The Future For Asia’s E-commerce ScenePaul Srivorakul, Group CEO of aCommerce

The Market

3

The Alibaba effect: The largest IPO creates an Ecommerce investment frenzy in Asia

$25B IPO

Ecommerce Deal Volume in Asia

Investors don’t want to miss out on the next BIG THING (China)

The rapid growth of e-commerce in India

India warehousing requirementsInfrastructure will demand a large proportion of investment in e-commerce

Next Game Changers in 2025 (Frost & Sullivan)

Ecommerce Deal Share in Asia

9

Ecommerce is the highest value generating sector

Out of the 82 current “unicorns,” 18 are in Asia, and 9 are in Ecommerce

Company Sector Country Valuation (US$ Billion)

Xiaomi Hardware China 46.00

Flipkart Ecommerce India 10.60

Meituan Ecommerce China 7.00

Snapdeal Ecommerce India 5.00

Kuaidi Transportation China 4.00

Vancl Ecommerce China 3.00

Coupang Ecommerce Korea 2.00

Dianping Restaurant Reviews China 2.00TrendyGroup Fashion Hong Kong 2.00

Koudai Shopping Ecommerce China 1.40

Lazada Ecommerce Singapore 1.20

Sogou Search China 1.20

Lashou Group Ecommerce China 1.10

Olacabs Transportation India 1.00

GrabTaxi Transportation Malaysia 1.00

Mogujie Ecommerce China 1.00

Xunlei File Sharing China 1.00

Yello Mobile Mobile Korea 1.00

In S.E. Asia, 5 of 10 biggest funding rounds are in 2014 in Ecommerce

• aCommerce (US$10.7M)

• Luxola (US$10M)

• Redmart (US$23M)

• Tokopedia (US$100M)

• Lazada (US$249M)

• Zalora (US$120M)

Increasing regional trade in Asia

ASEAN’s Position

• Strong economic growth

• Centrally located between India and China

• A population of 618m

• Located close to major trade networks

• Strong growth in consumer demand

• Growing e-commerce

ASEAN’s market potential is MASSIVE

ASEAN is at an Inflection point for E-commerce

13

Growing Marketplaces & E-tailers in S.E. Asia

CountryB2C

Marketplaces

B2C Multi-brand

Retailers

B2C Private Sales &

Daily deals

C2C Marketplaces & Classifieds

Singapore

Thailand

Indonesia

Philippines

Trends

Engagement

Data

Monetization

15

Ecommerce evolving into a customer-acquisition strategy for a BIGGER internet horizontal play

Amazon | Apple | Google | Facebook | Ebay | Alibaba | Rakuten | Tencent | Baozun | DaumKakao | LINE | Yahoo | Microsoft | Disney | Garena

Ecommerce Internet Companies

Media (Content)News, Blogs, Portals, Community, Video, Social Networks,

Apps, Forums, Ratings & Reviews

Marketing (Ads)Adnetworks, Affiliate, Social, RTB, Video, Retargeting,

Search, Display, Text, Native Platforms

Commerce (Sales)Ecommerce, Verticals, Digital Goods, Subscription,

Flash, Vouchers Marketplaces, Payments

Logistics (Fulfillment)In-store Pick up, Cross-Border, O2O,

Warehousing, Delivery, COD

Ecommerce Internet Monetization Funnel

• Rakuten acquires Webgistics (Logistics), LinkShare (Advertising) and Viki (Media)

• Paytm (Payments) building out horizontal marketplace, and FlipKart acquires Adiquity (Adveristing)

• Snapdeal acquires FreeCharge (Payments) and also rumored to be buying Komli (Advertising), Invests GoJavas (Logistics)

• Tencent (Media & Gaming) partners with JD.com (Ecommerce)JD.com sets up MVNO (Infrastructure)

• Alibaba invests in InTime Malls (O2O), acquires Adchina(Advertising) and investing in Youku (Media), Singpost (Logistics)

• Google acquiring BufferBox Lockers (Logistics) and launching Google Express Same-day Delivery (Logistics)

Moving up/down the value chain

18

BIG companies testing Ecommerce

LINE Groceries & Prompt Pay

Twitter Buy Button

Facebook Buy Button

Ecommerce Landscape

Commerce Landscape (LUMA)

China Online Market: B2C vs C2C

Alibaba Leads… but not in all categories

China Ecommerce Channels

24

Increase complexity and Fragmentation

25

(CROSS BORDER TRADE)

(PRICE COMPARISON)

MultiChannel Ecommerce Explosion & Opportunity

Lazada Group traffic source

Desktop is 50% and quickly dropping

M-commerce is BIG, but different behaviorLess browsing & impulse buying, higher spend in commodities

Cross Border Trade Fastest growing segment in Ecommerce

Fedex Acquires Bongo

Delivery firms in China get into e-commerce

Source: Mastercard Online Shopping Survey 2013

Over the next 5 years, 65% of transactions will start online and finish offline

Online-to-Offline (O2O)

Matahari | Macy’s | InTime

Source: aCommerce Google Analytics Data, Feb-May18 2014

Type of payment options

Transactions by devices

65 %

COD CREDIT CARD

35%

60%

Desktop Mobile Tablets

35%

5%

Payment Options & Transactions by Devices

Market CapWoman targeted site

$2B (2014)

Raises $100M (2014)

Vertical “Woman” Ecommerce

Raises $100M (2015)

Raises $37M (2015)

China B2C Market in 2013 764B Yuan ($32B USD)

China B2B Market in 2013 7,100B Yuan ($1,170B USD)

B2B vs B2C in China32TIMES

BIGGER

B2B vs B2C in Korea

B2B Ecommerce is $250M Market in Indonesia

Ecommerce everywhere will change everything

Internet aCommerce is changing MARKETING

Transaction

Customer Product

Marketing

Sales

Content

Location

Transactions

Internet aCommerce is changing RETAIL

Internet aCommerce is changing FULFILMENT

Internet aCommerce is changing PAYMENTS

Internet aCommerce is changing DELIVERY

Thank youpaul@acommerce.asia