trends in retail and e commerce analytics by sheji ho, acommerce group cmo

Trends in Retail and E-Commerce Analytics

October 2014

Singapore | Thailand | Indonesia | Philippines

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Why I’m here today

• Building data-driven products & acquiring users at Gilt.com, Moda Operandi, LivingSocial & Groupon

• Took a data science class during my MBA

• Undergrad in Industrial Engineering (math, stats, operations research)


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Why YOU are here today


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The REAL reason why you’re here today

aCommerce

Creating the fabric for e-commerce in Southeast Asia


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Our company

Our VisionPowering Ecommerce 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


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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- ValuE-commerce

John SrivorakulGroup CTOExperience:CTO & Co-Founder- Ensogo (acquired by

LivingSocial), Admax, NewMedia

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)

Our team

Sabina ChangCEO (Singapore)Experience:Category Manager & Head Merchandiser- Apple, Amazon,

Walmart.com

Sheji Ho Group CMOExperience:Sr. Product Manager- Moda OperandiHead of Customer Acq.- LivingSocial, Gilt Groupe


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Our clients

Retailers / Marketplaces Brands


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Backed by some of the biggest in the game


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Our presence across Southeast Asia

Thailand

Singapore

Indonesia

Philippines

• 3000 sqm• 100+ staffs

• 3600 sqm• 130+ staffs

• 200 sqm• 20+ staffs

• 500 sqm• Manila Metro• 20+ staffs

Malaysia, Vietnam

Coming soon


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Thailand fulfillment center: 3,600 sqm


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Brand Site

Our E-commerce channels

Popshop Storefront (Social Networks, Apps, Emails)

Marketplaces & E-tailers(e.g. Rakuten, Qoo10, Elevenia,

Lazada, iBuy Group, LINE)

E-Commerce in Thailand and Southeast Asia


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By 2020, over 60% of Southeast Asians will be online

24M

31M

18M

4M

55M

34M

194m

New Internet

users

360m

Internet users

Source: We are Social, Accenture, 2012

2010 2020

62% Estimated Internet

penetration

25% 2010 Internet penetration


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Big room for growth for e-commerce in SEA

Online shopping makes up just 1% of total retail sales in SEA. This compares with 8% in China and over 10% in the U.S. and U.K.

15.19.5 11 12.8

21.8

11.3

102.4

57.1

68.4

82.5

168.5

70.5

Indonesia Malaysia Singapore Thailand Vietnam USA

Forecast Sales in Internet Retailing (% Value Growth)

2013-18 CAGR 2013/18 Total

Source: Centre for Retail Research 2014, Euromonitor 2014


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E-commerce market in SEA is highly fragmented, unlike US

6.32

2.35

2.2

1.97

1.79

Vatgia.com

Lazada sites

5Giay.vn

Enbac.com

Thegioididong.com

1.44

1.35

1.26

0.78

0.7

Avg.com

Amazon Sites

Lazada sites

Indonetwork.co.id

Apple.com

1.5

1.05

0.94

0.84

0.64

Amazon Sites

Avg.com

Alibaba.com

Apple.com

Groupon.my

1.73

1.34

1.15

1.09

1.03

Weloveshopping.com

Rakuten Inc.

Avg.com

Lazada sites

Apple.com

1.09

0.73

0.69

0.63

0.52

Amazon sites

Apple.com

Avg.com

Lazada sites

Multiply.com

0.68

0.53

0.44

0.33

0.26

Amazon sites

Apple.com

Giosis Group

Alibaba.com

Avg.com

Monthly Unique Visitors (millions) of top 5 online retailers

Vietnam Indonesia Malaysia

Thailand Philippines Singapore

In contrast, in the US, Amazon and eBay are the top two online retailers, with more than

250 million monthly unique visitors


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Mobile leapfrogging: Thailand vs China

Thailand requires 1.5 vs 3 years to reach the same online penetration level as China’s post 3G

0%

10%

20%

30%

40%

50%

60%

2003 2005 2007 2009 2011 2013 2015 2017

Internet Penetration

Internet penetration in China

Internet penetration in Thailand

0%

10%

20%

30%

40%

50%

60%

2008 2009 2010 2011 2012 2013 2014

Smartphone penetration

Smartphone penetration in China

Smartphone penetration in Thailand

Source: CNNIC, UBS estimates


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LINE Messenger

Thailand only

From unknown to dominant in 18 months

26+ million users in Thailand alone

Single largest channel to consumers

> Facebook

> Print + TV + radio

eCommerce engine

Ensogo took 2 years and $4M to get to 4M members

Line flash sales did it in 72 hours

That is truly disruptive


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Online advertising is totally out of line

In Southeast Asia, people spend 44% of their media time online, but only 2%of advertising spending is devoted to online advertisement; however, e-commerce is changing this

Source: Euromonitor, Nielsen

51%

34%

5%2%

32%

9%

15%

44%

0%

10%

20%

30%

40%

50%

60%

TV Print Radio Online

% of Total Ad Spend vs % of Total Time Spent on Media

% Ad Spend % Time Spent

out of line


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Key takeaways

• BIG – bigger than US (2x), bigger than EU

• Social – everyone is on social media (Facebook, LINE)

• Mobile – well over 100% penetration in most markets

• Internet focused – more time spent on the internet than on TV

• Large gaps – absolute disconnect between time and money spent online vs TV

• Growing fast – eCommerce CAGR 2008-2013 is 18.73%

• Young – much younger population than US and EU

• Less competition – not (yet) dominated by global players

E-Commerce Analytics: Trends and Predictions


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Trends and Predictions

• Content is blending with commerce resulting in new business models leveraging bigger data sets

• E-commerce will slowly take over advertising as primary monetization model, driven by disconnect between time and money spent online vs TV

• Data will re-invent how e-commerce and advertising is done


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New business models are emerging

Content Commerce


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“The company has a Pinterest-like interface, and uses algorithms and machine-learning technology to adapt to a user’s tastes in order to show them products they like.”

“While Pinterest began exploring how a user’s likes and interests can be programmed into a more personalized experience earlier this year and doesn’t really emphasize commerce, Wish is all about the art of the algorithmically enhanced sale.”


“Jet will distinguish itself from Amazon, eBay and others by pricing products based in part on their proximity to the buyer. That way, customers could potentially get their merchandise quicker and at lower cost.”

“What are the hidden costs in e-commerce? Are there aspects of e-commerce that don’t make sense? And most importantly, how do we expose these inefficiencies and empower customers to eliminate them?”


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Marketing Interactive: Shitty Clicks or 5 Reasons You Should Fire Your Digital Agency

http://www.marketing-interactive.com/5-reasons-fire-agency

http://www.marketing-interactive.com/5-reasons-fire-agency

Wrap-up


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Recap

• E-commerce is BOOMING in Thailand

• New business models are appearing, leveraging more and more data

• MOBILE adds more complexity to data but cannot be ignored anymore

• Big data and technology will change e-commerce, retail, and advertising


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4 P’s of Big Data

aCommerce’s big data framework for e-commerce

1.Platform

2.Processes

3.People

4.Politics


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Keep in touch!

• [email protected]

• Skype: sheji_ho

• LINE: shejiho

• Mobile: 09 2265 1700

mailto:[email protected]

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


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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

trends in retail and e commerce analytics by sheji ho, acommerce group cmo

Data & Analytics