M2 EVENT by Alexandre Dardy - vietnambusiness.tv POTENTIAL FOR E-COMMERCE IN...required for an...
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M2 EVENT by Alexandre Dardy Indonesia Philippines Malaysia Thailand Singapore Vietnam
Transcript of M2 EVENT by Alexandre Dardy - vietnambusiness.tv POTENTIAL FOR E-COMMERCE IN...required for an...
M2 EVENTby Alexandre Dardy
Indonesia PhilippinesMalaysia ThailandSingapore Vietnam
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TODAY’S QUESTION
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The evolution ofecommerce industryfinancials are re-inforcing this optimism
WHAT WE GONNA TALK ABOUT TODAY
The macro economicsrequired for an e-commerce boom areevolving, in VN, in theright direction
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E COMMERCE KEY FACTORS TO LOOK AT
VIETNAMESEECONOMY
INTERNETSHOPPING
ACCESS
GEOGRAPHY/POPULATION
DISTRIBUTION
PAYMENTMETHOD
5Source: Euromonitor
• VN is one of the mostpromising countrieswhen it comes to GDPevolution… hence avery promising countryoverall
0.0
2.0
4.0
6.0
8.0
10.0
2010 2011 2012 2013 2014 2015 2016 2017 2018
GDP growth - %
Indonesia Malaysia PhilippinesThailand Vietnam
VIETNAMESE ECONOMYHow does overall VN economy fares vs. peers
6Source: Euromonitor
Re infrastructure, SGP andMY are in a league of theirown
Within the PH/TH/ID/VN, VNis at par with a strongestInternet penetration butlowest Smartphonepenetration (however, onthat last point, smartphonesales as a % of phone sales isthe highest in VN)0
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40
60
80
100
2010 2012 2014 2016 2018
Internet penetration - %
ACCESS TO ONLINE SHOPPING
0
35
70
105
140
175
2012 2013 2014 2015 2016 2017 2018
Smartphone penetration -%
7Source: Euromonitor
Is VN geography and population distribution “ecommerce friendly”?
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20
40
60
80
100
2010 2012 2014 2016 2018
% population in urban area
Indonesia MalaysiaPhilippines ThailandVietnam
VN is the least urban of thecountries
GEOGRAPHY AND POPULATION DISTRIBUTION
Rural areas being more difficultto deliver to, this does not playin e-commerce favor
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Vietnam is neither easier or more complex to tackle vs. TH, ID or PH. Of course Malaysiaand Singapore are far easier from that point of view. Particularity of VN population is itbeing “bipolar”
GEOGRAPHY AND POPULATION DISTRIBUTION
Vietnam Thailand Philippines
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• VN is the least advanced interms of CC penetration
• Almost all transactions onCash-on –delivery
• This impacts the cancellationrate (i.e. people order butdon’t show up at deliverytime, as they are notcommitted whatsoever)
• This reduces the potential for“very high tickets”
… but “cash-on-delivery” createstrust
0
10
20
30
40
2010 2011 2012 2013 2014 2015 2016 2017 2018
Credit card penetration - %
Indonesia Malaysia Philippines
Thailand Vietnam
Source: Euromonitor
PAYMENT METHOD
CONCLUSION
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2Do Vietnamese peoplehave access to Internet
shopping?
3To what extent is VN
geography/ populationdistribution/ road infra“e-commerce friendly?”
4How do payments
methods differ in VN vs.other countries?
Internetpenetration
Smartphonepenetration
Share of urban
Geographicaldistribution
Credit Cardpenetration
Ecommerce friendliness vs. TH/PH/ID
At parLower Higher
Looking at current state,VN is at par with his“fellow countries” andhence can be consideredas e-commerce relevantas any other APACcountry
1 How does overall VNeconomy fares vs. peers?
GDP evolution
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E- COMMERCE EVOLUTION IN SEATHROUGH THE STORY OF LAZADAIN THE LAST 3 YEARS
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ThailandPop: 68m
MalaysiaPop: 30m
IndonesiaPop: 254m
PhilippinesPop: 108m
SingaporePop: 6m
China
VietnamPop: 93m
Lazada is present in 6countries: Vietnam,Indonesia, Thailand,Malaysia, Philippinesand Singapore
LAZADA SEA AT GLANCE
KH/ ShenzhenSourcing Hub
Lazada was launched 3 years ago, and has since thentackled the 3 structural eCommerce challenges in SEA
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Logistics•Undeveloped infrastructure•Geographic diversity•Scattered logistics networks
Uneducated retailecosystem•Inexperienced local merchants•Lack of resources
Payments•Low credit card penetration•Local alternatives preferred•Cash-on-delivery needed
Lazada has developed successful solutions to addressthese…
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END-TO-END SOLUTION VIA ONE RETAIL CHANNEL• Fully integrated online platform for SMEs and larger sellers to manage product assortment, pricing,
promotions and fulfilment• Lazada has developed a large offering to support SMEs selling on Lazada: Online Lazada University, live
support and analytics to provide insights on sales, marketing and pricing• No upfront investment is needed to use the marketplace platform• Marketplace now accounts for approximately 75% of overall sales, and crossed 10,000 sellers in Dec 2014
SECURE & TRUSTED PAYMENTS PLATFORM• Pioneer of COD (Cash-on-Delivery) with close to 100% coverage in all countries• Localized payments methods catering to each market• Lazada’s own secure online payment service, helloPay
BEST-IN-CLASS LOGISTICS & SUPPLY CHAIN NETWORK• 8 warehouses, over 50 delivery hubs covering 80 cities and partnerships with 60 express courier and
transport companies• Serving both domestic and international brands and merchants using a combination of international drop
shipping and inventory model• Broad spectrum of supply chain solutions: inventory, cross-docking, drop-shipping and fulfillment by
Lazada
UNEDUCATED RETAILECOSYSTEM
solutions
LOGISTICS
PAYMENTS
… resulting in undisputed pan-Southeast Asia marketleadership
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ThailandPop: 68m
MalaysiaPop: 30m
IndonesiaPop: 254m
PhilippinesPop: 108m
SingaporePop: 6m
China
#1
#1 #1
#1
#1
Lazada B2C eCommercemarket position
VietnamPop: 93m
HK / ShenzhenSourcing hub
• The online destination site inSoutheast Asia for customers &brands
• Launched 5 markets in March2012: Indonesia, Malaysia,Vietnam, Philippines, Thailand andhas established an ecommerceleader position since then
• Launched Singapore in May 2014
• One-stop shop to access locally andinternationally sourced with over10,000 sellers as of Dec 2014
• Backed by leading sectorspecialists and investors includingRocket Internet, Tesco, Temasek,Investment AB Kinnevik, SummitPartners and J.P. Morgan AssetManagement
Undisputed pan-Southeast Asia market leader addressinga ~550m population
Lazada valuation has reached >1bUSD within 3y, whichplaces Lazada among recent industry success stories
161Source: Google Trends, Similarweb; GA
0. 1.5 3. 4.5 6.
Spotify
Lazada
Uber
Snapchat
Nb of years required to reach 1bUSD valuation
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IN VIETNAM, IN PARTICULAR,THE NUMBERS ALSO SHOW ANOPTIMISTIC TREND
ONLINE E COMMERCE MARKET SIZE ISCONSTANTLY GROWING IN THE LAST 5 YEARS
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VIETNAM IS IN TOP 3EMERGING INTERNET
MARKETS IN 2015 WITHMORE THAN 39 % OF
GROWTH
“ A dynamic hub ofInternet commerce and marketing “ -
EUROMONITOR INTERNATIONAL0
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400
600
800
1000
2011 2012 2013 2014 2015 2016
Market size (Mil. USD)
Source: Euromonitor
THE GROWTH IS ACROSS ALL SECTORS
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0 2000 4000 6000 8000
Apparel & Footwear
Consumer Electronics
Consumer Appliances
Media Products
Others
Market size across sectors (bil. VND)
2014 2016
Source: Euromonitor*The data exclude hotel booking, travel packages, online insurance & movie tickets
In Vietnam, Lazada enjoys a market position with a36% market share
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0%
10%
20%
30%
40%
Lazada.vn Zalora.vn Ebay.vn mizutiki.vn chodientu.vn
Market share of top 10 ecommerce market places
Source: 2014 VECITA report
With traffic and sales have growing tremendously in2014, especially in Q4
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Revenue
>450% growth YOY
Traffic
550% growth YOY
500% growth YOY
LAST BUT NOT LEAST: THE ECO SYSTEM OF ECOMMERCE IS BEING ESTABLISHED
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BRANDSBRANDS RETAILERSRETAILERS
SERVICEPROVIDERS
SERVICEPROVIDERS
ECOSYSTEM
…A GROWING NUMBER OF PARTNER TO CREATEA STRONG ECOMMERCE ECOSYSTEM
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Strictly Confidential
Our recent partnerships And more to join.
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TODAY’S QUESTION
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MY ANSWER IS
