hk & asia ecommerce market opportunities

HK & Asia eCommerce Market Opportunities

23 November 2020 of FOM

Global eCommerce reach $6T in 2024, Asia is 63% of global total

63% 19%

13%

2% 2% 1% Retails Ecommerce Sales Worldwide, by Region, 2020 (in Bil)

Asia Pacific

North America

Western Europe

Central & EasternEurope

Latin America

23 November 2020 BD Pipeline of FOM

Worldwide Retail eCommerce will grow by 17%, with China & India in Top Ten


Asia leads Global Digital Buyer Growth; Philippines & Malaysia lead Asia Growth

2020

Retail eCommerce Growth Rate (eMarkter Jun 2020)

Philippines 25.0%

Malaysia 23.0%

India 21.0%

US 18.0%

Indonesia 17.0%

Western Europe 16.9%

Global 16.5%

China 16.0%

Thailand 15.0%

Singapore 12.5%

Vietnam 10.0%

China B2C eCom Retail Market update

23 November 2020

1,252 1,284

1,527

1,179

1,562 1,556

1,836

1,252

1,955

34.3% 30.3%

28.4%

23.7% 24.7% 21.1% 20.3%

6.2%

25.2%

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

0

500

1,000

1,500

2,000

2018Q2 Q3 Q4 2019Q1 Q2 Q3 Q4 2020Q1 Q2

China B2C Market Size in Billions RMB (2018Q2-2020Q2)

Market Size YoY%

[CATEGORY NAME] [VALUE]

[CATEGORY NAME] [VALUE]

Suning, 5.4%

VIP, 2.8% Others, 2.4%

China B2C Market Share 2020Q2

Datasource: Analysis 易观咨询

1.4%↑

0.1%↑

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China Cross-Border B2C eCom Retail Market update

23 November 2020

101

84

115

91

103 100

121

87

119

7.1%

3.3%

8.9% 10.6%

2.3%

19.1%

6.0%

-4.3%

15.3%

-7.0%

3.0%

13.0%

23.0%

33.0%

43.0%

0

20

40

60

80

100

120

140

2018Q2 Q3 Q4 2019Q1 Q2 Q3 Q4 2020Q1 Q2

China Cross-Border B2C Market Size in Billions RMB (2018Q2-2020Q2)

Market Size YoY%

Tmall Global, 36.1%

Kaola, 27.2%

JD Worldwide,

13.6%

VIP Intl, 8.6%

Amazon, 4.9%

Suning Intl, 2.8%

Red, 2.5% Others, 4.3%

China Cross-border B2C Market Share 2020Q2

Datasource: Analysis 易观咨询

3%↑

1.8%↑

1.5%↑

0.5%↓

0.8%↓

of FOM

23 November 2020

US B2B eCommerce Sales reach US$2T in 2024, China B2B eCommerce was at US$3.5T in 2019

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B2B + B2C eCom Trend

23 November 2020

• B2B and B2C is converging – companies with a vision of B2B+B2C convergency will win. E.g. Amazon + Amazon Business, Taobao + AliExpress

• Efficiencies gained by geographic integration of resources (partial/full sharing of inventory, digital assets and marketing investment across ASEAN countries) and vertical integration of services (marketing, merchandizing, store operations, logistics and customer service) will differentiate winners from losers in the region

• One inventory serving both B2B & B2C; one system to handle both B2B & B2C orders; One set of product data and digital assets for both B2B & B2C

• Online B2B market is growing faster than B2C, at US$6.6 trillion in 2020. Amazon Business is heading to US$52 Bil in 2023, growing at 115% three year CAGR.

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Addressable Market eCommerce

23 November 2020 Datasource: 华映资本

B2C eCommerce Addressable Market

Southeast Asia Southeast Asia eCommerce sales are expected to grow from US$19 billion in 2018 to more than US$53 billion by 2023. Expansion by some of the region's biggest companies is powering this growth as younger consumers now make online purchases their preferred way to shop. Retail e-commerce sales in China 2018-2023 In 2019, the retail e-commerce sales value in China amounted to around 1.8 trillion U.S. dollars, up from 1.13 trillion the previous year. This amount was forecasted to reach $3.34 trillion U.S. dollars in 2023.

B2B eCommerce Addressable Market

Frost & Sullivan predicts that the global B2B e-commerce sales will reach over US$6.6 trillion by 2020, surpassing business-to-consumer (B2C) valued at US$3.2 trillion by 2020.

China's B2B e-commerce exceeded US$3 trillion transaction in 2017. The transactions of B2B E-Commerce market in China reached 20.5 trillion yuan (US$3.07 trillion) in 2017, an increase of 22.75% year-on-year. The total revenues of B2B market in China reached US$5.24 billion, led by Alibaba and HC360.

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General Service Overview

What We Provide


Fung Omni Services – Strategic Differentiation

Fung Omni has rich experience as an eCommerce Trade Partner (TP) for leading brands. We are the only Enabler in the industry that has experience, geographical presence, experienced team and success cases in Asia that includes Southeast Asia, Greater China, Japan and Korea. Together with LFL, we are the largest and most experienced One Stop Solution O2O partner for Multi-national brands for eCommerce + eLogistics. Brands can come to us for comprehensive online ecommerce integrated with offline store, a unified experience

EXPERIENCED TRADE PARTNER IN MULTI-NATIONAL BRANDS IN VARIOUS MARKETS

As part of the Li & Fung group, we have a world-class IT infrastructure that enables our customers to grow their eCommerce business with confidence in scalability and security.

ROBUST & RELIABLE IT INFRASTRUCTURE

We provide regular management reports on data analytics, KPI reporting and competitive intelligence. Our 360-degree approach of data analytics facilitates strategic decision making and effective store management. FOM+LFL has a complete data set (customer behavioral data, product demand data and consumer geography data) that covers the full lifecycle of every DTC order, which generates significant value for brand clients.

DATA ANALYTICS ENABLING BUSINESS GROWTH

We provide online marketing strategies to drive traffic, unique visitors and conversion to our customer’s online store. Regular review of Return of investment of marketing initiatives enable our customers to optimize initiatives and maximize business results.

DEMAND GENERATION & MARKETING STRATEGY

A.I. TECHNOLOGIES FOR ECOMMERCE INSIGHTS & OPERATION EFFICIENCY

Our Artificial Intelligence-supported customer service provides useful chat analysis such as out-of-stock analysis and customer-sentiment analysis, which unlocks sales-rescuing opportunities and enables predictive service actions to enhance customer experience.

23 November 2020 of FOM Vector created by macrovector

Awards

23 November 2020

Tmall Global Five-Star Service Provider 2020Q2

Tmall Global Business Development Partner 2020Q2

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Brand Site FOM Operator FOM PMP Tmall

Data Mapping

and Transform

into Tmall

attribute value

Get Product

Data & Images

from Brand Site

Product

Creation

Product Web2Web Work Flow

Brand / TP Operator

Product Price in

RMB

Image

upload to

PDP

Product Image

generation and

upload to Tmall

FOM OMS

Product

Inventory

Inventory

Update

System Work

Manual Work

PDP image

Brand.com

23 November 2020

Tool #4: Mobile App To Monitor Your Business

FOM provides a proprietary FOMetrics Mobile App to our brand clients to check their store performance and various metrics ANYTIME, ANYWHERE. (Both English & Chinese interfaces are available)

OG Name, Event Name, Theme

Molton Brown Success Case on Tmall Global

23 November 2020

of FOM

Molton Brown leverages small samples to attract new customers to try their brand They launch the set bundles early on during store launch and are much liked by Chinese customers Our merchandising team has chosen the Ginger thickening hair shampoo to address the functionality of hair loss prevention: no 1 hair

concern in China and receive great feedbacks

Tru Niagen Success Case on Tmall Global

23 November 2020

of FOM

Leverage Tru Niagen’s success in Watson’s HK retail stores and use of HK celebrity, increase exposure thru top search keywords Start on Tmall Global with Cainiao bonded warehouse and attractive bundles for D11 Tailor made product for China market: Tru Beauty, target for the young female audience on Tmall age 18-38 Leverage new celebrity Christy Chung in China for second year D11

23 November 2020

Livestreaming & Marketing Innovation Box Set

Inventive ideas to sell through more products – Gift Box + Product Bundling during promo festival

Manchester City Tmall Global store – Livestream success case

A special livestream for Man City 20-21 Season new home kits launching, we built special exciting broadcast for City fans make it became an official Man City broadcast, also we post special banner by paid marketing.

Manchester City – Livestream success case

Mancity Monthly Livestream Data Report &Analysis

Livestream Account

曼城足球俱乐部海外旗舰店 Livestream

Time 20:00-21:030, July 16,20/21新球衣揭晓

Store Live Stream Key Data

Traffic (UV to store)

Traffic (PV to store)

Bring new fans growth

Guide Sales Budget Cost ROI

(Budget/Sales) Viewing Number

Interaction Times

Guide the Number of Purchases

Guide the Products of Purchases

Guide the Number of Collection

281 1,516 73 11,443 4,000 3.3955 3422 44,769 42 76 46

Livestream Replay Link microphone with PUMA Tmall livestream Compete with Puma Tmall store to see which store owns more add-to-cart index

OG Name, Event Name, Theme

Manchester City Livestreaming videos

23 November 2020

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23 November 2020

Foot Locker

Foot Locker, Inc. (NYSE: FL) is a leading global retailer of athletically inspired shoes and apparel. Headquartered in New York City, the Company operates 3,276 athletic retail stores in 24 countries in North America, Europe, Australia, and New Zealand under the brand names Foot Locker, Champs Sports, Kids Foot Locker, Footaction, SIX:02, Lady Foot Locker, Runners Point, and Sidestep.

Store Type : Tmall Global Official Flagship Store Launched : Sep, 2018 Category : Sneakers URL: https://footlocker.tmall.hk

23 November 2020

Success case: over 8000 sold for Hero Item

Vans boots – over 8000 sold putting Foot Locker as one of the most successful new Tmall Global stores in 2018

23 November 2020

In-Channel Content Marketing & Customer Loyalty Program

• In Channel – Taobao Headline - Intensive weekly Taobao editorial posts

- Top No. of Views inside the channel

- Product Links inserted inside the articles

- Traffic converted to sales through Content Marketing

12,000+ Views

Foot Locker Membership Recruitment

23 November 2020

Foot Locker O2O Live Stream Event – D11 Preheat

Event Overview: FOM conducted a Live Stream in Foot Locker’s first offline flagship store in Hong Kong

In-store UV: Increased by 300%;

Page View: Increased by 400%;

Conversion Rate: Increased by 370%.

- Customer can purchase the same style directly from the Foot Locker Tmall Flagship Store

- Videos can be saved and used in store’s product description page

23 November 2020

Customer Success Cases

of FOM

23 November 2020

Promotion Pages on LazMall 12.12 Grand Year End Sale

G2000 Hero Items

Customer Engagement: Leverage coupons & Flash Sales

Excellence Performance in MY Lazmall Store in Men’s Clothing Category

CS agent setup Follower-only Vouchers to increase conversion

23 November 2020

CS Agents setup Auto-reply Vouchers to increase conversion

23 November 2020

CS Agents support Customer Parcel Tracking

23 November 2020

Smart Strategic Keeping Things Simple

Thank you!

[email protected]

hk & asia ecommerce market opportunities

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