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Mark Gray: eCommerce Outlook in Asia Pacific


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Mark Gray: eCommerce Outlook in Asia Pacific

  1. 1. The State of eCommerce in Asia Pacific and the Indian Opportunity Mark Gray Managing Director, ChannelAdvisor Asia Pacific February 27th, 2014
  2. 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. 3. ChannelAdvisor - Overview 3
  4. 4. The ChannelAdvisor Solution 4
  5. 5. ChannelAdvisor - Global Footprint ChannelAdvisor Offices
  6. 6. Trusted by Thousands of Top Retailers Globally 6
  7. 7. The State of eCommerce in India
  8. 8. The Players and the Marketplaces 8
  9. 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. 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. 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. 12. The State of eCommerce in Asia Pacific
  13. 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. 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. 15. Channel Explosion Source: Public reports from eBay, Amazon, Google, and ChannelAdvisor estimates based on our transactional data. We are here… 15
  16. 16.  E-commerce 2017: con16 Global View
  17. 17. eCommerce ”Spice Routes” Source: Public reports from eBay, Amazon, Google, 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. 18. Who Owns the Market in China? ©C
  19. 19. Cross Border Trade Opportunities
  20. 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. 21. The Rise of Marketplaces: CBT **11 new marketplaces in China and 2 in S. Korea in last 18 months**
  22. 22. Top CBT Routes Source: Nielson/PayPal Study from 2013 22
  23. 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. 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. 25. Croc’s Multichannel Case Study ©C
  26. 26. Croc’s Multichannel Case Study ©C
  27. 27. ChannelAdvisor – How We Can Help You 27 Waves of E-Commerce
  28. 28. Thank You! Questions?