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Amblique iMedia Online Retail Summit 2015 Presentation
This document summarizes a presentation given by Justus Wilde on the 2014 Shopper Index and opportunities in China. Some key points from the document include: - The Demandware Shopping Index showed 32% growth in digital commerce in 2014, with cross-device shopping and smartphone traffic sharply increasing. - China's eCommerce market is growing rapidly and is projected to surpass the US, UK, Japan and others combined by 2020, yet still has room to grow as online penetration increases. - Mobile commerce is becoming increasingly important in China, where social media is also very popular and integrated with eCommerce. - To be successful in China, companies need to tailor their strategies, promotions, user interfaces
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Amblique iMedia Online Retail Summit 2015 Presentation
- 1. 2014 Shopper Index & The China Opportunity Justus Wilde, Founder & Principal Strategist iMedia Online Retail Summit Sydney, 5th May 2015
- 2. Today 1. Quick Introduction 2. 2014 Shopper Index Updates 3. China Market Opportunity & Offering 4. Questions 5. EMU Australia Case Study
- 3. § Est. 1999 – now subsidiary of eCargo (ASX: ECG) § 170 eCommerce experts across AU, VN & CN § Digital commerce consultancy – SELL MORE § Strategy, technology & trade opTmisaTon § Demandware top Ter partner & reseller
- 4. 2013 vs. 2014revenue 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. ANZ peak salesare 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. A Demandware Shopper Index 1,000eCommerce Sites x 200m consumers
- 7. Source: Demandware ShopperIndex 2014
- 8. Source: Demandware ShopperIndex 2014
- 9. Source: Demandware ShopperIndex 2014
- 10. Source: Demandware ShopperIndex 2014
- 11. Source: Demandware ShopperIndex 2014
- 12. Source: Demandware ShopperIndex 2014
- 13. Key Findings 1. TheDemandware Shopping Index reveals 32% digital commerce growth. 30%+ growth target remains realistic with right strategy 2. Cross-device shopping is increasing – unify the experience 3. Smartphone traffic and orders are up sharply – optimise/mobile first 4. Shoppers are visiting & carting more frequently – invest in content 5. Shopping visit duration is shrinking - personalise 6. Android is taking share from iOS – diversify app strategy 7. Discounts @ 15% @ ~43% trans. driving 30%YoY - benchmark
- 14.
- 15. By 2020 China eCommercewill greater than USA UK Japan Germany France combined
- 16. 20 48 111225 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
- 17. GMV Market sharein 2014 Source: iResearch Global Inc.
- 18. 11/11 in 2014 1MIN 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
- 19. 11/11 Consumption Abroad Canada Russia HongKong Taipei Singapore Malaysia Australia 1 2 4 5 6 7 10 Brazil 9 America 3 Macau 8
- 20. 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
- 21. 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
- 22. Importance of MobileCommerce 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
- 23. Social Media Popularityin 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
- 24. Different behaviors &expectations
- 25. Chinese way or the highway 25
- 26.
- 27. Tmall UI: Menuon left to tailor to Chinese character reading Promotions: Campaigns designed specifically for CNY UI: Red colour tone applied for CNY throughout website Language: Local jargons applied
- 28. Mogujie (蘑菇街) Content:Local KOLs including bloggers and celebrities Language: CNY greetings and buzzword UI: Menu on left to tailor to Chinese character reading UI: Red colour tone applied for CNY throughout website
- 29. Shangpin (尚品) Promotions:Campaigns designed specifically for CNY UI: Red colour tone applied for CNY throughout website
- 30. Net-‐a-‐Porter UI: Black/white/grey/bluecolour tone during CNY Promotion: No promotions related to CNY Content: Directly translated from international (English) version c
- 31. Shopping for Full- priceProducts of Brands (???) Messages Shopping for Price Shopping for Price of Brands Games China consumer changes
- 32.
- 33. 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
- 34. • Market leadingretail 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
- 35.
- 36. eCargo eFulfillment centersin Melbourne, Sydney, Hong Kong, Shanghai, Singapore & UK Proprietary IT technology and processes eFulfillment – Warehousing and Logistics Shanghai facility 2,500,000 sq.ft.
- 37. Model Studio Mannequin Studio Styleshoots 360 Degree Photography Accessories Studio Catwalk Studio Editing, Styling eStudio – Digital Asset Production
- 38. eCargo / CargoServices Customers
- 39. Justus Wilde jw@amblique.com +61 413517477 Thank You & QuesTons?