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The MULTI CHANNEL REALITY IN ASIA
A Phenomenal Success
From US$ 10MN to US$ 1 Billion in under 5 Years
Buys Myntra, the largest fashion e-commerce store
Cash on delivery fundamental to success
And anytime, anywhere
Online retailing gaining critical mass
• Asia will lead the world in B2C e-commerce sales, accounting for 41% share of
business by 2016
• China’s B2C e-commerce transactions grew by 73% in first quarter of 2012,
BCG estimates that by 2015 e-commerce sales will account for 8% of total
sales
• Traditional retailers have joined the e-commerce bandwagon
China’s largest domestic appliance retailer, Suning derived 5% of its total sales from its e-commerce
venture in 2012
• Fast growing smart phone penetration has made M-commerce viable and
already 20% of all e-commerce transactions in Japan are done via mobile
Growth rates in ASIA double global numbers
Source: The Economist Intelligence Unit.
Chart 3: CAGR in retail sales, 2013-18 (%)
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India
Indo
nesia
Chin
a
Viet
nam
Malay
sia
Pakistan
Sing
apor
e
Philipp
ines
Thailand
Sri L
anka
Wor
ld
Sout
h Ko
rea
Hong Ko
ng
Taiw
an
Austra
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Japa
n
The Shape of Things to Come
Online efforts of traditional retailers are loosing
ground in APAC
Driving the growth
Growth of Middle Class
Mobile & Social, Growth & engagement
Analytics & Retargetting
Leapfrogging the 3rd & 4th tier markets
The China Factor
54% of global middle class will be in APAC in 2020
Chart 1: Size of the global middle class*(millions of people)
Source: World Bank.
*Households wi th daily expenditure between US$10 and US$100, measured using PPP.
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1,000
1,500
2,000
2,500
3,000
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4,500
5,000
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500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Middle East & North AfricaCentral & South AmericaNorth AmericaEuropeAsia Pacific
203020202009
42% of global middle class spending will be in APAC in 2020
wearesocial.sg • @wearesocialsg • 10 We Are Social
NUMBER OF ACTIVE MOBILE
BROADBAND SUBSCRIPTIONS
MOBILE BROADBAND SUBSCRIPTIONS AS A
PERCENTAGE OF THE TOTAL POPULATION
ACTIVE SOCIAL MEDIA USERS ACCESSING
SOCIAL MEDIA ON A MOBILE DEVICE
PENETRATION OF MOBILE SOCIAL AS A
PERCENTAGE OF THE TOTAL POPULATION
JAN 2014
• Sources: US Census Bureau, ITU, Facebook
# #
APAC MOBILE INDICATORS
645M 16.6% 943M 24.3%
• Sources: US Census Bureau, Tencent, Facebook, ITU
Explosion of Mobile (China, India & SE Asia )
Not just ownership, usage too
APAC save for South Asia has caught up with population
wearesocial.sg • @wearesocialsg • 6 We Are Social
SHARE OF GLOBAL USERS JAN 2014
• Sources: US Census Bureau, InternetWorldStats, CNNIC, IAMAI, Tencent, Facebook, Vkontakte, ITU, CIA
NORTH AMERICA
5% 11%
11% 5%
CENTRAL AMERICA
3% 4%
3% 3%
SOUTH AMERICA
6% 10%
7% 8%
WESTERN EUROPE
6% 10%
12% 8%
CENTRAL & EASTERN EUROPE
5% 6%
7% 7%
CENTRAL ASIA
2% 1%
1% 2%
EAST ASIA
22% 37%
29% 22%
SOUTH ASIA
23% 6%
11% 18%
MIDDLE EAST
4% 4%
4% 5%
AFRICA
16% 4%
8% 11% OCEANIA
1% 1%
1% 1%
POPULATION
SOCIAL MEDIA USERS
INTERNET USERS
MOBILE SUBSCRIPTIONS
SOUTHEAST ASIA
9% 9%
7% 10%
wearesocial.sg • @wearesocialsg • 37 We Are Social
SOCIAL PENETRATION BY DEVICE JAN 2014
• Sources: US Census Bureau, Facebook, Tencent
ACTIVE SOCIAL MEDIA USERS ACCESSING SOCIAL MEDIA ON
ANY DEVICE AS A PERCENTAGE OF THE TOTAL POPULATION
ACTIVE SOCIAL MEDIA USERS ACCESSING SOCIAL MEDIA ON
MOBILE AS A PERCENTAGE OF THE TOTAL POPULATION
25.0% 24.3%
ACTIVE MOBILE SOCIAL MEDIA USERS AS A PERCENTAGE OF
TOTAL ACTIVE SOCIAL MEDIA USERS
97.3%
Q Q
Mobile Social Will be the biggest driver
Ad Spends have followed the screen time trends – will soon be in line with big markets in terms of digital & mobile spending
Concurrent Multi screen usage in all markets opens up
engagement opportunities for retailers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%China
Malaysia
South Korea
India
Thailand
Indonesia
PhilippinesSingapore
Vietnam
Hong Kong
Taiwan
Australia
Japan
Mobile phone
Laptop PC
Desktop PC
Tablet
Source GWI 2014 : Amongst internet users
Devices used while
watching TV
HomePlus Korea taps into Mobile
Websites and online reviews have overtaken as first source of brand discovery
Source GWI 2014 : Amongst internet users
In which of the following ways are you most likely to find out about new brands
APAC leads the world in Researching and purchasing products online
Apparel and food are the most often purchase products
online. Half of Chinese consumers buy clothes online
Source GWI 2014 : Amongst internet users
Products researched online
Beyond financial rewards, Asian consumers also want
greater interaction and two way interaction from retailers
Source GWI 2014 : Amongst internet users
Consumer expectations from retailers
The Chinese Reality
“By 2015, e-commerce transactions in China
are projected to hit US$540 billion, or 7.5 per
cent of total retail transactions, and by 2020,
China’s e-commerce market is forecasted to
be larger than those of the US, Britain, Japan,
Germany, and France combined.”
Fast facts on e-commerce in china
• China is already the world’s largest e-commerce market and will
account for ~ half of all e-commerce growth in next 4 years
• Alibaba’s Taobao is the largest ecommerce company in the world,
more than twice the size of Amazon and eBay combined, with a
catalogue of 800 million products, and US$160 bn dollars in
revenue in 2012. o 2013 Singles’ Day (November 11th) saw US$5.7 billion spent in one day on
Taobao and Tmall
o With Xiaomi alone selling US$100 million worth of phones via Weixin promotion
• Alibaba’s payment system, Alipay, accounts for 50% of all e-
payments and is soon to reach a run-rate of a trillion dollars a
year (PayPal is US$180 billion).
China leads the way
Internet propelling the growth
Leapfrogging the urban-rural divide
3rd tier & 4th tier cities are not far off
82% of shoppers drive the largest segment
How Tencent Uses WeChat to Target Alibaba
By Doug Young (appeared in Forbes)
Alibaba founder Jack Ma’s worries about the rapid rise of mobile
instant messaging service WeChat appear to be well founded, with
word that Tencent’s wildly popular platform will create an exclusive
shopping channel for Alibaba’s chief rival JD.com. This kind of deal
must certainly be Ma’s biggest nightmare, as it will instantly link JD,
China’s second largest e-commerce company, with the hundreds of
millions of young Chinese who regularly use WeChat to
communicate. What’s more, WeChat has shown itself quite capable
of converting its users into shoppers who could easily become JD
customers.
THANK YOU
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