session 4: content and applications - bruneiresources.com · date of issue: 8th september 2005 doc....

Date of issue: 8th September 2005 Doc. S4-1

Session 4: Content and Applications

Growing the eCommerce Opportunity

Keynote Speaker Jeff Perlman,

Director of E-Commerce Business Visa Asia Pacific

(Thursday, 8th September 2005, 8.15am – 10.00am)

PERSIDANGAN KEBANGSAAN MENGENAI MASYARAKAT BERMAKLUMAT NATIONAL SUMMIT ON INFORMATION SOCIETY (NASIS)

7 – 8 SEPTEMBER 2005 INTERNATIONAL CONVENTION CENTER, BRUNEI DARUSSALAM

Presentation Identifier

For Visa Internal Use Only

Growing the eCommerce OpportunityJeff PerlmanNational Conference on Information Society (NACIS)Brunei DarussalamSeptember 8, 2005

Presentation Identifier.2Information Classification as Needed 2Growing e-Commerce | September 8, 2005

Regular Internet users and online shoppers (2H 2004)

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Japa

nChin

aKore

a

Taiw

an

Austra

liaInd

ia

Thail

and

Hong K

ong

Indon

esia

Philipp

ines

Malays

ia

New Ze

aland

Singap

ore-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Regular Internet users Online shoppers

Reg

ular

Inte

rnet

Use

rs

Onl

ine

shop

pers

Developed markets in Asia Pacific enjoy some of the highest rates of online shopping in the world

Source: Visa International



Online shopping attitudes - Asia Pacific (2H 2004)

SE Asian countries, while in the lower half, are the fastest growing


93% 87%77% 73%

66%52% 46% 44%

37% 30%23% 20% 19%

5%8%

9% 11%12%

23%22% 25%

22% 30%31% 39% 41%

2% 5%14% 16% 22% 25%

32% 31%41% 39% 46% 41% 40%

Korea

Japa

n

New Zea

land

Taiwan

Austra

liaInd

ia

Singap

oreChin

a

Hong K

ong

Malays

ia

Thaila

nd

Indon

esia

Philipp

ines

Online shoppers Positively disposed* Negatively disposed**

*Positively disposed include - Shopped 12 months ago, Tried but cancelled out and Willing to try it in future**Negatively disposed include – I’m not sure if I will try it, I probably won't try it, I have no interest in online shopping


Top Five Product categories (2H 2004)

0%

10%

20%

30%

40%

50%

60%

70%

Australia NewZealand

Hong Kong Singapore Taiwan Korea China Japan

Airli

ne ti

cket

sC

once

rt/ev

ent t

icke

t s

Acc

omod

atio

nB

ooks

DVD

/Vid

eos

Airli

ne ti

cket

sC

once

rt/ev

ent t

icke

ts

Acco

mod

atio

nB

ooks

Clo

thes

/sho

es

Airli

ne ti

cket

s

Acco

mod

atio

nB

ooks

Trav

el (o

ther

)Fl

ower

s

Con

cert/

even

t tic

kets

Airli

ne ti

cket

sAc

com

odat

ion

Boo

ksC

loth

es/s

hoes

Boo

ksC

ompu

ter p

erip

.Ai

rline

tick

ets

Acco

mod

atio

nC

loth

es/s

hoes

Com

pute

r gam

esC

ar h

ireD

igita

l con

tent

Acco

mod

atio

n

Food

& g

roce

ries B

ooks

Com

pute

r gam

es

Mus

icC

loth

es/s

hoes

Com

pute

r per

ip.

Boo

ksFo

od &

gro

cerie

s

Acco

mod

atio

nC

loth

es/s

hoes

Com

pute

r per

ip.




Top Five Product categories (2H 2004)


0%

10%

20%

30%

40%

50%

60%

India Indonesia Malaysia Thailand Philippines

DV

D/V

ideo

s

Boo

ks

Clo

thes

/sho

es

Boo

ks

Mus

ic

Com

pute

r per

ip.

Ele

ctric

al a

pplia

nce

Com

pute

r PC

Ele

ctro

nic

devi

ceM

usic

Airl

ine

ticke

tsA

ccom

mod

atio

n

Boo

ks

Trav

el (o

ther

)

Flow

ers

Boo

ks

Onl

ine

cont

ent

Mus

ic

Airl

ine

ticke

ts

Onl

ine

pers

onal

s

Boo

ksA

irlin

e tic

kets

Ele

ctro

nic

devi

ceD

VD

s/V

ideo

Clo

thes

/sho

es


Online shopping concerns


(Based on online shoppers only)

0% 5% 10% 15% 20% 25% 30% 35% 40%

Don't trust some sites with my credit card

Unsure of the quality of the product

Cost of shipping

Dislike giving out personal details

Product delivery taking too long

Difficulty returning faulty products

Encountered technical problems

Poor online customer service

Too complicated to order

Difficulty in finding what I want

Other

1H 2004 2H 2004



Hurdles to online shopping


(Based on non-online shoppers)

0% 5% 10% 15% 20% 25% 30%

Do not have a credit card

Don't trust the Internet with my credit card

Prefer to get out and visit real shops

Prefer to examine the product myself

Don't want to give away personal details

Don't want to pay for shipping

Can't buy what I want online

Unsure about how to return faulty products

Product delivery takes too long

Prefer to talk to a salesperson

Other

1H 2004 2H 2004


Online shopper motivation


(Based on online shoppers only)

24%14%

7%5%

4%

13%11%

0%6%

10%1%

1%4%

To save timeFor convenience/comfort

To get products fasterTo shop at any time

To avoid going to the store

Search for bargains onlineTo compare prices and save money

To buy things not available in MalaysiaTo get a better selection

To buy things not available in my local areaTo get the latest products

To see if it would workOther

Convenience (54%)

Price(24%)

Selection (17%)

Other (5%)



Addressing Concerns and Overcoming Barriers


12 steps to managing e-commerce risk

E-Commerce Start-up

1. Know the risks and train your staff

2. Select the right acquirer and service provider(s)

Web Site Utility

3. Develop essential Web site content

4. Focus on risk reduction

Fraud Prevention

5. Build internal fraud prevention

6. Use Visa tools (CVV2, Verified by Visa)

7. Apply fraud screening

8. Protect your merchant account from intrusion



12 steps to managing e-commerce risk

Visa Card Acceptance

9. Be prepared to handle transactions post-authorization

Account Information Security

10.Safeguard account data through AIS compliance

Chargebacks and Processing Costs

11.Avoid unnecessary chargebacks and processing costs

12.Create a sound process for routing authorizations


Want to know more?

www.visa-asia.com merchants products & technology Verified by Visa



3 Development Opportunities for Brunei


1. Cross-border Opportunity



Worldwide Web?


What is the business problem?

MerchantSelection Shopping Payment Fulfillment Customer

Service

Why shopway overthere?

ConsumersWhy isthis sohard?

What isthe total

cost?

Why won’tthey shipto me?

Why didn’tI get myitem?

MerchantsWhy sellway overthere?

What to doabout “surprise”

costs?

What if hesays “I never

got it”?

How tomake thisprofitable?

What if hesays “it

wasn’t me”?



Cross-border e-commerce market currently in very early growth stages• Digital goods, including travel & entertainment, gaming and

electronic media, represent the majority of cross-border purchases

• Only a few merchants, however, appear to accept cross-border e-commerce transactions

• Some leading US-based merchants have established local distribution and service operations to support e-commerce

• Credit cards are the payment option of choice for most cross-border e-commerce


Source: Celent Communications

Cross-border e-commerce may be beginning to boom



Vision = “End-to-End” Model

MerchantSelection Shopping Payment Fulfillment Customer

Service

IntegratedValueChainFu

ture

Buy anywhere. Sell anywhere.

Acceptable payment and delivery riskEnd-to-end information flow

No back-end surprisesGlobal economies of scale for sellers, buyers, fulfillers


Local Shopping at Global Merchants



2. Travel Booking Opportunity


0

2

4

6

8

10

12

14

16

18

YR2000 YR2001 YR2002 YR2003 YR2004 YR2005 YR2006

MarketShare Report 2005

ONLINE TRAVEL MARKET SIZEOnline Travel Booking Growth Trend

Current forecasts: online travel in Asia Pacific will reach USD 16 billion in 2006



Convenience Drives Online Bookings

CONVENIENCE

• Website 24/7• Email alerts• SMS alerts• Call Centre• Pay online• Pay via

telephone• Pay in person


Online is the #1 Resource for Travel



xChoice Drives Online Bookings

CHOICE

• 60,000 Hotels• 400 Airlines• 3,000 Activities• 50 Car Rental Co• 15 Cruise Lines• Eurail Passes• Packages


Online Travel by Booking Type



3. Bill/Government Payments


Where are the opportunities?

2,420.58

1,394.63

916.79

791.13

711.79

440.73

24.52

0 500 1000 1500 2000 2500 3000

Govt Pymts

Education

Telecom

Insurance

Utilities

Transport-Rail

Road Toll

Asia-Pacific Total Market Size (US$ Bil)



What are the benefits?

Administrative efficiencies:• Reduced cost of cash and paper management• Automation reduces manpower requirement for manual

processes

Reduced cost of collection:• Minimize delinquency (recurring payments, reminder services)• Improved cash flow


Maximizing consumer benefit: Consolidation

Single location

80+ Billers

Register to set-up:• Personal billers

list• Recurring

payments• Payment

reminders

Earn points/ rewards



Thank you

session 4: content and applications - bruneiresources.com · date of issue: 8th september 2005 doc....

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