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)
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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…..
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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
Thailand Online Shopping Survey
Copyright 2016 Manhattan Associates, Inc. Strictly Confidential. Not for Distribution. 6
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
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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
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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
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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
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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?
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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?
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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
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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?
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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?
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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?
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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
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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)
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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
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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?
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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
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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
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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
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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!
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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
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We’re helping companies with their e-Commerce and omni-channel supply chain challenges across the globe….
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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