Thailand e-Commerce Logistics Round-table · fulfilment options Same day delivery to your door 2 hour delivery to your door Same day delivery to secure locker (at work location, in

February 7, 2017

RICHARD WRIGHT (MANHATTAN ASSOCIATES), KANLAYA DOMDOM (LOGICIEL)

Thailand e-Commerce Logistics Round-table

Copyright 2016 Manhattan Associates, Inc. Strictly Confidential. Not for Distribution. 2

Founded 1990

Nasdaq MANH

Global Customers More than 1,200

Deployments 355 Go Lives in 2016

Supply Chain Focused

R&D Investment

$55 million in 2016

Total cumulative $461 million since 2007

Employees Worldwide ~3,020 (as of December 31, 2016)

Core Markets • Retail

• Food / Grocery

• Consumer Goods

• Logistics Services Providers

• Life Sciences

• Industrial / Wholesale

• High Tech / Electronics

• Transportation Providers

• Government

Financials ($US millions)

Updated: February 2, 2017

At-a-Glance

Manhattan Associates: Global Leader in Supply Chain Commerce Solutions

$46.6 $48.4 $36.7 $40.5 $42.4 $44.7 $44.5 $49.0 $53.9 $54.7

$337.4 $337.2

$246.7 $297.1

$329.3 $376.2

$414.5

$492.1 $556.4

$604.6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

R&D (millons) Revenue (millions)


Manhattan Associates: Southeast Asia

Head Office based in Singapore

40+ customers with 250+ sites live in Southeast Asia

Strong in Retail, Consumer Goods, Industrial Goods,

Food, and Logistics Service Providers

Local Partner in Thailand Logiciel

Sample customers…..


Logiciel Consult & Development Co

Logiciel Consult & Development Co., established in 2011, to provide consulting services in Thailand

In June 2015, Manhattan Associates announced the appointment of Logiciel Consult & Development Co., as a Manhattan GeoPartner (geographical partner) in Thailand

Logiciel has already implemented more than 100+ sites in Thailand

For more information, please visit www.logicielcd.com

http://www.logicielcd.com/

Thailand Online Shopping Survey


Scope of Work

The survey was conducted to understand online shopping behaviour and preferences of Thai consumers

Methodology: Online survey

Date of survey: October 2016

Geography: Nationwide


Key Findings

43% of Thai internet population shop online 2 to 3 times per month

Growth in online shopping set to continue

Slow delivery, difficulty returning goods and not receiving what was expected are online shoppers’ biggest frustrations

Millennials most frustrated with poor customer service

Online shoppers want more frequent promotions, faster delivery and wider choice of products

Clothing/fashion, high-tech products and cosmetics are products most frequently bought online

A third of online shoppers will be put off using the same retailer again if a delivery is late

Millennials are the first generation to do more of their online shopping using a smartphone (versus other devices)

67% of online shoppers prefer to use electronic payment

Online shoppers want quicker and more convenient fulfilment options


Sample size = 2,000 Thai adult internet population

Male Female

48.9% 51.1%

Respondents by Gender

69%

6% 10% 6%

Respondents by Region

18-24 25-34 35-44 45-54 55+

15%

40%

34%

9%

2%

Respondents by Age


43% shop online 2 to 3 times per month

Total 18-24 25-34 35-44 45-54 55+

18% 15% 24%

15% 6% 10%

13% 15%

16%

10%

12% 0%

43% 41%

43%

45%

41%

40%

20% 21%

13%

22%

31%

40%

6% 9% 3% 7% 10% 10%

How often do you buy online?

Less frequently than onceevery 3 months

Once every 1 to 3 months

2 to 3 times per month

Once per week

More than once a week


Online shopping will continue to grow

18-24 25-34 35-44 45-54 55+

66% 66% 76% 76%

55%

11%

4% 5% 7%

10%

23% 15% 19% 17%

35%

Over the next 12 months, do you think you will do more or less shopping online than the previous 12 months?

The same

Less

More

• Shoppers in every age group plan to do more online shopping

• ….but is this figure a sign that some millennials want to engage more in shopping at a physical store?


Online shoppers are most frustrated with slow delivery, difficulty with returning goods and not receiving what they’re expecting

48%

10%

15%

45%

35%

39%

55%

17%

13%

27%

Slow delivery

Packages being sent to the depot

Expensive products

Difficulty to return / exchange goods

High shipping cost

Poor product quality

Not getting what you're expecting

Poor customer service

Narrow product range

Limited payment options

When shopping online, what typically frustrates you most?


Millennials more frustrated than other age groups regarding “slow delivery”, “poor customer service”, “expensive products”, “high shipping cost and “limited payment options”

62%

10%

26%

44%

46%

37%

52%

20%

13%

36%

48%

10%

15%

41%

35%

37%

55%

17%

15%

26%

44%

10%

13%

49%

33%

42%

55%

17%

13%

24%

45%

6%

7%

50%

24%

36%

60%

14%

9%

26%

35%

0%

0%

45%

20%

35%

60%

20%

5%

20%

Slow delivery

Packages being sent to the depot

Expensive products

Difficulty to return / exchange goods

High shipping cost

Poor product quality

Not getting what you're expecting

Poor customer service

Narrow product range

Limited payment options

When shopping online, what typically frustrates you most?

18-24 25-34 35-44 45-54 55+

• Re “Poor product quality”, 35-44 age group most frustrated

• Re “Difficulty to return / exchange goods”, 45-54 age group most frustrated

• Re “Not getting what you’re expecting”, 55+ group age group most frustrated


In addition to lower prices, consumers want more frequent promotions, faster delivery and wider choice of products

61.9%

61.6%

65.3%

42.4%

34.4%

31.6%

61.3%

54.4%

34.9%

Faster / more convenient delivery

Lower prices

More frequent promotions

Better product quality

Higher quality of customer service

Easier way to return goods

Wider range of products

More payment options

Lower shipping cost

What do you think would encourage you to do more shopping online out of the following?


A third of consumers unlikely to stay loyal if a delivery is late

Yes No Not applicable

33%

36%

31%

Has a delivery not arriving in time put you off using that retailer again in the future?


Reliable delivery drives customer loyalty

Yes - definitely I think so No N/A / I don'tknow

77%

20%

1% 2%

Would you say that reliable delivery typically make you a more loyal customer?


The number of shoppers using smartphones looks set to overtake the number using computers & laptops; use of tablets remains low

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Total 18-24 25-34 35-44 45-54 55+

Which devices do you use for browsing / buying goods online?

Computer/laptop Smartphone Tablet Other device(s)

• Millennial shoppers are the first generation to do more online shopping using their smartphone than any other device

• The affluent and digitally-savvy 25-34 age group use their smartphone and computer/laptops in equal proportions


67% of online shoppers pay using some kind of electronic payment method

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total 18-24 25-34 35-44 45-54 55+

When you buy goods online, how do usually you pay for goods?

Online transaction PromptPay ePayment Cash on delivery Other method(s)


More men than women are using ePayment but also cash on delivery!

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Online transaction PromptPay ePayment Cash on delivery Other method(s)

When you buy goods online, how do usually pay for goods?

Male Female


Shoppers want faster, more convenient fulfilment options

Same day deliveryto your door

2 hour delivery toyour door

Same day deliveryto secure locker

(at work location,in a shopping

centre, outsideyour home etc.)

Click and collectfrom store

Same day collectfrom pick-up

points (e.g. Localstore /

Supermarket)

88%

60% 61%

30% 34%

Which of these do you think you would use in the next 12 months, if it were available?


Retailers must change

Service the engaged consumer!

Retailers need to develop the capabilities to meet the consumer’s demands for:

What they want

Where there want it

When they want it, and

How much they are willing to pay


Evolution of e-Commerce

2

3

WEBSTORE & AFFILIATE SITE

SOCIAL FACEBOOK PINTEREST TWITTER

PHONE APPS EMAIL

MARKETING

TABLET APPS

• Movement away from

dedicated e-Commerce

fulfilment to hybrid

fulfilment models

OR

• Movement towards e-

Commerce with Click &

Collect and Ship from

Store models


e-Commerce is becoming part of a broader commerce landscape called Omni-channel

What is Omni-channel Commerce?

Any demand point, any supply point

•Demand • In Store

• Web Store

• Marketplace

•Supply • Distribution &

Fulfilment Centres

• Retail Stores

• Dropship Suppliers


The Omni-channel Supply Chain Revolution

Buy In Store and Pick Up from Store

Buy In Store and Ship from Store

Buy in Store and Ship from DC

Buy Online and Deliver to Home

Buy Online and Pick up from Store

Buy Online or ANY Store and Pick

up from ANY other store

Buy Online or In Store and Ship

from DC/Manufacturer (Drop Ship)

Value Added Services

RETURNS!


Supply Chain challenges of supporting e-commerce and omni-channel commerce:

Order fulfilment costs

Margin pressure

SKU proliferation

Returns

Order processing speed

Order processing accuracy

Available network

Inventory visibility


We’re helping companies with their e-Commerce and omni-channel supply chain challenges across the globe….


RedMart set for continued growth with Manhattan Supply Chain Commerce Solutions…

Insert RedMart Video

February 7, 2017

RICHARD WRIGHT (MANHATTAN ASSOCIATES), KANLAYA DOMDOM (LOGICIEL)

Thailand e-Commerce Logistics Round-table

Documents

Thailand e-Commerce Logistics Round-table · fulfilment options Same day delivery to your door 2 hour delivery to your door Same day delivery to secure locker (at work location, in