The Future of E- commerce. Done By: Kenny Ong

Transcription

1 The Future of E- commerce 1 Done By: Kenny Ong

2 Agenda: 1. Introduction 2. Industry Analysis 3. Forecasts 4. Implications 5. Emerging Tech 6. Conclusion 2

3 Introduction 3

4 Value Chain Analysis - Disintermediation Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 4

5 Definitions Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 5

6 Industry Analysis Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 6

7 Market Size Source: Euromonitor Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 7

8 Competitive Forces the Shape Industry Threat of Potential Entrants High Low capital needed. Cost of exiting the industry is also low for smaller players. Bargaining Power of Suppliers Low Directly to commodity manufacturers. Rivalry among Competing Firms Moderate Many firms fighting for the pie with some obvious winners. Bargaining Power of Buyers Moderate Customer centric service Customer able to switch to other services at little, or no, costs. Threat of Substitute Products Low E-retailing provides consumers with major necessities from retail. Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 8

9 Competitive Forces the Shape Industry Threat of Potential Entrants Bargaining Power of Suppliers Low Directly to commodity manufacturers. High Low capital needed. Cost of exiting the industry is also low for smaller players. Moderate Market Attractiveness Rivalry among Competing Firms High Many firms fighting for the pie with some obvious winners. Moderate Profitability Bargaining Power of Buyers High Customer centric service Customer able to switch to other services at little, or no, costs. Threat of Substitute Products Low E-retailing provides consumers with major necessities from retail. Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 9

10 Industry Life Cycle Source: Emerald Insight Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 10

11 E-Commerce Sales (US Mn) Historical Growth ( ) 700,000 CAGR: 17% 600, , , , ,000 CAGR: 13% World USA Western Europe Japan China Indonesia Singapore 100,000 CAGR: 122% Souce: Euromonitor Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 11

12 Historical Growth ( ) 700,000.0 CAGR: 17% 600, ,000.0 World 400,000.0 USA 300,000.0 Where are we heading to? CAGR: 13% Western Europe Japan China Indonesia Singapore 200, ,000.0 CAGR: 122% Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 12

13 Forecasts Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 13

14 Is the how you want to shop? Soruce: The Columbian Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 14

15 Or would you rather shop from home? Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 15

16 Many companies in the US are announcing cuts More than 1000 stores closed Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 16

17 Where do they shop at now? Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 17

18 Online Growth far outstrips Offline Growth 16,000,000 30% 14,000,000 25% Total Retail Sales US$ mn 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 20% 15% 10% 5% World (Offline) 10,900, ,059, ,513, ,062, ,650, ,277,934.3 World (Online) 281, , , , , ,231.0 World Growth (Offline) 1% 4% 5% 5% 5% World Growth (Online) 7% 21% 26% 19% 17% 0% Source: Euromonitor Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 18

19 Number of Internet Users 000 Growth Rates % Broadband Usage 4,000,000 18% 3,500,000 16% 3,000,000 14% 2,500,000 12% 2,000,000 1,500,000 10% 8% 6% World World Growth 1,000,000 4% 500,000 2% % Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 19

20 Smartphone and Mobile Internet Penetration Source: emarketer Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 20

21 Time Spent on Internet Source: Wearesocial Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 21

22 Global Adspend Source: Nielsen Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 22

23 New technologies to make shopping more convenient Source: Deloitte Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 23

24 New technologies to make shopping more convenient Integration with various social media and touchpoints Source: Financial Times Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 24

25 New technologies to make shopping more convenient Augmented reality and virtual fitting rooms Source: H&M Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 25

26 New technologies to make shopping more convenient 2 day shipping? How about 30 minutes with drones? Source: Amazon Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 26

27 Retail Sales US$ mn E-commerce Industry Forecast 25,000,000 20% 18% 20,000,000 16% 14% 15,000,000 12% 10% 10,000,000 8% 6% 5,000,000 4% 2% World (Offline) 13,277, ,030, ,904, ,881, ,950, ,129,175.3 World (Online) 638, , , ,035, ,187, ,346,180.9 World Growth (Offline) 5% 6% 6% 7% 7% 7% World Growth (Online) 17% 19% 17% 16% 15% 13% 0% Source: Euromonitor Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 27

28 Implications Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 28

29 Logistics and Delivery Services Source: JONES LANG LASALLE IP Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 29

30 E-commerce Software Platforms Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 30

31 Advertising and Digital Marketing Source: Singpost Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 31

32 Payment Services Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 32

33 Emerging Technology Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 33

34 Other Emerging Commerce M-Commerce Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 34

35 Other Emerging Commerce T-Commerce Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 35

36 Other Emerging Commerce Source: Google Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 36

37 Conclusion Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 37

38 Conclusion (Bringing back to Singapore) S$ Mn CAGR Beauty and Personal Care % Apparel and Footwear % Consumer Electronics % Consumer Healthcare % Consumer Applicances % House Care 1 1 6% Home Improvement and Gardening Housewares and Home Furnishings % % Media Products % Food and Drink % Traditional Toys and Games % Other Internet Retailing % Internet Retailing % Some Trends Pure internet retailers performed better than bricks and clicks. In addition, new dominant players such as Zalora Singapore and Qoo10 Singapore are also pure internet retailers. Local retailers trying to innovate. Eg Noel and local supermarkets NTUC FairPrice and Cold Storage have e- commerce platforms, with Sheng Siong coming up soon. Dominant segments are Apparels and Beauty Care with Furnishing being the obvious laggard. However, IKEA launch an augmented reality platform to help make sales. More active use of Social Media such as Instagram to help improve brand awareness of smaller players. Source: Euromonitor Introduction Industry Analysis Forecasts Implications Emerging Tech Conclusion 38