E-commerce = Trade An Express Industry Perspective

3rd Global AEO Conference, 11-13 May 2016, Cancun, Mexico

Agenda

• Express Delivery Services

• E-commerce in Numbers

• E-commerce – Suggestions

Global reach – flexible model

Door-to-door services

Express Delivery Services

The express industry utilizes sophisticated networks to collapse the time

and distance between places thereby globally connecting business.

Shipments from anywhere, to anywhere can be delivered within 24-72 hrs

High Value-added, Time-guaranteed

Engineering & Manufacturing 30%

Other Services 14%

Transportation 13%

Consumer Goods 11%

Retail 10%

Health Services 8%

Financial Services 8%

Automotive & Transport Equipment

3% Textiles 3%

Printing 2% Computer Services 1%

Industry Sectors, in % of Revenue, 2013

Source: Frontier Economics, Express Delivery and Trade Facilitation: Impacts on the Global Economy, January 2015

5

The Express Delivery Services Industry

• 30 million shipments daily

• 220 countries and territories

• 1,700 aircraft

• 200,000 ground vehicles

• 3 million jobs world-wide (direct, indirect, induced)

Source:

Frontier Economics, Express Delivery and Trade Facilitation: Impacts on the Global Economy, January 2015

Oxford Economics, The Impact of the Express Delivery Industry on the Global Economy, September 2009

Agenda

• Express Delivery

• E-commerce in Numbers

• E-commerce – Suggestions

Size of E-Commerce in 2016 and beyond

7

25.1%

2014

1,336

26.3%

18.7%

2018

3,015

20.7%

2017

2,498

2019

3,578

21.9%

2016

2,050

22.7%

2015

1,671

B2C e-commerce Sales Worldwide, 2014-2019 billion USD and % change

Note: includes products or services ordered using the internet via any

device, regardless of the method of payment or fulfillment; excludes travel and

event tickets

B2C ecommerce sales % change

• Global retail sales in 2016 is

expected to reach close to 24

trillion US Dollar

• Global e-commerce sales in

2016 will surpass 2 trillion US

Dollar, 8,6% of total retail

sales

• By 2019, e-commerce retail

sales will have reached a share

of12.8% of total retail sales

Summary

Source: Worldwide e-commer ce retail sales, eMarketer, Dec 2015, www.eMarketer.com

Size of E-Commerce in 2016 and beyond

8

Source: Worldwide e-commer ce retail sales, eMarketer, Dec 2015, www.eMarketer.com

281 318351 386

418449

321367

416467

522580

647

878

1.152

1.488

1.892

191511

2019

2.336

2015 2014 2018 2017 2016

Latin America

Middel East & Africa Central & Eastern Europe

Western Europe

North America

Asia-Pacific

Note: includes products or services ordered using the internet via any

device, regardless of the method of payment or fulfillment; excludes travel and event tickets

B2C e-commerce Sales Worldwide by Region, 2014-2019 billion USD and % change

• Asia-Pacific is by far the biggest

retail market with sales in 2016 of

9.3 trillion US Dollar, or 39% of the

global retail sales

• Asia-Pacific is the fastest growing

e-commerce market with 31.3% in

2016 followed by Middle

East/Africa (27.1%) and Latin

America (21.6%)

• In Asia-Pacific e-commerce retail

sales have reached 12.4% of

overall retail sales in 2016,

compared to 2.6% in Latin America

Summary

1,336

3,015 2,498 3,578

2,050

1,671

Agenda

• Express Delivery

• E-commerce in Numbers

• E-commerce – Suggestions

Observations

• For businesses e-commerce is an additional sales channel

and an opportunity for growth

• Regulators see e-commerce (globalization) as a threat

• More trade barriers and restrictions than enablers

• AEO programs are not used to their full potential

• Automation and intelligence led, risk-based selectivity still

in its infancy

E-Commerce enabling Suggestions for

Governments

• Collaboration

• Coordination

• Facilitation

• Smarter Collection

• Simpler Transaction

• Automation

• Competition

• Globalization

• Harmonization

12

Global Express Association

info@global-express.org

www.global-express.org

Thank You!