2. Technology should be better
leveraged meeting the MDGs
“
Information and communications technologies
are engines of economic growth and
development and can help transform people's
lives.
New technology-based solutions that did not
exist when the Goals were endorsed can and
should be leveraged to allow for rapid scaling
up. The most important of these technologies
involve use of mobile telephones, broadband
Internet, and other information and
communications technologies.
”
Ban Ki Moon, UN Secretary General
3. Why eCommerce for
developing nations?
• Increase Revenue & bring foreign currency
• Boost employment and welfare
• Gain expertise in information technology
• Lead to better business practices and enhance
transparency
• Increase efficiency & Reduce cost in Business
• Decrease urbanization
• Increase productivity
4. eCommerce eco-System
ePortal Product/Service
Supplier
Product ePortal Consumer
Supplier mPortal Consumer
Return Product mPortal Payment
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Logistics
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Govt. Return/refund
Regulator
Regulator Privacy
Business credential
Policy, Law
Policy, Law Banking Law
Security
6. Looking at our
neibouring country
• $5.6 billion (2011)
• 100 million connected to net
• 600 million on mobile
• About 14 million Online Customers
• $1 billion in investments in 2011
• Market Share in 2010
• Online travel 80% (rail & Air)
• E---retailing--- 6.5%
• Financial Services--- 6.31%
Source: MSL Group India
7. Progression Model
Where is Bangladesh?
Phase 0: Get on the internet
Phase 1: Connecting and Entertainment
Fetching Data, connecting with people
Phase 2: eBusiness Basics
Internet Banking, Booking tickets, Paying taxes, filling returns
(get users to transaction online)
Phase 3: Comparable Goods Purchases
Buy standard products available offline such as books,
laptops, mobile sets etc. (don’t require touch and feel)
Phase 4: Subjective Goods Purchases
People develop trust to buy online
8. Mobile Commerce
• M-Commerce is the ability to conduct commerce
using a mobile device.
• Future is to bring all shopping and payments on
Mobile
9. mCommerce & Bangladesh
• Mobile Penetration 63% and Growing
• Expecting USD 14b remittance in 2012
• 300 microfinance institutions serving around 24
million borrowers, around 6 million active
borrowers
• 98 million+ Mobile Phone users and its growing,
around 50 million users do not have access to
formal banking platform
• 14 banks got mobile financial service license from
central bank, 4 are found operational in market
11. Bangladesh Mobile Phone
Subscribers, Oct 2012
Operators Active Subscribers
Grameenphone 40.7 million
Banglalink 26.6 million
Robi 21.1 million
Airtel 6.9 million
CityCell 1.6 million
Teletalk 1.4 million
TOTAL 98.3 million
Source: Bangladesh Telecommunication Regulatory Commission (Oct 2012)
12. Bangladesh Internet
Subscribers, July 2012
Category Subscribers
Mobile Internet 27.8 million
ISP + PSTN 1.2 million
WiMax 400k
TOTAL 29.4 million
Source: Bangladesh Telecommunication Regulatory Commission (Jul
2012)
13. Challenges
• Payment Collections
– High Fees, Charge backs, Fraud Charges
• Lack of 3D Secure technologies in Bank
• Credit card is off by default by Banks
• Logistics
– Deliver the exact product purchased
– Safe & Secure to the right person within a Reasonable
timeframe
– Charges of couriers
– Insurance for High Value Goods
– Returns
• Internet Access & Reach
• Trust issues
– Privacy issues
– Business Data security
14. Opportunities
• 30% of the global population is now connected
with more than 2 billion internet users
• Global business-to-consumer e-commerce sales
will pass the 1 trillion euro ($1.25 trillion) mark
by 2013
• The total number of Internet users expected to
increase approximately 3.5 billion by 2017
• Business-to-consumer e-commerce sales is
growing @ 20%
• China’s e-commerce sales growing more than
130% in 2011
• 39% of college students buy more online than in
person
• In China, 190 Million people transact online
(35%)
• In India, 7 Million People transact online (7%)
15. Opportunities
• In developing economy eCommerce
transactions are 3% of GDP
• Everyone embracing technology with
reasonable success
• Busy lifestyle of people and there increasing
dependence on internet also is creating
favorable field for e-commerce
• Some leading eCommerce companies are
renting eStores
• 60% of the country’s population is less than 25
years of old, the tech savvy generation
