Lunch for all participants with the compliments of the Brazilian Post

Déjeuner pour tous les participantsavec les compliments

de la poste brésilienne

Henrik Ballebye Okholm,Partner and Director,

Copenhagen Economics

What do consumers expect from e-retailers and the delivery industry?

PhD Henrik Okholm, Partner Copenhagen Economics

Consumers expect:CCC

6

Consumers expect:CHOICECC

7

CHOICE

8

●Before: 1 type ●Now: 4860 types

Consumers expect

CHOICE: cheap, traceable, time-definite home delivery

9

Consumers expect

0% 10%20%30%40%50%60%70%80%90%100%

Express deliveryNext day delivery

Delivery within 2-4 daysDelivery at agreed time slot

Evening deliverySaturday delivery

Delivery to the home adressDelivery to work adress

Delivery to post officeDelivery to relay point (shop)

Delivery to parcel kiosk (automated locker)Track'n'Trace

Electronic notification of delivery (e-mail or SMS)Insurance related to delivery

Cash on deliveryFree delivery

Standard deliveryFaster but more expensive delivery than standard…

More convenient but more expensive delivery than…Take return parcel to a post office/collection point

Organise a specific pick up with the delivery…Track'n'trace of return parcel

Return product immediately at the moment of…

Time of delivery

Point of

delivery

Value

added

Price

Returns

Importance of delivery characteristics

Source: Copenhagen Economics, e-shopper survey

Consumers expect:CHOICECONTROLC

10

To be in Control

11

● Consumers want to decideo When, where, and how

● Yet, 40% of consumers do not have access to the delivery services they find important

● Largest gaps observed for o Return options (55-65%)o Flexible delivery point options (~50%)o Value added features (45-50%)

Concumers expect

Consumers expect:CHOICECONTROLCOMPLIANCE

12

Compliance: Deliver what you promise

13

● 38% of consumers are dissatisfied with one or more aspects of the delivery services they geto Complaints handling: 30%

● Key challenges:o Compliance by

delivery workerso Access to addresses

and keys

Concumers expect

Contact

14

Partner Ph.D. Henrik Ballebye Okholmhbo@copenhageneconomics.com

Copenhagen Economics A/SSankt Annæ Plads 13DK-1250 Copenhagen K

copenhageneconomics.com

Susanne CzechSecretary General,

European Multichanneland Online Trade

Association (EMOTA)

Consumers and merchants:Meeting the challenges

Susanne Czech,Secretary General

UPU 2014 E-Commerce Forum26 March 2014, Berne

is the leadingassociation for e-commerce in Europe

Source: EMOTA, 2013Note: B2C E-commerce turnover includes online travel, digital downloads and event tickets; excludes online gaming and financial services

In 2013, European E-commerce has reached a turnover of 352bn euros

% of internet users who bought or ordered goods or services for private use over the internet over the past 12 months, 2008 and 2013

Source: EUROSTAT

Six in ten internet users shopped online in 2013

What do consumers expect from e-retailers and the delivery industry:

What do consumers and e-retailers NOT expect from the delivery industry:

Only 25% of retailers sell across borders

0%

10%

20%

30%

40%

50%

Proportion of retailers selling in at least one other EU country

EU average

Source: TNS, Flash Eurobarometer 359, 2013

25%

Cross-border distribution prices are twice as high as domestic ones

-

5

10

15

20

25

30Domestic and cross-border parcel distribution prices

Source: FTI, 2011Note: Domestic and weighted average cross-border prices for 1 kg. parcels

€

Domestic

Cross-border

Paulo KulikovskyVice-President,Camara-e.net

(E-Commerce chamber, Brazil)

John Williams SpelichVP International

Corporate Affairs,Alibaba.com

Hiroshi EtaniCEO and

President Director,Rakuten Logistics, Inc.

Building Social Eco-Logistics Platformfor Empowering Sustainable Growth of B2B2C EC

Hiroshi EtaniRakuten

Mar 26, 20142014 UPU E-Commerce Forum

29

Mission of Rakuten Logistics

Global EC Marketplace

Building social eco-logistics platform for empowering sustainable growth of B2B2C EC,

leading to accelerated business growth of merchantsand higher satisfaction of end users.

Global Eco-Logistics Platform

30

Current B2B2C EC MarketLarge

B2C ECCompanies

End Users

Merchants

Free-Shipping Speed Delivery “Omotenashi”

Higher Service Requirements by Users

Need more Focus on Sales, Promotion & Procurement

Higher Service Level vs.Lower Logistics Cost

Carriers

Demand Fluctuationis big in B2C Business

Demanding Customers(Service) & Demanding Shippers (Price)

Difficult to secureProfit in B2C

Price Competition

Service Competition

Product Competition

Delivery Fee is High !Delivery my Goods all

at once !Deliver to Right Place

in Right Time !Want them Today ！More Personal

Delivery Service !

Demand in Lower Price

Demand in Higher Service

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Users’ Delivery Needs

78.5%

70.9%

57.8%

51.8%

39.4%

38.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

1) Consolidated One-time Delivery

2) Date & Time Designation

3) Pre-delivery Notice

4) Designation Slot Change

5) Shortest Lead-time Possible

6) Mid-night Delivery

Surveyees : 800 Rakuten Ichiba users, randomly selected Survey Period : June 17 – 19, 2013

Users’ Requirements for Goods Delivery

A) Taking demand in Mid-night Delivery into account, “Date & Time Definite (Designation) ” & “Bundling / Consolidation” have VERY strong demand

B) Strong demand in “Pre-delivery Notice” & “Designation Time Slot Change”C) NOT so strong requirement for “Shortest Lead-time Possible”

32

Vision of Rakuten Super Logistics (RSL)

WIN-WIN-WIN&

WIN New e-CommerceOpen logistics platform for merchants, users, partners & overall society

New Ways of BuyingRight goods, right time, right place,

all at once … with reasonable price

New Ways to DeliverEco (economical & ecological) and personalized ‘omotenashi’

delivery by aligning with stakeholders

EndUsers

New Ways of Selling

Logistics services and solution for higher revenue, ROA, user satisfaction and retention

Carriers

Merchants

33

RFC Deployment Plan

Floor Space：78,000m2

For Users in the West

Kansai Area （New） Kanto Area （expansion）

Space： 165,000 m2

Central Hub for Merchants & Users in the EastBundled / Consolidated

Delivery

Date & Time Definite(Designation)

Optimized Replenishment &Inventory Allocation

38.9M7.9M

20.5M12.6M

3.9M

Ichikawa Ⅰ~ⅢKashiwa

Kawanishi,Hyogo(2013~)

Notes： Numbers indicate regional population

： RFC （Rakuten Fulfillment Center）

【Tohoku Area】

【Chukyo Area】

【Kyushu Area】

【Kansai Area】

【Kanto Area】

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RSL Services Scope Inbound

Control

Inventory

Sales Orders

PurchaseOrders

Manufacturer

&

Wholesaler

Overseas

DepotDomestic

Last-1-MileOverseas

InboundLogistics

• Dry• Cool• Frozen• Mail• Crossborder

Delivery

• Date & Time Definite (Designation)

• Next-Day• Same-Day• COD• Track and

Trace• Pick-up• Installation• Omotenashi

✕

VAS

• Postponement• Quality Check• Gift Wrapping• Photographing• Bundling• Consolidation• Eco-Point• Auction• Return

Return

Recycling

Auction

RFCRakuten

FulfillmentCenters

Visibility

Consolidation

Outbound

Control

Bundling

Personalized‘Omotenashi’

Delivery

Crossborder

✕

BondedOperation

ImportRegulation

Check

ImportDuty/Tax DataManagement

Centralized Optimization

De-Centralized Optimization

Merchants

CustomHandling

VMI

Thank You Very Much !

Sim ShagayaChief Executive Officer,

Konga.com

WHAT E-TAILERS EXPECT FROM THE POSTAL INDUSTRY

SIM SHAGAYA, CEO, KONGA ONLINE SHOPPING LTD

MARCH 26, 2014

T H E D E V E L O P M E N T O F E - C O M M E R C E I N N I G E R I A

>> Context• Low penetration of large scale brick and mortar retailers

• Large population with high density in major cities

• GDP and middle-class sizeable and growing

• Infrastructure challenges

• Rapid growth in internet use through mobile and desktop

>> Trends• Wholesale & Retail are third largest contributors to GDP (16%)

• $40bn opportunity in food and consumer goods (2002-2020)

• 2013: Non-store retail value growth 24% of which online is 33%

• Growth to rise with internet penetration and interest in online retail

• 2 significant eCommerce players driving innovation and competition

0

10

20

30

40

50

60

70

Nigeria Mobile Penetration & Internet Use 2012*

Penetration (per 100) % using internet

0

20

40

60

Africa Top 10 Internet Countries 2012 Q2

millions

T H E D E V E L O P M E N T O F K O N G A ( 1 / 2 )

>> Mission• To be the engine of commerce and trade in Africa

>> Brief history• Launched July 2012 serving Lagos with 3 categories

• Now a 1P & 3P retailer with 200,000 products across 12 categories

• Launching a Marketplace to facilitate trade for a wider market

>> Fulfillment Milestones• Nationwide Delivery in December 2012 (w/POD from Nov 2013)

• Averaging 2-days for 1PL deliveries to Lagos

• Capacity to deliver >2,000 orders per day

>> Key Facts• 50% of visits from mobile devices

• 840,000 Likes on Facebook & 65,000 followers on Twitter

• 5x growth YoY

Fleet size of over 100 cross-utility delivery vehicles

Nationwide Reach, with options for Cash on Delivery

T H E D E V E L O P M E N T O F K O N G A ( 2 / 2 )

>> Driving Principle• The customer sits on the throne

>> Offering• Nationwide free delivery

• 7 Day return Policy

• Pay on Delivery by cash or card

• Online wallet where value can be stored for easy purchase

• Lowest price guarantee

>> Fulfillment Requirements• Ability to offer Pay on Delivery

• Nationwide Reach

• Ability to handle returns

• Track and trace capabilities throughout the fulfillment cycle

• Customer centric focus

• Trust

Mobile-friendly and easy to use website

Large, modern fulfillment center

W H AT P O S T S C A N D O TO H E L P

>> Understand eCommerce Customer

Happy Customer

Customers are Price Sensitive

COD Rules

Mobile Phones

are v important

Purchases Dominated

by Tier 1 Cities

>> Adapt to eCommerce Needs

• Offer track and trace

• Develop Express Service

• Offer home parcel pickup services

• Accept cash / card upon delivery or at pickup

• Nationwide coverage (tap existing assets)

• Offer Label Printing + Packaging

• Process returns

• Online request pickup + ePayment delivery

DELIVERY

• Develop customer service / call center

• Build capacity to integrate with eCommercefor:

• Real-Time reporting on delivery status

• Seamless customer service delivery

• Timely settlement and reconciliation of cash

INTEGRATION

How posts including NIPOST can help?WE ARE committed to OUR VISION FOR NIGERIA AND FOR AFRICA; delivery infrastructure is a critical enabling factor To Help US get there ….

THANK YOU

. >> Sources• ITU Mobile Cellular Statistics: http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx

• Internet World Statistics: http://www.internetworldstats.com/stats1.htm http://www.internetworldstats.com/stats1.htm

• Euromonitor International – Non-Store Retailing in Nigeria: http://www.euromonitor.com/non-store-retailing-in-nigeria/report

• Forrester Blogs by Zia Daniell Wigder –

• Trends in Early-Stage eCommerce Markets: • http://blogs.forrester.com/zia_daniell_wigder/13-08-05-trends_in_early_stage_ecommerce_markets

• More Trends in Early-Stage eCommerce Markets: • http://blogs.forrester.com/zia_daniell_wigder/14-02-25-more_trends_in_emerging_ecommerce_markets

• The Path Toward eCommerce Maturity: • http://blogs.forrester.com/zia_daniell_wigder/13-06-27-the_path_toward_ecommerce_maturity

• McKinsey & Company - Consumer and Shopper Insights December 2013 / Africa’s Growing Giant: Nigeria’s new retail economy

• Amadeus – A Digital Savannah: Africa’s eCommerce promise.

• ATKearney – The 2014 African Retail Development Index; Seizing Africa’s Retail Opportunity

• Global e-Shop Postal Services - A building blocks proposal on worldwide ecommerce services provided by Postal Administrations. EPSG e-Shopping Subgroup. August, 2007

E - C O M M E R C E I N N I G E R I A

Eric FixlerDirector of shipping

programs,Etsy.com

International Shipping in a Marketplace Context

Etsy is a marketplace where people around the world connect to buy and sell unique goods. Our mission is to re-imagine commerce in ways that build a more fulfilling and lasting world.

Etsy + Shipping About Etsy

• $1.35 Billion USD Gross Merchandise Sales in FY 2013

• 1 million active sellers

• 25 million items listed

• For 42% of Etsy sellers, Etsy was the first place they sold goods

• 200 countries with transactions

• 25% of sales cross international borders

• Half of sellers’ time spent on shipping and administrative tasks

Etsy + Shipping About Etsy

• Dynamic, sophisticated, high-traffic sales venue

• Comprehensive shop management and sales platform

• International language and currency support

• USPS and Canada Post shipping labels integrations

• Customs forms

• 125 tracked carriers

Etsy + Shipping Big Tools for Small (and Growing) Merchants

• 3-way transaction model

• Straightforward and well-documented tech

• Service harmonization

• No barriers to API usage

• Transparent pricing based on aggregate volume

• Meaningful partnerships

Etsy + Shipping Facilitating Carrier Integrations

• Reduce friction for cross-border shipments

• Better tracking event sharing

• Ameliorate low de minimis values

• Drive rule and process consistency

• Make delivery timeframes more predictable

• Optimize routes based on destination

• Fast lane customs for known marketplace sellers

Etsy + Shipping Facilitating International Commerce