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Anthony Fung - The Growth of E-commerce in Indonesia

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JBN Session on 23rd February 2017 at Hotel Fairmont, Senayan

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Anthony Fung - The Growth of E-commerce in Indonesia

  1. 1. CEO of ZALORA INDONESIA Anthony Fung Anthony Fung CEO of ZALORA Indonesia The Growth of E-commerce in Indonesia
  2. 2. 2 Agenda > WHO WE ARE E-COMMERCE GROWTH & CHALLENGES APP AS DRIVERS
  3. 3. 305m+ €48bn 1.3% 610m+ €125bn 2.1% 277m+ €63bn 5.9% 662m+ €55bn 4.0% ARGENTINA AUSTRALIA BAHRAIN BELARUS BRAZIL BRUNEI CHILE COLOMBIA HONG KONG INDONESIA KAZAKHSTA N KUWAIT LEBANON MALAYSIA MACAU NEW ZEALAND OMAN PHILIPPINE S QATAR RUSSIA SAUDI ARABIA SINGAPORE TAIWAN UAE UKRAINE ZALORA IS PART OF GLOBAL FASHION GROUP, THE #1 FASHION PLATFORM IN EMERGING MARKETS We are in a fashion market of over € 310 billion, targeting a population of > 1.8 billion. 38m+ €18bn 10.4%Population Fashion Market Online Fashion Penetration
  4. 4. ZALORA IS #1 FASHION DESTINATION IN SEA HONG KONG SINGAPORE MALAYSIA TAIWAN INDONESIA Facebook: 1.3 M fans Instagram: >180k followers Google+: >530 k followers Twitter: >66k followers PHILIPPINES We are the #1 fashion online website in 6 markets with 31M visitors
  5. 5. ZALORA HAS A BROAD AND LOYAL CUSTOMER BASE ACROSS ITS MARKETS 5 Love fashion and curated content S h o p o n l i n e f o r c o n v e n i e n c e & s e r v i c e 60% Female 40% Male 18-45 age range with concentration in 25-35 age group (Young professionals) I n c o m e l e v e l s s p a n F r o m m i d d l e c l a s s a n d a b o v e S h o p o n - t h e - g o t h r o u g h m o b i l e w h e n o f f l i n e s h o p s a r e c l o s e d *Peak revenue hours for ZALORA are during office hours and at night between 9pm and midnight
  6. 6. ZALORA CARRIES MORE THAN 1,000 BRANDS We offer more than 1,000 brands – a full spectrum of price ranges and styles. Our brand portfolio consists of the most desirable international brands, the most relevant local brands, and our private label brands (ZALORA, Something Borrowed, ZALIA, 24:01) that are already achieving regional success.
  7. 7. 7 Agenda WHO WE ARE > E-COMMERCE GROWTH & CHALLENGES APP AS DRIVERS
  8. 8. ZALORA TAKES ADVANTAGE OF SOUTH-EAST ASIA’S AMAZING POTENTIAL FOR FASHION E-COMMERCE Sourcec:CLSA, Euromonitor,iResearch, US Dept of Commerce Google says by 2025, Indonesia will dominate 52% of all ecommerce activity in Southeast Asia. 0 10 20 30 40 50 60 % Countries Total Online Retail Growth, 2015
  9. 9. 32 12.12.12 ZALORA and 6 other e-commerces 12.12.13 12.12.14 12.12.15 12.12.16 22 e-commerces 78 e-commerces 140 e-commerces 208 e-commerces 12.12 HARBOLNAS – THEN AND NOW The increasing number of e-commerce participants each year during Harbolnas indicates how Indonesian E-commerce has been growing significantly since 2012.
  10. 10. ZALORA TACKLES CONSUMERS’ FEARS OF SHOPPING ONLINE 10 Zero tolerance for counterfeits and fake discounts Zero tolerance for counterfeits and fake discounts COD, Credit Card Secured Pickup Scheduling, PT Pos 30 Days free return with pickup No personal data sharing 60% in-house delivery 90% Customer satisfaction 30 Days free return IDR Transactions exclusively Product quality (e.g. counterfeit) Payment SecurityComplicated return of goods policies Lack of physical touch and feel of the item to buy Personal information being tracked and shared Late in delivery Efficiency of customer serviceTendency to overspendPurchase price in foreign currency 6 % 8% 10 % 10 % 14% 17 % 20% 51% 73% Source: Macquarie report
  11. 11. 1 1 Agenda WHO WE ARE 2015 HARBOLNAS FINDINGS >APP AS DRIVERS
  12. 12. OUR APPLICATION AS MAIN DRIVERS ZALORA APP as the highest source of transaction with more than >70% of ZALORA customers shopping through the app that has >6m downloads . 2013 2015 2016 We launched our app Our app generated sales from 20% to 65% with 5,000,000 downloads Our app generates over 70% of sales ZALORA strives to better our app • Personalized content based on user account's shopping and browsing behavior • Magazines with new content published frequently • Trend / style videos, which will be utilized much more going forward • Orders status and history tracking feature • Enable customers to share products with friends through social media • Fashion content discovery through styling videos and magazines • Optimizing app layout for ZALORA customers using A/B testing New App Look
  13. 13. Thank you

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