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KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
KPMG Digital Commerce in Asia 2014
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KPMG Digital Commerce in Asia 2014

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KPMG Digital Commerce in Asia 2014

KPMG Digital Commerce in Asia 2014

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  • 1. Digital Commerce in Asia – State of the Market.
  • 2. 2© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. What is the current state of dCommerce in Asia?
  • 3. 3© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Asia Digital Statistics Source: Internet World Stats, Mobi Thinking, Asia population (2013) Asia internet users (2013) Mobile device/internet users (2013) Asia social media users (2013) 1,798m 4,282m 920m 851m Asia has big potential given the number of young people and its internet & mobile penetration rate
  • 4. 4© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Most Common Types of Products Sold online in Asia 0% 10% 20% 30% 40% 50% 60% 70% 80% Consumer Electronics Books Clothing & Apparel Household goods Office Supplies Consumer Packaged Goods Sporting Goods Pet Supplies Food & Groceries Tools & Home Luxury Goods Asia sold USD383.9B on B2C E-commerce Sales in 2013 with China leading the pack 0 200 400 600 800 1000 1200 1400 China Japan South Korea India Indonesia Other 2013 2014 2015 2016
  • 5. 5© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. China Digital Statistics 2 3 Source: “Winning the $30 trillion Decathlon: Going for Gold in Emerging Markets,” McKinsey Global Institute; KPMG analysis Taobao.com TMall.com Baidu Amazon China Weibo Sina Major players include homegrown companies as well as Western names: E-commerce is radically changing Chinese consumer habits. By 2017, China will be by far the most “online nation” in the world China population (2013) Chinese internet users (2013) Mobile device/internet users (2013) Chinese social media users (2013) 618m 1,393m 500m 598m
  • 6. What is driving dCommerce?
  • 7. 7© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. China Mobile Revolution
  • 8. 8© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Key Technology Drivers for eCommerce in China • 289 Payment companies • Innovative Financing Products • 618M Internet Users • 2.68K Internet Sites • Time spent on Internet: 20.5 hrs/week • RMB 45.5B Mobile Payment Transactions • 289 Payment Co • Innovative Applications • 1.23 B Mobile Users • 382M Smart Phone Users INTERNETPAYMENTS&APPS MOBILESOCIAL • 598M Social Media Users • Time Spent: 62 min • Tencent Wechat – hottest mobile social
  • 9. 9© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. What are some of the applications seen in the market?
  • 10. 10© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Market Insights – Same but different Top10 Most Popular Social Media - China Qzone – a social networking website created by Tencent. It allows users to write blogs, keep diaries, send photos, listen to much and watch videos. Estimated to have 800M users with 500M active users. Tencent Weibo – a Chinese microblogging website launched by Tenchent. Users may broadcast a message including 140 Chinese Characters at most through the web. 600M users with 300 active users. Sina Weibo – a Chinese microblogging website launched by SINA Corporation. Has 500M registered users with 280Mactive users WeChat – a mobile text and voice messaging communication service developed by Tencent in China. It provides multimedia communication and supports social networking. Has 600M egistered users with 400M active users. Pengyou – is a popular social network by Tencent. It is very similar to Tagged. It utilises real names with an emphasis on real friendships and allow users to register with any valid email address. Has 300M registered users with 100 active users. 51.Com – is a Chinese online social networking service provider which serves as a online game platform. Has 200M registered users. Kaixin001 – a social networking website, which allows photo sharing, online messaging, music sharing and online gaming. Has 130M registered users RenRen – is one of the earliest social network in China, which is very similar to Facebook. Has 172M registered users. Has 150M registered users Jiayuan – an online dating website in China. It has 90m registered users. Douban – a Chinese SNS website allowing registered users to record information and create content related to film, books, and music etc. It also owns an internet radio station. Has 200M registered users Source: Zuitech, CNNIC2013 Top 10 Most Popular Social Media - Global Facebook – a social networking service. It allows users to create their own profile, add other users as friends, exchange messages, and receive automatic notifications when they update their profile. Twitter – an online social networking and microblogging service that enables users to send and read “tweets”, which are text messages limited to 140 characters. LinkedIn – a social networking website for people in professional occupations. It is mainly used for professional networking Google+ – a social networking identity service that is owned and operated by Google Inc. It is also an authorship tool that associates web-content directly with its owner/author. Pinterest – a pinboard-style sharing website that allows users to create and manage theme-based image collections such as events, interests, and hobbies. Tumblr – a microblogging platform and social networking website owned by Yahoo!Inc. This allows users to post multimedia and other content to a short- form blog. Flickr – an image hosting and video hosting website. It is also widely used by photo researchers and by bloggers to host images that they embed in blogs and social media. VK – is one of the biggest social network service in Europe. It allows users to message contacts publicly or privately, create groups, public pages and events, share and tag images and play bowser-based games. Instagram – an online photo-sharing, video-sharing and social networking service that enables its users to take pictures and videos, apply digital filters to them and share them on a variety of SNSs. MySpace – a SNS with a strong music emphasis and pop music singer. Source: eBizMBA, Jan 2014
  • 11. 11© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Application of dCommerce – From Internet to Mobile eCommerce Platform Internet Portals
  • 12. 12© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Application of dCommerce – Mobile eCommerce Platform 6 7 8 9 1 0 1 2 3 4 5 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 MobileBankingTPPMobilePayment MobileeCommercePlatforms
  • 13. 13© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Application of dCommerce – Marketing and Advertisement WeChat has integrated the mobile payment solution in its 5.0 version by leveraging its 400m domestic users which will reform the online and offline purchasing behaviour. Sharing with friends - WeChat allows users to share links, coupons with their friends, as well as share to other SNS. Lucky draws - Some accounts conduct lucky draw with prize to increase subscription to their accounts Promotions - Business can share their promotions through their WeChat account. QR Code - With the QR code, it brings promotion from offline to online Product Catalogue - Product catalogue can be found on WeChat accounts Innovative Promotion - Property Developers utilise the video function to demonstrate 360˚ virtual tour of their flats
  • 14. 14© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Examples of dCommerce: Didi Taxi and Kuai Di promotion of mobile payments plus … AUTOMATIC POSITIONING To hail taxi OPTIMIZATION SETTINGS CONTACT YOUR TAXI The application of a mobile application for taxi booking removing the need for a central call station: • 2 of the most popular taxi booking system that helps eliminates the middleman ensuring better utilization using LBS and mobile app communication tool • Accelerated with the recent promotion in early 2014 to encourage mobile payment namely Alipay and Wechat payment,
  • 15. 15© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Examples of dCommerce – Social Community linking to sales Mushroom Street, the largest shopping ladies sharing community, along with millions of users discover the fashion, sharing shopping. Here you can find the best online shopping users to share a single product and the most likely shop, watching the show with, learn skin care, fashion goods. You can also become the most talked about fashion online shopping of people enjoying the enthusiasm of fans to follow. Consumers who become KOL Mogujie is a ladies online fashion community which provides a forum to share fashion ideas and promote products. Mogujie is recognised as one of the leading providers of these services in China. Mogujie’s website also links directly to e-Commerce websites that sell goods and is available on social media, apps, and internet platforms. Quick facts
  • 16. 16© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Examples of dCommerce – Innovative use of customer base Aliloan Zhongchou Web Paipai Credit … 1st Generation 2nd Generation Yuerbao Licaitong Bafaitong Wexin Red Packet Jindong …
  • 17. 17© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Winning : Requires mastering Data Analytics 17 Building up an analytics department, leveraging efficient tools (GA) Measuring engagement (visits and transactions), establishing customer segmentations and 30/90/120 days ROI Detecting broken point & taking optimizing actions Improving navigation through regular updates & new functionalities
  • 18. 18© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. And market Insights on Consumer Wishes Retailers are relooking at their ecommerce strategies and payments is a big focus. Understanding what drives consumers will make a big difference to how retailers will develop their strategies. The ecosystem needs to be ready to adapt and cater for the changing priorities which retailers will have 1. Convenience will attract consumers 2. Become part of the daily routine 3. Collaborate with the rest of the ecosystem 4. Bridge the online-offline divide 5. Be socially aware – provide P2P 6. Integrate with complimentary technologies 7. Be part of loyalty 8. Be aware of market changes
  • 19. 19© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The Post 80/90s are more tech savvy and have different buying behaviours EMERGENCE OF THE DIGITAL MULTITASKER
  • 20. 20© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. China’s Rise of the middle class The future China domestic market will be driven by the emerging urban middle class Source: “Winning the $30 trillion Decathlon: Going for Gold in Emerging Markets,” McKinsey Global Institute 82% 6% 2% 7% 36% 51% 6% Affluent (>34K per year) Lower class (6K-16K per year) Poor (<6K per year) Major shift in urban household income between 2010 and 2020 10% 2010 2020 Middle class (16-34K per year) Average disposable annual income for Chinese urban residents in 2012 was the equivalent of about $4,000, an increase of 9.6 percent after taking inflation into account.
  • 21. 21© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Though smaller, Asia is also a potential AsPac “Middle Class” expected to grow most 21
  • 22. 22© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Incidence in past 1 year 1 time 2-3 times 4 times and more Total (Year 2012) Total (Year 2008) The Chinese are travelling
  • 23. Conclusion
  • 24. 24© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. China is one of the hotspots for dCommerce Innovations Innovation? Micro-Innovation? OR
  • 25. 25© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The Future is Now
  • 26. 26© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The China model: Willingness and ability to adapt the business model, sometimes significantly and be prepared to use new disruptive technologies 1 The New Consumers: Have you really engaged with and listened to your consumers? Consumers are having a far greater influence on your products Speed to Market: Level of competition is intensifying so it is proving critical to engage early with your consumer base and gather the data! Supply Chain : it is becoming more demand driven and cost competitive – VFM and customization… Product Innovation: Is this the most disruptive force? Are we ready for an automated end-to-end development process 2 3 4 5 Have you got the model right?
  • 27. © 2013 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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