eCommerce Market Entry Strategies to Successfully Launch your eCommerce Business Across Asia-Pacific
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eCommerce Market Entry Strategies for Brands and Retailers – Practical Advice on How to Successfully Launch your eCommerce Business across Asia-Pacific. ...

eCommerce Market Entry Strategies for Brands and Retailers – Practical Advice on How to Successfully Launch your eCommerce Business across Asia-Pacific.

This was presented by Marcelo Wesseler, Senior Vice President of eCommerce, Singapore Post Ltd and Pranay Mehra, Vice President, eCommerce & Marketing, Singapore Post Ltd at #adtechasean

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eCommerce Market Entry Strategies to Successfully Launch your eCommerce Business Across Asia-Pacific Presentation Transcript

  • 1. eCommerce Market Entry Strategies to Successfully Launch your eCommerce Business Across Asia-Pacific Marcelo Wesseler, CEO, SingPost eCommerce Pranay Mehra, Vice President, SingPost eCommerce
  • 2. AGENDA • Overview • Market entry success factors & considerations 1. eCommerce Basics? 2. Which markets should you enter? 3. How to size your opportunity and create a business case? 4. What are the market entry options & platforms? 5. How to choose the right payment options & prevent fraud? 6. What about logistics, customs, duties, & legal framework? 7. How do you market your site & drive traffic? • Summary • Q&A
  • 3. $3 billion market cap. A+ Credit Rating* Full Service eCommerce in Asia Pacific Localized front end, payments, order & store management Logistics Centers15 3 Call Centers 8Languages & Dialects 600+ eCommerce Clients
  • 4. eCOMMERCE SUCCESS FACTORS • Keep It Simple and Measure Daily • Revenue = Visitors * Conversion * AOV • Success = - EBIT or Net Margin - Customer Lifetime Value > CAC - GM after logistics & marketing spend - Owning customer data
  • 5. CUSTOMER EXAMPLES
  • 6. WHICH MARKETS SHOULD YOU ENTER?
  • 7. WHICH MARKETS SHOULD YOU ENTER?
  • 8. MAJORITY OF US SITES ARE LEAPFROGGING TO ASIA PACIFIC WITH ECOMMERCE
  • 9. HOW TO SIZE YOUR OPPORTUNITY? Pragmatic sizing approach: • Your international traffic * 5 • Consider brand / product restrictions • Regulatory approvals • Local Keyword analysis • If you have offline sales, use % of retail Korea ~15% UK ~10% US ~9% China ~9% Australia ~6% Southeast Asia ~2%
  • 10. IMPACT OF CUSTOMER EXPERIENCE ON REVENUE Don’t forget: success = positive GM after logistics & marketing cost! *include customer care cost in logistics cost SOURCE: McKinsey & Company, SP eCommerce Research
  • 11. US SITES WITH ECOMMERCE PRESENCE IN ASIA CAN IMPROVE CUSTOMER EXPERIENCE Best addressed through setting up a localized eCommerce operation in- house or outsourcing to a regional end-to-end provider. SOURCE: McKinsey & Company, SP eCommerce Research
  • 12. Option 1: • Separate international checkout • Vendor buys on consumer’s behalf Option 2: • Outsource via vendor-branded checkout with fraud protection; • Careful! Keep customer ownership • In-house local team • Language • Marketing • Free local shipping • Free local returns • Omni-channel enablement, e.g. fulfill from stores • Domain/ Language • Payments • Fast regional shipping • Local returns • Hybrid models (drop ship, fulfillment by market) • Franchise option for brands WHAT ARE THE MARKET ENTRY OPTIONS & PLATFORMS?
  • 13. WHAT ABOUT LOGISTICS, DUTIES & LEGAL FRAMEWORK? De Minimis (in USD) – The challenge with custom duties. Other regulatory challenges… • Complex rules (e.g. import approvals for many commodities like books, etc) • Valuation concerns • Uneven application of rules • Payment options & fraud • Requirement to setup legal entities to trade in local currency and obtain domain • Foreign ownership restrictions SOURCE: Singapore Post Research
  • 14. HOW DO YOU MARKET YOUR SITE & DRIVE TRAFFIC? Seasonal Marketing Spend Marketing Costs Increasing Rural Gold Mines equals High CLV Focus on Organic & Brand Traffic
  • 15. SUMMARY • Free, fast shipping & local returns • Test the waters before you jump • Carefully select markets and platform • Know the regulatory & product restrictions • Marketing will be your biggest challenge
  • 16. THANK YOU Feel free to get in touch with us: MARCELO marcelowesseler@singpost.com PRANAY pranay@singpost.com