The E-commerce Revolution: How the Industry is Evolving and What the Future Holds

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How the Industryis Evolving and What the Future Holds The E-commerce Revolution Roger Egan, Co-founder & CEO of RedMart

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Tangible Products DigitalProducts & Services

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Agenda Tipping Point Evolution Future

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“We’re in themidst of a profound structural shift from physical to digital retail.” - Jeff Jordan The Tipping Point

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Tipping Point: ProfoundShift from Physical to Online Retail Due to Many Advantages of E-commerce US Census Bureau

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What matters tothe customers? Price Product Range Experience

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E-commerce Brick & Mortar Advantagesof E-com and how they relate to Price, Range, Experience Experience VS Product Range VS Price VS

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Stores require aminimum footfall to cover their fixed overhead! 1! As more people shop online, it creates a Vicious Cycle

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Stores require aminimum footfall to cover their fixed overhead! As traffic is diverted from store to online (RedMart or competitors), the store becomes more and more expensive to operate 1! 2! As more people shop online, it creates a Vicious Cycle

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Stores require aminimum footfall to cover their fixed overhead! As traffic is diverted from store to online (RedMart or competitors), the store becomes more and more expensive to operate The store’s offering and service becomes weaker and less efficient 1! 2! 3! As more people shop online, it creates a Vicious Cycle

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Stores require aminimum footfall to cover their fixed overhead! As traffic is diverted from store to online (RedMart or competitors), the store becomes more and more expensive to operate The store’s offering and service becomes weaker and less efficient Causing more people to move online Vicious Cycle! 1! 2! 4! 3! As more people shop online, it creates a Vicious Cycle

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SE ASIA ~$330B Market but <1% online

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Trend evident inVC Investment in E-commerce in SE Asia Southeast Asia startup investments 2013, Tech In Asia

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E-commerce Brick-and-mortar More people shoppingonline = less people shopping in stores

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How the landscapeis evolving

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Platforms / BusinessModels and Trends Platform Players B2C Traditional Marketplace "Asset Light", Instant Delivery Marketplace Subscription C2C

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Platforms / BusinessModels and Trends Platform Players Private Label and Value Added Services Daily Deal / Flash Deals Price Comparison and Social Shopping Fulfillment / Delivery  E-commerce Software Platforms +

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Platforms / BusinessModels and Trends Platform Website / Mobile Back End Merchandising Marketing Fulfillment Delivery Payment B2C Traditional   Marketplace "Asset Light",   Instant Delivery   Marketplace C2C Private Label and   Value Added Services Daily Deal / Flash Deals Price Comparison/   Social Shopping Fulfillment Some E-commerce   Software Platforms

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“The Everything Store” VS Fighthead on VS Team up and provide instant gratiﬁcation + E-Commerce Trends VS Sell your own products or provide value added service & convenience

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Lines blurring betweenRetailer and Manufacturer

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+ Lines blurring betweenLogistics and E-commerce Companies

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What the futuremay look like

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! !! ! !             Business models, industries,companies, and services will converge into a controlled ecosystem. The Great E-commerce Convergence

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! ! ! B2C B2C and MarketplaceConverge ! • Purchasing power • Bigger Selection • Faster, Less Capital Intensive Growth • Acquisitions - buys over ! ! ! Marketplace

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Delivery Those that controlentire supply chain and logistics win FulfillmentManufacturing

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Tech companies andE-commerce Companies Converge Technology Companies E-commerce Companies

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Content, Community andCommerce converge Internet Trends 2014, Mary Meeker

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Content, Community andCommerce converge Internet Trends 2014, Mary Meeker

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Best Tech wins

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Best, most seamlessEcosystems Win + + + + + + + + + + + + iOS + ? + +

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Retailers become Manufacturers Manufacturers

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Convenience and InstantGratification Key Drone Delivery? 3D Printing?

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Traditional Brick-and-Mortar mustinnovate or die Innovate... or die.

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Possible Implications Opportunity todisrupt Retail Commercial Real Estate ? What happens to   Instant Gratification Models?

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What will peopledo   with their time?

The E-commerce Revolution: How the Industry is Evolving and What the Future Holds

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