acommerce asia cross border shanghai 2015
TRANSCRIPT
The Leading End-to-End E-commerce Solutions provider in S.E. Asia
FOUNDED IN
2013With over 400 staff across Singapore,
Thailand, Indonesia, and Philippines
REVENUE
3xTripled revs in
second half of 2014
CLIENTS
100+30% are in Fortune top 1,000, 70% are recurring with 1-2 year agreements
MARKET GROWTH
30%Year-on-Year growth
for B2C and B2B Ecommerce market
in S.E. Asia
Singapore | Thailand | Indonesia | Philippines
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Our E-Commerce Solutions
E-commerce Strategy & Consulting
Web & Mobile Development
Production, Photography, Copy Writing
Digital Marketing, CRM, and
Data
Channel Management on E-tailers & Marketplaces
Payment Gateways
We focus on sales by providing turn-key solutions that drive a customers’ path to purchase
With our own fulfillment centers, delivery fleet, and proprietary technology we manage the entire E-commerce logistics supply chain
Demand Fulfillment
Demand Generation
Singapore | Thailand | Indonesia | Philippines
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Clients
Consumer Goods
Marketplaces & E-tailers
Fashion & Apparel
Electronics & Telecom
Channel Management, Web Dev, Fulfillment & Delivery
End-to-EndFull Service Marketing Only
Singapore | Thailand | Indonesia | Philippines
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Our Team
Paul SrivorakulGroup CEOExperience:CEO & Co-FounderEnsogo Group (acquired by LivingSocial), Admax, DMS Group, NewMedia
Peter KopitzGroup COOExperience: Co-Founder & MD- Zalora, Rocket InternetVP, Head of Execution- ACL Bank
Piers BennettGroup CFOExperience:CFO - Ensogo (acquired by
LivingSocial)- DMS Group- ValueCommerce
Tom Srivorakul CEO (Thailand)Experience:Co-Founder & MD- Ensogo(acquired by
LivingSocial), DMS Group, NewMedia
Adrian SuhermanCo-CEO (Indonesia) Experience:VP of Digital - TelekomselCEO (Indonesia)LivingSocial/DealKeren
Hadi WenasCo-CEO (Indonesia) Experience:Co-Founder & MD- Zalora, Rocket
InternetEngagement Manager- McKinsey & Co
Ray AlimurungCEO (Philippines)Experience:VP of Business Dev.- Lazada, Rocket Int.Sr. Product Manager- Amazon.com (USA)
Sheji Ho Group CMOExperience:Sr. Product Manager- Moda OperandiHead of Customer Acq.- LivingSocial, Gilt
Groupe
Dr. Graeme OldhamGroup CPOExperience:Head of Product Management, Real-Time Content & Analytics - Thomson Reuters
Sabina ChangCEO (Singapore)Experience:Category Manager & Head Merchandiser- Apple, Amazon,
Walmart.com
Singapore | Thailand | Indonesia | Philippines
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Our History
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
March 2013Incubated aCommerceunder Ardent Labs with 1M USD in Capital
Q1 2013
June 2013Official launch aCommerce an End-to-end Ecommerce solutions provider
November 2013Launched Indonesia with CEO Hadi Wenas
September 2013Signed up first clients Central, L’Oreal, and LINE in Thailand
November 2013Raised $3.1M Bridge loan from NTT Docomo, Siemer Ventures, JL Capital and CyberAgent
June 2014Closes $10.7M Series A Round from Inspire Ventures, Sumitomo Ventures, SinarMas
December 2014Signed Groupon and MAP, largest retailer in Indonesia
April 2014Launched Philippines with Ray Alimurung
February 2014Launched Singapore with CEO Sabina Chang
October 2014Signed Ensogo and SSI, 3rd
largest retailer in Philippines
July 2014Signed HP Reg. in Singapore
September 2014Signed LazadaThailand with 2K orders per day
November 2014Launch Channel Management on Lazada, Rakuten, Elevenia, Qoo10
Dec 2014End the year with highest revenue month
April 2013Partnered with Netsuite and Magento for Technology suite
Singapore | Thailand | Indonesia | Philippines
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Our Presence Across Southeast Asia
Thailand
Singapore
Philippines
• 3,700 sqm Fulfilment Center• 160 staffs
• Sales Office• 3 staff
• 500 sqm Fulfillment Center• 30 staffs
Vietnam, Malaysia
Launching soon…
$11.7M USD in funding from NTT Docomo, Sumitomo Ventures, CyberAgent Ventures, Inspire Ventures, Sinarmas, AsiaPacificDigital, Ideosource, and Ardent Capital
• 1,500 sqm Fulfillment Center #1 • 2,000 sqm Fulfillment Center #2 • 8,000 sqm Fulfillment Center #3• 160 staffs
Indonesia
Singapore | Thailand | Indonesia | Philippines
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Indonesia – 3 Fulfillment Centers: 11,500 sqm
Signed Matahari Group (Largest Retailer in Indonesia) for End-to-End Ecomerce in a 8,000 sqm warehouse
Singapore | Thailand | Indonesia | Philippines
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Similar Models
China: Baozun US: eBay Enterprise (previously GSI Commerce)
Singapore | Thailand | Indonesia | Philippines
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The next e-commerce Gold Rush
Source: A.T. Kearney
Singapore | Thailand | Indonesia | Philippines
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SEA e-commerce has seen spectacular growth
Source: Online Retailers in Emerging Asia to 2015, ICD Research
$2.0B
$2.7B
$3.9B
$4.8B $5.1B
$7.6B
$9.9B
$13.1B
2005 2006 2007 2008 2009 2010 2011 2012
Online Retail Sales Value in Indonesia, Malaysia, Philippines, Thailand (US$ Billion)
Singapore | Thailand | Indonesia | Philippines
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We’ve only scratched the surface –In 5 SEA countries, e-commerce is <1% of total retail
Source: A.T. Kearney
Singapore | Thailand | Indonesia | Philippines
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Source: A.T. Kearney
We’ve only scratched the surface –25% CAGR, equal to China
Singapore | Thailand | Indonesia | Philippines
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Reading tea leaves –Why SEA is only 4-5 years behind China
Singapore | Thailand | Indonesia | Philippines
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Similar eco-systems –China and SEA never went through Web 1.0/1.5
• Lack of quality, open long-tail publisher inventory
• Hence, nascent online advertising eco-system
• Hence, non-advertising monetization such as VAS, e-commerce
• Hence, accelerated growth of e-commerce
Singapore | Thailand | Indonesia | Philippines
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Like China in ‘08, B2C market still fragmented –1-2 key players to emerge within the next 5 years
Dangdang, 16.2%
Amazon/Joyo, 15.4%
360buy, 15.0%
m18, 10.8%
139shop, 8.8%
Redbaby, 4.6%
99read, 3.8%
PPG, 2.7%
Menglu, 2.5%
7cv, 0.8%
MainOne, 0.5% Others, 18.9%
2008Q1
Tmall, 50.6%
JD.com, 23.3%
VIP.com, 3.0%
Yixun.com, 2.6%
Amazon, 2.1%
Suning.com, 2.0%
Dangdang, 2.0%
Yhd.com, 1.9%
Gome, 1.7%
Vancl, 0.5%
Others, 10.4%
2014Q1
Source: iResearch
Singapore | Thailand | Indonesia | Philippines
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Like China in ‘08, B2C market still fragmented –1-2 key players to emerge within the next 5 years
Dangdang, 16.2%
Amazon/Joyo, 15.4%
360buy, 15.0%
m18, 10.8%
139shop, 8.8%
Redbaby, 4.6%
99read, 3.8%
PPG, 2.7%
Menglu, 2.5%
7cv, 0.8%
MainOne, 0.5% Others, 18.9%
2008Q1
Source: iResearch
JD.com, 51.9%
Suning.com, 10.6%
VIP.com, 7.7%
Gome.com.cn, 6.6%
Yhd.com, 4.2%
Dangdang, 4.0%
Amazon, 3.5%
Yixun.com, 2.4%
Jumei.com, 2.2%
Others, 6.9%
2014Q3
Singapore | Thailand | Indonesia | Philippines
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Like China, SEA market will mature from C2C to B2C over next 5 years
92.1% 92.2%
86.3%
74.7%
70.3%
64.9%
59.2%
54.3%50.6%
7.9% 7.8%
13.7%
25.3%
29.7%
35.1%
40.8%
45.7%49.4%
2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e
% C2C vs. B2C e-commerce transaction volume in China
C2C B2C
Source: iResearch
Singapore | Thailand | Indonesia | Philippines
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Déjà vu?
2014: SoftBank invests $100m in Tokopedia, Indonesia’s largest marketplace
2000: SoftBank invests $20m in Alibaba for 34.4%, worth $87b today
Singapore | Thailand | Indonesia | Philippines
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C2C will not be dominatedby one key player like Taobao in China
Source: iResearch, Euromonitor
Singapore | Thailand | Indonesia | Philippines
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Instagram and Facebook are major marketplaces in SEA
Singapore | Thailand | Indonesia | Philippines
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Mobile e-commerce adoptionwill be faster in SEA than in China
Source: http://googleasiapacific.blogspot.com/2014/10/asias-mobile-first-world.html
Lazada Group traffic by device
Singapore | Thailand | Indonesia | Philippines
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Line (#1 Chat App in Southeast Asia)
Fulfilment, logistics & cash-on-delivery powered by aCommerce
Line users in Asia
Singapore | Thailand | Indonesia | Philippines
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Shopbop x Line x aCommerceMarketing & cross-border mobile commerce
Singapore | Thailand | Indonesia | Philippines
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Line Groceries
Fulfilment, logistics & cash-on-delivery powered by aCommerce
Singapore | Thailand | Indonesia | Philippines
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Line Groceries
Fulfilment, logistics & cash-on-delivery
Singapore | Thailand | Indonesia | Philippines
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Line Flash Sale
User-friendly, mobile shopping experience
Singapore | Thailand | Indonesia | Philippines
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“Open” SEA will lead to hyper-competition
“It could be a bloodbath” – Paul Srivorakul, Group CEO aCommerce
Singapore | Thailand | Indonesia | Philippines
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COD will remain necessary to win in SEA
2008:70% of B2C transactions paid via COD
2014:
2014:
81.7%
8.4% 8.2%1.2% 0.4% 0.0%
COD Credit Card/ Debit
Card
BankTransfer
Paypal Others OTC
2020:??? (local version of Alipay?)
Singapore | Thailand | Indonesia | Philippines
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AEC will accelerate cross-border e-commerce in SEA but multi-country differences will still pose challenges for entrants
Singapore | Thailand | Indonesia | Philippines
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6 P’s of Cross-Border E-Commerce Success
Processes
Platform
Product
People
Politics
Promotion
Singapore | Thailand | Indonesia | Philippines
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Overcoming challenges by joining forces with a local or regional partner
6P’s of cross-border e-commercesuccess
Common SEA challenges How aCommerce can help
Processes Complicated and unique customs clearance, payment, reverse logistics processes
Local operations in all major SEA countries; platform supporting all local payment methods
Platform Fragmented marketplace eco-system; local payment gateways
Single platform that APIs into all major marketplaces in SEA
Product Lack of knowledge of best selling products
Experience selling products across different categories; access to local data
People Lack of e-commerce and technical talent
Instant access to 400+ local and battle-tested e-commerce professionals
Politics Complicated and frustrating local bureaucracy
Local operations and connectionsto operate business as usual
Promotion Lack of local marketing knowledge Local marketing and customer service staff
Singapore | Thailand | Indonesia | Philippines
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China->SEA Cross-Border Case StudyPhicomm: Channel Management in SEA
• Store set up and operations on Lazada
• Product import and customs clearance
• Content localization
• Local marketing
Singapore | Thailand | Indonesia | Philippines
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US->SEA Cross-Border Case StudyShopbop: Cross-Border Campaign with Line
• Shopbop/Amazon shipping to aCommerce hub in Hong Kong
• aCommerce customs clearance and last-mile fulfilment
• Cash-back to Line users
Singapore | Thailand | Indonesia | Philippines
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Key takeaways
1. SEA is the next e-commerce Gold Rush (too late to win in China or India)• 4-5 years behind China• BUT mobile e-commerce only 2-3 years behind
2. China e-commerce game plan will work in SEA, but adapt to local differences• Fragmented marketplace eco-system• “Open” borders -> more cut-throat than in China• COD dominant payment method until “local Alipay”• Homogeneous market (China) vs. heterogeneous market
(SEA), despite AEC
3. Work with strong local partner
Singapore | Thailand | Indonesia | Philippines
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Thailand Office946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500
Indonesia OfficeJalan Wijaya Timur II No. 13RT 015 RW 002, Kelurahan Petogogan, Kecamatan Mampang Prapatan Jakarta
Thailand Distribution Center951/1 Soi Preeyanon, Sathupradit Road, Bangpongpang, Yannawa Bangkok 10120, Thailand
Singapore Office#05-01, Block 71 Ayer Rajah CrescentSingapore 139951
Singapore | Thailand | Indonesia | Philippines
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Thank You!
Sheji HoGroup CMO, aCommerce
E: [email protected]: +66 (0)92-265-1700Skype: sheji_ho
Address:946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok,10500 Thailand