Maximizing ROI in Asia Pacific ecommerce. Asia E-commerce and Digital Marketing Innovation Summit 22 nd January 2016

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1 Maximizing ROI in Asia Pacific ecommerce Asia E-commerce and Digital Marketing Innovation Summit 22 nd January 2016

2 Asia Pacific: US$1 trillion in ecommerce by 2020 B2C e-commerce sales in trillions USD 1.2T USD 2.4T 2% 3% 4% 3% 4% 4% 26% 23% L. America, CE. Europe, MEA W. Europe 28% 37% Asia Pacific Expected to exceed US$1 trillion by % 31% N. America Source: emarketer

3 Comparing key digital statistical indicators Total Population Active Internet Users Active Social Media Accounts Mobile Connections Active Mobile Social Accounts billion billion billion billion billion World Urbanisation 53% Penetration 42% Penetration 29% Penetration 51% Penetration 23% billion billion billion billion billion Asia Pacific Urbanisation 45% Penetration 35% Penetration 26% vs. Population 93% Penetration 22% Sources: We Are Social,

4 The typical ecommerce adoption path Connecting and entertaining ebusiness basics Comparable goods Subjective purchases , Social networks Online banking, travel Online sales of consumer technology, books/media Online sales of apparel, grocery, beauty Source: Forrester Research, The Evolution Of Global ecommerce Markets 3

5 Where APAC countries sit along the path Connecting and entertaining ebusiness basics Comparable goods Subjective purchases India Japan Indonesia Singapore Australia Philippines Malaysia China Source: Forrester Research, The Evolution Of Global ecommerce Markets 4

6 A snapshot of Asia s online retail space Increasing marketing costs Huge variance in regulations Payments market is fragmented More than 2 in 3 Asians use mobile devices for shopping online Marketplaces dominate Asian ecommerce ecommerce is not limited to metropolitan areas 5

7 Market entry: localize your operations for maximum returns #1 Ship Cross- Border a) Parcel forwarding b) Cross-border merchant enablement 6

8 International shipping - Customs & Regulations Australia New Zealand Singapore USA Malaysia South Korea Taiwan Japan China Vietnam Indonesia Philippines Thailand India Very low de minimis thresholds Regulatory Challenges Foreign ownership restrictions Local legal entities to trade in local currency and obtain domain Uneven application of regulations Valuation concerns (e.g. highly discounted merchandise) Complex rules (e.g. import approvals that vary by product) Copyright 2015 SingPost ecommerce 7

9 Market entry: localize your operations for maximum returns #2 Go Local - Local payments - Local delivery & returns - Local content - Omni-channel enablement #1 Ship Cross- Border a) Parcel forwarding b) Cross-border merchant enablement a) North Asia First - China - Japan - South Korea - India b) Beachhead Market Rollout - Australia - Singapore - Malaysia - Thailand Etc. 8

10 Why you should go local High Risk but much higher returns! Localized by local solution Localized by non-local solution Cross-border 9

11 Markets are Unique 10

12 INDONESIA 11

13 Obstacles to ecommerce success in Indonesia Marketplaces dominate Customs & duties? Rural & inter-island last-mile Marketing channels Legal/regulatory 12

14 Don t forget payments methods In more developed markets In Indonesia Gift cards, Google Wallet 13

15 Not to mention localizing everything Obvious? - Not only visible website content - Transactional s - SEO / meta data - Paid ads - Creatives - Customer care - Periodics / s - Contextualization 14

16 Succeed at ecommerce in Indonesia Leverage marketplaces for brand awareness Spread inventory country-wide Localize everything Work with reputable partners for payments handling, customs & duties, and legal issues Go omnichannel 15

17 What s my next step in ecommerce go-to-market? Outsource Networks 16

18 Finding the right partner to help you address Lack of In-House Talent: Current organization may not have people with ecommerce mindset/skillset Time to Market: Opportunity cost of slow rollout is lost market share Choosing Appropriate Technical Solution: Need to live up to today s expectations and be future-ready Channel Conflict: How to grow without cannibalizing core business Crowded Landscape: How to acquire buyers effectively & efficiently in crowded online space Demanding Customers: Customers expect multimodal support to drive customer satisfaction and purchase Market Reach: Regional and global reach for business expansion B2C Fulfilment & Delivery Capabilities: Lack of ecommerce fulfilment and last mile delivery capabilities 17

19 Joining the right networks 18

20 Thank You For more information, visit or us at 19

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