Digital Commerce in Asia State of the Market.

Transcription

1 Digital Commerce in Asia State of the Market.

2 What is the current state of dcommerce in Asia? 2

3 Asia Digital Statistics Asia has big potential given the number of young people and its internet & mobile penetration rate Asia population (2013) Asia internet users (2013) Mobile device/internet users (2013) Asia social media users (2013) 4,282m 1,798m 920m 851m Source: Internet World Stats, Mobi Thinking, 3

4 Most Common Types of Products Sold online in Asia Asia sold USD383.9B on B2C E-commerce Sales in 2013 with China leading the pack 80% 70% 60% 50% 40% 30% 20% 10% 0% Consumer Electronics Books Clothing & Apparel Household goods Office Supplies Consumer Packaged Goods Sporting Goods Pet Supplies Food & Groceries Tools & Home Luxury Goods Other Indonesia India South Korea Japan China

5 China Digital Statistics China population (2013) Chinese internet users (2013) Mobile device/internet users (2013) 2 Chinese social media users (2013) 3 1,393m 618m 500m 598m E-commerce is radically changing Chinese consumer habits. By 2017, China will be by far the most online nation in the world Major players include homegrown companies as well as Western names: Taobao.com TMall.com Baidu Amazon China Weibo Sina Source: Winning the $30 trillion Decathlon: Going for Gold in Emerging Markets, McKinsey Global Institute; KPMG analysis 5

6 What is driving dcommerce?

7 China Mobile Revolution 7

8 Key Technology Drivers for ecommerce in China INTERNET PAYMENTS & APPS 618M Internet Users 2.68K Internet Sites Time spent on Internet: 20.5 hrs/week RMB 45.5B Mobile Payment Transactions 289 Payment Co 289 Innovative Payment companies Applications Innovative Financing Products 1.23 B Mobile Users 382M Smart Phone Users 598M Social Media Users Time Spent: 62 min Tencent Wechat hottest mobile social MOBILE SOCIAL 8

9 What are some of the applications seen in the market? 9

10 Market Insights Same but different Top 10 Most Popular Social Media - Global Facebook a social networking service. It allows users to create their own profile, add other users as friends, exchange messages, and receive automatic notifications when they update their profile. Twitter an online social networking and microblogging service that enables users to send and read tweets, which are text messages limited to 140 characters. LinkedIn a social networking website for people in professional occupations. It is mainly used for professional networking Google+ a social networking identity service that is owned and operated by Google Inc. It is also an authorship tool that associates web-content directly with its owner/author. Pinterest a pinboard-style sharing website that allows users to create and manage theme-based image collections such as events, interests, and hobbies. Tumblr a microblogging platform and social networking website owned by Yahoo!Inc. This allows users to post multimedia and other content to a shortform blog. Flickr an image hosting and video hosting website. It is also widely used by photo researchers and by bloggers to host images that they embed in blogs and social media. VK is one of the biggest social network service in Europe. It allows users to message contacts publicly or privately, create groups, public pages and events, share and tag images and play bowser-based games. Instagram an online photo-sharing, video-sharing and social networking service that enables its users to take pictures and videos, apply digital filters to them and share them on a variety of SNSs. MySpace a SNS with a strong music emphasis and pop music singer. Top10 Most Popular Social Media - China Qzone a social networking website created by Tencent. It allows users to write blogs, keep diaries, send photos, listen to much and watch videos. Estimated to have 800M users with 500M active users. Tencent Weibo a Chinese microblogging website launched by Tenchent. Users may broadcast a message including 140 Chinese Characters at most through the web. 600M users with 300 active users. Sina Weibo a Chinese microblogging website launched by SINA Corporation. Has 500M registered users with 280Mactive users WeChat a mobile text and voice messaging communication service developed by Tencent in China. It provides multimedia communication and supports social networking. Has 600M egistered users with 400M active users. Pengyou is a popular social network by Tencent. It is very similar to Tagged. It utilises real names with an emphasis on real friendships and allow users to register with any valid address. Has 300M registered users with 100 active users. 51.Com is a Chinese online social networking service provider which serves as a online game platform. Has 200M registered users. Kaixin001 a social networking website, which allows photo sharing, online messaging, music sharing and online gaming. Has 130M registered users RenRen is one of the earliest social network in China, which is very similar to Facebook. Has 172M registered users. Has 150M registered users Jiayuan an online dating website in China. It has 90m registered users. Douban a Chinese SNS website allowing registered users to record information and create content related to film, books, and music etc. It also owns an internet radio station. Has 200M registered users Source: ebizmba, Jan 2014 KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor Source: does Zuitech, CNNIC

11 Application of dcommerce From Internet to Mobile ecommerce Platform Internet Portals 11

12 Application of dcommerce Mobile ecommerce Platform Mobile Banking TPP Mobile Payment Mobile ecommerce Platforms 12

13 Application of dcommerce Marketing and Advertisement WeChat has integrated the mobile payment solution in its 5.0 version by leveraging its 400m domestic users which will reform the online and offline purchasing behaviour. Sharing with friends - WeChat allows users to share links, coupons with their friends, as well as share to other SNS. Lucky draws - Some accounts conduct lucky draw with prize to increase subscription to their accounts Promotions - Business can share their promotions through their WeChat account. QR Code - With the QR code, it brings promotion from offline to online Innovative Promotion - Property Developers utilise the video function to demonstrate 360 virtual tour of their flats Product Catalogue - Product catalogue can be found on WeChat accounts 13

14 Examples of dcommerce: Didi Taxi and Kuai Di promotion of mobile payments plus The application of a mobile application for taxi booking removing the need for a central call station: 2 of the most popular taxi booking system that helps eliminates the middleman ensuring better utilization using LBS and mobile app communication tool Accelerated with the recent promotion in early 2014 to encourage mobile payment namely Alipay and Wechat payment, AUTOMATIC POSITIONING To hail taxi OPTIMIZATION SETTINGS CONTACT YOUR TAXI 14

15 Examples of dcommerce Social Community linking to sales Quick facts Mushroom Street, the largest shopping ladies sharing community, along with millions of users discover the fashion, sharing shopping. Mogujie is a ladies online fashion community which provides a forum to share fashion ideas and promote products. Mogujie is recognised as one of the leading providers of these services in China. Here you can find the best online shopping users to share a single product and the most likely shop, watching the show with, learn skin care, fashion goods. You can also become the most talked about fashion online shopping of people enjoying the enthusiasm of fans to follow. Mogujie s website also links directly to e-commerce websites that sell goods and is available on social media, apps, and internet platforms. Consumers who become KOL 15

16 Examples of dcommerce Innovative use of customer base 1 st Generation 2 nd Generation Yuerbao Licaitong Aliloan Paipai Credit Zhongchou Web Bafaitong Wexin Red Packet Jindong 16

17 Winning : Requires mastering Data Analytics Building up an analytics department, leveraging efficient tools (GA) Measuring engagement (visits and transactions), establishing customer segmentations and 30/90/120 days ROI Detecting broken point & taking optimizing actions Improving navigation through regular updates & new functionalities 17 17

18 And market Insights on Consumer Wishes Retailers are relooking at their ecommerce strategies and payments is a big focus. Understanding what drives consumers will make a big difference to how retailers will develop their strategies. The ecosystem needs to be ready to adapt and cater for the changing priorities which retailers will have 1. Convenience will attract consumers 2. Become part of the daily routine 3. Collaborate with the rest of the ecosystem 4. Bridge the online-offline divide 5. Be socially aware provide P2P 6. Integrate with complimentary technologies 7. Be part of loyalty 8. Be aware of market changes 18

19 The Post 80/90s are more tech savvy and have different buying behaviours EMERGENCE OF THE DIGITAL MULTITASKER 19

20 China s Rise of the middle class Major shift in urban household income between 2010 and % 6% 82% Affluent (>34K per year) Middle class (16-34K per year) 6% 51% The future China domestic market will be driven by the emerging urban middle class Source: Winning the $30 trillion Decathlon: Going for Gold in Emerging Markets, McKinsey Global Institute 10% Lower class (6K-16K per year) Poor (<6K per year) 36% 7% Average disposable annual income for Chinese urban residents in 2012 was the equivalent of about $4,000, an increase of 9.6 percent after taking inflation into account. 20

21 Though smaller, Asia is also a potential AsPac Middle Class expected to grow most 21 21

22 The Chinese are travelling Total (Year 2008) Total (Year 2012) Incidence in past 1 year 1 time 2-3 times 4 times and more 22

23 Conclusion

24 China is one of the hotspots for dcommerce Innovations Innovation? OR Micro-Innovation? 24

25 The Future is Now 25

26 Have you got the model right? The China model: Willingness and ability to adapt the business model, sometimes significantly and be prepared to use new disruptive technologies The New Consumers: Have you really engaged with and listened to your consumers? Consumers are having a far greater influence on your products Speed to Market: Level of competition is intensifying so it is proving critical to engage early with your consumer base and gather the data! Supply Chain : it is becoming more demand driven and cost competitive VFM and customization 5 Product Innovation: Is this the most disruptive force? Are we ready for an automated end-to-end development process 26

27 2013 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.