Post on 30-Sep-2020
Online Shopping Revolutionising
Logistics & Supply Chain Management
Presented by Cissy Chan
Executive Director, Commercial
Airport Authority Hong Kong
Online Shopping
E-tailer
E-tailer’s perspectiveE-commerce
logistics opportunities
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Online Shopping – When Hurdles Become Edges
Expensive shipping fees
No fitting; can’t feel and touch
Limited product selections
Waited too long to receive it
Nearly everything is available
Where/when to get it all my choice
Bring the fitting room home
“Almost” free shipping
Past Now
Source: “2017 State of Ecommerce Delivery Consumer Research Report”. MetaPack
Shipping Is “Almost” Free
“free delivery”
determined
which website
to buy from
purchased more to
meet the minimum
spending for free
delivery
Who pays for delivery when customers want it free?
E.g. Free international delivery upon spending as low as US$100
59% 73%
How to optimize logistics flow for personalized deliveries?
I Call The Shots On Delivery
chose the
e-tailers over
others due to
more convenient
delivery options
ranked “fast
delivery” as their
top or second most
important delivery
priority
52% 60%
Collection / home delivery
Delivery day / timeslots
Carrier
Eco delivery
Source: “2017 State of Ecommerce Delivery Consumer Research Report”. MetaPack
The Fitting Room Is Now In My Place
Which return strategy works for the business?
buy multiple
sizes/variations
with the intent
of returning
Source: “Ecommerce Returns: Policy, Rates, Best Practices & Statistics (2018 Holiday Ed.), Nick Winkler”
Return Rates
77% of returns come from repeat customers
0%
10%
20%
30%
40%
50%
60%
E-commerce Holiday E-commerce "Expensive" Products
41%
“Everything” Is Available Online
Product Categories for the Most
Recent Cross-border Purchases
What are the logistics requirements for fast-growing categories?
Online Sales of Luxury Goods
0% 5% 10% 15% 20% 25% 30% 35%
Others
Car & motorbike
Baby & child
Household appliances
Computers
House & garden
Toys
Sports & leisure
Jewellery & watches
Books, music & media
Health & beauty
Consumer electronics
Clothing, footwear & apparel
Online Sales of Fruit & Vegetables
Source: “e-Commerce growth & e-Shoppe trends”, International Post Co.; “The age of digital Darwinism”, McKinsey & Company; “Fruit Logistica Trend Report 2018”, Olver Wyman
0%
5%
10%
15%
20%
0
10
20
30
40
50
60
70
80
2016 2020F 2025F
% o
f to
tal
Sale
s in
€b
illio
ns
Sales % of total
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
50
100
150
200
250
300
350
400
2015 2030
% o
f to
tal
Sale
s in
€b
illio
ns
Sales % of total
“Global Buy, Global Sell”
made up to
10 or more
purchases
Nearly 1 in 6 dollars sold online is
cross-border
How to deal with the challenges of cross-border logistics?
21%16%
Source: “2017 State of Ecommerce Delivery Consumer Research Report”, MetaPack; Seabury Consulting
made at least
one overseas
purchase in
last 12 months
7 categories with 2500+ skus
Pay & Collect
Pay & Deliver
E-marketplace
Order ready within 3 hours Ready within 90 mins
Now Future
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Collection
Counter
Delivery
Online Shopping
E-tailer
E-commerce
logistics opportunities
Icon made by Icon Pond, monkik, Freepik, Good Ware, Pixel Buddha, from www.flaticon.com
Expansion Of DHL Central Asia Hub
• One of the three global hubs for DHL
• Expand to increase 50% handling capacity to 1.06 million tonnes per annum
• Investment of US$ 370 million
• Scheduled to commence operation by early 2022
Premium Logistics Centre At Kwo Lo Wan
• Alibaba’s “Smart-hub” in Asia
• Gross floor area of 380,000m2
• An incremental cargo volume of 1.7 million tonnes
per annum when in full capacity
• Investment of US$1.5 billion
• Scheduled to commence operation by mid-2023
E-tailer
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Optimize delivery model
Manage reverse logistics
Online Shopping Revolutionizing Supply Chain
Thank You