nov 13, 2014 magentolive australia lee.pdf · shop with e-commerce retailers that have local...

Nov 13, 2014

MagentoLive

Australia

Full Service eCommerce

in Asia Pacific Localized front end, payments,

order & store management

Logistics

Centers 15 3 Call

Centers 8 Languages

& Dialects

S$3.5 billion market cap

600+ eCommerce clients

Where?

When? Who?

How?

Where do I start?

eCommerce penetration of retail market

China First?

eCommerce penetration of retail market

Country Insights 81% of Chinese consumers do NOT visit

international monobrand websites due to a lack of localized content

China

Information on official brand websites influence

39% of the consumer

purchasing decisions for jeans

45% of online shoppers

shop with e-Commerce retailers that have local distribution centers

25% of online consumers

in China are searching for exclusive products not readily available

Key = Deep Localization

China First?

9 Source: Retail market size in USD for 2013. Euromonitor, DKSH

?

Japan First?


?

India First?


?

South Korea

Malaysia

India

Thailand

Philippines

Indonesia

Vietnam

China

Japan

Taiwan

USA

Singapore

New Zealand

Australia Other regulatory challenges…

• Foreign ownership restrictions

• Requirement to setup legal entities to trade in local currency and obtain domain

• Uneven application of rules

• Complex rules (e.g. import approvals for many commodities like books, etc)

• Valuation concerns (especially for highly discounted merchandise)

Very low “de minimis” threshold compared to other countries

Customs & Regulations

India Country Insights

COD is more popular than

credit and debit cards

45% of goods ordered

online are rejected at the point of delivery

India First?


?

Smaller countries?


?

South Korea First?


?

Hong Kong First?


?

Taiwan First?


?

Indonesia First?


?

Population: 23M

89% Internet Penetration

US$3,547 Annual Average eCommerce Spend

Australia

Population: 241M


US$334

Annual Average eCommerce Spend

Indonesia

10x Higher

10x Lower

4x Lower

Indonesia First?

Indonesia First?


?

Source: Retail market size in USD for 2013. Euromonitor, DKSH

Singapore & Malaysia First?

?

Source: Forrester Research

Singapore is the only SE Asia country in the global top 16

Global

eCommerce

Readiness Score

Population: 23M


US$3,547 Annual Average eCommerce Spend

Australia

Population: 29M

62.3% Internet Penetration

US$815

Annual Average eCommerce Spend

Malaysia

Malaysia First?

Malaysia Country Insights

Key complaints about international websites: • lack of product availability (65%) • poor variety (55%)

45% prefer to shop

from local websites

Malaysians shop 12x more than they usually do during festive seasons, and conduct 50% of their holiday shopping online

User reviews influence 68% of their purchase decisions

Singapore & Malaysia represent

about half of SE Asia eCommerce

Source: Retail market size in USD for 2013. Euromonitor, DKSH

Singapore & Malaysia First?

?

SE Asia = the new

battleground in

e-commerce

38

SE Asia

The best-performing one, Westwing, based in

Germany and selling home furnishings, made a loss (before interest, taxes, depreciation and amortisation)

that was equivalent to 35% of revenues last year.

By the same measure, losses at Jumia, an all-purpose online retailer based in Nigeria, were 16% bigger than its sales.

4 Oct 2014

Go Big

Go Niche

Go Home

Go BIG…

Going Big Enables…

45

Going Big Enables…

High

Quality

Content

Production

Ex-Ski Racers

Ex-Pro Cyclists

Ex-Military

Going Big Enables… Expert Customer Service

Go Niche…

Niche construction is the process in

which an organism alters its environment, often in a manner that

increases its chances of survival

Pros Cons

Implement local

payment solutions

Increases conversion

70%

High cost from

offering multiple

local credit card

solutions

Engage bloggers to

write user reviews

Increases conversion

68%

More expensive

marketing tool

compared to user

reviews

Malaysia Recommendations

Levi’s Case Study

Magento Content Management

Magento Catalog Management

Responsive Mobile Sites

Customized Cart

Magento-based Promotion Management

Magento International Capabilities

Proven Localized Infrastructure

Local

Distri-

bution

Regional

Distri-

bution

The 80/20 Rule

Pizza-as-a-Service

Nov 13, 2014

MagentoLive

Sydney

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