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

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

2. Tangible Products Digital Products & Services

3. Agenda Tipping Point Evolution Future

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

5. Tipping Point: Profound Shift from Physical to Online Retail Due to Many Advantages of E-commerce US Census Bureau

6. What matters to the customers? Price Product Range Experience

7. E-commerce Brick & Mortar Advantages of E-com and how they relate to Price, Range, Experience Experience VS Product Range VS Price VS

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

9. Stores require a minimum 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

10. Stores require a minimum 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

11. Stores require a minimum 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

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

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

14. E-commerce Brick-and-mortar More people shopping online = less people shopping in stores

15. How the landscape is evolving

16. Platforms / Business Models and Trends Platform Players B2C Traditional Marketplace "Asset Light", Instant Delivery Marketplace Subscription C2C

21. Platforms / Business Models 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 +

26. Platforms / Business Models 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

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

28. Lines blurring between Retailer and Manufacturer

29. + Lines blurring between Logistics and E-commerce Companies

30. What the future may look like

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

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

33. Delivery Those that control entire supply chain and logistics win FulfillmentManufacturing

34. Tech companies and E-commerce Companies Converge Technology Companies E-commerce Companies

39. Content, Community and Commerce converge Internet Trends 2014, Mary Meeker

40. Content, Community and Commerce converge Internet Trends 2014, Mary Meeker

41. Best Tech wins

42. Best, most seamless Ecosystems Win + + + + + + + + + + + + iOS + ? + +

43. Retailers become Manufacturers Manufacturers

44. Convenience and Instant Gratification Key Drone Delivery? 3D Printing?

45. Traditional Brick-and-Mortar must innovate or die Innovate... or die.

46. Possible Implications Opportunity to disrupt Retail Commercial Real Estate ? What happens to   Instant Gratification Models?

47. What will people do   with their time?

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

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