accelerating your growth in e-commerce by hadi wenas, ceo acommerce indonesia
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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
Singapore | Thailand | Indonesia | Philippines 2
Everyone heard about the recent record breaking e-commerce funding / valuation news in global and in Indonesia
2
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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.
Singapore | Thailand | Indonesia | Philippines
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
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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%
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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
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Contents7
Opportunity in Indonesia
About us
What it means to TSCL players
Call to actions
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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
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In Indonesia, 50+ B2Cs are working with us9
Retailers / Marketplaces Brands
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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
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aCommerce provides B-to-Z services to e-commerces: everything except Sourcing
11
• 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
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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
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• 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
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Example of "Simple" Website: lolalo.la
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Example of "Powerful" Website: erafone.com (coming soon)
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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
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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
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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
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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
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20
We developed Warehouse Management System application in-house to be used by our partners
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21
Collaboration with multiple high performing partners are critical for last-mile delivery
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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
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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
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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
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Contents25
Opportunity in Indonesia
About us
What it means to TSCL players
Call to actions
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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
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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
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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
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Contents29
Opportunity in Indonesia
About us
What it means to TSCL players
Call to actions
Singapore | Thailand | Indonesia | Philippines 30
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
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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 Indonesiawenas@acommerce.asia
Philippines OfficeaSpace Manila, 3rd flr., 110 Aboitiz bldg, Legaspi Street, Makati, Philippines 1200
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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)
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• 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
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