Trends in retail and e commerce analytics by Sheji Ho, aCommerce Group CMO

Trends in Retail and E-Commerce Analytics
October 2014

Singapore | Thailand | Indonesia | Philippines
2
Why I’m here today
• Building data-driven products & acquiring
users at Gilt.com, Moda Operandi, LivingSocial
& Groupon
• Took a data science class during my MBA
• Undergrad in Industrial Engineering (math,
stats, operations research)

3
WhyYOU are here today

4

5
The REAL reason why you’re here today

aCommerce
Creating the fabric for e-
commerce in Southeast Asia

7
Our company
Our Vision
Powering Ecommerce in Southeast Asia
aCommerce means 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

8
Paul Srivorakul
Group CEO
Experience:
CEO & Co-Founder
Ensogo Group (acquired
by LivingSocial), Admax,
DMS Group, NewMedia
Peter Kopitz
Group COO
Experience:
Co-Founder & MD
- Zalora, Rocket Internet
VP, Head of Execution
- ACL Bank
Piers Bennett
Group CFO
Experience:
CFO
- Ensogo (acquired by
LivingSocial)
- DMS Group
- ValuE-commerce
John Srivorakul
Group CTO
Experience:
CTO & Co-Founder
- Ensogo (acquired by
LivingSocial), Admax,
NewMedia
Tom Srivorakul
CEO (Thailand)
Experience:
Co-Founder & MD
- Ensogo(acquired by
LivingSocial), DMS
Group, NewMedia
Adrian Suherman
Co-CEO (Indonesia)
Experience:
VP of Digital
- Telekomsel
CEO (Indonesia)
LivingSocial/DealKeren
Hadi Wenas
Co-CEO (Indonesia)
Experience:
Co-Founder & MD
- Zalora, Rocket
Internet
Engagement Manager
- McKinsey & Co
Ray Alimurung
CEO (Philippines)
Experience:
VP of Business Dev.
- Lazada, Rocket Int.
Sr. Product Manager
- Amazon.com (USA)
Our team
Sabina Chang
CEO (Singapore)
Experience:
Category Manager &
Head Merchandiser
- Apple, Amazon,
Walmart.com
Sheji Ho
Group CMO
Experience:
Sr. Product Manager
- Moda Operandi
Head of Customer Acq.
- LivingSocial, Gilt Groupe

9
Our clients
Retailers / Marketplaces Brands

10
Backed by some of the biggest in the game

11
Our presence across Southeast Asia
Thailand
Singapore
Indonesia
Philippines
• 3000 sqm
• 100+ staffs
• 3600 sqm
• 130+ staffs
• 200 sqm
• 20+ staffs
• 500 sqm
• Manila Metro
• 20+ staffs
Malaysia, Vietnam
Coming soon

12
Thailand fulfillment center: 3,600 sqm

13
Brand Site
Our E-commerce channels
Popshop Storefront
(Social Networks, Apps, Emails)
Marketplaces & E-tailers
(e.g. Rakuten, Qoo10, Elevenia,
Lazada, iBuy Group, LINE)

E-Commerce in Thailand
and Southeast Asia

15
By 2020, over 60% of Southeast Asians will be online
24M
31M
18M
4M
55M
34M
194m
New Internet
users
360m
Internet users
Source: We are Social, Accenture, 2012
2010 2020
62%
Estimated
Internet
penetration
25%
2010 Internet
penetration

16
Big room for growth for e-commerce in SEA
Online shopping makes up just 1% of total retail sales in SEA. This compares with
8% in China and over 10% in the U.S. and U.K.
15.1
9.5 11 12.8
21.8
11.3
102.4
57.1
68.4
82.5
168.5
70.5
Indonesia Malaysia Singapore Thailand Vietnam USA
Forecast Sales in Internet Retailing (% Value Growth)
2013-18 CAGR 2013/18 Total
Source: Centre for Retail Research 2014, Euromonitor 2014

17
E-commerce market in SEA is highly
fragmented, unlike US
6.32
2.35
2.2
1.97
1.79
Vatgia.com
Lazada sites
5Giay.vn
Enbac.com
Thegioididong.com
1.44
1.35
1.26
0.78
0.7
Avg.com
Amazon Sites
Lazada sites
Indonetwork.co.id
Apple.com
1.5
1.05
0.94
0.84
0.64
Amazon Sites
Avg.com
Alibaba.com
Apple.com
Groupon.my
1.73
1.34
1.15
1.09
1.03
Weloveshopping.com
Rakuten Inc.
Avg.com
Lazada sites
Apple.com
1.09
0.73
0.69
0.63
0.52
Amazon sites
Apple.com
Avg.com
Lazada sites
Multiply.com
0.68
0.53
0.44
0.33
0.26
Amazon sites
Apple.com
Giosis Group
Alibaba.com
Avg.com
Monthly Unique Visitors (millions) of top 5 online retailers
Vietnam Indonesia Malaysia
Thailand Philippines Singapore
In contrast, in the US, Amazon and eBay are the top two online retailers, with more than
250 million monthly unique visitors

18
Mobile leapfrogging: Thailand vs China
Thailand requires 1.5 vs 3 years to reach the same online penetration level as
China’s post 3G
0%
10%
20%
30%
40%
50%
60%
2003 2005 2007 2009 2011 2013 2015 2017
Internet Penetration
Internet penetration in China
Internet penetration in Thailand
0%
10%
20%
30%
40%
50%
60%
2008 2009 2010 2011 2012 2013 2014
Smartphone penetration
Smartphone penetration in China
Smartphone penetration in Thailand
Source: CNNIC, UBS estimates

19
LINE Messenger
Thailand only
From unknown to dominant in 18 months
26+ million users in Thailand alone
Single largest channel to consumers
> Facebook
> Print + TV + radio
eCommerce engine
Ensogo took 2 years and $4M to get to 4M members
Line flash sales did it in 72 hours
That is truly disruptive

20
Online advertising is totally out of line
In Southeast Asia, people spend 44% of their media time online, but only 2%
of advertising spending is devoted to online advertisement; however,
e-commerce is changing this
Source: Euromonitor, Nielsen
51%
34%
5%
2%
32%
9%
15%
44%
0%
10%
20%
30%
40%
50%
60%
TV Print Radio Online
% of Total Ad Spend vs % of Total Time Spent on Media
% Ad Spend % Time Spent
out of line

21
Key takeaways
• BIG – bigger than US (2x), bigger than EU
• Social – everyone is on social media (Facebook, LINE)
• Mobile – well over 100% penetration in most markets
• Internet focused – more time spent on the internet than on TV
• Large gaps – absolute disconnect between time and money
spent online vs TV
• Growing fast – eCommerce CAGR 2008-2013 is 18.73%
• Young – much younger population than US and EU
• Less competition – not (yet) dominated by global players

E-Commerce Analytics:
Trends and Predictions

23
Trends and Predictions
• Content is blending with commerce resulting in
new business models leveraging bigger data sets
• E-commerce will slowly take over advertising as
primary monetization model, driven by
disconnect between time and money spent
online vs TV
• Data will re-invent how e-commerce and
advertising is done

24
New business models are emerging
Content Commerce

29
“The company has a Pinterest-like interface, and uses algorithms and machine-
learning technology to adapt to a user’s tastes in order to show them products
they like.”
“While Pinterest began exploring how a user’s likes and interests can be
programmed into a more personalized experience earlier this year and doesn’t
really emphasize commerce, Wish is all about the art of the algorithmically
enhanced sale.”

“Jet will distinguish itself from Amazon, eBay and others by pricing products
based in part on their proximity to the buyer. That way, customers could
potentially get their merchandise quicker and at lower cost.”
“What are the hidden costs in e-commerce? Are there aspects of e-commerce
that don’t make sense? And most importantly, how do we expose these
inefficiencies and empower customers to eliminate them?”

32
Marketing Interactive: Shitty Clicks or 5 Reasons
You Should Fire Your Digital Agency
http://www.marketing-interactive.com/5-reasons-fire-agency

34
Recap
• E-commerce is BOOMING in Thailand
• New business models are appearing,
leveraging more and more data
• MOBILE adds more complexity to data
but cannot be ignored anymore
• Big data and technology will change e-
commerce, retail, and advertising

35
4 P’s of Big Data
aCommerce’s big data framework for e-commerce
1.Platform
2.Processes
3.People
4.Politics

36
Keep in touch!
• sheji@acommerce.asia
• Skype: sheji_ho
• LINE: shejiho
• Mobile: 09 2265 1700

Thailand Office
946 Dusit Thani Building, 4th fl., Rama IV
Rd. Bangrak, Bangkok, Thailand 10500
Indonesia Office
Jalan Wijaya Timur II No. 13
RT 015 RW 002, Kelurahan Petogogan,
Kecamatan Mampang Prapatan Jakarta
Thailand Distribution Center
951/1 Soi Preeyanon, Sathupradit Road,
Bangpongpang, Yannawa Bangkok
10120, Thailand
Singapore Office
#05-01, Block 71 Ayer Rajah Crescent
Singapore 139951
37
Thank you!
Sheji Ho
Group CMO,
aCommerce
E: sheji@acommerce.asia
M: +66 (0)92-265-1700
Skype: sheji_ho
Address:
946 Dusit Thani Building, 4th
fl., Rama IV Rd. Bangrak,
Bangkok,10500 Thailand

Trends in retail and e commerce analytics by Sheji Ho, aCommerce Group CMO

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