Mobile Story Of n11.com Yu-Shik Kim Chief Strategy and Planning Officer @n11.com Webrazzi E-ticaret 2016

1. Private & ConfidentialPrivate & Confidential 1
Webrazzi e-Commerce ‘16
YU-SHIK KIM
Chief Strategy and Planning Officer
March 2016

2. Private & Confidential
MOBILE STORY OF N11.COM IN 5 QUESTIONS
• What is the Mobile Environment in Turkey ?
• What is n11.com’s Situation ?
• What are Global Trends in the mobile space ?
• What are Implications ?
• What is Next ?
2
AGENDA

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What is the
Mobile
Environment
in Turkey?

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What is the Mobile Environment in Turkey ?
187
181
172
156
152
145 142
137 134 133
128 127 126
115
113
107 106
102 100
95 94
77
0
20
40
60
80
100
120
140
160
180
200
Source: GSMA Intelligence, WeRsocial (based # of SIM connections)
Mobile Penetration by Country (%)
Global Average: 99%
4
Turkey, compared to other markets, is relatively low in mobile penetration

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But Turkey smartphone penetration is growing fast with CAGR 36% in ‘13-’15
20.4 13.6 10.2
49.3 58.3 63.1
91% 93%
94%
2013 2014 Q3 2015
2G 3G Mobile Share
Mobile Users (Mn) & % of Population
Source: BTK, TUİK, WeRsocial, YStat
20.0
29.8
36.8
28.7%
41.4%
50.2%
2013 2014 2015
Users Share, %
Smartphone Users (Mn) & % of Mobile Phone Users(%)
CAGR ‘13-’15
-29%
13%
CAGR ‘13-’15
36%
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What is the Mobile Environment in Turkey ?

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Data usage is increasing, the most preferable one is 1-4 GB data plan
Source: BTK
Internet Data Usage among Mobile Internet Users (%), 2014 Q4 vs 2015 Q3
25%
2% 3% 3%
4%
8%
23%
28%
4%
1%
19%
1% 2% 2% 3%
7%
23%
35%
6%
1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0-5 MB 5-10 MB 10-25 MB 25-50 MB 50-100 MB 100-250
MB
250 MB -
1GB
1-4 GB 4-8 GB >8 GB
2014 Q4 2015 Q3
6
What is the Mobile Environment in Turkey ?

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81% 86%
13%
13%
6% 1%
Jan'14-Sep'14 Jan'15-Sep'15
Others
IOS
Android
Turkey is Android dominated
Source: GFK
Operating System of Smartphones (Sales ‘000
Units)
48%
45%
10%
8%
13%
13%
5%
3%
3%
4%
6%
11%
13% 13%
Jan'14-Sep'14 Jan'15-Sep'15
Others
Vodafone
LG
Asus
HTC
Turkcell
Apple
General Mobile
Samsung
8,77,6
Brand Share % of Smartphones / (Sales ‘000
Units)
8,87,5
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What is the Mobile Environment in Turkey ?

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Display size has been increasing towards bigger screen
10%
2%
40%
15%
45%
74%
6% 9%
Jan'14-Sep'14 Jan'15-Sep'15
> 5.5
4.5 - 5.5
3.5 - 4.5
0 - 3.5
Display Size % /(Sales ‘000 Units)
8,77,6
4.0 inch
decreasing
5.5 inch
display
Samsung Galaxy S3 Samsung Galaxy J7
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What is the Mobile Environment in Turkey ?

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Price and capacity shifted towards more expensive phones with
increased capacity
Source: GFK
17% 11%
26%
17%
11%
18%
17%
23%
12% 10%
13%
12%
4% 9%
Jan'14-Sep'14 Jan'15-Sep'15
> 2500 TL
2000 - 2500 TL
1500 - 2000 TL
1000 - 1500 TL
800 - 1000 TL
600 - 800 TL
0 - 600 TL
5%
29%
50%
16%
Jan'15-Sep'15
>= 32 GB
16 - 32 GB
8-16 GB
<8 GB
Capacity /(Sales ‘000 Units)Price of Smartphones /(Sales ‘000 Units)
600 –
800 TL
800 –
1500 TL
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What is the Mobile Environment in Turkey ?

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What is
n11.com’s
Situation?

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This is also reflected in n11.com; mobile shares of GMV, Traffic and
Transactions are increasing
11
0%
50%
100%
2014 2015 2016 2017 2018
Web Mobile
GMV
Shares, %
Traffic
Shares, %
0%
50%
100%
2014 2015 2016 2017 2018
Web Mobile
Transaction
Shares, %
0%
50%
100%
2014 2015 2016 2017 2018
Web Mobile
What is n11.com’s situation ?

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But the behavior in terms of frequency and visits are different
12
0
5
10
15
Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 Nov'15
Web Mob. Web Mob. App
Frequency
(Visit/UV)
Visits (‘000)
per Day
(10 Nov-6
Dec‘15)
0
200
400
600
800
1,000
Web Mob. Web Mob. App
~4-6 times
What is n11.com’s situation ?

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This stems from a younger and more female oriented user base
13
Gender
Source : Google Analytics, Jan’16
Web
75%
25%
0%
100%
Jan'15Male Female
53% 47%
0%
100%
Jan'15Male Female
MWeb App (Android)
78%
22%
0%
100%
Jan'15Male Female
App (iOs)
54% 46%
0%
100%
Jan'15Male Female
Age
Web
19%
39%
23%
0%
50%
100%
Jan'16
65+
55-64
45-54
35-44
25-34
18-24
24%
48%
20%
Jan'16
65+
55-64
45-54
35-44
25-34
18-24
19%
56%
21%
Jan'16
65+
55-64
45-54
35-44
25-34
18-24
28%
34%
16%
Jan'16
65+
55-64
45-54
35-44
25-34
18-24
MWeb App (Android) App (iOs)
ource : Google Analytics, Jan’16
What is n11.com’s situation ?

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Cross device usage is also a common trend
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X-CHANNEL
USER %
X-CHANNEL
GMV %
[desktop] 56% 50%
[mobile] 21% 2%
[tablet] 3% 1%
[desktop]<->[mobile] 17% 37%
[desktop]<->[tablet] 2% 4%
[desktop]<->[mobile]<->[tablet] 1% 6%
[mobile]<->[tablet] 1% 1%
1 Device
User
Cross
Device User
Source: Google Analytics, 1 Nov – 31 Dec ‘15
What is n11.com’s situation ?

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What are
Global Trends
in the mobile space?

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Curation & Personalization
* Aliexpress Flash deals only on Mobile (time base deals)
Flipkart mobile
only Deals
* Amazon & Aliexpress
(Skyscanner)alerts with upcoming Deals
*Amazon recommendations in mainpage
What are global trends in the mobile space?

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* Flipkart Ping (chatting)
* Amazon & Flipkart friend invitation * Shop savvy barcode scanner
* Walmart / Target
coupons
What are global trends in the mobile space?
Social & Offline to Online

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Mobile specialized functions & optimized UI
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Alixexpress seller chatting Coupang’s swipe control UI
eBay Barcode scan search
* Amazon 1 letter
auto completion
search
* SnapDeal’s Shake and get deal
What are global trends in the mobile space?

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Loyalty & Retention
* Amazon prime
Amazon/Flipkart gift card
* 11st mileage
Aliexpress 1click payment payment
What are global trends in the mobile space?

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What are Implications ?

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Mobile has become inevitable
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• Necessity in Life
• Increasingly cannibalizing
web usage
• Requires different value
proposition due to
different behavior patterns
What are implications ?

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What is Next ?

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More and more convergence channels, mobile will be the facilitator
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Mobile will be
the
key facilitator
to provide an
ubiquitous
shopping
experience
What is Next ?

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THANK YOU…