Your SlideShare is downloading. ×

Opportunitiies & Challenges by Lim Lai Hock IETS2011

743

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
743
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Opportunities and ChallengesIndonesian E-Tourism Summit 2011Lim Lai HockDirector, Online Segment and Solutions1
  • 2. The world’s largest Internet user base Source: Internet World Stats2
  • 3. The world’s fastest-growing middle-class3
  • 4. Forecasted Internet Internet Internet Internet Users Internet Users Penetration User Country Penetration in 2009 by end of 2010 Rate in 2011 Growth Rate (2009) (Million) (Millions) (Forecast) (2009 to 2010)* China 29% 32% 384 420 9% Japan 75% 78% 96 99 3% India 7% 8% 81 89 10% Korea 71% 81% 37 49 30% Indonesia 13% 13% 30 31 3% Philippines 25% 30% 24 30 24% Australia Indonesia’s Internet penetration rate is 78% 81% 17 18 7% Thailand 25% 26% 16 18 9% discouraging Hong Kong 68% 69% 5 5 4% Singapore 73% 78% 3.5 3.7 9% … until you compare it with India Source: Internet World Stats, *Other Internet Statistics Websites (CNIC, ITU, NIIDA) and EDC Analysis4
  • 5. Business fundamentals are unchanged Same challenges apply5
  • 6. Know the customers6
  • 7. Why do consumers shop online? 88% Being able to shop at any time 82% 83% Get the best Top Being able to prices three shop easily Reasons for shopping onlineSource: Visa e-Commerce Tracking Survey 087
  • 8. How loyal are online shoppers? 28% 30% Yes Sometimes No 42% You can increase retention rate to 72%8
  • 9. What drive away consumers?9
  • 10. It’s not just about who holds the mouse.10
  • 11. Know the risks11
  • 12. Travel is hardest hit by online fraud Fraud Spend Penetration12
  • 13. Some e-commerce myths• Myth: All payment partners have same capability, choose the one with lowest fees & MDR• Myth: Payment partner will absorb all risks so I can maximize my profit• Myth: There’s ZERO risk doing business with us13
  • 14. Hard facts about Online Fraud Risks • Airlines (Source: CyberSource) – US$5.5 Billion in lost sales volume – US$1.5 Billion written off, for payment fraud (~1.2% of total revenue) • Online Merchants (Source: Sage Pay) – 68%: Payment fraud most daunting to manage – 60%: Unaware if their provider is Bank Certified, PCI Compliant, and 3D Secure Certified • As a result, the merchant is non-compliant and liable14
  • 15. More hard facts • Online travel merchants • fraud losses between 0.2% to 5% of top-line revenue • Non-compliance of PCI can attract fines of 10K-20K euro from Visa and Mastercard • Online payment is strategic to online business model  Unanimously voted by leading online merchants15
  • 16. Build and maintain a competitive advantage16
  • 17. Scalability matters … more than ever! • Traditional business growth potential is linearly constrained by your resources • Online business growth potential can grow exponentially practically overnight • Can existing business process cope if business volume doubled overnight?17
  • 18. Where can you drive more efficiency? 18% Engage Book Finalize 47% Finishing 18% Ticketing Others 7% 7% 3% Average from a set of travel agencies around world and within Asia18
  • 19. Drive online as a profitable business As much as 30% of total ticket volume can be lost due to human errors (eg ADMs) Online business profitability should be managed even more aggressively than your traditional business19
  • 20. Thank You20

×