Session 3 Opportunities & Threats
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Transcript of Session 3 Opportunities & Threats
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E-Commerce
Opportunities &Threats
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The opportunities created by e-commerce
• Vastly increased market both nationally andinternationally allowing businesses to overcomegeographical limitations with reduced investment
• Target diferent market segments•
The Long Tail• Whilst physical retail is driven by branding and
relationships, online retail is also driven by tracrom search engines
•
n some markets and industries, e-commerce hasreduced barriers to entry creating opportunities ornew businesses to enter the market
• !-commerce has acilitated the emergence o pureplay "etailers# such as $cado and Wiggle
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The relentless growth o e-commerce
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The opportunities created by e-commerce
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The opportunities created by e-commerce
• %&' o the worldsinternet users live in (sia
• )y &*+, ./0' o world-wide )&1 e-commercesales will come rom(sia-2aci3c
• )y &*+0, estimated e-
commerce sale in (sia2aci3c 4)illions5 6+*7&/.• out o every +* dollars
spent online in (sia
come rom 1hina
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The opportunities created by e-commerce
• $nly ' o 89businesses tradingdigitally abroad aredoing so in the locallanguage
• 0' o 89 businessesattempting to tradeinternationally haveonly one centralwebsite which ismaking the buyinge:perience conusingand uneasible or
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The opportunities created by e-commerce
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The opportunities created by e-commerce
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The opportunities created by e-commerce
• The rapid e:pansion o cycling,triathlon, running and swimmingetailer Wiggle is an ama;ing
success story• Wiggle was launched in +...
and is now the 89#s number oneonline cycle shop and the 3th
most popular online shop• <ales in &*+% were =+m, a +.'increase rom &*+
• n &**> ? &/7' sales came romoverseas markets/ n &*+% 7%'o sales came rom overseas
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The opportunities created by e-commerce
Wiggles Strategies forSuccess:
•
Website localisation eaturing translated te:t andlocal currency prices• 1ountry speci3c popular payment options• +& websites ? +* diferent languages• @ocus on mcommerce• (n email contact centre with a team o *
translators to respond to customer Aueries invirtually any language
• @ocus on Auicker order processing and speed o
delivery resulting in Wiggle being able to sendroducts rom the 89 to Belbourne uicker than
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The opportunities created by e-commerce
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The threats posed by e-commerce
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Th h d b
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The threats posed by e-commerce
• n &*+& (ma;on launched (ma;on<upply ofering 7**,*** products
• n &*+% (ma;on launched (ma;on
)usiness with a catalogue o over &/7million• )ulk discounts and business-only pricing• )usiness lines o credit• Cuge concern over the potential impact
on (merica#s 7,*** distributioncompanies especially as >' o )&)
purchases in &*+% were made online, anincrease o 70' rom &*+
Th th t d b
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The threats posed by e-commerce
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The threats posed by e-commerce
Th th t d b
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The threats posed by e-commerce
Th th t d b
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The threats posed byecommerce
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2utting it all into conte:t
• Dlobally, although the ecommerce markethas grown e:ponentially over the last twoyears, online retail still only accounts or
around 7/.' o total retail sales and this isonly orecast to increase to >/>' by &*+>, araction o overall retail sales
• n the 89 however, ecommerce accounts or
around +7/&' o all retail sales and this isorecasted to increase to around +>' by&*+>
• Travel agents are still responsible or almost
00' o all cruise bookings, 77' o air travel
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2utting it all into conte:t
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2utting it all into conte:t
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2utting it all into conte:t
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The Drocery <ector
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The Drocery <ector
• (lthough e-commerce and online shopping haslong threatened bricks-and-mortar retailers inother sectors so ar it has had less impact on oodretailers
• Cowever, online grocery is coming o age andonline grocers have already captured around 7'o the market in the 89
• 89 Drocery market was worth =+00/7 billion in
the year to Barch +st &*+7/ ( +/0' increase on&*+7
• 89 online grocery sales are orecast to reach=+0/&bn by &*&*
• 89#s online grocery market is the worlds second
Th D < t ( i 2 i3
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The Drocery <ector ? (sia-2aci3cand 1hina
• 1ontinued increases in mobile adoption andbroadband penetration, particularly in thedeveloping regions have boosted online grocerysales
•
(sia-2aci3c consistently e:ceeds global average oall online retailing
• 0' o people within (sia-2aci3c and %' in1hina use online ordering and delivery service
• )etween &*+ and &*+%, e-commerce salesincreased by %*'
Why is online grocery shopping here soprevalent when compared to the rest of the
world?
Th D < t ( i 2 i3
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The Drocery <ector ? (sia-2aci3cand 1hina
• Eapid urbanisation• ncredibly high population density• Eelatively low labour costs• )ooming smart phone ownership• n 1hina, saety concerns aroundlocally sourced ood and drinkhave driven consumers in searcho high Auality goods online
Th D < t ( i 2 i3
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The Drocery <ector ? (sia-2aci3cand 1hina
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The Drocery <ector - Bodels
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The Drocery <ector - Bodels
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The Drocery <ector - Bodels
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The Drocery <ector ? @uture Trends
• !-commerce will grow butbrick and mortar willcontinue to dominate
• +' o consumers believe
physical grocery shopping isan enFoyable e:perience
• The maFority o customerswill still continue to shop orthe bulk o their purchases instore
• <uccessul grocery retailerswill engage and wincustomers through omni-
channel 4bricks and mortar,
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Themes or !valuation
•
!-commerce signi3cantly reduces barriers toentry increasing the amounts o new entrants
• The 4continued5 growth o e-commerce willinevitably lead to a decline o "bricks and
mortar#• To be successulG competitive a business must
have an e-commerce platormG the ability to sellonline
• n the 89, online sales, on average, haveincreased by around +&' 4&*+ to &*+%5whereas retail sales have increased by around'
• There is a growing disparity between online
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