Brian McBride Managing Director, Amazon.co.uk

Transcription

1 Brian McBride Managing Director, Amazon.co.uk

2 90% Must have broadband within a month 41m People are online in the UK 17p In every pound is spent online 80% Internet users compare prices and options 1 in 3 Consumers post a comment online in a typical week 15 hours Of videos uploaded to YouTube every minute 2

3 Where will future growth come from? Forecast UK Retail sales growth Non-store Store based 22bn +132% 51bn 276bn 259bn +7% Source: Verdict Research - Retail Futures 3

4 Online to drive UK retail growth Catalogue Online Forecast UK non-store Retail sales growth -40% 4.2bn 5.9bn 14.7bn +67% 44.5bn Source: Verdict Research - Retail Futures 4

5 Grocery to be the largest online category Spend : M Books Homewares Music & Video Clothing & Footwear Electricals Food & Grocery Value of online retail spending expected to more than double from Source: Verdict Research, UK e-retail

6 Where are consumers spending their time? Media Consumption (% hours/week, 2008, UK) Internet Consumption 38% watching television 43% content 26% communications 30% surfing internet 16% commerce 22% 10% listening to radio Reading newspapers & magazines 10% 5% community search Sources: Fleishman-Hillard International Communications and Harrris Interactive 2008; OPA and Nielsen Online December

7 Our Strategy Biggest Selection Build a place where people can find and discover anything they want to buy online We strive to be earth s most Customer-Centric Company Start with the customer and work backwards Endeavor to offer customers the lowest possible price

8 What is Amazon? Retail Business 110m+ active customer accounts Seven countries: US, UK, Germany, Japan, France, Canada, China Seller Business Sell on Amazon websites Use Amazon technology for your own retail website Leverage Amazon s 12 million square foot fulfillment center network Developer Business Over 490,000 software developers registered to use Amazon Web Services Web-Scale services including Amazon S3, Amazon EC2, Amazon SQS, and Amazon Cloudfront 8

9 Our Business Technology Amazon Web Services Amazon Services ecommerce Platform Retail Media Softlines / Hardlines Consumables Digital Operations World-Class Fulfillment & Customer Services Centers Order Processing & Fulfillment Services Corporate Business Development Finance Human Resources Legal

10 Our Customers Over 118MM Active Customer Accounts, up 25% Y/Y (as of Q210) Hundreds of Thousands of Active AWS Customers Approximately 2.0MM Active Seller Accounts, Up 19% Y/Y (as of Q210)

11 Global Selection US UK Germany France Japan China Canada Italy Physical Media '95 '98 '98 '00 '00 '04 '02 '10 Electronics '99 '01 '01 '05 '03 '04 '08 10 Toys '99 '01 '04 '07 '04 '04 Baby '99 '07 '07 '07 '07 '06 Tools & Hardware '99 '04 '04 '09 Home & Garden '00 '04 '04 '07 '03 '09 10 Apparel & Accessories '02 '08 '08 '10 '07 '10 Sports & Outdoors '03 '07 '06 '10 '05 '06 '10 Jewelry & Watches '03 '07 '07 '07 '07 '06 '10 10 Health & Personal Care '03 '08 '07 '09 '06 '06 Beauty '04 '08 '08 '09 '08 '06 Shoes '05 '07 '07 '09 '07 '09 Dry Goods '06 '10 '10 08 '10 Auto Parts & Accessories '06 '09 '08 '09 '09 Digital Media '07 '08 '09 '09 10 Office Supplies '08 '09 '09 '09 '09 '10 Musical Instruments '08 '10 '10 '10 '10 Pet Supplies 04 '10 '10 '10 Computers '10 '10 '10 '10 Fabric '08 Motorcycle & ATV Parts 08

12 Net Sales TTM MM $34,204 $24,509 $10, Up 40% Y/Y, Up 40% Excluding Effect of F/X 12

13 Selling on Amazon Over 1.7MM Active Sellers, Up 21% Y/Y 13

14 Fulfilment By Amazon (FBA) Available in US, UK, DE, JP & FR 14

15 Amazon Enterprise Solutions 15

16 Amazon Enterprise Solutions 16

17 WebsStore By Amazon 17

18 Capital Efficiency -- Centralized Distribution Physical Store Amazon.com Headquarters Fulfillment Centers Stores Lower Invested Capital = Higher Return 18

19 Interbrand Top 100 Global Brands Coca Cola 2. IBM 3. Microsoft 10. HP 20. Honda 30. Budweiser 34. Sony 35. Kellogg s 36. Amazon (up 7 places from 2009) 37. Goldman Sachs 38. Nintendo 40. Citi 50. Ford 60. KFC 70. Caterpillar 80. Credit Suisse 90. 3M 100. Burberry 19

20 What do customers value? Ranked by absolute importance 1. Selection "If you don't have it, they can't buy it 2. Price "Customers really, really care 3. Availability "A big difference between getting it now, A week from now, and six weeks from now 4. Convenience "People lead busy lives 5. Information "People won't buy it if they don't know what it is and how it compares 6. Discovery "Find something you didn't know you wanted 20

21 Search Engine Optimisation Up to 50 % of all internet traffic goes through a search engine, Google command 70% of the UK Search Market Top 3 in a Google search is key Google apply over 150 tests to each page to determine where it comes in the results Biggest investment and greater knowledge on this subject than any other retailer in the world 21

22 Search Optimisation Here > < Here Here > Here > It makes us difficult to miss! 22

23 Amazon Associates One of the largest online affiliate programs, with >900,000 members worldwide Associates drive traffic to Amazon through formatted links that allow us to track sales and other activity Associates earn fees of 4-10% on all downstream sales made to customers referred from their site We provide pieces of code that make it easy for Associates to create links to: specific products, or recommended products that automatically update subject to defined criteria or related page content Links to Amazon product page 23

24 Innovation - Kindle 24

25 Innovation MP3 25

26 Innovation Video On Demand (VOD) 26

27 Innovation Amazon App 27

28 Innovation Amazon App 28

29 29

30 Defect Reduction contacts per unit 28,000,000 customer contacts WW CPU 37,000,000 customer contacts 400,000,000 customer contacts 30

31 Retail Category Leaders Vendor Managers Product Managers Corporate Functions Legal Finance HR Technology AWS ecommerce Operations Opportunities with Amazon

32 Why Work at Amazon People - High-energy, driven, passionate, analytical Culture - Non-traditional, no dress code, bring your dog to work (Work Hard. Have Fun. Make History.) Ownership - Own and drive projects / businesses from day one Personal Growth Develop your knowledge / leadership toolkit through new functions and experiences Professional Growth - Flat organizational structure with flexibility to move around the company and progress quickly Results-oriented Rewards those who take risk and drive results

33 Opportunities: Retail MBA Rotation Program 3-year Retail MBA Rotational Program spanning at least two functional areas. Own and drive solutions to complex problems in one of our dozens of physical and digital categories Functional areas include: Vendor Management: own strategic relationships with key vendors including negotiations and merchandising Instock Manager : improve customer experience through developing supply chain/inventory mgmt initiatives Site Merchandising : invent and implement programs to drive customer acquisition and traffic 3 rd Party Merchant Manager : manage 3 rd party business driving enhanced technology and services for sellers Product Manager : define and launch new products and features in partnership with technical teams