618,000 3.1%

8 Lowe’s $52,210,000 3.6%

9 Amazon.com $43,962,000 27.2%

10 Safeway $37,534,000 -3.7%

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Advantages of ecommerce

• Price Advantage• Convenience• Large Product Assortment

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Innovation during evolution of ecommerce

• Better functionality through new tools and features that make it easier to shop• A more personalized shopping experience• Use of social media to both directly transact and influence sales• Rich interfaces offered across multiple device types• Transfer of control from IT to business• Improvements in underlying technology that improved performance and availability• Customer-friendly policies, like free shipping and no-hassle returns• Closer tie-in with the physical world—from in-store returns to kiosks in publicplaces

Omni channel Customer Journey – Transaction involves

multiple channels

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Now