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E-COMMERCE AND M-COMMERCE
Pedro Pinto
53% 69% 63%
SONAE INDÚSTRIA SONAE CAPITAL SONAE
CORE BUSINESSES CORE PARTNERSHIPS RELATED BUSINESSES
Telco
NOS Specialised
Retail
SONAE SR Retail
Properties
SONAE RP Investment
Management
SONAE IM Shopping Centres
SONAE SIERRA
100% 100% 100% 16% to 89.9% 50% 24.4% (*)
Food Retail
SONAE MC
EFANOR
Sonae…
67* COUNTRIES
International presence…
82 BRANDS
92,000 PRODUCTS
Sonae is a house of brands…
Sonae MC…
E-Commerce growing fast…
304,1
347,3
392,5
440,4
491,5
2014 2015 2016 2017 2018
U.S. E-Commerce Sales, 2014-2018 (in billions USD)
166,4
185,9
206,7
227,5
248,3
2013 2014 2015 2016 2017
WEurope E-Commerce Sales, 2013-2017 (in billions USD
Source: Internet Retailer
CAGR
+13% CAGR
+11%
E-Commerce growing fast…
6,3% 7,3%
8,5% 9,8%
10,6%
2011 2012 2013 2014 2015
E-commerce Share of Total U.S. Retail Sales 2011-2015 (%)
Online Channel Share, 2014-2018 (%)
Source: Internet Retailer; Forrester Research
6,3% 6,9%
7,3% 7,8% 8,2%
2014 2015 2016 2017 2018
Leveraging in the growth of digital…
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Internet Users Worlwide (2000-2016)
Investment in Advertising in USA in % (2014-2020)
2014 2015 2016 2017 2018 2019 2020
TV 39,1 37,7 36,8 35,8 34,8 33,7 32,9
Digital 28,3 32,6 35,8 38,4 40,8 43,1 44,9
Imprensa 17,4 15,4 13,9 12,9 12,2 11,6 11,1
Radio 8,4 7,8 7,4 7.0 6,7 6,4 6,1
Exterior 4,0 4,9 3,9 3,8 3,7 3,5 3,4
Outros 2,8 2,5 2,2 2,0 1,9 1,7 1,6
For the first time, in 2017, advertising investments in digital will surpasse the TV.
Impacting the retail structure…
3,5%
9,5% 7,2% 7,7%
1,8%
-2,8%
6,8%
-0,8%
4,7% 3,8% 2,7%
25,8%
Wal-Mart Costco The Kroger Schwarz Tesco Carrefour Aldi Metro The HomeDepot
Walgreens Target Amazon.com
Top 12 Retailers CAGR 2009 - 2014
Impacting the retail structure…
Ranking 2011 Banner Sales (USD
bn)
Ranking 2020
(forecast)
Banner Sales (USD
bn)
1 Walmart 483 Walmart 602
2 Carrefour 150 Amazon 211
3 Tesco 116 Walgreens Boots
Alliance 156
4 AEON 108 Costco 153
5 Metro Group 106 Carrefour 146
6 Seven & l 99 Kroger 140
7 Schwarz Group 98 Schwarz Group 135
8 Kroger 94 Seven & l
133
9 Costco 94 2015: 5º Amazon Aldi
115
10 Casino 86 Tesco
108
Impacting the retail structure…
May 2015
Still with differences between categories…
1% 2% 2% 2% 3% 3% 3%
6% 7%
11% 11% 12%
14% 14%
16% 27% 27%
32% 33%
37% 38%
48% 58%
Other
Jewelry/watches
Alcohol
Garden, tools & home improvement
Health products
Food & drink
Beauty & cosmetics
Sports equipment
Footwear
Household goods and furniture
Household appliances
Clothing
Car parts
Toys
Baby equipment
Consumer electronics
Books
Event tickets
Computer peripherals
Computer software and video games
Computers
Videos & DVDs
Music
Online Share by Category (Europe) (2015F) (%)
Source: Forrester Research
Adding more value…
Volume Share (%)
Value Share (%)
ONLINE MULTI CHANNEL PHYSICAL STORE
28%
39% More value in multi channel
shopper
Both online and offline…
ROPO
Source: Google
Going Mobile
11%
23% 32%
44%
51%
89%
77% 68%
56%
49%
2011 2012 2013 2014 Aug 2014
Mobile Non-Mobile
% Traffic for top Retailers
Source: Internet Retailer (Branding Brand Sept 2014)
Going Mobile
Source: Internet Retailer (Branding Brand Sept 2014)
56,67
88,53
123,13
151,11
178,27
208,58
242,08
19%
26%
32% 35% 37% 39% 41%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100 %
0
50
100
150
200
250
300
2014 2015 2016 2017 2018 2019 2020
M-Commerce Sales (billions) % Ecommerce Sales
U.S. Retail M-Commerce Sales, 2014-2020 (in billions USD)
M-commerce sales will represent 41% of e-commerce in
2020
Going Mobile
Revenue percentage from sales channel for survey US and UK retailers
2011 % 2015 (E) % 2017 (E) %
Brick & Mortar Stores 89,5 81,3 76,5
E-Commerce 6,9 12,1 14,6
Mail Order 0,5 0,4 0,3
Call Center 1,2 0,7 0,7
M-Commerce 1,0 4,1 6,5 Social Commerce 0,2 0,7 0,8
Other Channels 0,7 0,7 0,7
+21%
-6%
+59%
Source: Gartner;
E-Commerce in Portugal?
2012 2013 2014 2015F 2016F 2017F 2018F
Portugal Online Retail Sales 2013-2018 (in millions EUR)
Source: Forrester Research;
CAGR
+15%
53
81 79 78 73 71 71 71
65
42
31
EU-2
8
Un
ite
d K
ingd
om
De
nm
ark
Luxe
nb
ou
rg
Ge
rma
ny
Ne
the
rla
nd
s
Fin
lan
d
Swe
de
n
Fran
ce (…)
Spai
n
(…)
Po
rtu
gal
(…)
Proportion of individuals who purchase online within the last 12 months (%)
E-Commerce in Portugal?
Source: Forrester Reserach
0,2%
0,5%
0,8%
0,5%
1,2%
0,2%
0,4%
1,7%
6,7%
5,8%
1,4%
1,9%
2,5%
2,7%
5,6%
14,8%
32,5%
21,2%
21,4%
11,0%
12,9%
19,9%
31,5%
1,6%
2,2%
4,1%
4,4%
5,1%
9,8%
10,3%
13,0%
15,9%
16,3%
16,5%
17,5%
20,9%
20,9%
25,8%
31,5%
35,9%
36,9%
40,2%
41,0%
44,7%
59,8%
63,7%
Other
Jewelry/watches
Alcohol
Garden, tools & home improvement
Beauty & cosmetics
Health products
Food & drink
Sports equipment
Car parts
Toys
Footwear
Household appliances
Clothing
Household goods and furniture
Baby equipment
Consumer electronics
Computer software and video games
Computer peripherals
Computers
Event tickets
Books
Videos & DVDs
Music
UK PT
Online Share by Category (PT vs UK) (2015F) (%)
Still oportunities to grow in multiple
categories.
E-Commerce in Portugal?
2011 2012 2013 2014 2015
Mobile Internet Retailing 2010-2015 (in millions EUR)
Source: Euromonitor
CAGR
+62%
E-Commerce in Sonae MC…
15 years +30 k SKUs Marketplace (Wells Store – health and beauty) Product information Theme Pages Search based Shopping Lists Online leaflets and catalogues
E-Commerce in Sonae MC…
What do we provide to our
clients?
What does the new customer
want?
The new customer…
Urban
By 2050, 66% of world population will be urban
Older
The proportion of persons aged 60 or
over will double between 2017 and 2050
Lonier
Household sizes and birth rates
decreasing
Time Constrain
Connected
By 2018 half of the world population will
use a smartphone
Source: Planet Retail
Time
Constrained Connected
E-Commerce in Continente
Convenience to order with “The EntregaZero”
Delivery pass to remove the
delivery fee barrier and to promote
frequency…
PVP = 26,90 € 4 Months of free deliveries (orders > 25 €) In all marketplace continente.pt
Convenience to order with “The EntregaZero”
…and with exclusive
benefits and promotions.
Convenience in delivery…
Despite the 2 hour slot to schedule a
delivery, the customer receives an SMS with the 30 min
period where the delivery will occur.
Convenience through personalisation …
Information of personal discount coupons available
at login and the ability to select
them at checkout.
AnyTime, AnyWhere with “Click&Go”
Click & Collect inside the store or drive thru.
AnyTime, AnyWhere with “Click&Go”
Click & Collect
anywhere with collection points where they are
more convenient:
• Petrol stations • Railway Stations • Corporate Parks
M-Commerce APP
M-Commerce APP
Steadily increasing penetration since launch.
APP Listas
APP that allows the customer to add products to online cart by reading the bar codes in the packages.
APP Listas
APP Cartão Continente
In store experience…
Without constrains…
ATAWAD in a seamless way…
Customer journeys are getting more complex…
Finds the product.
Goes to the phisycal store to try the
product.
Picks Up the produt in the store.
Not happy with the product he returns it in
the store.
Goes to website to know more.
Goes to the brick&mortar to
try.
Buys in the m-commerce APP
and chooses click & collect.
Picks Up in store.
Calls for advice.
Returns it in the store.
A possible customer journey…and usually not that linear…
And its happening now…
Multi-Channel experiences are a
reality…
Source: Google
SINGLE CHANNEL
MULTI CHANNEL
OMNICHANNEL
One single touch point with the customer.
Customer sees multiple touch points but they
act independently.
Customer has a seamless experience in all touch points experiencing then as a unique
brand experience. The touch point is the brand not the channel.
HOW?
• LEVERAGING ON MOBILE
• BLUR THE BORDERS BETWEEN CHANNELS
• KNOWING THE CUSTOMER
New paradigms of convenience emerge….
New paradigms of convenience emerge…
New changes in the business…
Amazon opening a brick and mortar store.
Alternative business models.
Unexpected players joining the market
Wrapping Up…
• E-Commerce is growing rapidly and will
continue to grow. • The growth of E-Commerce is changing
the structure of retail. • M-Commerce also growing and
becoming an important part of the digital business.
• Portugal: online sales also growing as global retail sales growth slows down but still oportunities to grow in multiple categories.
• Omnichannel experiences change the customer journey.
• Customers looking for convenience in multiple dimensions: ...to order ...to pick up ...to use ...because its tailored for me and its available anytime, anywhere and in any device with a seamless brand experience (channel and device agnostic) !
