Accelerating your growth in e-commerce by Hadi Wenas, CEO aCommerce Indonesia

Singapore | Thailand | Indonesia | Philippines
aCommerceIndonesiaAccelerating your growth in e-commerce
Presentation | October 2014

1
Contents
1
Opportunity in Indonesia
About us
What it means to TSCL players
Call to actions

2
Everyone heard about the recent record breaking e-commerce funding / valuation news in global and in Indonesia
2

3
In the next 5 years, online shop in Indonesia will grow at least 10x from 3% to 30%
3
SOURCE: McKinsey Consumer Insights Indonesia 2013
1 Question asked to the 29% of the population that cited using internet via PC/laptop in past 12 mos.

Source:: UBS Research, Nielsen, Comscore, PWC HK, ATKearny, researchandmarkets.com, Dailysocial, smu.edu.sg, E-commerce.org.sg
Unit
ID
SG
PH
TH
China
US
Population
M
248
5.2
95
67.5
1350
315
# Online
M
75
3.9
33
32
513
246
% Online
%
30%
74%
34%
46%
38%
79%
Retail Sales
USD B
134
31
34
139
2,380
4,700
B2C E-commerce Market
USD B
0.9
1.1
0.4
1.1
190
343
E-commerce % of Retail
%
0.7%
3.5%
1.1%
0.6%
8%
9%
10X
IDR 10 Trillion
IDR 100 Trillion
Indonesian Market in
4 –5 years
4
In the next 5 years, online shop transactions in Indonesia is expected to grow 5-10x

Singapore | Thailand | Indonesia | Philippines 5
The growth of Tier 2+ cities started to outpace growth of Tier
1 cities
5
Customers by location (%)
Customers by gender (%) Customers by age group (%)
SOURCE: Internal Data and Analysis of Top Online Retailers Fashion category in Indonesia 2013
Male 43
57 Female
16-20
21%
11%
21-25
21%
26-30 31-35 >36
19%
27%
2%
<15
Jakarta % shrinks from
41% to 22% in 6 months
Most sales now already
come from outside BIG
cities
Sumatra Kalimantan Others
370% 300%
Jakarta Java excl. Jakarta
70+% 370%

B2C growth will outpace C2C growth
92%
86%
77%
70%
66%
62%
59%
8%
14%
23%
30%
34%
38%
41%
0%
20%
40%
60%
80%
100%
2009
2010
2011
2012
2013e
2014e
2015e
B2C
C2C
China online shopping market B2C vsC2C % forecast
6
SOURCE: iResearch2012, Veritrans

7
Contents
7
About us
Call to actions

8
8
Our Vision
Powering Ecommercesin Southeast AsiaaCommercemeans commerce anytime, anywhere, anything
Our Mission
Build Ecommerce technologies and services that help companies build brand value, acquire customers, drive sales, and scale their business
Our Vision and Mission

9
In Indonesia, 50+ B2Cs are working with us
9
Retailers / Marketplaces
Brands

10
We have presence across multiple SEA countries and are supporting Clients enter / grow regionally
10
Thailand
Singapore
Indonesia
Philippines
•3,100 sqmexpandable to 20,000 sqm
•Accessible from Jakarta: 5 minsfrom inner toll road, outer ring toll road, 1 near airport, another near harbor
•100+ staffs
•3600 sqm
•10 minsfrom downtown Bangkok
•130+ staffs
•200 sqm
•15+ staffs
•500 sqm
•10+ staffs
Malaysia, Vietnam
Coming soon
11.7M USD in funding from NTT Docomo, Sumitomo Ventures, CyberAgentVentures, Inspire Ventures, SinarMas, AsiaPacificDigital, Ideosource, and Ardent Capital

11
aCommerceprovides B-to-Z services to e-commerces: everything except Sourcing
11
•Online ≠ Offline
•Very technical
•Require very specific skill
•Online ≠ Offline
•Warehouse setup is different
•System setup is different
•Online ≈ Offline
•You cannot outsource
•You know your product best

12
Brand Site (Maybelline.co.th)
Marketplaces(Qoo10.sg Official L'Oreal Store and LINE Flash Sales)
Popshop Storefront (Maybelline FB page, Vichy Site)
Technology development for multi devices multi channels

13
•When Brand1 wants to go online (e-commerce), using aCommerce SIMCplatform:
–Brand1 put Item-A to be sold online
–Brand1 has multi "store" fronts: Brand1.com, Elevenia.co.id, etc.
–Brand1 puts inventory Item-A = 500 shared across multiple channels and aCommerce SIMCautomatically update inventory
•In Tokopedia’ssystem: (TBC)
–aCommerce is a merchant
–Brand1 is a store within aCommerce
BrandX.com
BrandX.com
BrandX.com
Tokopedia
Marketplace X
Marketplace Y
Brand1
Brand2
Brand3
Single Inventory Multi Channel platform 13

Example of "Simple" Website: lolalo.la
14

Example of "Powerful" Website: erafone.com (coming soon)
15

16
Driving customers to online and offline
16
Traffic is critical for any retail business. We harness the power of the internet to drive consumers to your online and offline store.
Email
Display Ads
PriceComparison Sites
Affiliate Marketing
Social Media
Paid Search
Organic Search
Download coupon > Pay at store
Buy online > Pick-up at store
Buy online > Deliver to Home
Traffic

17
Real-time marketing and business dashboard 17
Summary: Users, Order Status, and Revenue
Product Sold: Type, Quantity, and Revenue
Marketing: Campaign, Channel, and Revenue
Email: Sent, Open, Click, and Revenue

18
18
Happy
Customers
High Quality
Traffics
Converting
Website
Excellent
Customer
Experience
Key questions / analyses
•How likely are customers to refer YOU to their friends and family?
•By location, By age-groups, By payment type, By category, etc
•How is your Repeat Customers %? Repeat frequency?
•What are the current major pain points?
•What are the overall actual Onsite Conversion Rate?
•By channel, by location, by device, etc.
•What's the specific conversion in each step leading to transaction? (funnel analysis)
•By channel, by location, etc.
•How user browse through your website? (page flow analysis)
•What are the Conversion Rate, Average Order Value? Average Items per Order?
•By new customers vsexisting customers?
•By non-paid vspaid channels?
•By different channels?
Conversion optimization framework

19
19
Goods to be sold will be inbounded before LIVE
Goods with complete documentation and proper planning will be inbounded within 24hrs
Goods to be stored in aCommerce Fulfillment Center while LIVE
New inbounded products will go through:
Photoshoot
Digital editing
Content creation
Orders to be processed (picked and packed) within 24hrs
Packed orders will be shipped same day & delivered within promised delivery date
COD payment will be collected at delivery point and transferred once a month
Transactions happened in:
WebStore
Phone Order
Call Center
Complaints
Post-service
Upselling
Production
Inbound
Storage
Outbound
Transaction
Delivery
E-Fulfillment
Best-in-class B2C process to support you to deliver excellent customer experience

20
20
We developed Warehouse Management System application in-house to be used by our partners

21
21
Collaboration with multiple high performing partners are critical for last-mile delivery

22
22
We developed Delivery application in-house to be used by our partners (1/3)
▪All riders / drivers are equipped with smartphones to allow them to send real-time status of success or failed delivery

23
23
▪The same application allows couriers to search for direction and courier manager to monitor rider performance and provide support if necessary
▪Technology roadmap includes allow user to get access to where the courier is and estimated of time of delivery based on LIVE location

24
▪The same application allows couriers to get digital signature of recipient and photo proof(s) of success or failed delivery
▪All the information will then be kept as a digital Proof Of Delivery
24

25
Contents
25
About us
Call to actions

26
e-commerce is disrupting the retail value chain
26
Manufacturer
Brand and Private Label
Wholesaler
Distributor
E-commerce
Physical Store
Consumer
Retailer
Brands (or even Manufacturer) are becoming Retailers
Retailers are creating brands to increase margins
Sourcing & Merchandising
Producers ship directly to Customers

27
Customer expectations BEFORE and AFTER shopping online changed drastically
27
Before shopping online
After shopping online
34.6%
21.5%
13.8%
12.7%
9.3%
8.1%
Afraid of beingcheated
Cannot feel & touchthe products
Expensive price
Still not interested
Product quality
Others
28.1%
25.0%
23.4%
12.5%
10.9%
0.0%
Product selectionrelated
Product photo / inforelated
Promo / Websiterelated
Logistics related
CS related
Others
SOURCE: Survey by APJII (AsosiasiPenyelenggaraJasaInternet Indonesia) in Dec 2012, Survey by Top Online Shop in Sep 2013
Customers want:
•Orders delivered FASTER
•More TRANSPARENCY on progress,
•BETTER experience at HANDOVER time
Prospect Customers want:
•More COD, CCOD, DCOD coverage
•Easier return / exchange

28
With AFTA's progress, ready or not, e-commerce will accelerate cross border transactions
28
•Uncertainty on Custom could benefit but also hurt us
•Competition among Suppliers' countries to grab ASEAN market

29
Contents
29
About us
Call to actions

30
While the future looks bright for Indonesia, to ensure competitiveness, we need to collaborate
30
•Define industry standard / common API (Application Program Interface) for 3PLs in Indonesia, e.g.,
•Detailed in-transit status
•Failed reason code
•Real-time status update
•Interchangeable AWB code
•Push expansion of COD, CCOD, DCOD together with Banks, other payment players to boost online shopping penetration even faster
•Define industry standard for address filling, especially e- commerces, e.g.,
•Make postal code mandatory
•Work with government institution to put certainties in custom to increase readiness e-commerce boom post-AFTA

31
Thank You
31
Thailand Office946 DusitThaniBuilding, 4th fl., Rama IV Rd. Bangrak, Bangkok, Thailand 10500
Indonesia OfficeApt. Istana Sahid–Mezzanine, Jl. Jend. SudirmanKav. 86, Jakarta 12940, Indonesia
Singapore Office#2-13 Oxley Bizhub, 61 UbiRoad 1, Singapore 408727
Hadi WenasCEO Indonesia
wenas@acommerce.asia
Philippines OfficeaSpaceManila, 3rd flr., 110 Aboitizbldg, Legaspi Street, Makati, Philippines 1200

Singapore | Thailand | Indonesia | Philippines 32
Other online research shows a more aggressive number: 46%
intended to buy online in the next 12 months
32
77% of sellers say that a reason
for selling online is that there are lots
of people buying online
Indonesian online shoppers…
46%
of online Indonesians who have never
shopped online expect to buy online
within the next 12 months
41%
37%
20%
14%
14%
14%
14%
use search engines to research
use social to research
retailer/store website
news / magazine websites
online blogs, forums or message boards
emails and e-newsletters
product comparison websites
SOURCE: TNS Online Shopper Study – Indonesia – February 2013 Base: Online shoppers across all categories (Recent online shoppers n = 511)

33
•Not only we increased the ad visits but we also increased the ad transactions
•We also indirectly increased the non-ad visits and transactions (spill-over effect)
•CIR is Cost Income Ratio (the reverse of ROI)
•We optimized CIR from 1.33 to 0.50 in just 8 weeks
•CIR of 0.50 means for every dollar revenue you get, you spent on 50 cents on marketing
Example of actual client reports that we help manage and optimize Online Marketing
33

Accelerating your growth in e-commerce by Hadi Wenas, CEO aCommerce Indonesia

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