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aCommerce Marketing Solutions - Betagro Case Study

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aCommerce CMO, Sheji Ho, who is heavily experienced in both traditional and digital performance marketing shares how 50 year old Thai company, Betagro, could further improve their successful business through performance marketing techniques.

He outlines effective content marketing examples, leveraging an affiliate network and simple social media best practices.

Find more on ecommerceIQ.asia

Published in: Marketing
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aCommerce Marketing Solutions - Betagro Case Study

  1. 1. PAGE 1 aCommerce aCommerce Solutions for Betagro | September 2016 Full Service E-commerce Solutions Provider in ASEAN
  2. 2. 1 Market Overview & Trends
  3. 3. PAGE 3
  4. 4. PAGE 4
  5. 5. PAGE 5
  6. 6. PAGE 6 The Procession of the Trojan Horse in Troy by Domenico Tiepolo (1773)
  7. 7. PAGE 7 “PayPal is a classic example. The first high-growth segment was power buyers and power sellers on eBay. These people bought and sold a ton of stuff. The high velocity of money going through the system was linked to the virality of customer growth. By the time people understood how and why PayPal took off on eBay, it was too late for them to catch up.” Source: http://blakemasters.com/post/22405055017/peter-thiels-cs183-startup-class-9-notes-essay
  8. 8. PAGE 8
  9. 9. PAGE 9 Ant Finance Alibaba’s Trojan Horse • 2nd most valuable non-public tech company at $60B valuation (#1 being Uber at $62.5B) • Alipay: 82% of China payments market share • 120m transactions per day (vs. 170m through traditional banking system) • Yu’e Bao: biggest mutual fund in China in terms of investors with $108B USD; No minimum deposits, withdraw cash anytime • Zhaocai Bao: P2P lending platform with $32B in transactions in first year • Small business lending services • Sesame Credit: credit-scoring related services based on ecommerce data Source: http://knowledge.ckgsb.edu.cn/2015/08/05/finance-and-investment/can-alibabas-ant-financial-disrupt-chinas-financial-industry "Ant Financial's goal is to build a new and truly inclusive financial system on the internet that better serves small businesses and the public“ -- Jing Xiandong, CEO Ant Financial
  10. 10. PAGE 10 Ant Finance Alibaba’s Trojan Horse
  11. 11. PAGE 11 The Dis-Intermediation of Everything 10-year returns for major retailers in US Source: Yahoo Finance +2,262% -13% -35% +121%+64% 0%
  12. 12. PAGE 12 The Dis-Intermediation of Everything Amazon’s Trojan Horse Source: https://stratechery.com/2016/walmart-and-the-multichannel-trap “Amazon, meanwhile, is transitioning to a new model completely. The vast majority of Amazon’s products are increasingly sold with little to no margin at all: profitability comes from fees paid by third-party merchants and Prime subscriptions. It is a model that is completely dependent on scale, and the lower the margin and thus prices, the higher Amazon’s volume, which means ever more leverage from Amazon’s massive fixed costs in infrastructure and logistics.”
  13. 13. PAGE 13 The Dis-Intermediation of Everything Dis-intermediation not just happening in retail ecommerce Tesla Cars $32B UBER Transportation $51B Xiaomi Consumer Electronics $46B AirBnB Accommodation $26B Ant Finance Finance & Banking $60B Zhongan Insurance $8B Dollar Shave Club Consumer Goods $1.0B The Honest Co. Consumer Goods (incl. diapers) $1.7B
  14. 14. PAGE 14 The Dis-Intermediation of Everything Dollar Shave Club Source: http://www.nytimes.com/2016/07/27/business/dealbook/1-billion-for-dollar-shave-club-why-every-company-should-worry.html
  15. 15. PAGE 15 The Dis-Intermediation of Everything Dollar Shave Club “Gillette’s model and P&G’s formula generally cost a lot of money: R&D cost money, TV advertising cost money, and wholesalers and retailers had to earn a margin as well, and that’s before P&G realized the return on their investment. The result was that cartridges that cost less than a quarter to manufacture and package were sold for $4 or more. That worked as long as P&G’s other advantages in technical superiority, advertising, and distribution held, but were they ever to falter, it was eminently viable to sell cartridges for less and still make a healthy margin.” Source: https://stratechery.com/2016/dollar-shave-club-and-the-disruption-of-everything
  16. 16. PAGE 16 The Dis-Intermediation of Everything Dollar Shave Club changing distribution and advertising “AWS and Amazon itself, having both normalized e-commerce amongst consumers and incentivized the creation of fulfillment networks, made the creation of standalone e-commerce companies more viable than ever before. This meant that Dollar Shave Club, hosted on AWS servers, could neutralize P&G’s distribution advantage: on the Internet, shelf space is unlimited. More than that, an e-commerce model meant that Dollar Shave Club could not only be cheaper but also better: having your blades shipped to you automatically was a big advantage over going to the store. That left advertising, and this is why this video is so seminal: for basically no money Dollar Shave Club reached 20 million people. Some number of those people became customers, and through responsive customer service and an ongoing focus on social media marketing, Dollar Shave Club created an army of brand ambassadors who did for free what P&G had to pay billions for on TV: tell people that their razors were worth buying for a whole lot less money than Gillette was charging. Source: https://stratechery.com/2016/dollar-shave-club-and-the-disruption-of-everything
  17. 17. PAGE 17 The Dis-Intermediation of Everything Dollar Shave Club: all about brand, experience and disruption “Dollar Shave Club has over three million subscribers but only about 190 employees. Its razors were made in South Korea by Dorco. Distribution was initially handled in-house but eventually was contracted to a third-party company in Kentucky. What remained was a terrific design, marketing and customer service shop; and a business that was easily expandable to meet demand and that had a good niche with men who do not like to shop.” Source: http://www.nytimes.com/2016/07/27/business/dealbook/1-billion-for-dollar-shave-club-why-every-company-should-worry.html
  18. 18. PAGE 18 The Dis-Intermediation of Everything Unilever’s next acquisition target: Honest Company Source: http://www.wsj.com/articles/unilever-is-in-talks-to-acquire-jessica-albas-honest-co-1473981465
  19. 19. PAGE 19 The Dis-Intermediation of Everything Unilever’s next acquisition target: Honest Company Source: https://www.youtube.com/watch?v=HSrGFGJJwzA
  20. 20. PAGE 20 The Honest Company Dis-intermediation & Product Innovation in Consumer Goods
  21. 21. PAGE 21 The Honest Company Dis-intermediation & Product Innovation in Consumer Goods
  22. 22. PAGE 22 The Honest Company Dis-intermediation & Product Innovation in Consumer Goods
  23. 23. PAGE 23 The Honest Company Dis-intermediation & Product Innovation in Consumer Goods 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Monthly Visits 30.45% 3.83% 17.77% 6.45% 29.22% 11.51% 0.77% 0% 5% 10% 15% 20% 25% 30% 35% Media Mix 10 50 170 250 0 50 100 150 200 250 300 2012 2013 2014 2015 Revenues 1) Subscription ecommerce service selling eco-friendly, non-toxic family-oriented products such as diapers, skin care and cleaning products. Best known for its flagship line of baby products including baby wipes and diapers, Honest has branched into other product categories over time 2) Founded in 2011 by Jessica Alba, Brian Lee (ShoeDazzle), Christopher Gavigan, and Sean Kane 3) Raised $222M so far and valued at $1.7B USD. Backed by General Catalyst Partners, Iconiq Capital, Lightspeed Venture Partners 4) 80% of sales from online channels Source: SimilarWeb Pro, Forbes, Privco 124% CAGR Lazada SG
  24. 24. PAGE 24 The Honest Company Innovation in Customer Acquisition – Free Trial + Auto-Renewal
  25. 25. PAGE 25 The Honest Company Innovation in Merchandising – Bundling & Customization
  26. 26. PAGE 26 The Honest Company Innovation in Merchandising – Bundling & Customization
  27. 27. PAGE 27 The Honest Company Honest Beauty – Expansion into new product categories “I suspect this sort of disruption will not be a one-off: the Internet (and e-commerce) has so profoundly changed the economics of business that it is only a matter of time before other product categories are impacted, with all the second order effects that entails.” Source: https://stratechery.com/2016/dollar-shave-club-and-the-disruption-of-everything
  28. 28. PAGE 28 Subscription Commerce Case Study Nescafe Red Cup by aCommerce
  29. 29. 2 Betagro Digital Transformation Strategy
  30. 30. PAGE 30 Betagro Digital Transformation Strategy Food Manufacturers already moving online in mature markets Yurun Group Ltd is the second-largest meat supplier in China. It is headquartered in Nanjing, Jiangsu. It operates in two sectors, chilled and frozen meat, and processed meat products, which are marketed under the brand names of Yurun, Furun, Wangrun, and Popular Meat Packing. Source: http://www.chinadaily.com.cn/bizchina/2014-09/19/content_18625695.htm
  31. 31. PAGE 31 Betagro Digital Transformation Strategy Food Manufacturers already moving online in mature markets Digital coupons Tmall Flagship Store
  32. 32. PAGE 32 Betagro Digital Transformation Strategy Food Manufacturers already moving online in mature markets
  33. 33. PAGE 33 Betagro Digital Transformation Strategy Food Manufacturers already moving online in mature markets 239 sold this month to date
  34. 34. PAGE 34 Betagro Digital Transformation Strategy Betagro Value Chain & Gap Analysis Technology Product Design Manufacturing Marketing Sales & Distribution Service Demand Generation Demand Fulfillment Educate Acquire Activate Engage Convert Monetize As-Is • Event marketing (Roadshow, University, Mall, etc.) • TVC • OOH / Ambient Advertising • Music Videos • CSR • Free Sampling in Supermarket (booth), Events • Free Sampling in Supermarket (booth), Events • Betagro.com • Betagro Society (YouTube, Facebook) • Retail partners (Tops, Lotus, Big C, FamilyMart, etc.) • Betagro Shops • B2B (Horeca) To-Be • + Facebook Ads • + Display Ads (Vertical, GDN) • + Influencer Marketing • + Google SEO • + Google Paid Search • + Facebook Ads • + Display Ads (Vertical, GDN) • + Influencer Marketing • + Google SEO • + Affiliate Marketing • + Betagro.com (revamped) • + Betagro Blog & Commmunity • + Content Marketing (e.g. Tastemade, Tasty, etc.) • + Email Marketing • + Betagro.com (revamped) • + Betagro Blog & Commmunity • + Content Marketing (e.g. Tastemade, Tasty, etc.) • Criteo • Bluecore • + Betagro Ecommerce Brand.com • + Marketplaces (e.g. Lazada, etc.) • + On-demand (HonestBee, HappyFresh) • + O2O (Online- to-Offline) • + B2B Ecommerce
  35. 35. PAGE 35 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  36. 36. PAGE 36 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  37. 37. PAGE 37 Betagro Digital Transformation Strategy : Acquire Google SEO SEO Onsite Technical URL Structure Page Titles Meta Description Site Speed Content Product Descriptions SEO Footers Cooking Blog (e.g. Tastemade) Offsite Backlinks Advertorials Social Signals Content Shared on Facebook
  38. 38. PAGE 38 Betagro Digital Transformation Strategy : Acquire Google SEO : Cdiscount SEO footers example (by aCommerce)
  39. 39. PAGE 39 Betagro Digital Transformation Strategy : Acquire Google SEO : The Outlet 24 SEO footers example (by aCommerce)
  40. 40. PAGE 40 Betagro Digital Transformation Strategy : Acquire Google SEO : Cooking Blog
  41. 41. PAGE 41 Betagro Digital Transformation Strategy : Acquire Google SEO : Blog / Articles Content Marketing Case Study: Headlines by ShopSmart.xyz Headlines Shopping Guide & Product Review launched
  42. 42. PAGE 42 Betagro Digital Transformation Strategy : Acquire Google SEO : Blog / Articles Content Marketing Case Study: Headlines by ShopSmart.xyz
  43. 43. PAGE 43 Betagro Digital Transformation Strategy : Acquire Google SEO : Advertorials for backlinks – KingPowerOnline example
  44. 44. PAGE 44 Betagro Digital Transformation Strategy : Acquire Google SEO : Advertorials for backlinks – KingPowerOnline example
  45. 45. PAGE 45 Betagro Digital Transformation Strategy : Acquire Google SEO : Advertorials for backlinks – Nescafe example
  46. 46. PAGE 46 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  47. 47. PAGE 47 Betagro Digital Transformation Strategy : Acquire SEM : Campaign Structure Betagro Adwords Account Brand Betagro Betagro Deli Betagro Shop Products Chicken Wing Drumstick Breast Liver Egg … Pork Processed Gyoza Sausage Popcorn Spicy BBQ Chicken … Pet Dog’n’Joy Competitors CP CPF Saha Farms TGM Belucky S&P … Recipes Chicken Breast Chicken Healthy … Retail Tesco Lotus FamilyMart Big C 7-11 … Generic Food Fresh Food Dairy Bakery Beverages Snacks Desserts … Dynamic Search Ads Example ad account structure. List not exhaustive
  48. 48. PAGE 48 Betagro Digital Transformation Strategy : Acquire SEM : Optimization Roadmap Pre-Launch Brand keywords Expanded Text Ads (ETA) Category keywords Conversion Optimizer Dynamic Keyword Insertions (DKI) Mobile Bid Adjustment Tools SEM Generic Keywords Search Term Optimization Exact/Phrase/Broad Match Type Dynamic Search Ad (DSA) Conversion Rate Optimization Enhance Content Relevancy (via GTM) Landing Page Checker Error404, Out of stock Remarketing lists for search ads (RLSA) 1st month 3rd month Next step SEM Competitor Keywords Ad Customizer Location, Price, Promotion New Beta Features AdWords Script
  49. 49. PAGE 49 Betagro Digital Transformation Strategy : Acquire SEM : Utilize Ad Extensions to Increase CTR Sitelink Extension Structured Snippet Callout Extension Phone Extension Cost per click of ads with high CTR is normally lower than that of ads with low CTR
  50. 50. PAGE 50 Betagro Digital Transformation Strategy : Acquire SEM : aCommerce is a Google Ecommerce Premier Partner
  51. 51. PAGE 51 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  52. 52. PAGE 52 Betagro Digital Transformation Strategy : Acquire Facebook : Campaign Structure Betagro Facebook Account Acquisition Always On (e.g. free shipping, e-coupon 400 THB) Competitors Fanpage (e.g. CP Brand, CP Food) Betagro Society Fanpage Interest Targeting (e.g. Health, Parenting, Cooking) Promotion (e.g. Mother’s Day, Flash Sale) Competitors Fanpage (e.g. CP Brand, CP Food) Betagro Socienty Fanpage Interest Targeting (e.g. Health, Parenting, Cooking) Retargeting Non-Purchasers Website Visitors (exclude purchaser) Email Subscribers (exclude purchaser) Offline CRM Database Up-sell/Cross-sell Website Visitors who visit product page(s) Website Visitors who add to cart Previous Purchasers
  53. 53. PAGE 53 Betagro Digital Transformation Strategy : Acquire Facebook Video Ads can get massive reach in little time Facebook already surpassed YouTube as most powerful video marketing channel
  54. 54. PAGE 54 Betagro Digital Transformation Strategy : Acquire Food Businesses in Thailand leveraging Facebook Video Ads
  55. 55. PAGE 55 Betagro Digital Transformation Strategy : Acquire Food Businesses in Thailand leveraging Facebook Video Ads • 4.8M Views • 234K Likes • 50K Shares
  56. 56. PAGE 56 Betagro Digital Transformation Strategy : Acquire Facebook : Ad Mockup Example
  57. 57. PAGE 57 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  58. 58. PAGE 58 Betagro Digital Transformation Strategy : Acquire & Activate Offer free samples for users who register on Betagro website • Build online database for email marketing (educational emails, drive traffic to store) • Sign up and get free sample product shipped to user • Leverage users who got samples to write product reviews / social proof, displayed on Betagro site • Activate member base for special events – pop up shop, etc. 8,000 New Subscribers 2,000 Store visits & Sets of samples redeemed 10 Online orders (More orders offline too!) Kiehl’s Thailand tapped into 5 million Line users to 1) build their member database and 2) drive offline foot traffic and orders by offering users who signed up free samples to be picked up in Kiehl’s offline retail stores
  59. 59. PAGE 59 Betagro Digital Transformation Strategy : Acquire & Activate Free Trial + Auto-Renewal similar to Honest.com
  60. 60. PAGE 60 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  61. 61. PAGE 61 Betagro Digital Transformation Strategy : Activate Email Marketing : Why email marketing? 3% 4% 10% 11% 11% 17% 21% 24% Referral Facebook (Newsfeed) SEO Direct Price Comparison Retargeting SEM EDM Share of Orders 101 134 143 167 217 231 237 332 Price Comparison Facebook Retargeting Referral SEO EDM SEM Direct Average Order Value (AOV) 0.39% 0.47% 0.51% 0.57% 0.66% 0.83% 1.10% 2.17% SEM Retargeting Facebook (Newsfeed) SEO Price Comparison Direct Referral EDM Conversion Rate (CVR) $50 $46 $11 $10 $6 SEM Retargeting Price Comparison Facebook (Newsfeed) EDM Cost Per Order (CPO) Source: aCommerce internal data (etailer client sample, not brand.com. Fashion & apparel ecommerce will have higher share of Facebook) Email = #1 revenue driver for ecommerce
  62. 62. PAGE 62 Betagro Digital Transformation Strategy : Activate Email Marketing : Nescafe Automated Welcome Email
  63. 63. PAGE 63 Betagro Digital Transformation Strategy : Activate Email Marketing : Nescafe Automated Welcome Email
  64. 64. PAGE 64 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  65. 65. PAGE 65 Betagro Digital Transformation Strategy : Acquire Cooking Facebook Pages for Vertical Display & Affiliate • Drive traffic via advertorials and shop now button on Facebook fan pages • Page owners make money from sending conversions to Betagro • Leverage aCommerce Affiliate Platform
  66. 66. PAGE 66 Betagro Digital Transformation Strategy : Acquire Cooking Facebook Pages for Affiliate
  67. 67. PAGE 67 Betagro Digital Transformation Strategy : Acquire aCommerce Affiliate Platform case study: One2Car + Frank.co.th
  68. 68. PAGE 68 Betagro Digital Transformation Strategy : Acquire Affiliate Marketing & Vertical Sites • Mai Yom Auon ไม่ยอมอ้วน • กินข้าวกัน • Foodtravel.tv • กับข้าวกับปลาโอ • ก้นครัวไม่กลัวหิว (pantip's) • สร้างสรรค์เมนูไข่ (egg menu) • Easy cooking • Tasty Easy
  69. 69. PAGE 69 Betagro Digital Transformation Strategy : Acquire Affiliate Marketing & Vertical Sites Affiliate Marketing & Vertical Sites Health SiamHealth.net HaaMor.com ThaiLoveHealth.c om LoveFit.com Fit-D.com WomensHealthT hailand.com DooDeeDai.com Parenting Th.TheAsianPare nt.com PregnancySquar e.com BreastFeedingTh ai.com Maerakluke.com Baby.Kapook.co m Female Women.Mthai.co m Jeban.com Cosmenet.in.th Price Comparison & Coupon Priceza Promotions.co.th ShopSmart DiscountCodeTh ai Protook Dealcha Cooking Mai Yom Auon ไม่ ยอมอ้วน กินข้าวกัน Foodtravel.tv กับข้าวกับปลาโอ ก้นครัวไม่กลัวหิว (pantip's) สร้างสรรค์เมนูไข่ (egg menu) Easy cooking Tasty Easy
  70. 70. PAGE 70 Betagro Digital Transformation Strategy : Acquire Affiliates & Verticals : Health Publishers Source: SimilarWeb Pro
  71. 71. PAGE 71 Betagro Digital Transformation Strategy : Acquire Affiliates & Verticals : Parenting Publishers Source: SimilarWeb Pro
  72. 72. PAGE 72 Betagro Digital Transformation Strategy : Acquire Affiliates & Verticals : Female Publishers Source: SimilarWeb Pro
  73. 73. PAGE 73 Betagro Digital Transformation Strategy : Acquire Affiliates & Verticals : Price Comparison & Coupon Publishers Source: SimilarWeb Pro
  74. 74. PAGE 74 Betagro Digital Transformation Strategy : Acquire Affiliates & Verticals : Cooking Source: Facebook, SimilarWeb Pro Cooking Vertical FB Likes Traffic URL Mai Yom Auon ไม่ยอมอ ้วน 968,157 https://www.facebook.com/MaiYomAuon กินข ้าวกัน 1,367,524 https://www.facebook.com/kinkaokan Foodtravel.tv 750,904 440,600 https://www.facebook.com/FoodTravel.tv กับข ้าวกับปลาโอ 904,090 https://www.facebook.com/Plaocooking ก ้นครัวไม่กลัวหิว (pantip's) 547,328 https://www.facebook.com/pantipfoodstuff สร ้างสรรค์เมนูไข่ (egg menu) 908,312 https://www.facebook.com/Sangsanmenukai Easy cooking 1,891,829 https://www.facebook.com/easycookingmenu Tasty Easy 1,138,055 https://www.facebook.com/tastyeasycooking 8,476,199
  75. 75. PAGE 75 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  76. 76. PAGE 76 Betagro Digital Transformation Strategy : Activate + Engage Tastemade & Tasty on Buzzfeed Source: SimilarWeb Pro
  77. 77. PAGE 77 Betagro Digital Transformation Strategy : Activate + Engage Recipes on BestFoods.com
  78. 78. PAGE 78 Betagro Digital Transformation Strategy : Activate + Engage Search traffic to BestFoods.com from content created Source: SimilarWeb Pro
  79. 79. PAGE 79 Betagro Digital Transformation Strategy : Activate + Engage Nutricia: HIQ Kids Club - www.hiqkidsclub.com
  80. 80. PAGE 80 Betagro Digital Transformation Strategy : Activate + Engage Articles & Content Marketing to drive traffic
  81. 81. PAGE 81 Betagro Digital Transformation Strategy : Activate + Engage Facebook Fanpage with 258,000 followers
  82. 82. PAGE 82 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  83. 83. PAGE 83 Betagro Digital Transformation Strategy : Convert 99% of users don’t buy in their first visit -> convert via retargeting
  84. 84. PAGE 84 Betagro Digital Transformation Strategy : Convert 99% of users don’t buy in their first visit -> convert via retargeting
  85. 85. PAGE 85 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  86. 86. PAGE 86 Betagro Digital Transformation Strategy : Convert Bluecore : What is Bluecore?
  87. 87. PAGE 87 Betagro Digital Transformation Strategy : Convert Bluecore : How does it perform?
  88. 88. PAGE 88 Betagro Digital Transformation Strategy Optimal media mix throughout Betagro user journey Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Online-to- Offline Ecommerce (B2C, B2B, Marketplaces, On-Demand) Sampling Influencer Marketing
  89. 89. PAGE 89 Betagro Digital Transformation Strategy : Monetization B2C Ecommerce (Brand.com, Marketplaces)
  90. 90. PAGE 90 Betagro Digital Transformation Strategy : Monetization B2C Ecommerce (Brand.com, Marketplaces)
  91. 91. PAGE 91 Betagro Digital Transformation Strategy : Monetization B2C Ecommerce (Brand.com, Marketplaces) Lazada stores managed by aCommerce: • Store Design & Setup • Store Operations (Day- to-Day) • Merchandising • Marketing • Customer Service
  92. 92. PAGE 92 Betagro Digital Transformation Strategy : Monetization Marketplace Flagship Store Example: Yurun.Tmall.com Yurun Group Ltd is the second-largest meat supplier in China. It is headquartered in Nanjing, Jiangsu. It operates in two sectors, chilled and frozen meat, and processed meat products, which are marketed under the brand names of Yurun, Furun, Wangrun, and Popular Meat Packing. Source: http://www.chinadaily.com.cn/bizchina/2014-09/19/content_18625695.htm
  93. 93. PAGE 93 Betagro Digital Transformation Strategy : Monetization Marketplace Flagship Store Example: Yurun.Tmall.com Digital coupons
  94. 94. PAGE 94 Betagro Digital Transformation Strategy : Monetization Marketplace Flagship Store Example: Yurun.Tmall.com
  95. 95. PAGE 95 Betagro Digital Transformation Strategy : Monetization Marketplace Flagship Store Example: Yurun.Tmall.com 239 sold this month to date
  96. 96. PAGE 96 Betagro Digital Transformation Strategy : Monetization Online-to-Offline • Build online database for email marketing (educational emails, drive traffic to store) • Sign up and get free sample product shipped to user • Leverage users who got samples to write product reviews / social proof, displayed on Betagro site • Activate member base for special events – pop up shop, etc. 8,000 New Subscribers 2,000 Store visits & Sets of samples redeemed 10 Online orders (More orders offline too!) Kiehl’s Thailand tapped into 5 million Line users to 1) build their member database and 2) drive offline foot traffic and orders by offering users who signed up free samples to be picked up in Kiehl’s offline retail stores
  97. 97. PAGE 97 Betagro Digital Transformation Strategy : Monetization On-Demand (Betagro Shops, Supermarkets) • Drive traffic / orders to Betagro Shops • Promote Betagro products in supermarkets • Advertise / create brand awareness for new Betagro products and brands
  98. 98. PAGE 98 Betagro Digital Transformation Strategy : Monetization aCommerce Case Study: PokeSurance with Asia Insurance
  99. 99. PAGE 99 Betagro Digital Transformation Strategy : Monetization aCommerce Case Study: Phatra Leasing
  100. 100. PAGE 100 Betagro Digital Transformation Strategy Betagro Value Chain & Gap Analysis Technology Product Design Manufacturing Marketing Sales & Distribution Service Demand Generation Demand Fulfillment Educate Acquire Activate Engage Convert Monetize As-Is • Event marketing (Roadshow, University, Mall, etc.) • TVC • OOH / Ambient Advertising • Music Videos • CSR • Free Sampling in Supermarket (booth), Events • Free Sampling in Supermarket (booth), Events • Betagro.com • Betagro Society (YouTube, Facebook) • Retail partners (Tops, Lotus, Big C, FamilyMart, etc.) • Betagro Shops • B2B (Horeca) To-Be • + Facebook Ads • + Display Ads (Vertical, GDN) • + Influencer Marketing • + Google SEO • + Google Paid Search • + Facebook Ads • + Display Ads (Vertical, GDN) • + Influencer Marketing • + Google SEO • + Affiliate Marketing • + Betagro.com (revamped) • + Betagro Blog & Commmunity • + Content Marketing (e.g. Tastemade, Tasty, etc.) • + Email Marketing • + Betagro.com (revamped) • + Betagro Blog & Commmunity • + Content Marketing (e.g. Tastemade, Tasty, etc.) • Criteo • Bluecore • + Betagro Ecommerce Brand.com • + Marketplaces (e.g. Lazada, etc.) • + On-demand (HonestBee, HappyFresh) • + O2O (Online- to-Offline) • + B2B Ecommerce
  101. 101. PAGE 101 Betagro Digital Transformation Strategy Proposed Digital Transformation Roadmap Phase 1 Q4 ’16 – Q1 ‘17 Phase 2 Q1 ’17 – Phase 3 Q2 ’17 – Marketing • Brand awareness • Build email database (samples, Lazada voucher) • Content marketing (onsite articles, advertorials) • Performance marketing • Brand.com development • Performance marketing • Content marketing (onsite articles, advertorials) • Performance marketing Sales & Distribution • Betagro Lazada Flagship Store • WindowShop • O2O • Betagro Corporate Website Revamp • Betagro Blog & Community • Other marketplaces (WeMall, 11street, etc.) • Brand.com (E2E ecommerce) • B2B Ecommerce • On-Demand (Honestbee, Happy Fresh)
  102. 102. PAGE 102 Betagro Digital Transformation Strategy Betagro Corporate Website Revamp
  103. 103. PAGE 103 Betagro Digital Transformation Strategy Betagro Corporate Website Revamp
  104. 104. 3 aCommerce Marketing Solutions Intro
  105. 105. PAGE 105 Marketing Vision To moneyball traditional digital marketing in Southeast Asia The way ‘Moneyball’ changed the game of baseball, we are disrupting traditional digital marketing in SEA
  106. 106. PAGE 106 Marketing Vision Financial and mathematical approach towards marketing
  107. 107. PAGE 107 Marketing #1 Ecommerce marketing agency in SEA Fastest growing ecommerce marketing agency in SEA 5 75 2013 2015 Active marketing clients 12 22 2015 2016e Marketing billings ($M) Unique value prop: full-stack ecommerce performance marketing Strategic partnerships and proprietary demand gen products Trusted by blue-chip SEA ecommerce retailers and global brands Data-driven, end-to-end approach towards marketing CPA, CAC, CLV optimization, not vanity metrics
  108. 108. PAGE 108 Marketing Our Approach: Mathematics of Marketing ROI CLV ARPU Gross Margin Avg. Customer Lifetime 1 / (1-r) Retention Rate (r) CAC CPC CPM CTR CVR
  109. 109. PAGE 109 Marketing Our Approach: Optimize for CLV, not just CAC
  110. 110. PAGE 110 Marketing Our Approach: Full-Stack, Full-Cycle Media Planning Acquire Activate Engage Convert Monetize Email Marketing Content Marketing E.g. Affiliate Marketing Data Financial Services (Residential Insurance, Fire Insurance, Loans / Installment, etc.) Advertising Services (Home Improvement, Design, etc.)
  111. 111. PAGE 111 Marketing Holistic, data-driven approach towards ecommerce marketing Strategy & Customer Research Customer Acquisition & Activation Site Landing Product Discovery Product Presentation Shopping Cart Management Checkout Order Fulfillment After-Sales Service • Homepage • Landing pages • Offers and promotions • User special pages • Search and filtering • Category browsing • Sorting and ordering • Product previews • Personalization & recommendations • Product description • Images and other media • Reviews & recommendations • Product configuration • Cart management • Shipping options • Wish list • Personalization & recommendations • Guest checkout • Payment options • Shipping options • Promo codes • Order confirmation • Shipping & delivery • Real-time order tracking • Packaging • Notifications • Search & display • Re-marketing • Word-of-mouth • Email • Social • CRM • Order cancellation & refunds • Return shipping • Personalization & recommendations • Customer surveys & feedback Data • Demographics & psychographics • Media consumption • Purchasing behavior • Customer lifecycles DW, DMP & BI Tools
  112. 112. PAGE 112 aCommerce Marketing Solutions Performance Marketing Solutions Acquisition Marketing Activation Marketing Mobile App Marketing WindowShop (PH) LaunchPad (TH) Marketing Technology ShopSmart B2C (Price Comparison & Coupon) B2B (Data & Audiences) Headlines & Trending (Content Marketing) Facebook Chat Bot aCommerce Affiliate Network Bluecore B2B Marketing & Demand Generation ecommerceIQ aCommerce.asia Marketing Services & Product Overview
  113. 113. PAGE 113 aCommerce Marketing Solutions (Sheji) Performance Marketing Solutions Thailand (Ten) SG, MY, VN (Sheji, acting) Indonesia (Adit) Philippines (Kat) Corporate Marketing & eCommerce IQ (Felicia) Thailand (Felicia) Indonesia (Stephanie) Marketing Technology (Sheji) ShopSmart (Pat) Headlines & Trending (Pat) Bluecore (Bom) Affiliate (Bo & Intan) Regional teams • Sheji Ho, Group CMO • Gilt Groupe, Moda Operandi, Groupon, Dell • MBA, New York University, Stern School of Business • Felicia Moursalien, Head of Corp. Marketing & eCommerce IQ • Zalora, United Nations • BA, University of Toronto, Trinity College • Ten Chantaramungkorn, Head of Marketing, Thailand • Lazada Regional • MS, Imperial College London • Katrina Cruz, Head of Marketing, Philippines • Lazada Regional • BA, University of Philippines • Aditya Jamaludin, Head of Marketing, Indonesia • Lazada Indonesia • BS, Universitas Gadjah Mada (UGM) 11 5 5 4 5 Marketing Regional & Country Team Leads
  114. 114. PAGE 114 Director of Internet Marketing Head of Internet Marketing Senior Internet Marketing Manager Internet Marketing Managers (Sr.) Internet Marketing Analysts Internet Marketing Managers (Sr.) Internet Marketing Analysts Senior Internet Marketing Manager Internet Marketing Managers (Sr.) Internet Marketing Analysts Internet Marketing Managers (Sr.) Internet Marketing Analysts Head of Marketing Operations Project Manager Data Analytics Manager Tech Manager Billing/Invoicing Manager Head of Digital Design Digital Design Manager Digital Designers Digital Design Manager Digital Designers Head of Acquisition Marketing SEM Team Lead SEO Team Lead Social Media Team Lead Affiliate Marketing Team Lead Mobile Marketing Team Lead Head of Activation & Retention Marketing EDM Team Lead Remarketing Team Lead Loyalty & Retention Team Lead Onsite Optimization Team Lead Head of Product Product Manager – Partnerships (Bluecore, Shopline, etc.) Product Manager – ShopSmart (B2C) Product Manager – ShopSmart (B2B) Product Manager – Headlines & Tredning Product Manager – Affiliate Platform Country marketing solutions team structure Experienced brand and technical marketers from leading ecommerce and digital agencies Marketing Country Team Structure
  115. 115. PAGE 115 Marketing Technology Leveraging existing Best-of-Breed (BoB) platforms SEM Google Adwords DoubleClick Analytics Google Analytics Campaign Monitor Mixpanel Facebook Marketing Facebook / FBX Mouseflow Email Marketing Retargeting Criteo Business Intelligence RJ Metrics LeftronicTesting & Optimization Optimize.ly Affiliate Marketing Interspace aCommerce Google Adwords Personalization Scigineer aCommerce Bluecore Upcast Price Comparison & Coupon ShopSmart
  116. 116. PAGE 116 Marketing Technology Bluecore: Automated, Personalized Trigger Emails http://marketing.acommerce.asia/marketing/bluecore/tommy%20abandon%20search.gif
  117. 117. PAGE 117 Marketing Technology Bluecore: Automated, Personalized Trigger Emails http://marketing.acommerce.asia/marketing/bluecore/mataharimall%20window%20shopping.gif
  118. 118. PAGE 118 Marketing Technology Bluecore: Automated, Personalized Trigger Emails
  119. 119. PAGE 119 Marketing Technology Bluecore: Why email marketing? 3% 4% 10% 11% 11% 17% 21% 24% Referral Facebook (Newsfeed) SEO Direct Price Comparison Retargeting SEM EDM Share of Orders 101 134 143 167 217 231 237 332 Price Comparison Facebook Retargeting Referral SEO EDM SEM Direct Average Order Value (AOV) 0.39% 0.47% 0.51% 0.57% 0.66% 0.83% 1.10% 2.17% SEM Retargeting Facebook (Newsfeed) SEO Price Comparison Direct Referral EDM Conversion Rate (CVR) $50 $46 $11 $10 $6 SEM Retargeting Price Comparison Facebook (Newsfeed) EDM Cost Per Order (CPO) Source: aCommerce internal data (etailer client sample, not brand.com. Fashion & apparel ecommerce will have higher share of Facebook) Email = #1 revenue driver for ecommerce
  120. 120. PAGE 120 Marketing Technology ShopSmart: Price Comparison Engine for Thailand and Indonesia
  121. 121. PAGE 121 Marketing Technology Headlines & Trending by ShopSmart – Gadget & Lifestyle Portal
  122. 122. PAGE 122 Marketing Technology Headlines & Trending by ShopSmart – Gadget & Lifestyle Portal • Over 1 million sessions per month • Proprietary marketing channel & content marketing opportunity for 11street
  123. 123. PAGE 123 Marketing Technology aCommerce Affiliate Platform & Network Clients:
  124. 124. PAGE 124 Marketing Technology ATT Skybox • O2O marketing channel • TVC, NFC, voucher distribution, offline branding • Current clients: Lazada, Central Online
  125. 125. PAGE 125 Marketing Technology ATT Skybox
  126. 126. PAGE 126 Strategic Partnerships aCommerce x Google
  127. 127. PAGE 127 Strategic Partnerships aCommerce x Facebook aCommerce is chosen as a case study for Facebook as it proves to deliver business results – by optimizing Facebook campaigns in real time and delivering personalized ads to match the fast-moving pace of retail environment
  128. 128. PAGE 128 Case Studies – O2O (Vouchers) Leveraging online demand into offline foot traffic and sales • Build online database for O2O activation • Sign up and get voucher or QR code emailed to user • Redeem voucher in purchase in offline store • Leverage online database to drive foot traffic to offline stores • Activate member base for special events – pop up shop, collaborations, etc. 8,000 New Subscribers 2,000 Store visits & Sets of samples redeemed 10 Online orders (More orders offline too!) Kiehl’s Thailand tapped into 5 million Line users to 1) build their member database and 2) drive offline foot traffic and orders by offering users who signed up free samples to be picked up in Kiehl’s offline retail stores
  129. 129. PAGE 129 Case Studies – O2O (Vouchers) Leveraging online demand into offline foot traffic and sales aCommerce’s Huawei Thailand Line Hot Brand campaign targeting 5 million Line users and offering free Bluetooth speakers for members resulted in long lines in Jaymart, an official offline retailer for Huawei mobile phones.
  130. 130. PAGE 130 Case Studies – O2O (Gift Cards) Sell H&M gift cards online, driving offline redemptions • Order H&M gift cards online • Redeem gift cards in offline stores • “Test” apetite for ecommerce and performance of marketing channels prior to full E2E ecommerce launch • Track customer LTV and marketing channel efficiency via unique gift card IDs • Build business case for full E2E ecommerce Global search volume for H&M gift cards and vouchers growing YoY, with peaks during gifting seasons. Selling H&M gift cards online in Indo will boost offline sales. Starbucks selling gift cards online with customizable amount and gifting options.
  131. 131. PAGE 131 Case Studies – Chat / Conversational Commerce “2016 will be the year of conversational commerce” Source: https://medium.com/chris-messina/2016-will-be-the-year-of-conversational-commerce-1586e85e3991 • Messaging apps have already surpassed social networks in terms of MAUs • Standalone, concierge apps looking to tap into chat commerce trend – Magic (US), Operator (US), and YesBoss (ID) • FB Messenger Platform launched at F8 in 2016 – APIs and tools to build and automate commerce in messaging apps (already used by Uber, Spring & More) • Leapfrogging in SEA – Whilst still a novelty in the West, chat commerce is already a reality in SEA: 33% of Thailand ecommerce GMV through Facebook, Instagram, and Line Animated GIF demo – view full screen to play
  132. 132. PAGE 132 Case Studies – Chat / Conversational Commerce Conversational commerce process for H&M Indonesia Pay via FB or COD (aCommerce) Collect cash (optional) Dispatch aCommerce messenger to pick up in store Bring products to central packing location (incl. consolidation of SKUs from multiple stores) Deliver to end consumer Chat agent manned by aCommerce CS staff + FB Messenger Platform A.I. developed by aCommerce (e.g. latter for browsing product catalog in chat)
  133. 133. PAGE 133 Case Studies – Chat / Conversational Commerce ShopSmart Price Comparison & Coupon FB Chatbot Animated GIF, full screen to play
  134. 134. PAGE 134 Case Studies – CRM / Loyalty H&M Mobile Loyalty App • Create and launch H&M mobile loyalty app via Flok • Leverage online database & app install marketing to drive adoption of H&M loyalty app • Increase customer LTV through reward points for purchases in H&M offline retail • Leverage push notifications to activate member base for special events – pop up shop, collaborations, etc. • Geo-targeting users based on proximity to H&M offline stores “Create your own virtual zone around your business with a neighborhood perks. Any time a regular enters that area they will automatically get this push notification. It is a great way to target customers close to your business or at a particular event.”
  135. 135. PAGE 135 Marketing – How do we work with our partners? The Mathematics of Marketing: Marketing Biz Plan ROI CLV ARPU Gross Margin Avg. Customer Lifetime 1 / (1-r) Retention Rate (r) CAC CPC CPM CTR CVR
  136. 136. PAGE 136 Marketing – How do we work with our partners? The Mathematics of Marketing: Marketing Biz Plan ROI CLV ARPU Gross Margin Avg. Customer Lifetime 1 / (1-r) Retention Rate (r) CAC CPC CPM CTR CVR Traditional agency focus (vanity metrics)
  137. 137. PAGE 137 Marketing – How do we work with our partners? Marketing Business Plan Summary (Year 1) Budget Marketing $4,287,875 Orders 212,117 Revenue $12,177,815 AOV $57 ROI (Revenue) 184% ROI (Gross Margin, assuming 30%) -15% Marketing Metrics (Year 1) Budget $4,287,875 Clicks 27,208,326 Sessions (Blended) 19,575,778 Email Subscribers 731,470 Orders (Blended) 212,117 CPC $0.16 CPS $0.22 CVR (Email Subscribers) 3.7% CVR (Orders, incl. repeat) 1.1% CPA (Email Subscribers) $6 CPA (Orders, incl. repeat) $20 COS (Cost of Sales) 35% COS (Cost of Sales, incl. coupon code cost) 40% Songkran 11/11 12/12 Low Season M1 = March 2016 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total Phase 1 Phase 2 Phase 3 Phase 4 Promotions/Coupons MARKETING I. Customer Acquisition Search engine marketing (SEM) $40,000 $40,000 $40,000 $60,000 $60,000 $60,000 $100,000 $100,000 $100,000 $80,000 $80,000 $80,000 $840,000 & Demand Harvesting Facebook marketing (incl. Instagram) $120,000 $120,000 $120,000 $60,000 $60,000 $60,000 $100,000 $100,000 $100,000 $80,000 $80,000 $80,000 $1,080,000 Remarketing $53,333 $106,667 $106,667 $80,000 $80,000 $80,000 $133,333 $133,333 $133,333 $106,667 $106,667 $106,667 $1,226,667 Afilliate marketing $0 $10,000 $15,000 $20,000 $30,000 $40,000 $50,000 $60,000 $60,000 $60,000 $60,000 $60,000 $465,000 SEO - Offsite $5,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $115,000 Partnerships (Line, Telco, Banks, etc.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal $218,333 $286,667 $291,667 $230,000 $240,000 $250,000 $393,333 $403,333 $403,333 $336,667 $336,667 $336,667 $3,726,667 II. Customer Activation Email platform and sending $699 $1,199 $1,999 $2,299 $2,969 $3,349 $3,789 $4,749 $5,229 $5,709 $5,709 $5,709 $43,408 Marketing emails produced per month 0 4 8 12 16 20 24 24 24 24 24 24 Trigger emails produced per month 2 Email production $600 $1,200 $2,400 $3,600 $4,800 $6,000 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $61,800 Bluecore $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $10,000 $118,000 % of Orders activated with promo code 95% 86% 77% 69% 62% 56% 50% 45% 41% 37% 33% 30% First order promocode 15% (recommended) $48,889 $61,298 $61,709 $32,915 $34,007 $34,690 $47,792 $70,547 $66,403 $54,912 $34,885 $33,299 $581,345 Subtotal (excl. promo codes) $1,299 $2,399 $16,399 $17,899 $19,769 $21,349 $22,989 $23,949 $24,429 $24,909 $24,909 $22,909 $223,208 III. Onsite / Conversion Optimization Email capture popup $2,000 $2,000 SEO - Onsite (setup and ongoing maintenance) $10,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $21,000 Subtotal $12,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $23,000 IV. Tracking, Configuration & Dashboards Google Analytics (Enhanced EC tracking) $2,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $7,500 XML product feed development $2,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $7,500 Subtotal $4,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $15,000 V. Media Buying, Optimization & Management (fixed fee) $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $300,000 Effective % 11% 9% 9% 11% 10% 10% 6% 6% 6% 7% 7% 7% 8% Total $260,632 $316,066 $335,066 $274,899 $286,769 $298,349 $443,322 $454,282 $454,762 $388,576 $388,576 $386,576 $4,287,875 Est. CPCs Search engine marketing $0.15 $0.15 $0.15 $0.15 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.13 $0.14 Facebook marketing $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 Remarketing $0.20 $0.20 $0.20 $0.19 $0.19 $0.19 $0.19 $0.19 $0.18 $0.18 $0.18 $0.18 $0.19 Affiliate marketing $0.15 $0.15 $0.15 $0.15 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.13 Est. Clicks Search engine marketing 266,667 269,360 272,081 412,244 416,408 420,614 708,105 715,257 722,482 583,824 589,721 595,678 5,972,442 Facebook marketing 1,200,000 1,212,121 1,224,365 618,366 624,612 630,921 1,062,157 1,072,886 1,083,723 875,736 884,582 893,517 11,382,988 Remarketing 266,667 538,721 544,162 412,244 416,408 420,614 708,105 715,257 722,482 583,824 589,721 595,678 6,513,884 Affiliate marketing 0 67,340 102,030 137,415 208,204 280,410 354,052 429,154 433,489 437,868 442,291 446,759 3,339,012 Total 1,733,333 2,087,542 2,142,639 1,580,269 1,665,633 1,752,560 2,832,419 2,932,555 2,962,177 2,481,252 2,506,315 2,531,632 27,208,326 Est. Visits Search engine marketing 177,778 179,574 181,387 274,829 277,605 280,410 472,070 476,838 481,655 389,216 393,148 397,119 3,981,628 Facebook marketing 800,000 808,081 816,243 412,244 416,408 420,614 708,105 715,257 722,482 583,824 589,721 595,678 7,588,658 Remarketing 177,778 359,147 362,775 274,829 277,605 280,410 472,070 476,838 481,655 389,216 393,148 397,119 4,342,589 Affiliate marketing 0 44,893 68,020 91,610 138,803 186,940 236,035 286,103 288,993 291,912 294,861 297,839 2,226,008 Partnerships (Line, Telco, Banks, etc.) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000 Organic (incl. direct, SEO, EDM) 1,000 10,000 30,000 38,400 49,152 62,915 78,643 98,304 122,880 153,600 192,000 240,000 1,076,894 Total 1,186,556 1,431,695 1,488,426 1,121,913 1,189,574 1,261,288 1,996,923 2,083,341 2,127,665 1,837,768 1,892,877 1,957,754 19,575,778 % paid visits 97% 97% 96% 94% 93% 93% 95% 94% 93% 90% 88% 86% 81% % organic visits 3% 3% 4% 6% 7% 7% 5% 6% 7% 10% 12% 14% 19% Est. CVR (Customers) Search engine marketing 0.80% 0.82% 0.83% 0.85% 0.87% 0.88% 0.90% 0.92% 0.94% 0.96% 0.98% 0.98% 0.91% Facebook marketing 0.50% 0.51% 0.52% 0.53% 0.54% 0.55% 0.56% 0.57% 0.59% 0.60% 0.61% 0.62% 0.56% Remarketing 0.70% 0.71% 0.73% 0.74% 0.76% 0.77% 0.79% 0.80% 0.82% 0.84% 0.85% 0.86% 0.79% Partnerships (Line, Telco, Banks, etc.) 0.60% 0.61% 0.62% 0.64% 0.65% 0.66% 0.68% 0.69% 0.70% 0.72% 0.73% 0.75% 0.67% Organic 1.50% 1.52% 1.53% 1.55% 1.56% 1.58% 1.59% 1.61% 1.62% 1.64% 1.66% 1.67% 1.63% Blended CVR 0.58% 0.66% 0.70% 0.82% 0.88% 0.93% 0.89% 0.93% 0.94% 0.99% 1.01% 1.02% 0.98% Est. CVR (Subscribers and Registered Users) Search engine marketing 4.00% 4.08% 4.16% 4.24% 4.33% 4.42% 4.50% 4.59% 4.69% 4.78% 4.88% 4.92% Facebook marketing 2.50% 2.55% 2.60% 2.65% 2.71% 2.76% 2.82% 2.87% 2.93% 2.99% 3.05% 3.08% Display re-marketing 3.50% 3.57% 3.64% 3.71% 3.79% 3.86% 3.94% 4.02% 4.10% 4.18% 4.27% 4.31% Affiliate marketing 4.00% 4.08% 4.16% 4.24% 4.33% 4.42% 4.50% 4.59% 4.69% 4.78% 4.88% 4.92% Partnerships (Line, Telco, Banks, etc.) 3.00% 3.06% 3.12% 3.18% 3.25% 3.31% 3.38% 3.45% 3.51% 3.59% 3.66% 3.73% Organic 4.50% 4.55% 4.59% 4.64% 4.68% 4.73% 4.78% 4.82% 4.87% 4.92% 4.97% 5.02% Blended CVR 2.89% 3.07% 3.17% 3.51% 3.62% 3.73% 3.77% 3.87% 3.95% 4.08% 4.17% 4.23% Est. Paid Orders (last touch attribution) Search engine marketing 1,422 1,465 1,510 2,333 2,404 2,477 4,253 4,382 4,515 3,721 3,834 3,911 36,227 Facebook marketing 4,000 4,121 4,246 2,187 2,254 2,322 3,987 4,108 4,233 3,489 3,594 3,667 42,208 Display re-marketing 1,244 2,564 2,642 2,042 2,103 2,167 3,721 3,834 3,950 3,256 3,355 3,422 34,302 Affiliate marketing 0 980 1,442 1,885 2,772 3,623 4,440 5,223 5,121 5,021 4,922 4,826 40,254 Partnerships (Line, Telco, Banks, etc.) 180 184 187 191 195 199 203 207 211 215 219 224 2,414 Total Paid Orders 6,847 9,315 10,027 8,638 9,727 10,788 16,604 17,754 18,029 15,702 15,925 16,050 155,405 Est. Organic Orders 15 152 459 593 767 992 1,252 1,581 1,996 2,520 3,181 4,016 17,525 Est. Total Orders (Paid + Organic Orders) 6,862 9,466 10,486 9,231 10,495 11,779 17,856 19,335 20,025 18,221 19,106 20,067 172,930 Est. Total Daily Orders 229 316 350 308 350 393 595 645 668 607 637 669 5,764 Existing Email Subscribers 0 Est. Registered Users & Email Subscribers 34,278 43,958 47,133 39,435 43,091 47,055 75,211 80,543 84,074 74,919 78,933 82,840 731,470 Est. Registered Users & Email Subscribers (Cumulative) 34,278 78,237 125,370 164,805 207,896 254,950 330,161 410,704 494,778 569,697 648,630 731,470 731,470 Est. Total Customers (New + Repeat Customers) 6,862 9,466 10,486 9,231 10,495 11,779 17,856 19,335 20,025 18,221 19,106 20,067 172,930 Est. % of New Customers in Cohort 100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 90% 94% Est. New Customers 6,862 9,372 10,277 8,957 10,081 11,202 16,811 18,022 18,478 16,646 17,279 17,966 161,953 Est. New Customers (Cumulative) 6,862 16,233 26,511 35,468 45,549 56,751 73,562 91,584 110,062 126,708 143,987 161,953 895,228 Est. Repeat Customers 0 95 209 274 414 577 1,045 1,314 1,547 1,576 1,827 2,100 10,977 Est. Lifetime Orders Per New Customer (1-year) 1.5 1.5 1.6 1.6 1.6 1.7 1.7 1.7 1.8 1.8 1.8 1.9 Est. Total Realized Orders 6,862 9,778 11,241 10,491 12,211 14,030 20,723 23,160 24,915 24,243 26,184 28,280 212,117 Est. Total Realized Orders / Day 229 326 375 350 407 468 691 772 831 808 873 943 Est. Total Realized Revenue $343,083 $498,690 $584,743 $556,651 $660,890 $774,510 $1,166,854 $1,330,165 $1,459,600 $1,448,629 $1,595,884 $1,758,116 $12,177,815 Avg. Month-on-Month Total Orders Growth 38% 11% -12% 14% 12% 52% 8% 4% -9% 5% 5% Avg. Paid CPA $32 $31 $29 $27 $25 $23 $24 $23 $22 $21 $21 $21 $20 Avg. Blended CPA $38 $33 $32 $30 $27 $25 $25 $23 $23 $21 $20 $19 $25 Est. Average Order Value (AOV) $50 $51 $52 $53 $54 $55 $56 $57 $59 $60 $61 $62 Est. Revenue $343,083 $482,783 $545,477 $489,815 $567,984 $650,270 $1,005,460 $1,110,500 $1,173,142 $1,088,810 $1,164,495 $1,247,517 $9,869,337 Est. ROI (Realized Revenue) 32% 58% 75% 102% 130% 160% 163% 193% 221% 273% 311% 355% 184% Est. ROI (Gross Margin, assuming 30%) -61% -53% -48% -39% -31% -22% -21% -12% -4% 12% 23% 36% -15% Est. ROI (Gross Margin, assuming 30%, minus coupon code cost) -79% -72% -66% -51% -43% -34% -32% -28% -18% -2% 14% 28% -28% Est. COS (Cost of Sales) 76% 63% 57% 49% 43% 39% 38% 34% 31% 27% 24% 22% 35% Est. COS (Cost of Sales, incl. coupon code cost) 90% 76% 68% 55% 49% 43% 42% 39% 36% 31% 27% 24% 40% Dependencies: Organic traffic 1,000 10,000 30,000 38,400 49,152 62,915 78,643 98,304 122,880 153,600 192,000 240,000 SKUs required 333 3,333 10,000 12,800 16,384 20,972 26,214 32,768 40,960 51,200 64,000 80,000 Organic traffic : SKU ratio 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Cohorts: Monthly orders 6,862 9,466 10,486 9,231 10,495 11,779 17,856 19,335 20,025 18,221 19,106 20,067 Avg. monthly orders 312 443 505 457 534 616 958 1,065 1,132 1,056 1,135 1,222 312 443 505 457 534 616 958 1,065 1,132 1,056 1,135 312 443 505 457 534 616 958 1,065 1,132 1,056 312 443 505 457 534 616 958 1,065 1,132 312 443 505 457 534 616 958 1,065 312 443 505 457 534 616 958 312 443 505 457 534 616 312 443 505 457 534 312 443 505 457 312 443 505 312 443 312 Launch + Branding + First Time Customer Promos 15% Off for First Time Customers Customer Activation Optimization 11/11 + 12/12 Campaigns 10% Off for First Time Customers15% Off for First Time Customers10% Off for First Time Customers
  138. 138. PAGE 138 Marketing – How do we work with our partners? Marketing Business Plan – Actuals vs Targets Monitoring
  139. 139. PAGE 139 Marketing – How do we work with our partners? Marketing Business Plan – Actuals vs Targets Monitoring
  140. 140. PAGE 140 Marketing – How do we work with our partners? Marketing Business Plan – Actuals vs Targets Monitoring
  141. 141. PAGE 141 Marketing – How do we work with our partners? Engagement Model Traditional Digital Agencies aCommerce Remuneration • Management fee % of media spend + CPC/CPM markup • Retainer • Classic: management & optimization fee % of media + a la carte services (onsite SEO, analytics, dashboards, CRO, CRM) • Hybrid: classic + performance bonus • Performance: COGS + CPA Partnership Relationship-based (with agency rebates) Performance-based (hitting marketing business plan targets) Scope of Work Top of Funnel (ToFu) – media buying, impressions, CPM, impression share ToFu, MoFu (Mid of Funnel) & BoFu (Bottom of Funnel) Objective Driving impressions (i.e. getting client to spend as much as possible) Driving sales @ positive ROI @ scale Team Communications, advertising, marketing & language majors Comms, Marketing, Business, Finance, Engineering, Math, Stats, Computer Science majors
  142. 142. PAGE 142 Marketing – How do we work with our partners? Launch Phase Marketing Service Details Tracking & Analytics • Set up and configure Google Analytics (incl. e-commerce tracking) via Google Tag Manager • Set up and configure Mixpanel tracking • Implement UTM tracking in the database • Add Adwords, Facebook, and Retargeting tracking and conversion pixels • Create dashboard for day-to-day performance tracking SEM • Create master sheet with account structure, keywords and ad copies • Upload master sheet into Google Adwords SEO • Perform full site audit and create document with detailed recommendation regarding page titles, meta descriptions, etc. • Reach out to bloggers, webmasters, and publishers for linkbuilding Facebook • Create master sheet with account structure • Create banners • Set up ads in Facebook Retargeting (Facebook & Display) • Create XML product feed and integrate into retargeting platforms • Create dynamic creatives Email Marketing • Set up and configure Campaign Monitor for marketing emails • Design and code email templates • Work with client team to implement automated trigger emails Personalization • Set up and configure TargetingMantra tags • Implement TargetingMantra personalization widgets on client site
  143. 143. PAGE 143 Marketing – How do we work with our partners? Steady-state phase cadence Marketing Service Daily Weekly Monthly Tracking & Analytics • Daily performance dashboard shared with client team • Pull data from database and other sources for analysis • Weekly meeting with client to go over dashboard • Monthly meeting with client to review actuals vs. target, lessons learned, and next month’s action items • Cohort and LTV analysis (via Mixpanel, database) SEM • Monitoring and optimization (budget re-allocation, pause/unpause campaigns/keywords, adjust bids and bidding strategies) • Weekly keyword re-feed (from actual searches and new SKUs) SEO • Linkbuilding • Linkbuilding • Monthly SEO performance report (ranking for keywords, inbound links, organic orders and revenue, etc.) Facebook • Monitoring and optimization (budget re-allocation, pause/unpause campaigns, adjust bids and bidding strategies) • Refresh ads 2-3 times a week • Creative testing Retargeting (Facebook & Display) • Monitoring and optimization (budget re-allocation, pause/unpause campaigns, adjust bids and bidding strategies) • Refresh templates once a month Email Marketing • Daily performance dashboard shared with client team • Design, code, and send out weekly campaign marketing email • Monitor transactional and trigger email performance • Monthly EDM performance report to review results, learnings, and action items
  144. 144. 4 Southeast Asia Ecommerce Macro-Level Overview
  145. 145. PAGE 145 Southeast Asia macroeconomic and industry landscape SEA slated to become a top 3-4 largest ecommerce market globally Source: Google x Temasek, “e-conomy SEA: Unlocking the $200 billion digital opportunity in Southeast Asia” 0.4 0.5 0.9 1.0 1.0 5.5 1.7 TotalSGTHID PHVN MY 7.5 9.7 11.1 8.2 87.9 46.0 PH 5.4 VNID TotalTH SGMY By 2025, all SEA countries will have an ecommerce market >$5 billion; Thailand and Indonesia expected to reach $11.1 and $46 billion Ecom % of retail 0.6% 0.6% 0.5% 0.8% 1.1% 2.1% 0.8% 8.0% 4.7% 4.7% 5.5% 5.4% 6.7% 6.4% Ecommerce market ($ billion) 2015 2025 CAGR: 32%
  146. 146. PAGE 146 Southeast Asia macroeconomic and industry landscape However: Google-Temasek projections for SEA too conservative $13.2$17 $22 $28 $36 $46 $58 $75 $96$123$157 $3 $6 $15 $30 $52 $88$145 $218 $310 $419 $509 $618 $750 $910 $1,104 $1,264 $1,446 $1,655 $1,894 $2,168 $98$120$155$197$248 $310 $380 $454$467$476 $552 $644 $734 $835 $959 $1,087 $1,219 $1,296 $1,503 $1,656 $1,825 $1,992 $2,175 $2,375 $2,592 $2,830 0 500 1000 1500 2000 2500 3000 Ecommerce Retail Sales / Capita ($ USD) Thailand Indonesia China United States Source: eMarketer, China Internet Watch, Census.gov, World Bank, Google x Temasek China 2006 2016 Change Ecom Retail Sales / Capita $4 $509 127x Ecom % of Total Retail 0.3% 13.8% 46x Total Retail % of GDP 48% 45% GDP / Capita $2,082 $8,236 Thailand 2016 2025 Change Ecom Retail Sales / Capita $13 $157 12x Ecom % of Total Retail 0.8% 5.5% 7x Total Retail % of GDP 34% 43% GDP / Capita $6,230 $6,649 Based on China benchmarks (Total Retail % of GDP and Ecom Retail Sales / Capita), Thailand ecommerce GMV by 2025 should be at least 3x the Google-Temasek projection, i.e. $33 billion, not $11 billion. $3.9 $8 $19 $39 $69$118 $196 $296 $422 $575 $701 $855 $1,043 $1,272 $1,551 $1,784 $2,052 $2,359 $2,713 $3,120 $28 $34 $45 $57 $73 $91$113$137$142$146$171$201$231$264$306$349$394$423 $494$548$609$669$736 $810 $891 $980 0 500 1000 1500 2000 2500 3000 3500 Retail Ecommerce Sales ($ billion) Thailand Indonesia China United States
  147. 147. PAGE 147 Southeast Asia macroeconomic and industry landscape SEA ecommerce fragmented but consolidation will happen Source: iResearch, Google Trends Dangdang, 16.2% Amazon/Joyo, 15.4% 360buy, 15.0% m18, 10.8% 139shop, 8.8% Redbaby, 4.6% 99read, 3.8% PPG, 2.7% Menglu, 2.5% 7cv, 0.8% MainOne, 0.5% Others, 18.9% China 2008Q1 Tmall, 50.6%JD.com, 23.3% VIP.com, 3.0% Yixun.com, 2.6% Amazon, 2.1% Suning.com, 2.0% Dangdang, 2.0% Yhd.com, 1.9% Gome, 1.7% Vancl, 0.5% Others, 10.4% China 2014Q1 Like China in ‘08, ecommerce market still fragmented – 1-2 key players to emerge within the next 5 years 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2004-2 2004-10 2004-18 2004-26 2004-34 2004-42 2004-50 2005-6 2005-14 2005-22 2005-30 2005-38 2005-46 2006-1 2006-9 2006-17 2006-25 2006-33 2006-41 2006-49 2007-5 2007-13 2007-21 2007-29 2007-37 2007-45 2007-53 2008-9 2008-17 2008-25 2008-33 2008-41 2008-49 2009-5 2009-13 2009-21 2009-29 2009-37 2009-45 2009-53 2010-9 2010-17 2010-25 2010-33 2010-41 2010-49 2011-5 2011-13 2011-21 2011-29 2011-37 2011-45 2011-53 2012-8 2012-16 2012-24 2012-32 2012-40 2012-48 2013-4 2013-12 2013-20 2013-28 2013-36 2013-44 2013-52 2014-8 2014-16 2014-24 2014-32 2014-40 2014-48 2015-4 2015-12 2015-20 2015-28 2015-36 2015-44 2015-52 2016-8 Thailand Ecommerce Google Search Interest lazada itruemart tarad kaidee weloveshopping ensogo advice zalora jib shopat7 cdiscount moxy central online
  148. 148. PAGE 148 Southeast Asia macroeconomic and industry landscape Back of the envelope calculations for Thailand ecommerce… Total market: • Let’s say $1B market size today (AT Kearney / Google x Temasek) • AOV of $20 (incl. C2C transactions which are typically smaller) • $1B / 365 / $30 = 91K orders per day B2C: • Let’s say $1B market size today • 50% B2C • AOV of $50 (due to more electronics/mobile phones in B2C) • $0.5B / 365 / $50 = 27K orders per day C2C: • 91K – 27K = 64K orders per day • $0.5B / 365 / 64K = $21 AOV
  149. 149. PAGE 149 Southeast Asia macroeconomic and industry landscape Predictions for SEA should be based on China, not global average Source: https://www.youtube.com/watch?v=eh1c5G7gXQE
  150. 150. PAGE 150 Southeast Asia macroeconomic and industry landscape Predictions for SEA should be based on China, not global average “Why did Internet e-commerce grow so much faster in China than in the USA? Because the infrastructure of commerce in China was bad. Unlike here, where you have all the (physical) shops: Wal-Mart, K-Mart, everything, everywhere. But in China, we have nothing, nowhere. So e-commerce in the US is just a dessert; it's complementary to the main business. But in China, it's the main course.” – Jack Ma Source: https://www.youtube.com/watch?v=eh1c5G7gXQE
  151. 151. PAGE 151 Southeast Asia macroeconomic and industry landscape Ecommerce in SEA today is China circa 2007/08 Source: CNNIC, eMarketer 1.3% 2.1% 3.5% 4.4% 6.3% 7.4% 12.4% 15.9% 19.6% 23.8% 28.6% 0% 5% 10% 15% 20% 25% 30% 35% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 China Ecommerce Penetration (% Online Retail / Total Retail) SEA today China Ecommerce SEA? Lack of offline retail infrastructure (especially outside Tier 1 cities)  Surging domestic consumption spurred by growth in GDP / capita  Major capital investment into ecommerce businesses  Young, digitally savvy consumers  COD as dominant payment method (in the early days)  Lack of cross-border ecommerce due to high import duties and taxes  “No-Tail” ecosystem  Hyper-competition  1) Based on ecommerce penetration, SEA is 8 years behind China. However, SEA will catch up faster due to leapfrogging – 5 years estimate 2) China is the model to predict SEA’s ecommerce future due to similarities in the ecosystem. US/EU/Japan/Korea/Singapore not the right models for SEA 3) There are differences though: a) SEA is more mobile-first/mobile-only than China; b) China had a headstart in terms of logistics infrastructure due to the top-down, planned economy nature of the government; c) China made the rapid transition from COD to Alipay as preferred payment method due to the massive distribution power of Alibaba; d) SEA is more competitive due it being an open market vs. China’s closed market, making it easier for foreign companies to enter SEA
  152. 152. PAGE 152 Southeast Asia macroeconomic and industry landscape Ecommerce in SEA today is China circa 2007/08 Source: Euromonitor, Planet Retail, eMarketer, iResearch, Technavio, A.T. Kearney ~5 years
  153. 153. PAGE 153 Southeast Asia macroeconomic and industry landscape Key factors influencing ecommerce in SEA Source: CLSA, aCommerce • Large addressable markets with young populations • Offline retail is underpenetrated • Rising income levels • Social media - well connected + social commerce • High-degree of mobile Internet penetration (exceeding US and China) • “No-Tail” ecosystem • Online payment – still dominated by Cash-on-Delivery • Logistics under-developed (especially B2C) • Import duties, taxes and online prices – lack of cross-border ecom (excl. Singapore) • Open market (compared to China) – hyper-competition (easier for global entrants to enter and compete) • Private/direct equity funding – more money than talent available
  154. 154. PAGE 154 Key drivers for ecommerce in SEA Offline retail underpenetrated Source: CLSA 32,473 6,415 2,178 941 1,804 847 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Total store count, top 10 retailers 157,631 34,666 3,999 2,698 1,736 4,702 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Total retail GFA, top 10 retailers 2.2 0.5 0.1 0.8 0.3 0.5 0 0.5 1 1.5 2 2.5 Total retail GFA / capita (RHS) Offline retail in SEA under-developed (especially outside major metropolitan areas). Lack of offline retail legacy will enable SEA ecommerce to accelerate at rates similar to China levels (>30-40% CAGRs)
  155. 155. PAGE 155 Key drivers for ecommerce in SEA Income levels – GDP growth Source: World Bank $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 GDP per capita ($) China Indonesia Malaysia Philippines Thailand Vietnam Rising GDP per capita and income levels across Southeast Asia will spur domestic retail consumption. Similar to China, most of this will happen via ecommerce due to lack of offline retail infrastructure.
  156. 156. PAGE 156 Key drivers for ecommerce in SEA SEA is the only truly “mobile-first” region Source: Wikipedia, CTIA, Pew Research Center, NBTC, iimedia, ITU 28% 34% 44% 49% 64% 84% 98% 104% 112% 121% 132% 143% 0% 20% 40% 60% 80% 100% 120% 140% 160% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Mobile Phone Penetration (# mobile phone subscribers / population) US China Thailand Average Thai user has 1.4 mobile phones. Mobile phone penetration rate in Thailand already exceeds that of developed countries like US and China.
  157. 157. PAGE 157 Key drivers for ecommerce in SEA Mobile leapfrogging in SEA Source: Wikipedia, CTIA, Pew Research Center, NBTC, iimedia, ITU, CNNIC, Nielsen, eMarketer, NSO, AIS, dtac, TRUE Thailand already surpassed US and China in mobile Internet penetration in less than 1 year after introducing 3G 1% 3% 17% 30% 56% 0% 10% 20% 30% 40% 50% 60% 2006 2007 2008 2009 2010 2011 2012 2013 Mobile Internet Penetration (# mobile Internet users / population) US China Thailand 3G launched in Thailand
  158. 158. PAGE 158 Key drivers for ecommerce in SEA High mobile Internet penetration driving mobile commerce Source: Bain & Company 1) Mobile phone usage for shopping and research exceeding that of developed countries in SEA like Singapore and Malaysia (urban areas) 2) Access to the rural and rapidly emerging consumer base – 85% mobile commerce penetration in non-urban Thailand; 79% in non-urban Indonesia
  159. 159. PAGE 159 Key drivers for ecommerce in SEA Lazada getting over 50% of traffic from mobile only Source: Lazada Group Investor Report
  160. 160. PAGE 160 Key drivers for ecommerce in SEA “No-Tail” ecosystem Source: World Bank, Tech in Asia, Techcrunch Thailand (and rest of SEA ex. Singapore and Malaysia) skipped Web 1.0/1.5 and leapfrogged straight into Web 2.0. As a result, long-tail content creation nowadays is mainly happening on closed, social media platforms like Facebook and Instagram instead of blogs and websites. As a result, we’ll see accelerated development and proliferance of ecommerce and other non-ad based business models in SEA. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Internet penetration as % of population US China Thailand Indonesia US: 30.1% TH: 1.1% ID: 0.3% US: 61.7% TH: 9.3% ID: 2.4% US: 75% TH: 20% ID: 5.8% Web 1.0 Homepages Web 1.5 “Self-Publishing/Blogging/UGC” Web 2.0 Social Media
  161. 161. PAGE 161 Key drivers for ecommerce in SEA “No-Tail” ecosystem implications • Relatively simple ad tech environment • Affiliate marketing still nascent • Demand-side platform (DSP) market still nascent • Accelerated development and proliferance of e- commerce and other non-ad based business models • “Traditional” digital agencies’ scope reduced to executing global contracts and buying offline media (in US, these agencies still have a role to play due to complicated ad tech environment)
  162. 162. PAGE 162 Key drivers for ecommerce in SEA Logistics under-developed Source: World Bank Logistics Performance Index 2014 SEA ecommerce growth is highly dependent on fixing logistics and payments 1.77 3 3.08 3.08 3.15 3.43 3.53 3.59 3.92 4 4.12 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Somalia Philippines Indonesia India Vietnam Thailand China Malaysia United States Singapore Germany LPI
  163. 163. PAGE 163 Key drivers for ecommerce in SEA Import duties and taxes – lack of cross-border ecom (excl. Singapore) Source: Bain & Company 1) Singapore is the outlier in SEA – majority of transactions are cross-border, not domestic ecommerce. Cross-border ecommerce driven by zero or low custom duties 2) SEA (excl. Singapore) mainly domestic (local leaders) and fragmented. AEC, while great on paper, won’t move the needle in intra-SEA cross-border ecommerce
  164. 164. PAGE 164 Key drivers for ecommerce in SEA Private/direct equity funding Source: Tech in Asia $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 2015 Asia VC funding by vertical ($billion) $0 $100 $200 $300 $400 $500 $600 $700 5 top startup investment categories in SEA ($million) 2014 2015 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 2010 2011 2012 2013 2014 2015 Tech investments in SEA ($million) 1) Tech investments in SEA on the rise peaking at 1.6 billion in 2015 2) Given hypergrowth projections, majority of Asia and SEA investments going into ecommerce, with notable names such as Lazada, Tokopedia, and MatahariMall in SEA
  165. 165. PAGE 165 Ecommerce in Thailand Key players – Traffic Source: SimilarWeb Pro; excluding mobile app only ecommerce players e.g. Shopee and Line Shop 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Traffic sessions to top ecommerce sites in Thailand (excluding mobile app only ecommerce players e.g. Shopee and Line Shop) 2015-9 2015-10 2015-11 2015-12 2016-1 2016-2 1) Overall, Lazada leads the pack among all types of ecommerce players 2) Among C2C platforms, Kaidee beats WeLoveShopping and Tarad 3) iTruemart (now WeMall) #2 in B2C but big gap between #1 (Lazada) and #2 4) Zalora biggest loser in terms of traffic loss over the last 6 months
  166. 166. PAGE 166 Ecommerce in Thailand Key players – Search interest Source: Google Trends 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2004-2 2004-13 2004-24 2004-35 2004-46 2005-5 2005-16 2005-27 2005-38 2005-49 2006-7 2006-18 2006-29 2006-40 2006-51 2007-10 2007-21 2007-32 2007-43 2008-2 2008-13 2008-24 2008-35 2008-46 2009-5 2009-16 2009-27 2009-38 2009-49 2010-8 2010-19 2010-30 2010-41 2010-52 2011-11 2011-22 2011-33 2011-44 2012-2 2012-13 2012-24 2012-35 2012-46 2013-5 2013-16 2013-27 2013-38 2013-49 2014-8 2014-19 2014-30 2014-41 2014-52 2015-11 2015-22 2015-33 2015-44 2016-3 2016-14 Google Search Interest lazada itruemart tarad kaidee weloveshopping ensogo advice zalora jib shopat7 cdiscount moxy central online lazada weloveshopping ensogo jib zalora advice kaidee col itruemart cdiscount shopat7 tarad moxy Thailand ecommerce market has become more fragmented with new entrants coming in over time and challenging incumbents. Based on search interest, Lazada is the clear market leader
  167. 167. PAGE 167 Ecommerce in Thailand Lazada dominates all ecommerce traffic (34%) and B2C (61%) Source: Crunchbase, SimilarWeb Pro; excluding mobile app only ecommerce players e.g. Shopee and Line Shop 1% 1% 1% 2% 2% 2% 3% 4% 4% 7% 7% 13% 20% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% Moxy.co.th Cdiscount.co.th ShopAt7.com Jib.co.th Munkonggadget.com Central.co.th Zalora.co.th Advice.co.th Ensogo.co.th iTruemart.com Tarad.com WeLoveShopping.com Kaidee.com Lazada.co.th % of Total Ecommerce Traffic (excl. Mobile App) 1% 2% 2% 3% 3% 4% 5% 6% 13% 61% 0% 10% 20% 30% 40% 50% 60% 70% Moxy.co.th Cdiscount.co.th ShopAt7.com Jib.co.th Munkonggadget.com Central.co.th Zalora.co.th Advice.co.th iTruemart.com Lazada.co.th % of Total B2C Ecommerce Traffic (excl. Mobile App) Lazada, the Rocket Internet-backed venture, has leveraged it’s first mover advantage and $710 million war chest to propel itself to a #1 position in Thailand
  168. 168. PAGE 168 Ecommerce in Thailand What do people buy online? Source: ecommerceIQ 91% 84% 70% 68% 63% 57% 53% 42% 9% 16% 30% 32% 37% 43% 47% 58% 0% 20% 40% 60% 80% 100% 120% Home & Living Automotive Food & Beverage Electronics Books Health & Beauty Fashion & Apparel Travel Services Online shopping categories bought in-store vs. online In-Store Online 1) Home & Living, Automotive and Food & Beverage are Top 3 for In-Store purchase 2) Typically, in early stages of ecommerce development consumers buy commodities (i.e. products easily comparable such as mobile phones and electronics) and low price-point items such as fashion & apparel. China went through the same phases and Thailand is going through the same now 3) Home & Living, despite online supply from players like Index and SB Furniture, struggles with the complexities of fulfillment and logistics due to its bulky and heavy product nature
  169. 169. PAGE 169 Ecommerce in Thailand Why do people buy online? Source: ecommerceIQ, Bain & Company 1) Convenience & choice are key driving forces for Thai online shoppers 2) “Not a price war: Choice and convenience matter” (Bain & Company: Can Southeast Asia Live Up to Its E-commerce Potential?) 38% 28% 22% 12% 0% 5% 10% 15% 20% 25% 30% 35% 40% Convenience Selection Price I don't shop online Top reasons why people buy online in Thailand (% of survey respondents)
  170. 170. PAGE 170 Ecommerce in Thailand Social commerce (unique to SEA excl. SG and MY) Source: ecommerceIQ 1% 2% 5% 6% 6% 7% 16% 16% 19% 23% Cdiscount Moxy Central Online Zalora Rakuten Other (please specify) Lazada LINE Instagram Facebook % of total responses Buying and selling on social media platforms is big in Thailand. Based on a survey done in Bangkok by ecommerceIQ, 48% of respondents indicated to have purchased something on Facebook, Instagram, and LINE in the last 3 months.
  171. 171. PAGE 171 Ecommerce in Thailand 1/3 of Thailand ecommerce GMV estimated from social platforms Source: AT Kearney, Tech in Asia, aCommerce internal data Lazada isn’t Thailand’s biggest ecommerce platform; Facebook and Instagram are. An estimated 1/3 of total Thailand ecommerce GMV comes from transactions on “shadow marketplaces” – Instagram, Facebook, and LINE
  172. 172. PAGE 172 Ecommerce in Thailand 1/3 of Thailand ecommerce GMV estimated from social platforms Visit Instagram shop Browse products Inquire about product via LINE
  173. 173. PAGE 173 Ecommerce in Thailand 1/3 of Thailand ecommerce GMV estimated from social platforms Get payment details Confirm payment Ship & track order
  174. 174. PAGE 174 Ecommerce in Thailand LINE jumping on the social commerce bandwagon LINE launched its Flash Sale product in Q4, 2013, its first B2C ecommerce pilot globally due to the popularity of LINE and social commerce in general in Thailand. LINE partnered with aCommerce for this project and sold a variety of products from L’Oreal cosmetics to LINE merchandise to offline vouchers. Source: Tech in Asia, LINE, aCommerce
  175. 175. PAGE 175 Ecommerce in Thailand LINE jumping on the social commerce bandwagon Following up on its Flash Sale success, LINE launched a grocery shopping and delivery project, partnering up with aCommerce again for fulfillment and logistics. Source: Techcrunch
  176. 176. PAGE 176 Ecommerce in Thailand LINE jumping on the social commerce bandwagon Following up on its Flash Sale success, LINE launched a grocery shopping and delivery project, partnering up with aCommerce again for fulfillment and logistics. Source: Techcrunch
  177. 177. PAGE 177 Ecommerce in Thailand A peek into the future – Thai college student’s homescreen 1) No commerce apps – all buying and selling done inside Instagram, Facebook, and LINE 2) No Google apps – direct discovery through apps; less searching on mobile (web)
  178. 178. PAGE 178 Future of Ecommerce in Thailand Stages of development for ecommerce Source: ChannelAdvisor, aCommerce Classifieds US: Craigslist China: Ganji, 58 Thailand: OLX/Kaidee C2C US: eBay China: Taobao Thailand: Tarad, WeLoveShopping, Shopee, LINE Shop B2C US: Amazon (41%), Shopbop China: JD.com Thailand: iTruemart, Central Online, Cdiscount, Sephora, Lazada (30%), Zalora B2B2C US: Amazon (59%) China: Tmall (100%), JD Thailand: Lazada (70%) Brand.com US: Estee Lauder, Dell, Nike, Under Armour China: Lancome, Estee Lauder, Dell, Nike Thailand: Maybelline, Kiehl’s, Estee Lauder, Adidas 1) All markets typically go through the same stages of ecommerce development, moving from classifieds to C2C to B2B2C and brand.com. The difference between Thailand (and SEA) vs. mature ecommerce markets like US and China is that the timeline is much more compressed here i.e. everything is happening in a much shorter period (and sometimes all at once) 2) Being a truly mobile-first market, traditional business models are moving much faster to mobile. For example, Shopee, a mobile-only C2C marketplace by Garena is rapidly eclipsing traditional desktop C2C platforms like Tarad and WeLoveShopping. 3) In China, brands progressed from selling via Tmall as a stepping stone towards operating their own brand.com site. In Thailand, we see brands doing both at the same time, selling via Lazada as well as their brand.com stores. This is driven by technology making it much easier to sell through different channels but also by the high degree of fragmentation in the ecommerce market (consolidation happening soon though). 4) Other leapfrogging happening is the accelerated move towards B2B2C (3P vs. 1P) with Lazada getting over 70% of GMV from third-party marketplace sellers vs. Amazon’s 59%
  179. 179. PAGE 179 Future of Ecommerce in Thailand Stages of development for ecommerce – Ecommerce 1.0 vs. 2.0 Source: https://medium.com/@dunn/e-commerce-is-a-bear-d233f02d52a5#.3nbomul3e Andy Dunn, Founder & Chairman of Bonobos.com: On Ecommerce 1.0: “If you’re selling other people’s brands, you are competing not via a local group of competitors but with everyone. In this type of market, you might imagine having one large national winner. You might imagine that winner is ruthless about scale and cost, and is run by a visionary leader who with an extreme long-term focus. Such a company might not make real money for a long time —but when it does —it will be incredibly powerful.” On Ecommerce 2.0: “When I got to New York in 2007 as founding CEO of Bonobos, many people asked me if I’d heard of Gilt Groupe. I said no. Next thing I knew they had five hundred employees. Their rise is well documented as they’re one of the largest e-commerce 2.0 players in the US.”
  180. 180. PAGE 180 Future of Ecommerce in Thailand Ecommerce 1.0 Competitive advantage: • Economies of scale • Long-term focus (losses in short-term) • Acquire competitors that are a threat • Exceptional loyalty program to lock customers in • Deep pockets / lots of funding
  181. 181. PAGE 181 Future of Ecommerce in Thailand Ecommerce 2.0 Competitive advantage: • Proprietary pricing • Proprietary selection • Proprietary experience • Proprietary merchandise
  182. 182. PAGE 182 Future of Ecommerce in Thailand Ecommerce 2.0 in Thailand & Indonesia – Proprietary Merchandise Source: SimilarWeb Pro 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2015-9 2015-10 2015-11 2015-12 2016-1 2016-2 Traffic sessions to Pomelo Fashion Founded by the ex-Thailand Lazada founding team, Pomelo Fashion is one of the first “Ecommerce 2.0” companies in Southeast Asia. Rather than selling other brands’ products with low margins, Pomelo Fashion has taken a M2C/D2C (Manufacture/Direct-to-Consumer) approach, focusing on building its own fashion brand and vertically integrating its supply chain, going as far as manufacturing its own clothing and apparel.
  183. 183. PAGE 183 Future of Ecommerce in Thailand Ecommerce 2.0 in Thailand & Indonesia – Proprietary Merchandise Inspired by Warby Parker’s success in the US, Glazziq.com and FrancNobel.com are applying the proprietary merchandise model in the eyewear space in Thailand and Indonesia, respectively. Glazziq adds a local spin by positioning itself as prescription eyewear for Asians.
  184. 184. PAGE 184 Future of Ecommerce in Thailand Ecommerce 2.0 in Thailand – Proprietary Selection Motif Official is a fashion retailer based in Bangkok focusing on proprietary merchandise and selection. Their ‘Motif Official’ label is designed and manufactured in-house. For their ‘Motif Select’ range, they select and curate minimalist brands from across the world. Motif’s ecommerce strategy eerily resembles that of Nasty Gal in the US, where founder Sophia Amoruso started the business in 2006 by curating vintage clothing sourced from second hand stores. Following pure play ecommerce companies in the US like Warby Parker and Birchbox who went offline to augment their brand, Motif also operates physical stores in Central World and Siam Discovery in the heart of Bangkok.
  185. 185. PAGE 185 Future of Ecommerce in SEA Ecom 2.0 still early in SEA, but it WILL happen Source: SimilarWeb Pro; Note: Groupon and Ensogo both shut down or sold in SEA Global SEA Ecom 1.0 (generic) Amazon, Tmall, JD.com Lazada, MatahariMall, Central.co.th, iTruemart, Cdiscount, Sephora, Shopee, Line Shop Ecom 1.0 (mid- high-end fashion) Shopbop, ASOS Zalora Ecom 2.0: Proprietary pricing Gilt, Zulily, One King’s Lane, Ideeli, Mogujie Ensogo, Groupon Proprietary selection ModCloth, Nastygal Motif Official, Orami (Moxy) Proprietary experience Birchbox, ShoeDazzle Proprietary merchandise Bonobos, Warby Parker, Dollar Shave Club Pomelo Fashion, Glazziq, Franc Nobel, Sale Stock
  186. 186. PAGE 186 Future of Ecommerce in Thailand 2016-2020 predictions Source: Techcrunch, Tech in Asia Prediction Why? Examples / Pioneers 1. Brand.com Is Poised To Be The New Black The evolution of e-commerce commonly follows the trajectory of P2P and C2C to B2C to eventually Brand.com. The U.S. went from Craigslist and eBay to Amazon to brand sites like Nike, J.Crew and Gap. China went from Taobao to Tmall and JD to the many standalone and marketplace brand sites, like Estee Lauder, Burberry and Coach. Today’s Southeast Asia is following a similar pattern, yet at a much faster pace due to “1 to n,” horizontal progress and the resulting leapfrogging behavior. In our region, we have P2P (OLX), C2C (Rakuten, Tokopedia, Shopee), B2C (Lazada, Zalora, MatahariMall) and Brand.com (L’Oreal, Estee Lauder) all happening at once within a very short time frame. Estee Lauder, L’Oreal, Adidas 2. Omni-Channel Awakens: “There Will Be No More E-Commerce, Only Commerce” Traditional offline retailers like Central and Big C have a leg up vs. ecommerce pure players due to the existing offline footprint already available. These assets can be used for O2O commerce e.g. pick up in store, pay in store, order in store/delivery at home, etc. Also, having this infrastructure enables these players to fulfill and deliver much faster than pure players as stores are the new fulfilment centers. Central Online, Big C, MatahariMall (Indonesia), Nguyen Kim (Vietnam) 3. Niche-Commerce Models Will Evolve To Avoid The B2C Bloodbath With B2C ecommerce being a winner-takes-all game, new entrants looking for opportunities will have to find them in emerging Ecommerce 2.0 models. Pomelo Fashion, Sale Stock Indonesia (Indonesia) 4. Cross-Border E-Commerce Will Be Driven By Silk Road 2.0, Not AEC Despite all the media hype and lofty expectations, the ASEAN Economic Community (AEC) will not have a significant impact on e-commerce in 2016. Governments are too fragmented on policy; coupled with the immediate growth opportunity within the domestic markets, it doesn’t make sense to focus on cross-border within ASEAN, as evidenced by companies such as Lazada and MatahariMall doubling-down on Indonesia’s e- commerce opportunity. Cross-border e-commerce in 2016 will be driven mainly by what we call “Silk Road 2.0.” These are Greater China-based companies that will bring their products into Southeast Asia, laying the foundation for our generation’s version of the Silk Road and attempting to expand China’s soft power and hegemony through commerce and digital. Alibaba, JD, merchants selling on Facebook and Instagram who source their products from China 5. Payments: COD Will Continue Its Reign While Third-Party Payments Struggle The next double-digit billion dollar opportunity in Southeast Asia e-commerce is the third-party online payment space. US has PayPal and China has AliPay; what does Southeast Asia have? Contrary to what many people believe, building a successful payment product isn’t about technology, it’s about distribution. Payment technology is a commodity; everyone’s building the same thing, including banks (SCB UP2ME), telcos (TrueMoney, PAYSBUY), media (LINE Pay, AirPay by Garena), retailers (helloPay by Lazada) and payment-focused startups (2C2P, Omise). The hard part is distribution. How do you reach critical mass in order to cruise off network effects? Until this happens, COD will remain the dominant payment method in Southeast Asia. Based on aCommerce’s latest aggregated numbers, COD made up 74 percent of transactions in Southeast Asia, up from 53 percent the year prior. This validates the importance of COD to e-commerce in our region, and already exceeds the COD penetration rate at the height of its popularity in China back in 2008. Eventually, COD will naturally reach its shelf life and be replaced by a “modern” third-party online payment product. Even then, the most likely scenario will be one leading payment product per country in Southeast Asia due to the region being fragmented. Lazada, aCommerce 6. The Fizzle Of Fast Fashion E-Tailers We’ll see mass, fast-fashion players like Zalora struggle and either fizzle out or be rolled into cousin Lazada. People familiar with the history of e-commerce in China will see similarities between Zalora and VANCL. VANCL, a mono-brand fast-fashion retailer founded by Chen Nian (who sold his previous business, Joyo, to Amazon), rose to prominence in 2009, raised up to $570 million and even planned for an IPO, but then gradually faded away. Selling your own fashion products is less about retail economics and much more about brand building. In addition, VANCL suffered from competition from Taobao merchants who sold similar products for higher quality at lower prices. Replace Taobao with Instagram and Facebook and you’ll understand the pain that Zalora and other mono-brand, mass-fashion retailers are going through in Southeast Asia. Zalora
  187. 187. PAGE 187 Future of Ecommerce in Thailand 2016-2020 predictions Source: Techcrunch, Tech in Asia, Business of Fashion Prediction Why? Examples / Pioneers 7. New Channels Will Emerge To Challenge Google And Facebook’s Dark Side Unfortunately for e-commerce players in our market, the range of channels available is quite limited due to historical and socio-economic factors unique to Southeast Asia. The appearance of a “no-tail” landscape in terms of publishers severely hampers the effectiveness of traditional tools, such as affiliate marketing and programmatic display. In Southeast Asia, players are already exhausting the “usual suspect” channels, such as Google Search, Facebook and Criteo, with the result being CPCs rising to all-time highs and companies tapping into offline marketing to seek better returns. This is Andrew Chen’s “Law of Shitty Clickthroughs” in full effect. Companies and savvy entrepreneurs will start addressing this gap by designing and building new demand-generation platforms to offer an alternative to the Googles and Facebooks out there. Expect to see more e-commerce firms adding channels such as price comparison, coupon sites and cash-back sites, as well as innovative affiliate marketing solutions to balance their media mix. Priceza, ShopSmart, Shopback 8.The Battle For The Last Mile Continues As 3PLs Fail To Adapt Companies like Lazada (LEX), MatahariMall and aCommerce are investing in building out their own delivery fleet in order to help relieve the industry-wide capacity issues and serve the anticipated record-breaking transaction volume. The pressure will only become bigger in 2016 as transaction volume is expected to hit record highs in Southeast Asia. Challenges with last-mile delivery in Southeast Asia, if not addressed properly, will become the biggest bottleneck to e-commerce growth in the region. The industry is currently witnessing industry-wide capacity bottlenecks beyond what the JNEs, Kerry Logistics and DHLs of this world are able to handle. Part of this is the poor infrastructure to begin with. China, the world’s largest e-commerce market, never really had this issue because of the socialist and central government mindset of prioritizing infrastructure investments. By the time e-commerce took off, the infrastructure was already there, which resulted in last-mile delivery becoming a commodity service. Also, many existing delivery companies were never built for B2C deliveries to begin with. Their core competencies are in B2B deliveries, which typically don’t face B2C headaches, like returns management, reverse logistics, pre-calling, multiple delivery attempts and cash on delivery. Lazada Express, aCommerce, MatahariMall (Indonesia) 9. Channel Management Will Be The New “Programmatic” Ad Agencies Still Stuck In 2011 The real “programmatic” opportunity in Southeast Asia will be in e-commerce, not in display advertising. With the advent and fragmentation of online marketplaces, the challenge for brands will be to choose on which channels to be present and what products to push in each of these channels. Business of Fashion predicts a near future where the retailer/vendor relationship will begin to look a lot more like a media buy than the wholesale product purchase agreement of today. Physical stores have the potential to be the most powerful and effective form of media available to a brand because it offers an experience, which if crafted properly, cannot be replicated online. Branch8, aCommerce 10. The Talent War Will Inflate Salaries Faster Than Uber’s Valuation One of the biggest issues faced by all e-commerce players in Southeast Asia is the lack of talent. In 2015, it was common to see employees being poached left and right with new salaries of 1.5-3x. Obviously, this isn’t sustainable, but it is the current foundation of the talent war in Southeast Asia.
  188. 188. PAGE 188 Future of Ecommerce in Thailand 2016-2020 predictions Source: Techcrunch, Tech in Asia Prediction Why? Examples / Pioneers 11. B2C Bloodbath Will Drive Consolidation Retail B2C is a winner-takes-all market. Players with the most long-term view and deepest pockets will survive. In US and China, B2C ecommerce has boiled down to a 1-2 player game (Amazon, JD, Tmall). SEA and Thailand are still fragmented but we’ll expect to see 1-2 clear leaders to emerge over the next five years as funding runs out for B2C and investors will look for returns, not growth. • WhatsNew (Petloft, Venbi, Sanoga, Lafema) acquiring Moxy • Moxy merging with Indonesia’s Bilna to become Orami • Cdiscount sold to BJC (Asiabooks, Berlivery) • Zalora Thailand and Vietnam sold to Thailand’s Central Group 12. C2C game will shift towards mobile, leaving behind traditional C2C platforms Traditional C2C platforms like Tarad and WeLoveShopping have been running out of steam as they missed the shift towards mobile. With an estimated 1/3 of total Thailand ecommerce GMV happening on Instagram and Facebook, and supported by LINE messaging, Thai users have become accustomed to buying and selling on mobile. Mobile-only C2C platforms like Shopee and Line Shop have leveraged this opportunity to stake their claims and take C2C marketshare away from the desktop only platforms. Shopee, Line Shop, Carousell (Singapore, Indonesia)
  189. 189. PAGE 189 Thailand 33rd Floor, 689 Bhiraj Tower Sukhumvit Road, Bangkok 10110, Thailand 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: sheji@acommerce.asia Mobile: +66 9 2596 5656 Skype: sheji_ho Address: 33rd Floor, 689 Bhiraj Tower Sukhumvit Road, Bangkok 10110, Thailand Sheji Ho Group CMO Contact Thank You!

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