© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
Presented By:
Jessica Chung Engagement Manager
Ipsos Strategy3, Hong Kong
23 July 2020
Opportunities for Financial Services in eCommerce
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
IPSOS STRATEGY3 – THE STRATEGY CONSULTING ARM OF IPSOS
Leaders in Consumer Market Research
Global Big 3 market research group; largest Asia
market research & consulting group
Growth Strategy Specialists
Leaders in Industry Market Research
Specialised division within Ipsos providing fact-
based consulting services to help clients build,
compete and grow• #1 research firm in Asia;
• 18,000 employees worldwide, 3,000 in the Greater
China Region and Hong Kong;
• Publicly traded in the Paris Stock Exchange (IPS:EN
Paris)
• A global firm, present in 90 countries across the
world
• Top ranked growth strategy consultancy in
Asia Pacific;
• Over 25 years of industry track record
• Global consulting hubs for worldwide coverage
Introduction to Ipsos and Strategy3
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
NEW REVENUE FROM
UNDERSERVED OR
UNSERVED SEGMENTS
CAPTURE GROWTH IN
ACCELERATING MASS
SPENDING CHANNEL
MANAGE CREDIT AND
LENDING RISK WITH RELIABLE
AND REAL-TIME DATA
3 ‒
eCommerce Opportunities for Financial Services
B2B and B2C space
Target shopping categories
Fast receivables and cashflow cycles
Credit and transaction history
Review risks of default on loans
Enable faster and
smaller size loans
Credit Cards
Commercial Credit and Loans
Expand existing banking
relationships
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
1. How many customers are underbanked or underserved?
2. Which customer segments and characteristics should I target to define
my addressable market? What are these customers looking for?
3. What type of products can I offer competitively in the eCommerce
financing space?
4. What channels and programs attract and retain eCommerce customers
most suitable to my offerings?
5. What are barriers for my products and services to compete?
6. How should I assess risks and lending approvals for eCommerce
platforms?
7. Who are my competitors for my product and target customers?
8. What partnership structures should I pursue to tap into the eCommerce
financing space?
4 ‒
Key Questions for Successful Roll-out Strategy
© Ipsos | Opportunities for Financial Services in eCommerce – July 20205 ‒
We support clients with developing a robust customized growth strategy supported by in-depth market insights and stakeholder workshops
MARKET
DIAGNOSTICS
CUSTOMER
INSIGHTS
INTERNAL
ASSESSMENT
ANALYSIS AND
VALIDATION
STRATEGY
DESIGN
• Industry landscape
• Market Sizing and
Forecast
• Market Segmentation
• Ecosystem/Channel
Mapping
• Competitive Landscape
• Market Opportunity
Evaluation
• B2B (Enterprise) and
B2C (Consumer)
customer research
• Path-to-purchase
• Key decision factors
• Customer
segmentation
• Internal alignment with
client’s business
performance,
challenges, and
capabilities
• Competitive positioning
• Identify direction on
high-level opportunities
• Assess competitive
opportunities and
white space for
Client
• Detailed route-to-
market development
• Business model
development
• Actionable strategy
for top line and
bottom line growth
• Growth scenario
planning on
financial outcomes
1 2 3 4 5
Ipsos provides a modular approach to strategy development and design
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
• COVID-19 accelerated adoption, usage and growth of eCommerce globally, especially in APAC
• Many consumers and merchants now need to use eCommerce platforms for retail sales
• New eCommerce behaviours are becoming new habits for many consumers
6 ‒
COVID-19 continues to accelerate the rise of ecommerce
• Global eCommerce market projected to reach USD 5 trillion by 2022
• Half of eCommerce market value, and fastest growth, will be from APAC
• Combined growth of at least 15% by 2022
Covid-19 Update
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
30%
32%Believe pandemic will not
end before in Q3 2020
Believe Hong Kong will only recover in 2021 (18% expect recovery towards Q2 2021)
7 ‒
Consumers believe covid-19 will last beyond 2021, increasing use of online retail in the meantime
Respondents in Hong Kong
Q32020
Q22022
Sources: Ipsos Hong Kong, Hong Kong Consumer & COVID-19 Study March 2020
48%
36% Spend more time browsing on
online shopping platforms
Purchased more groceries online
or used more mobile payments
Covid-19 Update
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
A Closer Look at eCommerce in APAC
120+Marketplace
PlatformsA PA C
Local
PlatformsDominate
Landscape
PrioritisingAccess to
SMEsIpsos eCommerce
Database
Market Diagnostics and
Partner Scan
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
A Closer Look at eCommerce in APAC
Largest
Value
Apparel and
Electronics
Fastest
Growth
Online
Groceries
shopping
in AsiaA PA C
Cross-border
Market Diagnostics and
Partner Scan
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
A Closer Look at eCommerce in APAC
A PA C
Room for
Growth in
Other APAC
Markets
Market Diagnostics and
Partner Scan
Mature
Markets
Japan
South
KoreaSingapore
1 Trillion +USD
China eCommerce
in 2020
~ 5 million merchants30 million + customers
Lazada and Shopee
Singapore Cross-border SEA region
~ 20+ million merchants180 million + customers
Bukalapak, Tokopedia, Blibli, Ralali
Indonesia
~ 4 million merchants400 million + customers
PinDuoDuo
China
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
CONSUMERS
11 ‒
Rapid eCommerce Adoption is Providing New Opportunities and Potential Competition to Banks
Monetary Flow & Requirements
Lending And Credit Flow
FINTECH COMPANIESBusiness
Cash Flow
Requirements
Receive
PaymentsPayment on Platform
Cash Points
Credit/Loan
Trade Flow
Provide Commercial
Loans/Credit Line Provide Consumer
Credit, rewards, lending FINANCIAL INSTITUTIONS
Competitive Landscape and
Partnership Deep-Dive
ECOMMERCE PLATFORM(B2C example)
ECOMMERCE
ENTERPRISES
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
SIMPLE, SECURE, AND
STREAMLINED PAYMENT
TOUCHPOINTS
LOYALTY REWARDS
Credit lines or loan approvals
that are simple and streamlined
with the eCommerce platform
they are using
Social distancing and economic instability from COVID-19 will accelerate adoption of eCommerce retail channels
12 ‒
What commercial financial services are needed for eCommerce retail customers?
Loyalty rewards such as
cash back and rewards
programs offered by the
platform or partnered
financial service provider
LOANS AND INSTALMENT
FOR BIG TICKET ITEMS
Consumers require loans or
instalment options for larger
ticket items, such as
electronics
Customer Insights
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
FAST APPROVAL TIMEUNIFIED STREAMLINED
PROCESS
LOW INTEREST RATES
• Traditional applications take
a few days to a month
• Now in 24 hours or down to
30 mins for loan
approvals and to cash
To capture financial service opportunities in the eCommerce ecosystem, Ipsos has also conducted focus groups to
uncover offerings and touchpoints needed by merchants to have competitive advantages on 4 key fronts
• Traditional loans 4%-13% or
higher*
• eCommerce and fintech
offering from 0.2%
13 ‒
What commercial financial services are needed for eCommerce merchants (enterprise) customers?
• Seamless and transparent
management system
between platform and
financial accounts
• Especially for cross-border
receivables and
transactions
CAPITAL REQUIREMENTS
• Small and frequent loans or
credit lines to match payment
schedule and pace of sales on
eCommerce platforms
• Critical for financial shortfalls;
working capital, payment
release, inventory
management, and business
expansion
Customer Insights
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
Developments by fintech and platforms
are creating new financial ecosystems
14 ‒
Platforms and financial institutions are
aggressively pursuing financial service
opportunities in eCommerce
Banking institution and platforms
successfully expanding in this
market acted fast
THANKYOU
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
CONTACTS
Markus SchererHead of Strategy3, Hong Kong
Jessica ChungEngagement Manager
+852 2830 2531
+852 2839 0647
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020© Ipsos | Opportunities for Financial Service in eCommerce – July 202018 ‒
ABOUT IPSOS
Ipsos is the third largest market research company in the world,
present in 90 markets and employing more than 18,000 people.
Our research professionals, analysts and scientists have built
unique multi-specialist capabilities that provide powerful
insights into the actions, opinions and motivations of citizens,
consumers, patients, customers or employees. Our 75
business solutions are based on primary data coming from our
surveys, social media monitoring, and qualitative or
observational techniques.
“Game Changers” – our tagline – summarises our ambition to
help our 5,000 clients to navigate more easily our deeply
changing world.
Founded in France in 1975, Ipsos is listed on the Euronext
Paris since July 1st, 1999. The company is part of the SBF 120
and the Mid-60 index and is eligible for the Deferred Settlement
Service (SRD).
ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg
IPS:FP
www.ipsos.com
GAME CHANGERS
In our world of rapid change, the need for reliable information
to make confident decisions has never been greater.
At Ipsos we believe our clients need more than a data supplier,
they need a partner who can produce accurate and relevant
information and turn it into actionable truth.
This is why our passionately curious experts not only provide
the most precise measurement, but shape it to provide True
Understanding of Society, Markets and People.
To do this we use the best of science, technology
and know-how and apply the principles of security, simplicity,
speed and substance to everything we do.
So that our clients can act faster, smarter and bolder.
Ultimately, success comes down to a simple truth:
You act better when you are sure.
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
We are Strategy3, Ipsos’ business and growth advisory firm
19 ‒
We approach every challenge through three lenses
We believe that in order for any business strategy, marketing plan, brand positioning, or new innovation to be successful, it must do
three things: be rooted in the organization’s strategy, be informed and inspired by customer research, and it must drive through to
actual in-market activation. While there are many firms that advise on growth, very few deliver on all three: traditional management
consultancies rarely delve deep enough into the world of the customer; creative firms don’t truly leverage the power of data; research
agencies can sometimes lose the big picture in the midst of analysis. That’s why we are Strategy3.
1Strategy-Led
2Research-Driven
3Activation-Focused
© Ipsos | Opportunities for Financial Services in eCommerce – July 2020
What We DoDrawing from our global network of
consultants across four practice
areas, we work with clients to
Build • Grow • Compete
Corporate/Business StrategyDetermining the right markets in which to play, and how to win
Market Sizing • Go-to-Market Strategy • Distribution/Channel Strategy •
Competitive Benchmarking • Due Diligence
Brand Strategy
Customer/Consumer Strategy
Innovation Strategy
Developing strategies to help your brand and products stand out
Brand Stretch • Brand Architecture/Portfolio Optimization • Brand Positioning •
Brand Purpose • Brand Valuation and Investment ROI
Understanding and reaching the right customers
Strategic Segmentation • Customer Prioritization • Consumer Journey •
Omnichannel Strategy • Value Proposition Development
Planning for and conceptualizing new products and offers
Trends/Futures Scenario Development • Early Stage Innovation Development •
Innovation Scouting • Innovation Strategy and Process Development
20 ‒ © Ipsos | Opportunities for Financial Services in eCommerce – July 2020
© Ipsos | Opportunities for Financial Services in eCommerce – July 202021 ‒
Ipsos Syndicated Study: Ecommerce UnleashedeCommerce Unleashed is a global syndicated study capturing durable change during the COVID-19 crisis and beyond. Our cost-efficient insights help marketers
reinvent their plans for future recovery and growth in light of COVID-19. By capturing shopper emotions and behaviors, eCommerce Unleashed Illuminates emerging
shopping patterns and durable changes to help future-proof shopper strategies.
OVERVIEW
COVID-19 is unleashing eCommerce shopping globally and will drive
permanent long-term shopping behavior changes. People are trying new
channels, services and products – and forcing shopper marketers to re-think
how they will meet their rapidly expanding needs.
eCommerce Unleashed is a global syndicated study capturing durable
change during the COVID-19 crisis and beyond. Our cost-efficient insights
help marketers reinvent their plans for future recovery and growth in light of
COVID-19. By capturing shopper emotions and behaviors, eCommerce
Unleashed Illuminates emerging shopping patterns and durable changes to
help future-proof shopper strategies.
eCommerce Unleashed covers 1,500 shoppers per country in Wave 1, and1,000 shoppers per country in Wave 2 (females and males 18+). Our 15minute online survey incorporates Ipsos’ proprietary view of COVID-19emotions, behavior and shopper migration.
Categories: Alcohol and Tobacco, Banking and Credit, Beauty, ElectronicDevices, Food and Beverage, Healthcare, Home Care, and Personal Care.
Syndicated Countries: Canada, USA, Mexico, Colombia, Spain, Malaysia,Indonesia, Thailand, Vietnam
Additional country availability: Brasil, Chile, Peru, Argentina, Australia,Japan, South Korea, Hong Kong, China, India, Belgium, France, Germany,Italy, Netherlands, Norway, Sweden, Czech Republic, Hungary, Poland, SaudiArabia, South Africa, Turkey , UK
eCommerce Unleashed helps you adapt your shopper strategies during COVID-19 and beyond by
providing:
• Comparisons of new and experienced eCommerce shopper behaviors
• Shoppers’ financial, health, and recovery sentiment
• Channel search, social media use, purchase locations, and retailer satisfaction
• Category triggers, barriers, brand planning, trial, and future purchase intent
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DELIVERABLES
BUSINESS QUESTIONS WE WILL ANSWER
Pictures are for indicative purposes only
Country Report delivered via
Portal: Shopper sentiment,
behaviors & channel migration
Custom Region or Global
Report: Custom multi-country
reporting designed for client
business need
Virtual Activation Workshops;
Strategy3 virtual workshops to help
you develop strategies and tactics
OVERVIEW
APPROACH
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