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E-commerce in the 21st century Trend special 2014
Centre for the Promotion of Imports from developing countries
20 November 2014
Centre for the Promotion of Imports from developing countries
Table of contents
• What is E-commerce – p.2
• The E-commerce market – p.6
• The M-commerce/S-commerce
tsunami – p.12
• And what does the customer
want? – p.17
20 November 2014
1
Centre for the Promotion of Imports from developing countries
What is E-commerce?
2 20 November 2014
Centre for the Promotion of Imports from developing countries
Types of commerce
• B2B: transactions between
businesses
• B2C: transactions between
businesses and consumers
• C2C: transactions between
consumers
• C2B: transactions between
consumers and businesses
Commerce conducted in a physical space (shop) is called bricks and mortar.
3 20 November 2014
What is E-commerce?
Centre for the Promotion of Imports from developing countries 4
E-commerce was first conducted
using PCs and laptops, but now
includes:
• M-Commerce/Mobile
Commerce: using smart
phones and tablets
• S-Commerce/Social
Commerce: using social media
Commerce conducted via electronic means is called E-commerce.
20 November 2014
A brief history
Centre for the Promotion of Imports from developing countries
1st online shopping system
1st B2B online
shopping system
1st B2C online
shopping system
Amazon.com launched,
first internet radio
stations, eBay
founded
1984 1979
1981 1995
IndiaMART B2B
marketplace established
in India
Alibaba Group
established
Mobile commerce
services first launched: First mobile phone-based
banking service
launched
1997
1996 1999
DHgate.com: China's first online B2B transaction platform, is established
2004
The dot-com bust
2000
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Centre for the Promotion of Imports from developing countries
The E-commerce market
6 20 November 2014
Centre for the Promotion of Imports from developing countries
B2C E-commerce: Global sales
• 1979: Michael Aldrich connected his computer via a telephone line to his local supermarket. Now he could shop from the convenience of their home instead of physically going to the shop.
• Convenience remains one of the main drivers of B2C
E-commerce.
• Growth of B2C via the internet between 2012 and 2017 is expected to be 123%!
7
823
942
1.096
1.290
1.496
1.717
22,3 18,3 20,2 17,7 15,9 14,8 0
20
40
60
80
100
120
140
160
600
800
1.000
1.200
1.400
1.600
1.800
2012 2013 2014 2015 2016 2017
Table 1: B2C E-commerce Sales Worldwide 2012-2017, in € trillions and annual growth
Source: eMarketer, 2014
20 November 2014
Centre for the Promotion of Imports from developing countries
B2C E-commerce: Global sales
• Sales in the Asia Pacific,
North American and
Western European
regions are growing
rapidly.
• Exploding growth in
global B2C E-commerce
sales offers developing
country manufacturers
and exporters a golden
opportunity to directly
target their niche and
connect to the world’s
markets.
8
0
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016 2017
Asia Pacific
North America
Western
Europe
Central &
Eastern Europe
Latin America
Middle East &
Africa
Source: eMarketer, 2014
Table 2: B2C E-commerce sales per region 2012-2017, in € billions
20 November 2014
B2B E-commerce
• Approximately 80% of all E-commerce sales are B2B, 20% are B2C.
This would indicate that the total European B2B E-commerce market
will amount to approximately € 1 trillion in 2014.
• B2B transactions cover the entire supply chain from raw materials
through distribution, whereas there is only one type of B2C
transaction, that of selling the finished product to the end customer.
Centre for the Promotion of Imports from developing countries 9 20 November 2014
Interested in entering the E-commerce market?
Centre for the Promotion of Imports from developing countries
• Staff that are able to operate
and maintain a website and the
necessary communication tools
• A fast and reliable internet
connection
• A well designed and user
friendly website
• A secure payment system
• Excellent quality control
• Adequate stock levels to offer
immediate delivery
• Efficient logistics, efficient
systems for
– Delivery and distribution
– Tracking and monitoring
– Goods returns
• Quick and clear communication
with the client
• And a top notch product!
You require the following:
10 20 November 2014
Considerations for action
Which type of E-commerce suits your company?
Centre for the Promotion of Imports from developing countries
Choose B2B if:
• You are looking for a long term
relationship
• The Return on Investment can
wait
• You can deliver larger quantities
at lower margins
• You already have a solid portfolio
of importers/wholesalers
Choose B2C if you
• Have excellent brand
recognition
• Are looking for a quick return
on investment
• Require high margins
• Have a ‘niche’ product with a
high unit price
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Centre for the Promotion of Imports from developing countries
The rise of M-commerce & S-commerce
12 20 November 2014
The rise of M-commerce
Centre for the Promotion of Imports from developing countries
• 30 – 45% of all visits to retail sites in the UK in 2013 were made via mobile phones
• UK government forecasts that the typical M-commerce shopper in the UK will spend €1,106 per annum by 2017, an increase of 243% compared with 2012.
• Goldman Sachs estimates that global M-commerce will constitute nearly half of all e-commerce by 2018.
E-tailing is going mobile
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Centre for the Promotion of Imports from developing countries
S-commerce flooding social media
Social media is becoming
increasingly important in
E-commerce. It allows
entrepreneurs:
• To share their products and
story visually, i.e. photos and
videos.
• To create a fan base for their
products that they can share
with their online friends and
business partners.
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Centre for the Promotion of Imports from developing countries 15
The internet is not enough - combination of bricks & mortar and E-commerce
• Clicks & mortar / Click & collect:
online ordering, but collecting
the purchase from a physical
shop
• Showrooming: consumers using
phones to compare and buy
products online while in a
physical shop
• Reverse showrooming
(webrooming): consumers
researching on line and buying at
a physical shop
‘bricks & clicks’
20 November 2014
Consideration for action
Online
Centre for the Promotion of Imports from developing countries
• Shop/showroom
• Trade fairs
• Brochures/mailings
• Catalogues
• (Pop up) events
• Internet site
• M-commerce
• S-commerce
Offline
Implement multi-channel marketing by combining
16 20 November 2014
Centre for the Promotion of Imports from developing countries
And what does the B2B and B2C customer want?
• To select and purchase
merchandise at the moment
he/she chooses – 24/7 –
choosing any tool available to
him/her
• To have the purchase delivered
to his/her door as soon as
possible
• The best possible price
• The widest possible choice
17 20 November 2014
Centre for the Promotion of Imports from developing countries 18
This survey was compiled for CBI by ProFound – Advisers In Development
in collaboration with
CBI sector experts Kees Bronk & Steve Pepper
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
20 November 2014
