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PAGE 1
aCommerce
How Technology is Reshaping the Way the Luxury and Fashion
Industry Produces, Sells, and Operates
Jakarta...
PAGE 2
2
Table of Contents
01 About Me 3
02 aCommerce Overview
4-
6
03
How Technology is Reshaping the Way the Luxury
and ...
PAGE 3
About Me
Note: 1. ASEAN countries used to calculate fixed and wireless broadband penetration include the key countr...
PAGE 4
General Overview
PAGE 5
Share of ASEAN Outsourced Market (Top 5)
FOUNDED IN
201315% monthly growth
522% yearly growth
ACTIVE CLIENTS
13966 ...
PAGE 6
Our Products and Services
Cross Border ‘International’ Ecommerce
From customs clearance to local FDA approval, chan...
PAGE 7
7
Our Partners and Clients
They are:
• SMEs, Startup as well as Big Companies
• Local, regional, international bran...
01
How Technology is Reshaping the Way the
Luxury and Fashion Industry Produces,
Sells, and Operates
PAGE 9
9
UBS Research, 13 June 2014
• ASEAN B2C e-commerce market 2014: USD 500m to USD 1bn
• Expected to reach USD49 bill...
PAGE 10
Increasing wireless broadband
penetration…
...and fixed broadband
penetration
Coupled with rising affluence across...
PAGE 11
0 5 10 15 20 25 30 35
Philippines
Malaysia
Thailand
Indonesia
2014A (CLSA) 2019E (CLSA) Theoretical Potential (A.T...
PAGE 12
And the growth can be seen in every sector
Source: Online Retailers in Emerging Asia to 2015, ICD Research
Asia On...
PAGE 13
889 872
961
1,090
1,248
2014 2015 2016 2017 2018
0 - 14
26%
15 - 29
25%
30 - 49
29%
50 -75
18%
75+
2%
8.9%
7.7%
6....
PAGE 14
HUGEHow do we grab this potential channel?
PAGE 15
Route to Market Model (Offline vs Online)
Multi types of retailer classification : Modern
Channel, General Trade, ...
PAGE 16
Why Fashion or Luxurious Brands?
Social perspective
Communication
perspective
• Stratification within social life
...
PAGE 17
Why Online?
FASHION = LIFESTYLE
IS A
UNIVERSAL NEED
Customer Behavior
Perspective
Decision to
purchase:
ANYTIME
AN...
PAGE 18
How do online stores manage the brand?
Best-in-class Value
Added Services
Upstream Value
Downstream Value
PAGE 19
How do online stores manage the brand?
PAGE 20
Store Management Capabilities
Deep technological integration with online channels and 3PL providers:
• Inventory i...
PAGE 21
Popshop Solution – Online Sales Campaigns
Launch on any mediaSales Campaign Type
New Release
(Launch New Product)
...
PAGE 22
2%
Indonesia
Channel Management Solution
Solution for the brands and distributors to sell in marketplaces. We prov...
PAGE 23
Marketplaces Market Share 2014
2%
Indonesia
Source: Nusa Research
PAGE 24
Easier Stock Allocation
Client
Warehouse
We set-up online store to sync inventory and process orders similar to a ...
PAGE 25
Multiple Channels
“Why only use one channel? By using multiple channels you can
increase your product visibility a...
PAGE 26
Multi Channel Problem (1) - Managing multiple systems
PAGE 27
Multi Channel Problem (2)
Inventory Allocation Price and
promotion
management
Multichannel
Sales
Order
Product
Man...
PAGE 28
Store Management Capabilities
2%
Indonesia
Online Merchandising & Onsite marketing:
• Define online merchandising ...
PAGE 29
Challenges in Channel Management
2%
Indonesia
Product• Adding products to multiple channel easily
and effectively
...
PAGE 30
Case Study (ID) – Hush Puppies
3 Channels
Live on
September
> 500 SKU
HUSH PUPPIES
> 200 Orders in 1
month
Free am...
PAGE 31
Case Study (ID) – MatahariMall.com
Soft launch: June 2015 Grand launch: Sept 2015
in 3 months
Nearly 200,000 custo...
PAGE 32
Case Study (ID) - Bobobobo
>1000 brands in seven category
20% monthly sales growth rate less than two years
Visito...
PAGE 33
The Online Channel Success Story.....
3
 No CAPEX or Much Lower Investment
compare to opening an offline store
 ...
PAGE 34
Thailand
946 Dusit Thani Building, 4th fl.,
Rama IV Rd. Bangrak, Bangkok,
Thailand 10500
Indonesia
PT Acommerce So...
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aCommerce 3rd SEA Retail Summit - How Technology is Reshaping the Way Luxury and Fashion Industry

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Fashion symbolizes stratification in social life and helps express personality/self identity. People are either part of the trend or deemed "fashion victims" or outsiders. It's an unspoken social competition. The fashion market is growing very fast in Indonesia because the middle class is increasing in size and more Indonesian female are trying online shopping for the first time.

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aCommerce 3rd SEA Retail Summit - How Technology is Reshaping the Way Luxury and Fashion Industry

  1. 1. PAGE 1 aCommerce How Technology is Reshaping the Way the Luxury and Fashion Industry Produces, Sells, and Operates Jakarta, 21 October 2015 Full Service Ecommerce Solutions Provider in ASEAN
  2. 2. PAGE 2 2 Table of Contents 01 About Me 3 02 aCommerce Overview 4- 6 03 How Technology is Reshaping the Way the Luxury and Fashion Industry Produces, Sells, and Operates 7- 37 04 Contact 38
  3. 3. PAGE 3 About Me Note: 1. ASEAN countries used to calculate fixed and wireless broadband penetration include the key countries which aCommerce operates in; 2. Smart phone penetration rate excludes Singapore Hadi Kuncoro CAREER • aCommerce Indonesia – Chief Operating Officer • Rocket Indonesia GmbH – Vice President • Zalora Indonesia – Operations Director • Oriflame Indonesia – Operations Director • Beiesdorf - Commercial Support & Operations Senior Manager (Downstream Supply Chain Management) ASSOCIATIONS • Deputy Chief of Indonesian Logistics Association • Member of idEA (Indonesian Ecommerce Association) EDUCATION • Bachelor Degree in Economics, Sebelas Maret University • Certified Supply Chain & Logistics Professional (CSLP)
  4. 4. PAGE 4 General Overview
  5. 5. PAGE 5 Share of ASEAN Outsourced Market (Top 5) FOUNDED IN 201315% monthly growth 522% yearly growth ACTIVE CLIENTS 13966 Brands 59 Retailers 12 Marketplaces 2 Resellers STAFF >600at July 2015, Including c. 80 tech staff aCommerce: Fast growth & winning market share Thailand Indonesia Philippines OPERATES IN THE KEY MARKETS OF: aCommerce 50% Singpost 38% Anchanto 5% Paraplou 5% Arvato 2%
  6. 6. PAGE 6 Our Products and Services Cross Border ‘International’ Ecommerce From customs clearance to local FDA approval, channel management and cross- border logistics, we can scale your Ecommerce business across S.E. Asia and rest of world E-Fulfillment & Delivery Our specialized E-fulfillment centers can manage all your local Ecommerce logistics needs from Managed Drop-Ship, Flash Logistics and temp controlled storage to custom packaging, next day delivery, and COD Additional services include: Production, Call Center. Technology Development We design, develop, and operate Brand/Retailer storefront in marketplace(s) connected to our centralized inventory/fulfillment platform Performance Marketing We conduct funnel analysis and optimize your e-commerce website; manage media buying in Facebook, Google, local Ad networks, develop ad banner & copy, monitor regularly and optimize for conversion (transaction, revenue)
  7. 7. PAGE 7 7 Our Partners and Clients They are: • SMEs, Startup as well as Big Companies • Local, regional, international brands • Fashion, F&B, Electronics, Lifestyle, Services categories and many more
  8. 8. 01 How Technology is Reshaping the Way the Luxury and Fashion Industry Produces, Sells, and Operates
  9. 9. PAGE 9 9 UBS Research, 13 June 2014 • ASEAN B2C e-commerce market 2014: USD 500m to USD 1bn • Expected to reach USD49 billion by 2020 (8% of retail sales from 0.1–0.2%) ASEAN macroeconomic and industry landscape ASEAN ecommerce market potential Notwithstanding wide ranging ASEAN ecommerce market size currently, research analysts and consultants are in agreement that ASEAN e-commerce market is poised for rapid expansion Macquarie Research, 27 March 2015 • ID online retail 2014: USD1.7 billion • Expected to reach to USD12 billion by 2018 Lazada, June 2015 • ASEAN e-commerce market size 2014: USD3 billion Euromonitor, 2015 • ASEAN online retail 2014: USD4.4 billion • Expected to reach USD11 billion in 2018 AT Kearney, 2015 • ASEAN e-commerce market 2013: USD7 billion • Opportunity to grow to USD89 billion CLSA, 31 August 2015 • Indonesia, Thailand, Malaysia, Philippines B2C & C2C market 2015: USD11.1 billion • Expected to reach USD30 billion in 2019
  10. 10. PAGE 10 Increasing wireless broadband penetration… ...and fixed broadband penetration Coupled with rising affluence across ASEAN... CAGR 14-19 MY: 10% TH: 16% PH: 16% ID: 39% VN: 10% CAGR 14-19 PH: 7% ID: 11% TH: 7% MY: 7% SG: 4% 182% 50% 36% 33% 22% 7% 192% 64% 70% 82% 47% 10% Singapore Malaysia Vietnam Thailand Indonesia Philippines 2014 2018E 101% 34% 27% 23% 8% 6% 101% 36% 39% 30% 13% 10% Singapore Malaysia Vietnam Thailand Philippines Indonesia 2014 2018E Note: 1. Decrease in nominal GDP per capita is due solely to forecasted depreciation of ASEAN currencies against USD; Source: MPA 2015, Global Insights, Euromonitor Wireless broadband penetration rate (%) Fixed broadband penetration rate (%) Nominal GDP per capita (USD’000)1 Internet retail sales value (USD billion) ...will drive substantial growth in ASEAN e-commerce market ASEAN macroeconomic and industry landscape ASEAN e-commerce market potential (cont’d) Increasing internet accessibility and rising economic well-being, amongst others are expected to drive significant growth in ASEAN e-commerce market 0 5 10 15 20 25 30 2014 2015 2016 2017 2018 2019 Indonesia Thailand Malaysia Philippines 50 55 60 65 70 75 80 85 90 95 100 2014 2015E 2016E 2017E 2018E 2019E NorminalGDP(USD'000) Singapore Malaysia Thailand Indonesia Philippines Vietnam
  11. 11. PAGE 11 0 5 10 15 20 25 30 35 Philippines Malaysia Thailand Indonesia 2014A (CLSA) 2019E (CLSA) Theoretical Potential (A.T. Kearney) ASEAN macroeconomic and industry landscape ASEAN ecommerce market potential (cont’d) A.T. Kearney forecasts a theoretical ecommerce market size of USD67 – 89 billion for ASEAN in the future, with Thailand and Indonesia, being aCommerce’s key markets, taking the largest stake E-commerce market size1 (USD billion) Note: 1. Excluding B2B e-Commerce market size; 2. ASEAN’s theoretical e-commerce potential includes Vietnam (USD5bn to USD7bn) and Singapore (USD7bn – USD10bn); Source: CLSA, A.T. Kearney 8 - 12 12 - 15 25 - 30 10 - 15
  12. 12. PAGE 12 And the growth can be seen in every sector Source: Online Retailers in Emerging Asia to 2015, ICD Research Asia Online Product Sales in 2014
  13. 13. PAGE 13 889 872 961 1,090 1,248 2014 2015 2016 2017 2018 0 - 14 26% 15 - 29 25% 30 - 49 29% 50 -75 18% 75+ 2% 8.9% 7.7% 6.5% 3.8% 2.9% 2.8% Vietnam Indonesia Philippines Thailand Singapore Malaysia Forecast of key economic indicators Nominal GDP growth forecast (USDbn) Nominal GDP per capita CAGR 2014 – 2018E Breakdown of population by age, 2015 2014 2015 2016 2017 2018 Real GDP growth 5.0% 4.9% 5.0% 5.3% 5.5% Nominal GDP (USDbn) 889 872 961 1,090 1,248 Nominal GDP per capita (USD) 3,515 3,412 3,717 4,169 4,727 Nominal GDP per capita growth - -2.9% 8.9% 12.2% 13.4% CPI inflation 6.4% 6.4% 4.1% 4.4% 5.0% Population (m) 252.8 255.7 258.6 261.3 264.1 Population growth - 1.1% 1.1% 1.1% 1.0% Strong macroeconomic fundamentals & attractive demographics – Indonesia Source: Global Insights, United States Census Bureau, National statistics databases, Broker Reports Indonesia Market Industry and macro highlights
  14. 14. PAGE 14 HUGEHow do we grab this potential channel?
  15. 15. PAGE 15 Route to Market Model (Offline vs Online) Multi types of retailer classification : Modern Channel, General Trade, institution, Wholeseller, store, star outlet Multi types of online retailer classification: market Place, B2B, B2C daily deals
  16. 16. PAGE 16 Why Fashion or Luxurious Brands? Social perspective Communication perspective • Stratification within social life • Fashion trend vs Fashion victim • Used as Self identity • Used as personality communication • Female population in Indonesia is bigger then male in regards to online shopping behaviour • Middle class economy population is growing fast Market Opportunities FASHION = LIFESTYLE IS A UNIVERSAL NEED
  17. 17. PAGE 17 Why Online? FASHION = LIFESTYLE IS A UNIVERSAL NEED Customer Behavior Perspective Decision to purchase: ANYTIME ANYWHERE
  18. 18. PAGE 18 How do online stores manage the brand? Best-in-class Value Added Services Upstream Value Downstream Value
  19. 19. PAGE 19 How do online stores manage the brand?
  20. 20. PAGE 20 Store Management Capabilities Deep technological integration with online channels and 3PL providers: • Inventory is allocated between online channels • Sales Orders are transferred live to Fulfilment center for fast fulfilment • Customers are notified about incoming delivery Own web store Consumers Consumers Consumers
  21. 21. PAGE 21 Popshop Solution – Online Sales Campaigns Launch on any mediaSales Campaign Type New Release (Launch New Product) Hot Deal (Discount or Overstock) Samples (Sign-Up Members) Pre-Orders (Sign-Ups & PreSales) Branded Promos (Company Swag) Social Networks (Facebook, Twitter) Mobile Apps (Chat, Apps, Games) Portal & Mobile Apps (Sanook & WeChat) Email Newsletters (Internal or 3rd Party) Brand Website (Corporate Sites) BRAND aCommerce’s PopShop solution uses a customizable mini webstore allowing to launch online sales campaigns on any media. A fast, low cost and effective way to monetize your online assets.
  22. 22. PAGE 22 2% Indonesia Channel Management Solution Solution for the brands and distributors to sell in marketplaces. We provide marketplaces with sourcing, merchant management, cross-border and fulfillment. Merchandising Fulfillment Production Customer Service Marketing $ Reporting Delivery & COD Marketplaces & E-tailers Brands & Distributors Multi-Channel Management Marketplace Solutions Cross Border
  23. 23. PAGE 23 Marketplaces Market Share 2014 2% Indonesia Source: Nusa Research
  24. 24. PAGE 24 Easier Stock Allocation Client Warehouse We set-up online store to sync inventory and process orders similar to a physical retail store. Our specialized fulfillment centers and technology makes it simple to process ecommerce orders. Retail Store aCommerce (B2C) Fulfillment Center Own Website Customer 24 hr. access via PC or mobile SIMC Single Inventory database to handle all transaction from multiple Channel
  25. 25. PAGE 25 Multiple Channels “Why only use one channel? By using multiple channels you can increase your product visibility and touch points.” Multiple Channels Sales
  26. 26. PAGE 26 Multi Channel Problem (1) - Managing multiple systems
  27. 27. PAGE 27 Multi Channel Problem (2) Inventory Allocation Price and promotion management Multichannel Sales Order Product Management
  28. 28. PAGE 28 Store Management Capabilities 2% Indonesia Online Merchandising & Onsite marketing: • Define online merchandising strategy by channel (assortment, pricing, promotion) • Define and manage inventory needs • Manage promotions in coordination with online channel to convert visitors into buyers • Manage promotion mechanisms such as bundle sets or vouchers • Work with marketplace on Onsite Marketing (visuals, USPs communication) Day-to-day Store Operations • Create Products in store back-end • Upload product content (description and pictures) • Categorize products • Manage pricing • Create and manage bundle sets • Coordinate with E-commerce warehouse on Supply Chain and Inventory Management • Coordinate with Customer Service and Marketplaces on customer inquiries
  29. 29. PAGE 29 Challenges in Channel Management 2% Indonesia Product• Adding products to multiple channel easily and effectively • Creating and uploading one content to be synced across channel for branding or • Determine which content (image and description) should go to which marketplace Price• Defining pricing complexity among online and offline • Managing price from a single platform • Differentiating pricing strategy between different marketplaces • Must automatically update price for promotion period Orders• Managing orders coming from different channels from a single platform • Updating order status to inform customer the fulfilment progress Administration• Managing administration such as company information from one platform • Filling up the on-boarding forms and signing up to multiple marketplaces at the same time Stock• Managing stock seamlessly from one platform • Multi storage location • Automatically adjusting inventory across all marketplaces once an order is received • Maximizing stock availability by using our advance stock algorithm Reports• Getting insights & sales performance from our store for a better decision making process • Forecasting our inventory planning based on our historical sales data • Market insights on which channel is best for our productLogistics• Crossborder – Custom Regulation within countries • Connect with multiple 3rd party logistics providers to fulfill our orders • Multi type of fullfilment: Crossdocking, fastfulfill, Dropship
  30. 30. PAGE 30 Case Study (ID) – Hush Puppies 3 Channels Live on September > 500 SKU HUSH PUPPIES > 200 Orders in 1 month Free amplification on All channels 99% delivery success rate Cost ratio 10%
  31. 31. PAGE 31 Case Study (ID) – MatahariMall.com Soft launch: June 2015 Grand launch: Sept 2015 in 3 months Nearly 200,000 customers 200,000 products from its 1,200 vendors 10,000 sqm warehouse in Halim O2O (Online-to-Offline) Service Leveraging its huge retail network and chains. Customers can order online and pick-up at their offline stores (Matahari Dept Store & Hypermart), which is also affiliated to Lippo Group. Source: http://jakartaglobe.beritasatu.com/business/mataharimall-introduces-cash-less-transactions/ http://jakartaglobe.beritasatu.com/business/mataharimall-sets-sights-high-booming-e-commerce-scene/
  32. 32. PAGE 32 Case Study (ID) - Bobobobo >1000 brands in seven category 20% monthly sales growth rate less than two years Visitors increase to 600% in April’15 from January’15 Targeting Millennials audiences (18 to 35 years old) Source: https://www.techinasia.com/indonesia- bobobobo-emtek-funding-news/ an upscale lifestyle ecommerce site that sells luxury products from boutique brands in the categories of men, women, living, dining, travel, and events.
  33. 33. PAGE 33 The Online Channel Success Story..... 3  No CAPEX or Much Lower Investment compare to opening an offline store  Much better market penetration to: -untapped market -new brands -luxury brands -niche brands  Often becomes the fastest growing channel available  Easiness in building a brand awareness through media channels integration
  34. 34. PAGE 34 Thailand 946 Dusit Thani Building, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500 Indonesia PT Acommerce Solusi Lestari, Sahid Sudirman Center lantai 17 A Jl Jend Sudirman no 86 Jakarta Pusat 10220 Singapore 74B Duxton Road Singapore 089533 Philippines Bldg 1A Rey Marketing Compound C. Raymundo Ave, Pasig, 1609 Metro Manila, Philippines Email: hadi@acommerce.asia Mobile: +62818608974 Skype: hadikuncoro Address: Sahid Sudirman Center 17A fl. Jakarta 10220 Contact Thank you Hadi Kuncoro COO

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