• Save
DHL Emerging Markets eCommerce 2014
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

DHL Emerging Markets eCommerce 2014

on

  • 658 views

 

Statistics

Views

Total Views
658
Views on SlideShare
656
Embed Views
2

Actions

Likes
1
Downloads
3
Comments
0

1 Embed 2

https://www.linkedin.com 2

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

DHL Emerging Markets eCommerce 2014 Presentation Transcript

  • 1. Online boom in emerging markets: Opportunities and challenges of global eCommerce Launch Global E-Tailing 2025 – Workshops Berlin, May 20, 2014 Thomas Kipp - CEO eCommerce
  • 2. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 2 Our customers DHL eCommerce Film einbinden
  • 3. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 3 In the world of eCommerce, decision power is switching from manufacturers to consumers Consumers Consumers want instant delivery at a location they choose Consumers are ordering via all channels and taking control of payment methods Consumers influence what is produced, configuring the last detail
  • 4. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 Simplification & Ease of Use Consumers expect simple, easy, self- explaining solutions 4 Consumers are driving developments all along the value chain Mobile Commerce Consumers go online anywhere at any time to shop from any place New Customer Touchpoints Consumers expect new customer touch points to make shopping exciting and convenient X-Border Trade Consumers buy more and more global. Cost transparency and digital access to new markets will further support this preferences Social Commerce Consumers like a personalization of products and services based on their preferences Enhanced Logistics Consumers demand flexible pick up and delivery times and simple return solutions Data Security Consumers like payment and personal data to be secured; Anonymous shopping becomes of interest
  • 5. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 5 Growth of internet retail1) in top emerging markets Source: Euromonitor International; 1) Merchandize only (excluding home shopping), domestic and cross-border Emerging markets very promising due to strong growth and still low share of online vs. total retail 1 Indonesia 0 India 2 Taiwan 5 China 75 83 Thailand ASPAC emerging top 5 2013 2018 Share of online vs. total retail CAGR 11% 25% Colombia 8 Mexico LATAM emerging top 5 Argentina Brazil 16 4 1Chile 2 1 1 240 1 4 6 228 9 16 4 2 4 33 9% 5% 1% 12% 2% 15% 1% 13% 5% 14% 4% 17% 3% 10% 6% 28% 2% 25% Key insights • China continues to be the largest market over the next years with an exceptionally high growth rate • Overall, emerging markets very promising due to strong growth and still low share of online vs. total retail (except for CN and TW) • DHL will step into further emerging markets in ASPAC and LATAM to secure market position EUR bn
  • 6. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 By 2018, China will make up > 50% of total cross-border eCommerce revenue The US will become runner-up CAGR 24% 2018 230 2013 80 6 PayPal estimates that cross-border eCommerce is growing with a 24% CAGR and has identified 5 types of shoppers Cross-border eCommerce revenues in key regions1) EUR bn 5 types of online shoppers habe been identified by PayPal Source: PayPal Modern Spice Routes study; 1) Only physical goods and related eCommerce services considered Fearless Adventurers Efficient Explorers Value Voyagers Safety Seekers Deal Hunters
  • 7. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 7 Opportunities and Challenges in emerging markets Payment: Although credit card usage on the rise, Cash-On- Delivery still disproportionately used Trust-building in eCommerce Delivery: In Russia and China courier has to wait until the recipient has checked whether fashion products ordered are the right size Infrastructure: Although China and India are vast countries, acceptable time from online order to delivery 5- 6 days only Lack of comparable address systems Demographics: India and China to provide >50% increase in global workforce with college education by 2030 Continuing urbanization: in China expected to reach 70% by 2030 Growing consumer base: global middle class set to grow 2.6 fold by 2030 with 90% coming from Asia Pacific Internet penetration to increase constantly Smartphone penetration to boom ChallengesOpportunities
  • 8. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 8 India‘s huge distance selling potential has still to be unlocked • Population (2013): 1.3bn • Internet penetration (2012): 12.6% • Smartphone penetration (2012): 12.8% 2011 2012 2013e 2018e 1.7 2.0 2.4 4.2 2014e 2.8 +12% p.a. Market factsDistance selling market development1) EUR bn Country facts Source: Euromonitor International, DHL eCommerce Shop the World study; 1) merchandize only • Distance selling is only ~1% retail share… Home- shopping Online shopping …it is 17% in South Korea • 39% search on social media platforms for product information… …compared to only 15% of all online shoppers on a global scale • 48% of online shoppers (very) often pay cash on delivery… …vs. only 12% globally • 10% of distance selling sales are fashion goods in … …whereas the share is 30% in Germany
  • 9. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 9 In Brazil, the largest distance selling market in Latin America by far, online shoppers on average place 7 orders per year • Population (2013): 198.4mn • Internet penetration (2012): 49.8% • Smartphone penetration (2012): 26.3% 2011 2012 2013e 2018e 6.4 7.4 8.6 16.3 2014e 9.7 +14% p.a. Market factsDistance selling market development1) EUR bn Country facts Source: Euromonitor International, DHL eCommerce Shop the World study; 1) merchandize only • By far the largest market in Latin America… Home- shopping Online shopping …yet only as big as Swiss and NL markets combined • Brazilian shoppers place 7 online orders per year… …compared to 29 online orders in the UK • 57% of shoppers (very) often shop in the manufacturer’s or specialized dealer’s online store… …whereas shoppers on a global scale prefer online marketplaces • 39% of distance selling sales are consumer electronics… …vs. only 7% in the USA
  • 10. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 10 Although both emerging markets, there are huge differences in the online shopping behaviour between India and Brazil Source: Euromonitor International, DHL eCommerce Shop the World study; 1) merchandize only 4.5% Local credit cards 9.3 3.3% 9.4% Cash on delivery 5.0 6.5% Share of mobile commerce in eCommerce sales1) Preferred payment method Acceptable no. of days from online order to delivery Ratio orders / returns Channel Payment Delivery Returns
  • 11. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 11 Conclusion • A growing middle class and increasing internet and mobile penetration will unlock the distance selling potential in the emerging markets • These new online shoppers are different from those in mature markets and merchants will have to listen to their wishes to become successful • Logistics companies as well have to adapt to local online shoppers’ preferences in offering flexible payment, pick-up and returns solutions as well as reliable and trustworthy delivery
  • 12. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 12 THANK YOU
  • 13. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 13 BACKUP
  • 14. DHL | PageLaunch Global E-Tailing 2025 | Workshop | May 20, 2014 14 In Mexico, the second largest market in Latin America, online shoppers only placed 6 orders per year in 2013 • Population (2013): 116.1mn • Internet penetration (2012): 38.4% • Smartphone penetration (2012): 36.8% 2011 2012 2013e 2018e 2.0 2.9 4.1 8.9 2014e 5.1 +17% p.a. Market factsDistance selling market development1) EUR bn Country facts Source: Euromonitor International, DHL eCommerce Shop the World study; 1) merchandize only • Second largest market in Latin America… Home- shopping Online shopping …yet only half the size of that of Brazil • Direct selling market in 2013… …bigger than total distance selling market • Mexican shoppers place 6 online orders per year… …compared to 29 online orders in the UK • 55% of orders placed online via PC… …but orders per phone, mail, email or directly at the shop over proportionally high • 37% of distance selling sales are media products and consumer electronics… …vs. only 22% on a global scale