Presentación Kati Suominen - eCommerce Day Buenos Aires 2016
-
Upload
ecommerce-institute -
Category
Marketing
-
view
513 -
download
0
Transcript of Presentación Kati Suominen - eCommerce Day Buenos Aires 2016
![Page 1: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/1.jpg)
Digital Disruption in 2016-2020:
Where Is Growth Coming From – and Is That Where You Want to Be?
Dr. Kati SuominenFounder & CEO, NextradeGroup & TradeUpCapital Fund
Adjunct Fellow, Center for Strategic and International Studies (CSIS) 11 August 2016
eCommerce Day, Buenos [email protected]
![Page 2: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/2.jpg)
Ecommerce is still driven by only a handful of humanity…
7.4bn people
5.2bn mobile phones
3.2bn online
1.1bn high-speed
Internet
• Wealthy• Urban• Young• Male• Developed
countries
?
![Page 3: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/3.jpg)
Megatrend 1: Huge Growth in Internet Users
270m in LatAm
![Page 4: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/4.jpg)
More & More of LatAm Netizens =Digital Buyers
![Page 5: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/5.jpg)
Megatrend 2: Incomes Are Growing
Per capita income, 2016 and 2020
• 75% of consumption growth is from income growth
![Page 6: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/6.jpg)
Income Growth Internet Use, Consumption
LatAm 2016
LatAm 2020
![Page 7: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/7.jpg)
Strong Income Growth in LatAm 2016-2020
![Page 8: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/8.jpg)
Megatrend 3: More Low Income Online Shoppers – do you buy online?
Before
![Page 9: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/9.jpg)
Megatrend 3: More Low Income Online Shoppers
Now
![Page 10: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/10.jpg)
Ecommerce as % of LatAm Retail Growing
• UK: 14%• US: 8%• China: 13%• Brazil: 4%
![Page 11: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/11.jpg)
By 2020
• 270m new Internet users in LatAm, 3bn globally Most lower income
• LatAm shopper is wealthier by 10-15%
• More low-income Latin Americans shop online
How do you get at this massive market?
![Page 12: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/12.jpg)
Global Income “Pyramid”
1bn people<$1 / day
3bn people$1-$8 / day
2bn people$10-$60 / day
1bn people>$60 / day
![Page 13: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/13.jpg)
Global Income “Pyramid”
1bn people<$1 / day
3bn people$1-$8 / day
2bn people$10-$60 / day
1bn people>$60 / day
![Page 14: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/14.jpg)
Mobile Use Is on Fire
![Page 15: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/15.jpg)
Smartphone Usage Rates 30-50%
![Page 16: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/16.jpg)
Low-Income People Connect Online on Mobile
Go “Mobile First”
![Page 17: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/17.jpg)
Buy online to save time
Buy online to find best fit, save money
Know Your Customer & what drives them
![Page 18: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/18.jpg)
And Do Customer Analytics
Source: McKinsey.
![Page 19: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/19.jpg)
Know Where Your Customer IsSource: Esri data.
2016
![Page 20: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/20.jpg)
And where she is tomorrowSource: Esri data.
2020
![Page 21: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/21.jpg)
Cross-Border Ecommerce Grows Much Faster
Cross-border ecommerce growth = 5x domestic ecommerce growth in 2016-2020
![Page 22: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/22.jpg)
Digital Disruption in 2016-2020:
Where Is Growth Coming From – and Is That Where You Want to Be?
Dr. Kati SuominenFounder & CEO, NextradeGroup & TradeUpCapital Fund
Adjunct Fellow, Center for Strategic and International Studies (CSIS) 11 August 2016
eCommerce Day, Buenos [email protected]
![Page 23: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/23.jpg)
$
Legal and regulatory frameworks
Ecommerce strategies Ecommerce logistics
Online payments
ICT infrastructure and services
Ecommerce skills
Much has to go right in the “enabling environment”
![Page 24: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/24.jpg)
Ecommerce is still driven by only a handful of humanity…
Demographics
Geography Psychographics
![Page 25: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/25.jpg)
Ecommerce is still driven by only a handful of humanity…
Demographics
Geography Psychographics
Demographics
![Page 26: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/26.jpg)
Know Your Customer
![Page 27: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/27.jpg)
Internet is used more by some demographic groups
![Page 28: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/28.jpg)
![Page 29: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/29.jpg)
![Page 30: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/30.jpg)
![Page 31: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/31.jpg)
32Source: UNCTAD
% of individuals purchasing products online, 2013
Most emerging market shoppers have not bought online
![Page 32: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/32.jpg)
…and only some companies sell online
% of companies with online sales
Typically these are: Larger, fast-growing, skill-intensive, export-oriented, urban
![Page 33: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/33.jpg)
Source: Author based on Eurostat.
Even most EU companies are offline
![Page 34: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/34.jpg)
The Next 5 Years
![Page 35: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/35.jpg)
Cross-Border Trade Is Growing
![Page 36: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/36.jpg)
Who’s Driving This? B2C Ecommerce Markets in 2015
Source: eMarketer.
![Page 37: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/37.jpg)
Emerging Markets Catching Up
% of people using the Internet
![Page 38: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/38.jpg)
Megatrend 2: Incomes Are Growing
Per capita income, 2016 and 2020
• 75% of consumption growth is from income growth
![Page 39: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/39.jpg)
China’s $24,000 Club
• Higher incomes: more discretionary income, purchases of luxury products
• 100 million by 2020
• Highly connected
• Buying ~$6.5T
• 53% of the millennials – who buy 40% more than older people of same incomes
![Page 40: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/40.jpg)
![Page 41: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/41.jpg)
![Page 42: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/42.jpg)
![Page 43: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/43.jpg)
Womenomics
• Women drive 65-80% of all B2C purchasing
• Women have money to spend: incomes at $18T by 2018
• U.S. women make 61% more online purchases than men and make up 58% of online spending
![Page 44: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/44.jpg)
Asian women emerging as spenders –and breadwinners
Source: EIU.
![Page 45: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/45.jpg)
Huge Mass of Urban Consumers
• Want to reach 80% of consumers by 2020?
Be in 430 world markets = cities
• 410m people & 61% of world GDP by 2030 in 750 mega-cities
• 91% of growth in consumption comes from cities
• Large young & urban populations in Nigeria, China, India, Brazil, U.S.
• Most urban consumption still in China + North America: 315 cities make up 40% of consumption growth
![Page 46: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/46.jpg)
Biggest spenders: today’s millennials
Source: McKinsey Global Institute.
![Page 47: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/47.jpg)
Source: McKinsey Global Institute.
![Page 48: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/48.jpg)
Surprise! Rural ecommerce growing fast
• Rural consumers: 80m new online buyers in 2015 alone
• Rural buying growing with rise of smartphones: physical retail not near, while phones are
• India: more and more demand from 3,313 tier II & III cities & 1,233 rural hubs
![Page 49: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/49.jpg)
Cities
What Is Your Strategy?
New Spending Power
New connectivity
China $24K Club
B2C & B2B
Emerging markets of Africa, LACB2C, B2B
Emerging market women
B2C
Advanced economy
women and men B2C
Advanced economy
businessesB2B
Rural, BOPB2C, B2C
![Page 50: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/50.jpg)
LatAm Companies: Already in Crossborder
![Page 51: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/51.jpg)
LatAm Companies: Already in Crossborder
![Page 52: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/52.jpg)
LatAm Companies: Already in Crossborder
![Page 53: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/53.jpg)
LatAm Challenges
![Page 54: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/54.jpg)
LatAm Challenges
![Page 55: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/55.jpg)
LatAm Challenges
![Page 56: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/56.jpg)
Most consumption still in advanced economies
% of world GDP per capita, 2016 and 2020
![Page 57: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/57.jpg)
• B2B ecommerce at $6.7T by 2020: manufacturers and wholesalers getting online
• Smartphones accelerate this: already, 42% of B2B purchase researchers use a mobile device during the purchasing process
• >50% of B2B decision-makers in 2020: Millennials
B2B Is Exploding
Source: Google.
2012 2015
3x growth in B2B searches from mobiles
![Page 58: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/58.jpg)
In B2B too, Think of Millennials & Mobile: Shift in B2B Researcher Demographic
Source: Google.
![Page 59: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/59.jpg)
How Do People Buy (or Browse)
Source: Nielsen.
![Page 60: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/60.jpg)
![Page 61: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/61.jpg)
What Sectors – and Where?
Source: Nielsen.
![Page 62: Presentación Kati Suominen - eCommerce Day Buenos Aires 2016](https://reader036.fdocuments.es/reader036/viewer/2022062523/58f28b731a28abb3198b4567/html5/thumbnails/62.jpg)