accelerating your growth in e-commerce by hadi wenas, ceo acommerce indonesia

Singapore | Thailand | Indonesia | Philippines

aCommerce IndonesiaAccelerating your growth in e-commerce

Presentation | October 2014

Singapore | Thailand | Indonesia | Philippines 1

Contents1

Opportunity in Indonesia

About us

What it means to TSCL players

Call to actions


Everyone heard about the recent record breaking e-commerce funding / valuation news in global and in Indonesia

2


In the next 5 years, online shop in Indonesia will grow at least 10x from 3% to 30%

3

SOURCE: McKinsey Consumer Insights Indonesia 2013

1 Question asked to the 29% of the population that cited using internet via PC/laptop in past 12 mos.


Source:: UBS Research, Nielsen, Comscore, PWC HK, ATKearny, researchandmarkets.com, Dailysocial, smu.edu.sg, E-commerce.org.sg

Unit ID SG PH TH China US

Population M 248 5.2 95 67.5 1350 315

# Online M 75 3.9 33 32 513 246

% Online % 30% 74% 34% 46% 38% 79%

Retail Sales USD B 134 31 34 139 2,380 4,700

B2C E-commerce Market USD B 0.9 1.1 0.4 1.1 190 343

E-commerce % of Retail % 0.7% 3.5% 1.1% 0.6% 8% 9%

10XIDR 10

Trillion

IDR 100

Trillion

Indonesian Market in

4 – 5 years

4

In the next 5 years, online shop transactions in Indonesia is expected to grow 5-10x


The growth of Tier 2+ cities started to outpace growth of Tier 1 cities

5

Customers by location (%)

Customers by gender (%) Customers by age group (%)

SOURCE: Internal Data and Analysis of Top Online Retailers Fashion category in Indonesia 2013

Male 43

Female57

16-20

21%11%

21-25

21%

>3631-3526-30

19%27%

2%

<15

Jakarta % shrinks from 41% to 22% in 6 months

Most sales now already come from outside BIG cities

Sumatra Kalimantan Others

370% 300%

Jakarta Java excl. Jakarta

70+% 370%


B2C growth will outpace C2C growth

92%

86%

77%

70%

66%

62%

59%

8%

14%

23%

30%

34%

38%

41%

0% 20% 40% 60% 80% 100%

2009

2010

2011

2012

2013e

2014e

2015e

B2C C2C

China online shopping market B2C vs C2C % forecast

6SOURCE: iResearch 2012, Veritrans


Contents7


About us


Call to actions


8

Our VisionPowering Ecommerces in Southeast Asia

aCommerce means commerce anytime,

anywhere, anything

Our MissionBuild Ecommerce technologies and

services that help companies build brand

value, acquire customers, drive sales, and

scale their business

Our Vision and Mission


In Indonesia, 50+ B2Cs are working with us9

Retailers / Marketplaces Brands


We have presence across multiple SEA countries and are supporting Clients enter / grow regionally

10

Thailand

Singapore Indonesia

Philippines

• 3,100 sqm expandable to 20,000 sqm

• Accessible from Jakarta: 5 mins from inner toll road, outer ring toll road, 1 near airport, another near harbor

• 100+ staffs

• 3600 sqm• 10 mins from downtown

Bangkok• 130+ staffs

• 200 sqm• 15+ staffs

• 500 sqm• 10+ staffs

Malaysia, Vietnam

Coming soon

11.7M USD in funding from NTT Docomo, Sumitomo Ventures, CyberAgent Ventures, Inspire Ventures, Sinar Mas, AsiaPacificDigital, Ideosource, and Ardent Capital


aCommerce provides B-to-Z services to e-commerces: everything except Sourcing

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• Online ≠ Offline• Very technical• Require very

specific skill

• Online ≠ Offline• Warehouse setup

is different• System setup is

different

• Online ≈ Offline• You cannot

outsource• You know your

product best

Singapore | Thailand | Indonesia | PhilippinesSingapore | Thailand | Indonesia | Philippines

12

Brand Site

(Maybelline.co.th)

Marketplaces

(Qoo10.sg Official L'Oreal

Store and LINE Flash Sales)Popshop Storefront

(Maybelline FB page, Vichy Site)

Technology development for multi devices multi channels


• When Brand1 wants to go

online (e-commerce), using

aCommerce SIMC platform:

– Brand1 put Item-A to be

sold online

– Brand1 has multi "store"

fronts: Brand1.com,

Elevenia.co.id, etc.

– Brand1 puts inventory

Item-A = 500 shared

across multiple channels

and aCommerce SIMC

automatically update

inventory

• In Tokopedia’s system: (TBC)

– aCommerce is a merchant

– Brand1 is a store within

aCommerce

BrandX.comBrandX.comBrandX.com TokopediaMarketplace

X

Marketplace

Y

Brand1 Brand2 Brand3

Single Inventory Multi Channel platform 13


Example of "Simple" Website: lolalo.la

14


Example of "Powerful" Website: erafone.com (coming soon)

15


Driving customers to online and offline16

Traffic is critical for any retail business. We harness the power of the

internet to drive consumers to your online and offline store.

EmailDisplay

Ads

PriceComparison Sites

Affiliate Marketing

Social Media

Paid Search

Organic Search Download coupon > Pay at

store

Buy online > Pick-up at

store

Buy online > Deliver to

Home

Traffic


Real-time marketing and business dashboard 17

Summary: Users, Order Status, and Revenue Product Sold: Type, Quantity, and Revenue

Marketing: Campaign, Channel, and RevenueEmail: Sent, Open, Click, and Revenue


18

Happy Customers

High QualityTraffics

ConvertingWebsite

ExcellentCustomer

Experience

Key questions / analyses

• How likely are customers to refer YOU to their friends and family?• By location, By age-groups, By payment type, By category, etc• How is your Repeat Customers %? Repeat frequency?• What are the current major pain points?

• What are the overall actual Onsite Conversion Rate? • By channel, by location, by device, etc.• What's the specific conversion in each step leading to transaction?

(funnel analysis) • By channel, by location, etc.• How user browse through your website? (page flow analysis)

• What are the Conversion Rate, Average Order Value? Average Items per Order?

• By new customers vs existing customers?• By non-paid vs paid channels?• By different channels?

Conversion optimization framework


19

Goods to be sold will be inbounded before LIVEGoods with complete documentation and proper planning will be inbounded within 24hrs

Goods to be stored in aCommerce Fulfillment Center while LIVE

New inbounded products will go through: Photoshoot Digital editing Content creation

Orders to be processed (picked and packed) within 24hrs

Packed orders will be shipped same day & delivered within promised delivery date

COD payment will be collected at delivery point and transferred once a month

Transactions happened in: WebStore Phone Order

Call Center

Complaints Post-service Upselling

Production

Inbound Storage OutboundTransaction

DeliveryE-Fulfillment

Best-in-class B2C process to support you to deliver excellent customer experience


20

We developed Warehouse Management System application in-house to be used by our partners


21

Collaboration with multiple high performing partners are critical for last-mile delivery


22

We developed Delivery application in-house to be used by our partners (1/3)

▪ All riders / drivers are equipped with smartphones to allow them to send real-time status of success or failed delivery


23

We developed Delivery application in-house to be used by our partners (2/3)▪ The same application allows couriers to search for direction and courier manager to monitor

rider performance and provide support if necessary▪ Technology roadmap includes allow user to get access to where the courier is and estimated

of time of delivery based on LIVE location


We developed Delivery application in-house to be used by our partners (3/3)

▪ The same application allows couriers to get digital signature of recipient and photo proof(s) of success or failed delivery

▪ All the information will then be kept as a digital Proof Of Delivery

24


Contents25


About us


Call to actions


e-commerce is disrupting the retail value chain26

Manufacturer Brand and

Private Label

Wholesaler Distributor

E-commerce

Physical

Store

ConsumerRetailer

Brands (or even Manufacturer) are becoming Retailers

Retailers are creating brands to increase margins

Sourcing &

Merchandisin

g

Producers ship directly to Customers


Customer expectations BEFORE and AFTER shopping online changed drastically

27

Before shopping online After shopping online

34.6%

21.5%

13.8%

12.7%

9.3%

8.1%

Afraid of beingcheated

Cannot feel & touchthe products

Expensive price

Still not interested

Product quality

Others

28.1%

25.0%23.4%

12.5%

10.9% 0.0%

Product selectionrelated

Product photo / inforelated

Promo / Websiterelated

Logistics related

CS related

Others

SOURCE: Survey by APJII (Asosiasi Penyelenggara Jasa Internet Indonesia) in Dec 2012, Survey by Top Online Shop in Sep 2013

Customers want:

• Orders delivered FASTER

• More TRANSPARENCY on progress,

• BETTER experience at HANDOVER time

Prospect Customers want:

• More COD, CCOD, DCOD coverage

• Easier return / exchange


With AFTA's progress, ready or not, e-commerce will accelerate cross border transactions

28

• Uncertainty on Custom

could benefit but also hurt

us

• Competition among

Suppliers' countries to grab

ASEAN market


Contents29


About us


Call to actions


While the future looks bright for Indonesia, to ensure competitiveness, we need to collaborate

30

• Define industry standard / common API (Application

Program Interface) for 3PLs in Indonesia, e.g.,

• Detailed in-transit status

• Failed reason code

• Real-time status update

• Interchangeable AWB code

• Push expansion of COD, CCOD, DCOD together with

Banks, other payment players to boost online shopping

penetration even faster

• Define industry standard for address filling, especially e-

commerces, e.g.,

• Make postal code mandatory

• Work with government institution to put certainties in custom

to increase readiness e-commerce boom post-AFTA


Thank You31

Thailand Office946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500

Indonesia OfficeApt. Istana Sahid – Mezzanine, Jl. Jend. Sudirman Kav. 86, Jakarta 12940, Indonesia

Singapore Office#2-13 Oxley Bizhub, 61 Ubi Road 1, Singapore 408727

Hadi WenasCEO [email protected]

Philippines OfficeaSpace Manila, 3rd flr., 110 Aboitiz bldg, Legaspi Street, Makati, Philippines 1200


Other online research shows a more aggressive number: 46% intended to buy online in the next 12 months

32

77% of sellers say that a reason

for selling online is that there are lots

of people buying online

Indonesian online shoppers…

46%of online Indonesians who have never shopped online expect to buy online within the next 12 months

41%

37%

20%

14%

14%

14%

14%

use search engines to research

use social to research

retailer/store website

news / magazine websites

online blogs, forums or message boards

emails and e-newsletters

product comparison websites

SOURCE: TNS Online Shopper Study – Indonesia – February 2013 Base: Online shoppers across all categories (Recent online shoppers n = 511)


• Not only we increased the ad

visits but we also increased the ad

transactions

• We also indirectly increased the

non-ad visits and transactions

(spill-over effect)

• CIR is Cost Income Ratio (the reverse of ROI)

• We optimized CIR from 1.33 to 0.50 in just 8

weeks

• CIR of 0.50 means for every dollar revenue you

get, you spent on 50 cents on marketing

Example of actual client reports that we help manage and optimize Online Marketing

33

accelerating your growth in e-commerce by hadi wenas, ceo acommerce indonesia

Business

online shop transactions

sqm expandable

sqm accessible

growth of tier

700b2c ecommerce market

retail sales usd b

indonesiaabout uswhat

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