Overall ecommerce view at VN and lessons learned from AMZ vs. Walmart

1. / thangfan alexxphan@ 0967 721 602
THE FUTURE OF RETAIL
APOCALYSE

2. LET’S FACE IT — THE OLD RETAIL
MODEL IS DYING
Image: Brian Sozzi / Belus Capital Advisors

4. LATEST VICTIM OF AMAZON
1. Subpar of e-commerce site since 2003
2. BRICKS 4 CLICK
Source: http://www.telegraph.co.uk/
http://www.telegraph.co.uk/business/2017/
09/23/trouble-toy-town-time-grow-toys-r-
us-lego/

5. ARE THESE THE CURES?
1. Shoppable Showroom: Bonobos (Walmart-owned)
2. AR Tech: Ikea (https://www.youtube.com/watch?v=vDNzTasuYEw) &
Lego (https://www.youtube.com/watch?v=BUDIduApeLI)
3. Discovery Centers : Lego
Why?
Reduced real estate cost
Smaller inventory cost
More service time with customers

6. OR… JUST GO

7. SAME AMZ GO HAPPENS IN CHINA
& ALIBABA

8. vs.ONLINE
OffLINE

9. WHERE ARE SHOPPERS GOING?

10. THE SHIFT TO ONLINE RETAIL IS GLOBALLY
Image: Reuters

11. WITH NO BORDERS (CROSS-BORDERS)
Image: Reuters

12. HOW ABOUT VIETNAM?
Private Label
Current Players Potential Players
OfflineopensECarm
Grocer
y
Electronics
B2C &
B2B2C
C2C
Classifieds

13. REMEMBER THIS?
THE BIGGEST E-COMMERCE COUNTRY IS…?
Image: Reuters

14. HENCE WORLD’S BIGGEST ONLINE
SALES EVENT IS…?
Image: Reuters

15. WORLD’S BIGGEST E-COMMERCE COUNTRIES
Image: Reuters

16. IN ANOTHER VIEW,
WORLD’S BIGGEST E-COMMERCE COMPANIES
Image: Reuters

17. RING A BELL?
BY REGION, ASIA-PACIFIC IS #1
Image: Reuters

18. OF WHICH, CHINA IS #1
WITH ALIBABA LEADING THE MARKET, BUT JD IS CATCHING UP

19. WHO’S SECOND-RUNNER UP IN ASIA?
Image: Reuters

20. JAPAN’S LANDSCAPE (#2 IN ASPAC)
WITH LOCAL RAKUTEN ALMOST 1/3 OF THE MARKET

21. REMEMBER THIS? WAIT, WHERE IS INDIA?

22. STILL E-COMMERCE IS TAKING OFF IN INDIA TOO
FASTEST IN ASIA

23. SOUTHEAST ASIA IS ALSO BIG

24. FURTHER ZOOM IN VIETNAM

25. IN U.S., AMAZON CONTINUES GROWING VERY QUICKLY
BUT OTHER RETAILERS ARE ALSO GROWING ONLINE SALES

27. EVEN THE LAST CONTENDER GET PASSED BY
BUT HOLD ON… THE BATTLE JUST BEGINS

28. Image: Reuters

29. MEDIA SPEND IN VN
NOW, BACK TO AD SPEND AND REVENUE
MOST PROFITABLE E-COMMERCE SECTOR

30. LESS PRINT MORE TV

31. BIG BRANDS SPEND LESS

32. GLOBAL BIG NAMES MARKETING SPEND
5.31%
THIS IS JD.COM
& AMAZON

33. SPEND LESS, EARN MORE

34. MEDIA IS STILL THE TOP E-COMMERCE CATEGORY

35. WHICH MEDIUM IS TRENDY
(MOST POSITIVE GROWTH)?

36. MEDIA SALES ARE GOING DIGITAL

37. WHERE TO INVEST IN DIGITAL?

38. EVEN THE GIANT IS NO
EXCEPTION…
so is APPLE & ETSY

39. BENEFITING APPLE AND AMAZON

40. MOBILE IS OUTGROWING ALL NON-MOBILE E-
COMMERCE TRAFFIC …

41. 0
20
40
60
80
100
120
140
160
Am
azon
eBay
W
al-M
art
Apple
Target
BestBuy
The
Hom
e
Depot
Ticketm
aster
Etsy
Low
es
(Millions)
Source: comScore
Leading Retailers' Digital Audience Popula on
By Device
Desktop Only Desktop + Mobile Mobile Only
RETAILERS ARE FINDING HUGE AUDIENCES ON
MOBILE …

42. THOUGH NOT GENERATE
AS MUCH CASH
MOBILE STILL POTENTIAL

43. IN CHINA
IN ANOTHER WAY
(E-WALLET)

44. IN CHINA
IN ANOTHER WAY
(E-WALLET)

45. INDIA IS NO EXCEPTION

46. NOR INDONESIA

47. SO YOU KNOW WHERE TO SPEND OR MAKE MONEY, YEAH?
IT’S A MOBILE-FIRST SHOPPING TIME

49. WAL-MART’S ADVANTAGE IS STILL IN
PHYSICAL RETAIL
GIVING IT WITHIN 10 MILES OF 90%
CUSTOMERS IN THE US

50. Vs. AMZ 140 FCs + 460 WF SUPERMARKET
STILL 44% OF AMZ CUSTOMERS IN THE US
ARE WITHIN 20 MILES

51. BUT THIS COULD CHANGE WHEN KOHL'S TO ACCEPT AMAZON
RETURNS STARTING OCTOBER

52. ONLINE IS STILL JUST 3% OF WALMART’S TOTAL
SALES
BI INTELLIGENCE ESTIMATESBUT IT’S CATCHING UP
WALMART OUTGROWS AMAZON
FOR THE FIRST TIME

53. AND WALMART IS INVESTING IN SOCIAL AND MOBILE
TECH R&D

54. AMAZON IS LEADING THE RUN IN SALES

55. AND ITS FULLY-DEVELOPED
ECOSYSTEM

56. 56
AND ITS STRONGEST WEAPON:
CUSTOMER LOYALTY

57. HOW AMAZON PRICES USING ALGORITHM?
CHEAPER WITH POPULAR ITEMS
PRICIER WITH NOT SO POPULAR ONES

58. HOW AMAZON PRICES USING ALGORITHM?
BASICALLY AMZ CHANGES PRICE
EVERY 2 MINS DURING PEAK SEASON

59. HOW AMAZON EXCEL @ SUPPLY CHAIN

60. HOW AMAZON EXCEL @ WAREHOUSING

61. CHAOTIC IS BETTER
WHY BETTER?
• Flexibility
• Space
• Accuracy
• Simplicity
• Optimization

62. AMZ PERFORMANCE VS. OTHERS

63. YET WALMART STILL BEATS AMAZON IN TOTAL RETAIL REVENUE
AND YES IT HAS LOTS OF CASH TO INVEST…

64. EVEN WITH AMZ NEWLY-ACQUIRED WHOLE FOODS

65. WALMART SEEMS TO HAVE ADVANTAGE OF WINNING FUTURE
CUSTOMERS WITH RECENT ACQUISITIONS

66. BUT AMAZON ALWAYS HAVE THIS A VERY LONG, LONG TIME AGO

67. WALMART’S ANSWER TO AMZ IN TECH. HOW ABOUT GROCERY?

68. NO QUEUE, SERIOUSLY NO (WALMART GO)

69. GO-MART VS. ALEXA, THE NEXT BIG THING IS VOICE COMMERCE?
https://www.youtube.com/watch?v=BUDIduApeLI

70. E-WALMART, NOT JUST STOP THERE?
DISCOUNTS FOR CUSTOMERS TO CLICK-AND-COLLECT IN-STORE
BY PASSING LAST-MILE COST SAVING TO CUSTOMERS
+MOBILE EXPRESS RETURN FOR CUSTOMERS WITH QR CODE FOR ONLINE
THEN IN-STORE AND 3P ORDERS

71. THE BATTLE NOW DOWN TO THIS
WILL 90% + 77% BEAT 88%?

72. Time to STOP & THINK
SO WHAT’S YOUR VISION OF FUTURE OF TECH AND E-
COMMERCE?
& WHAT IS THE FUTURE FOR KPMG?