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2014 Online Shopper Index & The China Opportunity - Online Fashion Success Conference 2015

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Presentation by Justus Wilde, Principle Strategist @ Amblique on 2013 vs 2014 shopper behaviour shift and the China opportunity.

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2014 Online Shopper Index & The China Opportunity - Online Fashion Success Conference 2015

  1. 1. 2014  Shopper  Index  &  The  China  Opportunity   Justus  Wilde,  Founder  &  Principal  Strategist     Online  Fashion  Success  Conference   Sydney,  23rd  March  2015      
  2. 2. Today 1.  Quick Introduction 2.  2014 Shopper Index Updates 3.  China Market Opportunity 4.  China Market Offering 5.  Questions
  3. 3. §  Est.  1999  –    now  subsidiary  of  eCargo (ASX: ECG) §  170  eCommerce  experts  across  AU,  VN  &  CN   §  Digital  commerce  consultancy  –  SELL  MORE   §  Strategy,  technology  &  trade  opUmisaUon   §  Demandware  top  Uer  partner  &  reseller  
  4. 4. 2013 vs. 2014 revenue growth 2013 2014 NAB Online Retail Sales Index 16% 38% 9% 32% Amblique Retail Sales Benchmark Source: NAB online retail index and Amblique customer benchmark data 2014
  5. 5. ANZ peak sales are happening earlier Top Sales Days 1.  Boxing Day 2.  18th Nov 3.  19th Nov 4.  16th June 5.  7th December Source: Amblique customer sales in aggregate 2014 vs. 2013
  6. 6. A Demandware Shopper Index – 100m buyers
  7. 7. Source: Demandware Shopper Index 2014
  8. 8. Source: Demandware Shopper Index 2014
  9. 9. Source: Demandware Shopper Index 2014
  10. 10. Source: Demandware Shopper Index 2014
  11. 11. Source: Demandware Shopper Index 2014
  12. 12. Source: Demandware Shopper Index 2014
  13. 13. Key Findings •  The Demandware Shopping Index reveals 32% digital commerce growth. Australia is growth at a sub global benchmark •  Cross-device shopping is increasing •  Smartphone traffic and orders are up sharply •  Shoppers are visiting AND carting more frequently •  Shopping visit duration is shrinking •  Android is taking share from iOS •  Discounts and free shipping are on the rise
  14. 14. China
  15. 15. China eCommerce outpaces US lead Source: Tmall presentation
  16. 16. By 2020 China eCommerce will greater than USA UK Japan Germany France combined
  17. 17. 20 48 111 225 408 716 1,167 1,752 2,521 3,524 4,718 6,025 7,221 8,520 9,883 0.3% 0.6% 1.1% 2.0% 3.7% 5.7% 8.1% 10.3% 12.8% 15.6% 18.1% 20.1% 21.0% 21.9% 22.7% 0.0%   5.0%   10.0%   15.0%   20.0%   25.0%   - 2,000 4,000 6,000 8,000 10,000 12,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 China Annual eCommerce Retail Sales (excl. autos, fuel, and food) eCommerce Volume (Billion, RMB) eCommerce/Total Retail China online to be 20% of retail by 2020 Source: Tmall presentation
  18. 18. GMV Market share in 2014 Source: iResearch Global Inc.
  19. 19. 11/11 in 2014 1 MIN 11 SEC Exceeding 100M 14 MIN 02 SEC Exceeding 5B 38 MIN 28 SEC Exceeding 10B 7 HRS 17 MIN Exceeding 20B (exceeding total amount of 2012) Including 10B in mobile sales 13 HRS 31 MIN Exceeding 36.2B (exceeding total amount of 2013) 15 HRS 29 MIN Exceeding 40B 21 HRS 21 MIN Exceeding 50B 24 HRS 57.1B ($A11.8B ) 00:00 24:00 PC 75.97% Mobile / Tablet 24.03% 2013 PC 57% Mobile / Tablet 43% 2014
  20. 20. 11/11 Consumption Abroad Canada Russia Hong Kong Taipei Singapore Malaysia Australia 1 2 4 5 6 7 10 Brazil 9 America 3 Macau 8
  21. 21. 11/11 Consumption in China Shandong Shanghai Jiangsu Zhejiang Guangdong Sichuan Beijing Hubei Hunan Henan 7 9 8 6 1 2 10 4 3 5
  22. 22. Growth Potential – Shopper Penetration Online Shoppers 302 million Internet Users 618 million Population 1.35 billion Internet Penetration 46% in China (vs 82% in U.S.A.) Online Shopper Penetration 49% in China (vs 64% in U.S.A.) Source: Alibaba IPO Prospectus
  23. 23. Growth Potential – Domestic Consumption Online Shopping USD305 billion Consumer Consumption USD3.4 trillion GDP USD9.5 trillion Consumer Expenditure as % of GDP 36% in China (vs 67% in U.S.A.) Online Sales as % of Retail Sales 8-10% in China (vs 8-10% in U.S.A.) Source: Alibaba IPO Prospectus
  24. 24. Importance of Mobile Commerce Source: http://www.forbes.com/sites/greatspeculations/2015/01/21/china-mobile-ends-2014-with-a-whopping-90-million-4g-users/ 600 million 3G/4G subscribers
  25. 25. Importance of Mobile Commerce Source: Alibaba IPO Prospectus Mobile Phone is the first choice for netizens to surf the internet 29% 17% 73% Mobile commerce will take on a faster growth pace in China Transaction Volume CAGR (201-17) 49% Mobile 23% Online VS
  26. 26. Social Media Popularity in China 80% % of Weibo users following Brands 8 Average number of Brands followed 50%+ % of Weibo users who would visit eCommerce site after seeing product information on Weibo 46’ in China 7’ in Japan vs Daily time spent on social media 91% in China 67% in U.S.A. vs % of netizens having social IDs Micro Blogging Social Networking Instant Messaging Video Sharing Picture Sharing 900 million 820 million 340 million 214 million 5.2 million Integration of Social Media with eCommerce Source: Alibaba IPO Prospectus
  27. 27. Shopping for Full- price Products of Brands (???) Messages Shopping for Price Shopping for Price of Brands Games China consumer changes
  28. 28. Source: strangeloop
  29. 29. Source: EY Advisory •  Only sell on Brand site •  Plan to grow and focus on Brand site •  Tmall Global as pilot •  Plan to develop and grow Brand site •  Plan to develop and grow Brand site Current China Retail Strategies •  Plan to develop and grow Brand site Offical China-specific brand site Shopping functionality Tmall China Tmall Global China-specific brand mobile app Shopping functionality Offical WeChat account Shopping functionality Esprit Lacoste Forever 21 ONLY GAP North Face I.T Nike Uniqlo Levis Lee Vans Coach Armani Tommy Hilfiger Zara JeansWest Australia Karen Millen H&M Michael Kors DKNY Ted Baker Calvin Klein Offical Weibo account China-specific brand site Brand name Marketplace China-specific brand mobile app WeChat Offline Store Model E: Unclear eCommerce Operation Model Baidu Brandzone Remarks Model A: Multiple eChannel Strategy Model B: Focus on Tmall (supported by non- transactional brand site) Model C: Brand store only Model D: Pilot on Tmall Global/ Tmall China
  30. 30. •  Market leading retail supply chain business in CN, UK, ZA & ANZ •  200+ major retail logistics clients (mostly apparel) •  Global logistics infrastructure •  China expert resources •  ANZ leading ecommerce consultancy & SI •  30+ major retail brand ecommerce clients •  Expert ecommerce team •  Strategic Demandware partner & reseller
  31. 31. Global Coverage
  32. 32. eCargo eFulfillment centers in Melbourne, Sydney, Hong Kong, Shanghai, Singapore & UK Proprietary IT technology and processes eFulfillment – Warehousing and Logistics Shanghai facility 2,500,000 sq.ft.
  33. 33. Model Studio Mannequin Studio Styleshoots 360 Degree Photography Accessories Studio Catwalk Studio Editing, Styling eStudio – Digital Asset Production
  34. 34. coreOS DAM Global Brand eCommerce Sites China Marketplaces PIM WMS CRM Item Inventory Pricing Orders Customers Client Systems A P I Studio & content production Store Operations, Customer Service, Trade Support & Digital Marketing Retail Supply Chain & eFulfillment SYD MEL SIN PVG HKG LHR Store Apps /POS JNB Channel Management
  35. 35. eCargo / Cargo Services Customers
  36. 36. Justus Wilde jw@amblique.com +61 413517477 Thank  You  &  QuesUons?  

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