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Thai E-Commerce: Learnings and Trends

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"Thai E-Commerce: Learnings and Trends" by Tiwa York, Managing Director E-Commerce, Sanook Presented at Thailand Satellite 2013 More information: e27.co/echelon

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Thai  E-­‐Commerce:  Learnings   &  Trends   Echelon  2013  –  Thailand  Satellite   April  2013    
Agenda   1.  Brief  History  of  Sanook   2.  Quick  Snapshot   3.  E-­‐Commerce  Late  to  the  Party   4.  P2P  Marketplace  Slow  Start   5.  Why  AucJons  didn’t  work   6.  Our  ShiN  to  B2B2C   7.  Payment  Trends   8.  Our  Mobile  Stats   9.  Q&A  
Sanook Milestones
An  Incomplete  History  of  Thailand  E-­‐Commerce   2006   2007   2008   2009   2010   2011   2012  1999   2001   2002   2004   Local  Classifieds   Int’l  Classifieds   Direct  to  Consumer   Daily  Deals   Marketplace    Storefronts  
Vital  Stats   Popula'on   69.5M1   Internet  Popula'on   25M2   Internet  Penetra'on   36%   Mobile  Phones   77M2   Mobile  Internet  (handsets)   14M3   Per  Capita  GDP  (USD)   4,9621   Retail  (USD  m)   95B4   Sources:  1.  The  World  Bank  2.Truehits.net  3.  AIS,  Dtac,  True    4.   Economist  Intelligence  Unit   Thailand  Snapshot  
Why  has  Thailand  been  slow  to  the  E-­‐Commerce   party?   •  Shopping  Culture   •  Consumer  Trust   •  LogisJcs  Infrastructure   •  Slow  Credit  Card  AdopJon  
Feb   Feb   Feb   Feb   2010   2011   2012   2013    13      14      15      17      19      18      16      15      30      34      37      41     Number  of  PlasYc  Cards  in  Thailand  (in  millions)   Credit  Cards   ATM  Cards   Debit  Cards   Source:  Bank  of  Thailand  
Why  have  P2P  Marketplaces  been  slow  to  start?  
Why  didn’t  C2C  AucYons  work?   In  associaJon  with  
The  3  Tenets  of  E-­‐Commerce   Value   SelecJon   Convenience  
The  4  Tenets  of  Thai  E-­‐Commerce   Value   SelecJon  Convenience   Trust  
Where  We’ve  Been   Where  We’re  Going   •  Brightly  Lit  Mall   •  Curated  Products   •  Trusted  Merchants   •  C2C  /  B2C  –  “Flea  Market”   •  Not  Curated  (Uncontrolled)   •  Low  Trust   Our  Shi  to  B2B2C  Marketplace  
Our  Trends  in  Pament   Date   Bill  Payment   Credit  Card   Debit  Card   Counter   Services   March  2012   45%   30%   0%   25%   March  2013   34%   22%   2%   41%  
Our  Mobile  Growth…   0%   5%   10%   15%   20%   25%   30%   35%   Jan-­‐12   Feb-­‐12   Mar-­‐12   Apr-­‐12   May-­‐12   Jun-­‐12   Jul-­‐12   Aug-­‐12   Sep-­‐12   Oct-­‐12   Nov-­‐12   Dec-­‐12   Jan-­‐13   Feb-­‐13   Mar-­‐13   Apr-­‐13   Dealfish  Mobile  Traffic  %   0%   5%   10%   15%   20%   25%   30%   Jan-­‐12   Feb-­‐12   Mar-­‐12   Apr-­‐12   May-­‐12   Jun-­‐12   Jul-­‐12   Aug-­‐12   Sep-­‐12   Oct-­‐12   Nov-­‐12   Dec-­‐12   Jan-­‐13   Feb-­‐13   Mar-­‐13   Apr-­‐13   Sabuy  Mobile  Traffic  %  
Tiwa  York   CEO     Sanook  eCommerce   +668.1770.5493   Jwa@sanookonline.co.th   @Jwa     QA  

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Thai E-Commerce: Learnings and Trends

  • 1. Thai  E-­‐Commerce:  Learnings   &  Trends   Echelon  2013  –  Thailand  Satellite   April  2013    
  • 2. Agenda   1.  Brief  History  of  Sanook   2.  Quick  Snapshot   3.  E-­‐Commerce  Late  to  the  Party   4.  P2P  Marketplace  Slow  Start   5.  Why  AucJons  didn’t  work   6.  Our  ShiN  to  B2B2C   7.  Payment  Trends   8.  Our  Mobile  Stats   9.  Q&A  
  • 4.
  • 5. An  Incomplete  History  of  Thailand  E-­‐Commerce   2006   2007   2008   2009   2010   2011   2012  1999   2001   2002   2004   Local  Classifieds   Int’l  Classifieds   Direct  to  Consumer   Daily  Deals   Marketplace    Storefronts  
  • 6. Vital  Stats   Popula'on   69.5M1   Internet  Popula'on   25M2   Internet  Penetra'on   36%   Mobile  Phones   77M2   Mobile  Internet  (handsets)   14M3   Per  Capita  GDP  (USD)   4,9621   Retail  (USD  m)   95B4   Sources:  1.  The  World  Bank  2.Truehits.net  3.  AIS,  Dtac,  True    4.   Economist  Intelligence  Unit   Thailand  Snapshot  
  • 7. Why  has  Thailand  been  slow  to  the  E-­‐Commerce   party?   •  Shopping  Culture   •  Consumer  Trust   •  LogisJcs  Infrastructure   •  Slow  Credit  Card  AdopJon  
  • 8. Feb   Feb   Feb   Feb   2010   2011   2012   2013    13      14      15      17      19      18      16      15      30      34      37      41     Number  of  PlasYc  Cards  in  Thailand  (in  millions)   Credit  Cards   ATM  Cards   Debit  Cards   Source:  Bank  of  Thailand  
  • 9. Why  have  P2P  Marketplaces  been  slow  to  start?  
  • 10. Why  didn’t  C2C  AucYons  work?   In  associaJon  with  
  • 11. The  3  Tenets  of  E-­‐Commerce   Value   SelecJon   Convenience  
  • 12. The  4  Tenets  of  Thai  E-­‐Commerce   Value   SelecJon  Convenience   Trust  
  • 13. Where  We’ve  Been   Where  We’re  Going   •  Brightly  Lit  Mall   •  Curated  Products   •  Trusted  Merchants   •  C2C  /  B2C  –  “Flea  Market”   •  Not  Curated  (Uncontrolled)   •  Low  Trust   Our  Shi  to  B2B2C  Marketplace  
  • 14. Our  Trends  in  Pament   Date   Bill  Payment   Credit  Card   Debit  Card   Counter   Services   March  2012   45%   30%   0%   25%   March  2013   34%   22%   2%   41%  
  • 15. Our  Mobile  Growth…   0%   5%   10%   15%   20%   25%   30%   35%   Jan-­‐12   Feb-­‐12   Mar-­‐12   Apr-­‐12   May-­‐12   Jun-­‐12   Jul-­‐12   Aug-­‐12   Sep-­‐12   Oct-­‐12   Nov-­‐12   Dec-­‐12   Jan-­‐13   Feb-­‐13   Mar-­‐13   Apr-­‐13   Dealfish  Mobile  Traffic  %   0%   5%   10%   15%   20%   25%   30%   Jan-­‐12   Feb-­‐12   Mar-­‐12   Apr-­‐12   May-­‐12   Jun-­‐12   Jul-­‐12   Aug-­‐12   Sep-­‐12   Oct-­‐12   Nov-­‐12   Dec-­‐12   Jan-­‐13   Feb-­‐13   Mar-­‐13   Apr-­‐13   Sabuy  Mobile  Traffic  %  
  • 16. Tiwa  York   CEO     Sanook  eCommerce   +668.1770.5493   Jwa@sanookonline.co.th   @Jwa     QA