The MULTI CHANNEL REALITY IN ASIA · Fast facts on e-commerce in china • China is already the world’s largest e-commerce market and will account for ~ half of all e-commerce growth

The MULTI CHANNEL REALITY IN ASIA

A Phenomenal Success

From US$ 10MN to US$ 1 Billion in under 5 Years

Buys Myntra, the largest fashion e-commerce store

Cash on delivery fundamental to success

And anytime, anywhere

Online retailing gaining critical mass

• Asia will lead the world in B2C e-commerce sales, accounting for 41% share of

business by 2016

• China’s B2C e-commerce transactions grew by 73% in first quarter of 2012,

BCG estimates that by 2015 e-commerce sales will account for 8% of total

sales

• Traditional retailers have joined the e-commerce bandwagon

China’s largest domestic appliance retailer, Suning derived 5% of its total sales from its e-commerce

venture in 2012

• Fast growing smart phone penetration has made M-commerce viable and

already 20% of all e-commerce transactions in Japan are done via mobile

Growth rates in ASIA double global numbers

Source: The Economist Intelligence Unit.

Chart 3: CAGR in retail sales, 2013-18 (%)

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The Shape of Things to Come

Online efforts of traditional retailers are loosing

ground in APAC

Driving the growth

Growth of Middle Class

Mobile & Social, Growth & engagement

Analytics & Retargetting

Leapfrogging the 3rd & 4th tier markets

The China Factor

54% of global middle class will be in APAC in 2020

Chart 1: Size of the global middle class*(millions of people)

Source: World Bank.

*Households wi th daily expenditure between US$10 and US$100, measured using PPP.

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Middle East & North AfricaCentral & South AmericaNorth AmericaEuropeAsia Pacific

203020202009

42% of global middle class spending will be in APAC in 2020

wearesocial.sg • @wearesocialsg • 10 We Are Social

NUMBER OF ACTIVE MOBILE

BROADBAND SUBSCRIPTIONS

MOBILE BROADBAND SUBSCRIPTIONS AS A

PERCENTAGE OF THE TOTAL POPULATION

ACTIVE SOCIAL MEDIA USERS ACCESSING

SOCIAL MEDIA ON A MOBILE DEVICE

PENETRATION OF MOBILE SOCIAL AS A

PERCENTAGE OF THE TOTAL POPULATION

JAN 2014

• Sources: US Census Bureau, ITU, Facebook

# #

APAC MOBILE INDICATORS

645M 16.6% 943M 24.3%

• Sources: US Census Bureau, Tencent, Facebook, ITU

Explosion of Mobile (China, India & SE Asia )

Not just ownership, usage too

APAC save for South Asia has caught up with population


SHARE OF GLOBAL USERS JAN 2014

• Sources: US Census Bureau, InternetWorldStats, CNNIC, IAMAI, Tencent, Facebook, Vkontakte, ITU, CIA

NORTH AMERICA

5% 11%

11% 5%

CENTRAL AMERICA

3% 4%

3% 3%

SOUTH AMERICA

6% 10%

7% 8%

WESTERN EUROPE

6% 10%

12% 8%

CENTRAL & EASTERN EUROPE

5% 6%

7% 7%

CENTRAL ASIA

2% 1%

1% 2%

EAST ASIA

22% 37%

29% 22%

SOUTH ASIA

23% 6%

11% 18%

MIDDLE EAST

4% 4%

4% 5%

AFRICA

16% 4%

8% 11% OCEANIA

1% 1%

1% 1%

POPULATION

SOCIAL MEDIA USERS

INTERNET USERS

MOBILE SUBSCRIPTIONS

SOUTHEAST ASIA

9% 9%

7% 10%


SOCIAL PENETRATION BY DEVICE JAN 2014

• Sources: US Census Bureau, Facebook, Tencent

ACTIVE SOCIAL MEDIA USERS ACCESSING SOCIAL MEDIA ON

ANY DEVICE AS A PERCENTAGE OF THE TOTAL POPULATION

ACTIVE SOCIAL MEDIA USERS ACCESSING SOCIAL MEDIA ON

MOBILE AS A PERCENTAGE OF THE TOTAL POPULATION

25.0% 24.3%

ACTIVE MOBILE SOCIAL MEDIA USERS AS A PERCENTAGE OF

TOTAL ACTIVE SOCIAL MEDIA USERS

97.3%

Q Q

Mobile Social Will be the biggest driver

Ad Spends have followed the screen time trends – will soon be in line with big markets in terms of digital & mobile spending

Concurrent Multi screen usage in all markets opens up

engagement opportunities for retailers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%China

Malaysia

South Korea

India

Thailand

Indonesia

PhilippinesSingapore

Vietnam

Hong Kong

Taiwan

Australia

Japan

Mobile phone

Laptop PC

Desktop PC

Tablet

Source GWI 2014 : Amongst internet users

Devices used while

watching TV

HomePlus Korea taps into Mobile

Websites and online reviews have overtaken as first source of brand discovery


In which of the following ways are you most likely to find out about new brands

APAC leads the world in Researching and purchasing products online

Apparel and food are the most often purchase products

online. Half of Chinese consumers buy clothes online


Products researched online

Beyond financial rewards, Asian consumers also want

greater interaction and two way interaction from retailers


Consumer expectations from retailers

The Chinese Reality

“By 2015, e-commerce transactions in China

are projected to hit US$540 billion, or 7.5 per

cent of total retail transactions, and by 2020,

China’s e-commerce market is forecasted to

be larger than those of the US, Britain, Japan,

Germany, and France combined.”

Fast facts on e-commerce in china

• China is already the world’s largest e-commerce market and will

account for ~ half of all e-commerce growth in next 4 years

• Alibaba’s Taobao is the largest ecommerce company in the world,

more than twice the size of Amazon and eBay combined, with a

catalogue of 800 million products, and US$160 bn dollars in

revenue in 2012. o 2013 Singles’ Day (November 11th) saw US$5.7 billion spent in one day on

Taobao and Tmall

o With Xiaomi alone selling US$100 million worth of phones via Weixin promotion

• Alibaba’s payment system, Alipay, accounts for 50% of all e-

payments and is soon to reach a run-rate of a trillion dollars a

year (PayPal is US$180 billion).

China leads the way

Internet propelling the growth

Leapfrogging the urban-rural divide

3rd tier & 4th tier cities are not far off

82% of shoppers drive the largest segment

How Tencent Uses WeChat to Target Alibaba

By Doug Young (appeared in Forbes)

Alibaba founder Jack Ma’s worries about the rapid rise of mobile

instant messaging service WeChat appear to be well founded, with

word that Tencent’s wildly popular platform will create an exclusive

shopping channel for Alibaba’s chief rival JD.com. This kind of deal

must certainly be Ma’s biggest nightmare, as it will instantly link JD,

China’s second largest e-commerce company, with the hundreds of

millions of young Chinese who regularly use WeChat to

communicate. What’s more, WeChat has shown itself quite capable

of converting its users into shoppers who could easily become JD

customers.

THANK YOU

The MULTI CHANNEL REALITY IN ASIA · Fast facts on e-commerce in china • China is already the world’s largest e-commerce market and will account for ~ half of all e-commerce growth

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