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The State of eCommerce in Asia Pacific and the
Indian Opportunity
Mark Gray Managing Director, ChannelAdvisor Asia Pacific
February 27th, 2014
Agenda
ChannelAdvisor Introduction
The State of eCommerce in India
The State of eCommerce in Asia Pacific
Cross Border Trade Opportunities
Case Study
2
ChannelAdvisor - Overview
3
The ChannelAdvisor Solution
4
ChannelAdvisor - Global Footprint
ChannelAdvisor Offices
The State of eCommerce in India
The Players and the Marketplaces
8
Trends with India’s Online Marketplaces
9
• Localised payment methods a must,
(COD/CC/Other)
• Extended Shipping Options, (D2D/Free Delivery)
• Low Cost/Discounting expected
• Few large competitors, smaller
manufacturers/retailers are benefiting
Global CBT Considerations
India and Cross Border Trade Requirements?
Logistics?
Tax implications for retailers?
Account creation/Multiple languages
Payment/Bank requirements and Currency
Considerations?
10
How Indian Retailers can Benefit
11
• Simplified payment and shipping expectations,
(PayPal/CC/AliPay)
• Higher ASP/minimal discounting/currency stability
• Manufacturers can beat channel conflict and
control their brand
• Take advantage of mature online markets
The State of eCommerce in Asia Pacific
Four major trends in 2014:1. Manufacturing/Distribution models: The growth of e-commerce will
create channel conflict for businesses currently operating under a wholesale distribution model with mono-branded stores in engagement of retail website content, (ComScore)
2. Connected Devices: Wearable computing devices, Internet streaming, smart cars and smarter phones are just some of the few ways the consumer is connected
3. Macro economic recovery and slowdowns shifting: As the EU and US continue to emerge slowly into recovery and Asia starts to see some slowdown in manufacturing both markets will continue to push Cross Boarder Trade initiatives in the online
The State of E-Commerce in Asia Pacific
13
eCommerce Challenges in 2014:1. The growth of mobile: complementary to desktop web usage and is
facilitating for a customer to be online at all times. Multi-platform internet usage has led to a huge increase in digital media consumption in Asia in the past few years. Similarly, it has also led to a doubling in the
The State of E-Commerce in Asia Pacific
14
Channel Explosion
Source: Public reports from eBay, Amazon, Google, Shopping.com and ChannelAdvisor estimates based on our transactional data.
We are here…
15
E-commerce 2017:
confide
16
Global View
eCommerce ”Spice Routes”
Source: Public reports from eBay, Amazon, Google, Shopping.com and ChannelAdvisor estimates
based on our transactional data.
We are here…
17
• Cross-border Internet commerce between Australia, Brazil, China, Germany, U.K. and U.S. will jump to $307 billion in 2018 from $105 billion last year• Traditional “spice routes” and manufacturing exporting is becoming eCommerce CBT•E-commerce has gained significant market share over recent years: In China for example: penetration in China reached ~9% of total retail sales (excluding auto and petroleum sales) in 2Q13. As comparison, e-commerce penetration in the US has reached ~10-11% of comparable retail spend
Who Owns the Market in China?
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Cross Border Trade Opportunities
Top CBT Routes
Location Number of Shoppers Shopping In
US 16.7 million UK
China 15.1 million US
US 13.2 million China
US 11.6 million Canada
UK 11.1 million US
China 10.4 million Hong Kong
China 9.4 million Japan
China 7.7 million UK
China 7.0 million Australia
US 6.8 million Hong Kong
Source: Nielson/PayPal Study from 2013 20
The Rise of Marketplaces: CBT
**11 new marketplaces in China and 2 in S. Korea in last 18 months**
Top CBT Routes
Source: Nielson/PayPal Study from 2013 22
Croc’s Multichannel Case Study
Situation:
Innovative, versatile shoe company
Looking to experiment on comparison shopping channels
Lacked the expertise and software to manage data online
Required incremental global sales from sources outside of online store
Need to control brand online across multiple regions and avoid channel conflict
Options:
Continue costly physical store growth to gain customers
Hire additional IT/Marketing resources to manage online growth
Look for channel resellers to push products online
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Croc’s Multichannel Case Study
Solution:
Propel incremental revenue in the most cost-efficient way, with as little internal management as possible!
Decided to utilise marketplaces for customer aqcuisition, incremental revenue and brand control
Launched onto multiple Comparison Shopping sites to increase traffic and keep CPC low
Decided on a Managed approach where costs could be kept low but channel expertise exploited, (using ChannelAdvisor Services)
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Croc’s Multichannel Case Study
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Croc’s Multichannel Case Study
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ChannelAdvisor – How We Can Help You
27
Waves of E-Commerce
Thank You!
Questions?
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