eCommerce Market Entry Strategies for Brands and Retailers – Practical Advice on How to Successfully Launch your eCommerce Business across Asia-Pacific. This was presented by Marcelo Wesseler, Senior Vice President of eCommerce, Singapore Post Ltd and Pranay Mehra, Vice President, eCommerce & Marketing, Singapore Post Ltd at #adtechasean

1. eCommerce Market Entry Strategies to Successfully
Launch your eCommerce Business Across Asia-Pacific
Marcelo Wesseler, CEO, SingPost eCommerce
Pranay Mehra, Vice President, SingPost eCommerce

2. AGENDA
• Overview
• Market entry success factors & considerations
1. eCommerce Basics?
2. Which markets should you enter?
3. How to size your opportunity and create a business case?
4. What are the market entry options & platforms?
5. How to choose the right payment options & prevent fraud?
6. What about logistics, customs, duties, & legal framework?
7. How do you market your site & drive traffic?
• Summary
• Q&A

3. $3 billion market cap.
A+ Credit Rating*
Full Service eCommerce
in Asia Pacific
Localized front end,
payments, order & store
management
Logistics
Centers15 3 Call
Centers 8Languages
& Dialects
600+ eCommerce Clients

4. eCOMMERCE SUCCESS FACTORS
• Keep It Simple and Measure Daily
• Revenue = Visitors * Conversion * AOV
• Success =
- EBIT or Net Margin
- Customer Lifetime Value > CAC
- GM after logistics & marketing spend
- Owning customer data

5. CUSTOMER EXAMPLES

7. WHICH MARKETS SHOULD YOU ENTER?

8. WHICH MARKETS SHOULD YOU ENTER?

9. MAJORITY OF US SITES ARE LEAPFROGGING
TO ASIA PACIFIC WITH ECOMMERCE

10. HOW TO SIZE YOUR OPPORTUNITY?
Pragmatic sizing approach:
• Your international traffic * 5
• Consider brand / product restrictions
• Regulatory approvals
• Local Keyword analysis
• If you have offline sales, use % of retail
Korea ~15%
UK ~10%
US ~9%
China ~9%
Australia ~6%
Southeast Asia ~2%

11. IMPACT OF CUSTOMER EXPERIENCE ON
REVENUE
Don’t forget: success = positive GM after logistics & marketing cost!
*include customer care cost in logistics cost
SOURCE: McKinsey & Company, SP eCommerce Research

12. US SITES WITH ECOMMERCE PRESENCE IN ASIA
CAN IMPROVE CUSTOMER EXPERIENCE
Best addressed through setting up a localized eCommerce operation in-
house or outsourcing to a regional end-to-end provider.
SOURCE: McKinsey & Company, SP eCommerce Research

13. Option 1:
• Separate international checkout
• Vendor buys on consumer’s behalf
Option 2:
• Outsource via vendor-branded
checkout with fraud protection;
• Careful! Keep customer ownership
• In-house local team
• Language
• Marketing
• Free local shipping
• Free local returns
• Omni-channel enablement,
e.g. fulfill from stores
• Domain/ Language
• Payments
• Fast regional shipping
• Local returns
• Hybrid models (drop ship,
fulfillment by market)
• Franchise option for brands
WHAT ARE THE MARKET
ENTRY OPTIONS & PLATFORMS?

14. WHAT ABOUT LOGISTICS, DUTIES & LEGAL FRAMEWORK?
De Minimis (in USD) –
The challenge with custom duties.
Other regulatory challenges…
• Complex rules (e.g. import
approvals for many commodities
like books, etc)
• Valuation concerns
• Uneven application of rules
• Payment options & fraud
• Requirement to setup legal entities
to trade in local currency and
obtain domain
• Foreign ownership restrictions
SOURCE: Singapore Post Research

15. HOW DO YOU MARKET YOUR SITE & DRIVE TRAFFIC?
Seasonal Marketing Spend
Marketing Costs
Increasing
Rural Gold Mines
equals High CLV
Focus on Organic
& Brand Traffic

16. SUMMARY
• Free, fast shipping & local returns
• Test the waters before you jump
• Carefully select markets and platform
• Know the regulatory & product restrictions
• Marketing will be your biggest challenge

17. THANK
YOU
Feel free to get in touch with us:
MARCELO
marcelowesseler@singpost.com
PRANAY
pranay@singpost.com