The document summarizes the state of e-commerce in Asia Pacific and India. It discusses key trends seen in India's online marketplaces including the need for localized payment methods and extended shipping options. It also outlines considerations for Indian retailers looking to engage in cross-border trade. The document then summarizes the state of e-commerce across Asia Pacific, highlighting major trends such as the growth of mobile and connected devices. It also discusses challenges such as the explosion in sales channels and the rise of dominant marketplaces in China. Finally, it provides a case study of an footwear company that utilized multiple sales channels and marketplace listings to drive incremental global sales.

1. The State of eCommerce in Asia Pacific and the
Indian Opportunity
Mark Gray Managing Director, ChannelAdvisor Asia Pacific
February 27th, 2014

2. Agenda
 ChannelAdvisor Introduction
 The State of eCommerce in India
 The State of eCommerce in Asia Pacific
 Cross Border Trade Opportunities
 Case Study
2

3. ChannelAdvisor - Overview
3

4. The ChannelAdvisor Solution
4

5. ChannelAdvisor - Global Footprint
ChannelAdvisor Offices

6. Trusted by Thousands of Top Retailers Globally
6

7. The State of eCommerce in India

8. The Players and the Marketplaces
8

9. Trends with India’s Online Marketplaces
9
• Localised payment methods a must,
(COD/CC/Other)
• Extended Shipping Options, (D2D/Free Delivery)
• Low Cost/Discounting expected
• Few large competitors, smaller
manufacturers/retailers are benefiting

10. Global CBT Considerations
India and Cross Border Trade Requirements?
 Logistics?
 Tax implications for retailers?
 Account creation/Multiple languages
 Payment/Bank requirements and Currency
Considerations?
10

11. How Indian Retailers can Benefit
11
• Simplified payment and shipping expectations,
(PayPal/CC/AliPay)
• Higher ASP/minimal discounting/currency stability
• Manufacturers can beat channel conflict and
control their brand
• Take advantage of mature online markets

12. The State of eCommerce in Asia Pacific

13. Four major trends in 2014:
1. Manufacturing/Distribution models: The growth of e-commerce will
create channel conflict for businesses currently operating under a
wholesale distribution model with mono-branded stores in
engagement of retail website content, (ComScore)
2. Connected Devices: Wearable computing devices, Internet
streaming, smart cars and smarter phones are just some of the
few ways the consumer is connected
3. Macro economic recovery and slowdowns shifting: As the EU
and US continue to emerge slowly into recovery and Asia
starts to see some slowdown in manufacturing both markets
will continue to push Cross Boarder Trade initiatives in the
online
The State of E-Commerce in Asia Pacific
13

14. eCommerce Challenges in 2014:
1. The growth of mobile: complementary to desktop web usage and is
facilitating for a customer to be online at all times. Multi-platform
internet usage has led to a huge increase in digital media
consumption in Asia in the past few years. Similarly, it has also led to
a doubling in the
The State of E-Commerce in Asia Pacific
14

15. Channel Explosion
Source: Public reports from eBay, Amazon, Google, Shopping.com and ChannelAdvisor estimates based on our transactional data.
We are here…
15

16.  E-commerce 2017:
con16
Global View

17. eCommerce ”Spice Routes”
Source: Public reports from eBay, Amazon, Google, Shopping.com and ChannelAdvisor estimates
based on our transactional data.
We are here…
17
• Cross-border Internet commerce
between Australia, Brazil, China, G
ermany, U.K. and U.S. will jump to
$307 billion in 2018 from $105
billion last year
• Traditional “spice routes” and
manufacturing exporting is
becoming eCommerce CBT
•E-commerce has gained
significant market share over
recent years: In China for
example: penetration in China
reached ~9% of total retail sales
(excluding auto and petroleum
sales) in 2Q13. As comparison, e-
commerce penetration in the US
has reached ~10-11% of
comparable retail spend

18. Who Owns the Market in China?
©C

19. Cross Border Trade Opportunities

20. Top CBT Routes
Location Number of Shoppers Shopping In
US 16.7 million UK
China 15.1 million US
US 13.2 million China
US 11.6 million Canada
UK 11.1 million US
China 10.4 million Hong Kong
China 9.4 million Japan
China 7.7 million UK
China 7.0 million Australia
US 6.8 million Hong Kong
Source: Nielson/PayPal Study from 2013 20

21. The Rise of Marketplaces: CBT
**11 new marketplaces in China and 2 in S. Korea in last 18 months**

22. Top CBT Routes
Source: Nielson/PayPal Study from 2013 22

23. Croc’s Multichannel Case Study
Situation:
 Innovative, versatile shoe company
 Looking to experiment on comparison shopping channels
 Lacked the expertise and software to manage data online
 Required incremental global sales from sources outside of online store
 Need to control brand online across multiple regions and avoid channel
conflict
Options:
 Continue costly physical store growth to gain customers
 Hire additional IT/Marketing resources to manage online growth
 Look for channel resellers to push products online
©C

24. Croc’s Multichannel Case Study
Solution:
 Propel incremental revenue in the most cost-efficient way,
with as little internal management as possible!
 Decided to utilise marketplaces for customer aqcuisition,
incremental revenue and brand control
 Launched onto multiple Comparison Shopping sites to
increase traffic and keep CPC low
 Decided on a Managed approach where costs could be kept
low but channel expertise exploited, (using ChannelAdvisor
Services)
©C

25. Croc’s Multichannel Case Study
©C

26. Croc’s Multichannel Case Study
©C

27. ChannelAdvisor – How We Can Help You
27
Waves of E-Commerce

28. Thank You!
Questions?