aCommerce 3rd SEA Retail Summit - How Technology is Reshaping the Way Luxury and Fashion Industry
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Transcript of aCommerce 3rd SEA Retail Summit - How Technology is Reshaping the Way Luxury and Fashion Industry
PAGE 1
aCommerce
How Technology is Reshaping the Way the Luxury and Fashion Industry Produces, Sells, and OperatesJakarta, 21 October 2015
Full Service Ecommerce Solutions Provider in ASEAN
PAGE 22
Table of Contents01 About Me 3
02 aCommerce Overview 4-6
03 How Technology is Reshaping the Way the Luxury and Fashion Industry Produces, Sells, and Operates
7-37
04 Contact 38
PAGE 3
About Me
Note: 1. ASEAN countries used to calculate fixed and wireless broadband penetration include the key countries which aCommerce operates in; 2. Smart phone penetration rate excludes Singapore
Hadi Kuncoro
CAREER
• aCommerce Indonesia – Chief Operating Officer
• Rocket Indonesia GmbH – Vice President
• Zalora Indonesia – Operations Director
• Oriflame Indonesia – Operations Director
• Beiesdorf - Commercial Support & Operations Senior Manager (Downstream
Supply Chain Management)
ASSOCIATIONS
• Deputy Chief of Indonesian Logistics Association
• Member of idEA (Indonesian Ecommerce Association)
EDUCATION
• Bachelor Degree in Economics, Sebelas Maret University
• Certified Supply Chain & Logistics Professional (CSLP)
PAGE 4
General Overview
PAGE 5
Share of ASEAN Outsourced Market (Top 5)
FOUNDED IN
2013 15% monthly growth522% yearly growth
ACTIVE CLIENTS
139 66 Brands 59 Retailers 12 Marketplaces2 Resellers
STAFF
>600 at July 2015, Including c. 80 tech staff
aCommerce: Fast growth & winning market share
Thailand Indonesia Philippines
OPERATES IN THE KEY MARKETS OF:
aCommerce50%
Singpost38%
Anchanto5%
Paraplou5%
Arvato2%
PAGE 6
Our Products and Services
Cross Border ‘International’ EcommerceFrom customs clearance to local FDA approval, channel management and cross-border logistics, we can scale your Ecommerce business across S.E. Asia and rest of world
E-Fulfillment & DeliveryOur specialized E-fulfillment centers can manage all your local Ecommerce logistics needs from Managed Drop-Ship, Flash Logistics and temp controlled storage to custom packaging, next day delivery, and CODAdditional services include: Production, Call Center.
Technology DevelopmentWe design, develop, and operate Brand/Retailer storefront in marketplace(s) connected to our centralized inventory/fulfillment platform
Performance Marketing We conduct funnel analysis and optimize your e-commerce website; manage media buying in Facebook, Google, local Ad networks, develop ad banner & copy, monitor regularly and optimize for conversion (transaction, revenue)
PAGE 77
Our Partners and Clients
They are:• SMEs, Startup as well as Big Companies• Local, regional, international brands• Fashion, F&B, Electronics, Lifestyle, Services
categories and many more
01 How Technology is Reshaping the Way the Luxury and Fashion Industry Produces,
Sells, and Operates
PAGE 99
UBS Research, 13 June 2014• ASEAN B2C e-commerce market 2014: USD 500m to USD 1bn• Expected to reach USD49 billion by 2020 (8% of retail sales from 0.1–0.2%)
ASEAN macroeconomic and industry landscape ASEAN ecommerce market potential Notwithstanding wide ranging ASEAN ecommerce market size currently, research analysts and consultants are in agreement that ASEAN e-commerce market is poised for rapid expansion
Macquarie Research, 27 March 2015• ID online retail 2014: USD1.7 billion• Expected to reach to USD12 billion by 2018
Lazada, June 2015• ASEAN e-commerce market size 2014: USD3 billion
Euromonitor, 2015• ASEAN online retail 2014: USD4.4 billion• Expected to reach USD11 billion in 2018
AT Kearney, 2015• ASEAN e-commerce market 2013: USD7 billion• Opportunity to grow to USD89 billion
CLSA, 31 August 2015• Indonesia, Thailand, Malaysia, Philippines B2C & C2C market 2015: USD11.1 billion• Expected to reach USD30 billion in 2019
PAGE 10
Increasing wireless broadband penetration…
...and fixed broadband penetration
Coupled with rising affluence across ASEAN...
CAGR 14-19
MY: 10%
TH: 16%
PH: 16%
ID: 39%
VN: 10%CAGR 14-19
PH: 7%ID: 11%
TH: 7%
MY: 7%
SG: 4%
Sing
apor
e
Mal
aysi
a
Viet
nam
Thai
land
Indo
nesi
a
Phili
ppin
es
182%
50%36% 33%
22%7%
192%
64% 70%82%
47%
10%
2014 2018E Sing
apor
e
Mal
aysi
a
Viet
nam
Thai
land
Phili
ppin
es
Indo
nesi
a
101%
34%27%
23%
8% 6%
101%
36% 39%
30%
13% 10%
2014 2018E
Note: 1. Decrease in nominal GDP per capita is due solely to forecasted depreciation of ASEAN currencies against USD; Source: MPA 2015, Global Insights, Euromonitor
Wireless broadband penetration rate (%) Fixed broadband penetration rate (%) Nominal GDP per capita (USD’000)1
Internet retail sales value (USD billion)
...will drive substantial growth in ASEAN e-commerce market
ASEAN macroeconomic and industry landscape ASEAN e-commerce market potential (cont’d)Increasing internet accessibility and rising economic well-being, amongst others are expected to drive significant growth in ASEAN e-commerce market
2014 2015 2016 2017 2018 20190
5,00010,00015,00020,00025,00030,000
Indonesia Thailand Malaysia Philippines
2014 2015E 2016E 2017E 2018E 2019E50,00055,00060,00065,00070,00075,00080,00085,00090,00095,000
100,000
Singapore Malaysia Thailand Indonesia Philippines
Norm
inal
GDP
(USD
'000
)
PAGE 11
Philippines
Malaysia
Thailand
Indonesia
0 5 10 15 20 25 30 352014A (CLSA) 2019E (CLSA) Series3 Theoretical Potential (A.T. Kearney)
ASEAN macroeconomic and industry landscape ASEAN ecommerce market potential (cont’d)A.T. Kearney forecasts a theoretical ecommerce market size of USD67 – 89 billion for ASEAN in the future, with Thailand and Indonesia, being aCommerce’s key markets, taking the largest stake
E-commerce market size1 (USD billion)
Note: 1. Excluding B2B e-Commerce market size; 2. ASEAN’s theoretical e-commerce potential includes Vietnam (USD5bn to USD7bn) and Singapore (USD7bn – USD10bn); Source: CLSA, A.T. Kearney
8 - 12
12 - 15
25 - 30
10 - 15
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And the growth can be seen in every sector
Source: Online Retailers in Emerging Asia to 2015, ICD Research
Asia Online Product Sales in 2014
PAGE 13
2014 2015 2016 2017 2018
889 872961
1,0901,248
0 - 1426%
15 - 2925%
30 - 4929%
50 -7518%
75+2%
CAGR of 8.9%
Vietnam Indonesia Philippines Thailand Singapore Malaysia
8.9%
7.7%
6.5%
3.8%2.9% 2.8%
Forecast of key economic indicators Nominal GDP growth forecast (USDbn)
Nominal GDP per capita CAGR 2014 – 2018E Breakdown of population by age, 2015
2014 2015 2016 2017 2018
Real GDP growth 5.0% 4.9% 5.0% 5.3% 5.5%
Nominal GDP (USDbn) 889 872 961 1,090 1,248
Nominal GDP per capita (USD) 3,515 3,412 3,717 4,169 4,727
Nominal GDP per capita growth - -2.9% 8.9% 12.2% 13.4%
CPI inflation 6.4% 6.4% 4.1% 4.4% 5.0%
Population (m) 252.8 255.7 258.6 261.3 264.1
Population growth - 1.1% 1.1% 1.1% 1.0%
Strong macroeconomic fundamentals & attractive demographics – Indonesia
Source: Global Insights, United States Census Bureau, National statistics databases, Broker Reports
Indonesia MarketIndustry and macro highlights
PAGE 14
HUGEHow do we grab this potential channel?
PAGE 15
Route to Market Model (Offline vs Online)
Multi types of retailer classification : Modern Channel, General Trade, institution, Wholeseller, store, star outlet
Multi types of online retailer classification: market Place, B2B, B2C daily deals
PAGE 16
Why Fashion or Luxurious Brands?
Social perspective
Communication perspective
• Stratification within social life • Fashion trend vs Fashion victim• Used as Self identity• Used as personality communication• Female population in Indonesia is bigger
then male in regards to online shopping behaviour
• Middle class economy population is growing fast
Market Opportunities
FASHION = LIFESTYLE
IS A
UNIVERSAL NEED
PAGE 17
Why Online?
FASHION = LIFESTYLE
IS A
UNIVERSAL NEED
Customer Behavior Perspective
Decision to purchase: ANYTIME
ANYWHERE
PAGE 18
How do online stores manage the brand?
Best-in-class Value Added Services
Upstream Value
Downstream Value
PAGE 19
How do online stores manage the brand?
PAGE 20
Store Management Capabilities
Deep technological integration with online channels and 3PL providers:• Inventory is allocated between online channels• Sales Orders are transferred live to Fulfilment center for fast fulfilment• Customers are notified about incoming delivery
Own web storeFlash Sales channelsMarketplaces Stores
Consumers Consumers Consumers
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Popshop Solution – Online Sales CampaignsLaunch on any mediaSales Campaign Type
New Release(Launch New Product)
Hot Deal(Discount or Overstock)
Samples(Sign-Up Members)
Pre-Orders(Sign-Ups & PreSales)
Branded Promos(Company Swag)
Social Networks(Facebook, Twitter)
Mobile Apps(Chat, Apps, Games)
Portal & Mobile Apps(Sanook & WeChat)
Email Newsletters(Internal or 3rd Party)
Brand Website (Corporate Sites)
BRAND
aCommerce’s PopShop solution uses a customizable mini webstore allowing to launch online sales campaigns on any media. A fast, low cost and effective way to monetize your online assets.
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2% Indonesia
Channel Management SolutionSolution for the brands and distributors to sell in marketplaces. We provide marketplaces with sourcing, merchant management, cross-border and fulfillment.
Merchandising
Fulfillment
Production
Customer Service
Marketing
$
Reporting
Delivery & COD
Marketplaces & E-tailers
Brands & Distributors
Multi-Channel Management
Marketplace Solutions
Cross Border
PAGE 23
Marketplaces Market Share 2014
2% Indonesia
Source: Nusa Research
PAGE 24
Easier Stock Allocation
Client Warehouse
We set-up online store to sync inventory and process orders similar to a physical retail store. Our specialized fulfillment centers and technology makes it simple to process ecommerce orders.
Retail Store
aCommerce (B2C)Fulfillment Center
Own Website
Customer24 hr. access via
PC or mobile
SIMC
Single Inventory database to handle all transaction from multiple Channel
PAGE 25
Multiple Channels
“Why only use one channel? By using multiple channels you can increase your product visibility and touch points.”
Multiple Channels Sales
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Multi Channel Problem (1) - Managing multiple systems
PAGE 27
Multi Channel Problem (2)
Inventory Allocation Price and promotion
management
Multichannel Sales Order
ProductManagement
PAGE 28
Store Management Capabilities
2% Indonesia
Online Merchandising & Onsite marketing:• Define online merchandising strategy by channel
(assortment, pricing, promotion)• Define and manage inventory needs• Manage promotions in coordination with online
channel to convert visitors into buyers• Manage promotion mechanisms such as bundle sets
or vouchers• Work with marketplace on Onsite Marketing (visuals,
USPs communication)
Day-to-day Store Operations• Create Products in store back-end • Upload product content (description and pictures)• Categorize products• Manage pricing• Create and manage bundle sets• Coordinate with E-commerce warehouse on Supply
Chain and Inventory Management• Coordinate with Customer Service and Marketplaces
on customer inquiries
PAGE 29
Challenges in Channel Management
2% Indonesia
Product• Adding products to multiple channel easily
and effectively• Creating and uploading one content to be
synced across channel for branding or• Determine which content (image and
description) should go to which marketplace
Price• Defining pricing complexity among online
and offline• Managing price from a single platform• Differentiating pricing strategy between
different marketplaces• Must automatically update price for
promotion period
Orders• Managing orders coming from
different channels from a single platform
• Updating order status to inform customer the fulfilment progress
Administration• Managing administration such as
company information from one platform
• Filling up the on-boarding forms and signing up to multiple marketplaces at the same time
Stock• Managing stock seamlessly from one platform
• Multi storage location • Automatically adjusting inventory
across all marketplaces once an order is received
• Maximizing stock availability by using our advance stock algorithm
Reports• Getting insights & sales performance
from our store for a better decision making process
• Forecasting our inventory planning based on our historical sales data
• Market insights on which channel is best for our productLogistics
• Crossborder – Custom Regulation within countries
• Connect with multiple 3rd party logistics providers to fulfill our orders
• Multi type of fullfilment: Crossdocking, fastfulfill, Dropship
PAGE 30
Case Study (ID) – Hush Puppies
3 Channels
Live on September
> 500 SKU
HUSH PUPPIES
> 200 Orders in 1 month
Free amplification on All channels 99% delivery
success rate
Cost ratio 10%
PAGE 31
Case Study (ID) – MatahariMall.com
Soft launch: June 2015 Grand launch: Sept 2015
in 3 months
Nearly 200,000 customers 200,000 products from its 1,200 vendors 10,000 sqm warehouse in Halim
O2O (Online-to-Offline) ServiceLeveraging its huge retail network and chains. Customers can order online and pick-up at their offline stores (Matahari Dept Store & Hypermart), which is also affiliated to Lippo Group.
Source: http://jakartaglobe.beritasatu.com/business/mataharimall-introduces-cash-less-transactions/http://jakartaglobe.beritasatu.com/business/mataharimall-sets-sights-high-booming-e-commerce-scene/
PAGE 32
Case Study (ID) - Bobobobo
>1000 brands in seven category
20% monthly sales growth rate less than two years
Visitors increase to 600% in April’15 from January’15
Targeting Millennials audiences (18 to 35 years old)
Source: https://www.techinasia.com/indonesia-bobobobo-emtek-funding-news/
an upscale lifestyle ecommerce site that sells luxury products from boutique brands in the categories of men, women, living, dining, travel, and events.
PAGE 33
The Online Channel Success Story.....
3
No CAPEX or Much Lower Investment compare to opening an offline store
Much better market penetration to:-untapped market-new brands
-luxury brands-niche brands
Often becomes the fastest growing channel available
Easiness in building a brand awareness through media channels integration
PAGE 34
Thailand 946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500
IndonesiaPT Acommerce Solusi Lestari, Sahid Sudirman Center lantai 17 A Jl Jend Sudirman no 86 Jakarta Pusat 10220
Singapore 74B Duxton Road Singapore 089533
PhilippinesBldg 1A Rey Marketing Compound C. Raymundo Ave, Pasig, 1609 Metro Manila, Philippines
Email: [email protected]: +62818608974Skype: hadikuncoro
Address: Sahid Sudirman Center 17A fl.Jakarta 10220
ContactThank you
Hadi KuncoroCOO