The Future of Commerce has Arrived - Understanding the New Asian Consumer - Accenture
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The Future of Commerce has Arrived Understanding the New Asian Consumer
The new Asian consumer expects seamless shopping experiences that save time and make life easier. These expectations are evolving in a dynamic new marketplace that creates huge opportunities for consumer packaged goods (CPG) companies. But they must move now to capture them – or risk ceding control to the digital commerce players that have enabled the region-wide upsurge in digital commerce. 2
3
The future has arrived
How Asian consumers shop is changing But there’s also a growing risk. If they
dramatically. It used to be a linear process don’t take action now, CPG companies
– from awareness through consideration risk losing out to the new generation of
to purchase. Now, in a connected digital commerce players. Having enabled
marketplace, it’s much more complex, the upsurge in digital commerce, these
with multiple, overlapping touchpoints same disruptive platforms have become
along the path to purchase. fearsome competitors. Amazon has
already released its own private label line.1
In a market that’s redefined by digital, How long until Alibaba does the same?
Asian consumers’ loyalties are shifting
away from brands. Instead, they’re To help CPG companies address this
seeking solutions at the ‘micro moments’ mounting threat, Accenture and IPSOS
where decisions are made along their recently carried out research into Asian
purchase journeys. From now on, consumers, tracking their e-commerce
companies that stand out will be the preferences, pain-points, and motivations.
ones that can provide these solutions – This point of view is based on the results
seamlessly and intuitively. of our online consumer communities.
It’s a huge opportunity for CPG
companies. The goal? To become integral
to consumers’ day-to-day lives: a
‘smart assistant’ offering personalised,
relevant solutions. The reward? Winning
consumers’ hearts, minds (and dollars)
across the region.
4
The future is now: understanding
the new Asian consumer
Recent research into Asian consumers by
Accenture and IPSOS points decisively
to a new marketplace dynamic. Today
consumers expect to get what they want,
when they want it. By 2020, they’ll be
expecting what they want, how they
want it...and, by 2025, before they
want it.
This raises urgent priorities for
CPG companies:
1 2 3
Consumers in Asia are The imperative for CPG The longer-term objective?
shifting from seeking brands companies? Act NOW to Become the ‘smart assistant’ to
to demanding solutions capture the micro-moment consumers, delivering solutions
proactively…without waiting to
be asked
• In a connected marketplace, shopping’s • Up to now, CPG companies have • CPG companies that make this leap
much more complex, with multiple, focused on building brands and can lead the Asian market and
overlapping touchpoints along the path delivering value by traditional routes. capture disproportionate consumer
to purchase In a digital marketplace, that’s less spend.
• And there’s a growing competitive and less relevant.
threat. Digital-born platforms enabled • The new priority? Serve the
Asia’s e-commerce marketplace…now micro-moments where consumers
they’re ideally positioned to capture seek solutions throughout their
consumers by providing the seamless purchase journeys
solutions they demand.
• How to achieve this? Either partner
with disruptive digital partners or, in
less evolved e-commerce markets,
drive market developments
themselves.
5
A booming digital marketplace
The Asian marketplace is an enormously In step with this explosive growth, and
attractive proposition. Crucially, it’s empowered by the proliferation of new
affluent and becoming more so. By digital technologies and connected
2030, eighty-five percent of predicted devices, the highly evolved consumer
growth in the middle-class worldwide has emphatically arrived in Asia. Across
will come from Asia and the region will the region, digital is transforming the
account for more than 50 percent of path to purchase, giving consumers
global middle-class consumption.2 more choice, more insights and, crucially,
more power. Fast-growing consumer
Within the next five years, up to 40 awareness and sophistication in online
percent of total growth in consumer environments is a feature in all core
goods and services will come from just markets (see figure 1 below) – and
five countries in Asia (China, Thailand, this will only increase from now on.
Indonesia, India and Singapore3). By 2019,
Asia’s share of the global CPG market will
be worth around US$1.25 trillion (the
largest segment, packaged foods, will be
worth US$780 billion).
Figure 1. The Asian digital commerce shopping landscape
APAC Digital Commerce Shopping Landscape: China vs. Indonesia vs. Singapore
Mature online ecosystem
Payments/delivery/Infrastructure
Low High
Highly evolved consumer with sophisticated demands
Readiness to embrace technology interventions in lives
Low High
Social aspect of shopping
Entertainment & Family bonding Low High
Comfortability with the online ecosystem
Trust & reliability. Quality of products is an issue
across all Low High
Intensive research before shopping: consumer awareness
Research limited to price & deals in Indonesia
& Singapore
Low High
Key technology adopters
e.g. Rise of m-commerce
Low High
China Indonesia Singapore
6Introducing the highly evolved
APAC consumer
So how do these highly evolved And by 2025, they’ll expect smart
consumers make their purchasing assistants that can provide what they
decisions? And how will their expectations want, before they want it. Transformed
and behaviours change in the coming by digital, it’s a journey that’s placing
years? To answer these questions, we’ve increasing amounts of control at
mapped the consumer journey from today consumers’ fingertips.
through to 2020 and on to 2025.
Shown in Figure 2, today consumers
expect CPG companies to give them what
they want, when they want it. By 2020,
they’ll be expecting to get what they
want, how they want it.
Figure 2. CGS IPSOS consumer revolution
Today…2016 Tomorrow…2020 Beyond: “Nirvana”…
Give me what I Want Give me what I Want Give me what I Want
When I want it When I need it Before I want it
Basic Shopping + Experience Smart Enhanced Shopping Smart Lifestyle: Integration Focused
Product+ Convenience=Value
• I make a shopping list • My shopping list is on my smart device • What shopping list?
• I can tap into personalized assistance, • I get expert guidance along the way • I chose what’s automated
where needed
• Shopping = fun adventure • Take things off-my thinking list
• But…Shopping = chore
Seamless Shopping experience tailored to • Shopping=Automatic task
All at best price “my need”
Shopping fully integrated into life’s moments
7The fundamental needs for consumers whether to buy online or offline depends omni-channel environment – across
in 2016 are clear enough: convenience on convenience, time and price. And physical and virtual worlds. In this new
and value, combined with the right crucially, every shopping experience marketplace, every purchase is based on
level of choice and information. But – good or bad – influences the next multiple micro-moments, often happening
the path to purchase has shifted purchase decision. simultaneously (see Figure 4 below) and,
dramatically. Instead of being linear increasingly, companies that can act as
(awareness consideration purchase), Our research shows that today’s ‘smart assistants’, providing solutions
it’s become much more complex, consumers see gaps in the current path wherever they’re needed, are winning
with technology interfaces at every to purchase. They want a seamless market share.
touchpoint along the way (see Figure 3): experience. And they’re frustrated when
traditional CPG companies can’t provide The bottom line? Technology has made
Most purchases are based on a mix it. It’s why digital-born companies are life easier for consumers in 2020, and
of online and offline interactions. capturing increasing market share. the purchase journey has changed to
Consumers discover products in store, on address many of the frustrations they’re
websites, via social media and through Fast forward to 2020, and priorities experiencing today (see Figure 5):
advertisements. Prices are compared have evolved. Consumers are looking
online and offline, blog reviews provide for instant solutions to life situations,
comparisons and feedback, and selections personalisation and value – all delivered
are driven by core considerations like seamlessly. Expecting to get the solutions
value, quality, freshness and hygiene, they want whenever and wherever they
depending on the product. Ultimately, need them, they’re shopping in a truly
Figure 3. The path to purchase in 2016
Awareness Consideration Purchase
Of the 22 million LINE users 5.5
Share Online purchase million opt in for LINE’s flash
intention for cosmetics sales in 2013
increased 9 percentage
Compare points to 23 percent in Beauty products sold in average
Hong Kong in 2014 ~8 min in the LINE Flash sales
conducted in 2013
Purchase Maybelline lip polish was the
highest selling product in the sale
Search at THB 299
Trust
Buyer
~450,000 visits per Peer Reviews
month in Luxola, an Decide
online beauty store and Research
~36,000 visitors from Influencer
Thailand In China, facial mask is the
most popular category with
Discover Share 92% of online shoppers,
Evangelize followed by moisturizers (56%),
cleansing products (53%), eye
63% of Hong Kong cream (52%) and lip care (33%)
respondents think of
convenience when purchasing
online for consumable Trust
products like personal care,
health and beauty,
Research
Web Company Website Events Peers Social Media EMail Mobile / Apps
Source: https://www.techinasia.com/line-pulled-55-million-interested-shoppers-flash-sales-thailand-infographic
http://www.nielsen.com/hk/en/press-room/2014/more-than-eighty-percent-hong-kong-consumers-will-engage-in-e-commerce-for-non-consumable-entertainment-related-products.html
http://www.slideshare.net/iclick_interactive/china-online-retail-market-study-part-2
DBS Report: Asia Retail Sector, 30th April 2015
8Figure 4. 2020 Path to purchase4
Might of
Loyalty Micro-moments Discover
Online communities
Process of discovery is more
Is it experience and/or the scientific, controlled
product that drives loyalty?
Discover what you THINK of with
Companies to lose money with connected wearables and
undifferentiated loyalty programs intelligent devices
Might of What next ? Gamification Less paper, more electronic
Micro-moments Might of
Micro-moments
Purchase Compare
Shift to mobile & tablets for Long immersive research replace by
shopping; PCs outdated short bursts of very focus activities
Wearables and shopping at Online platforms with access to all
one click to go hand ? Consider information help consumers save
Ways businesses could take time
things off the thinking list ? Convenience, Quality & Value
for money Real-time comparisons on the go
Do consumers want to outsource
the decision making too ? Might of
Might of If yes, who are the new smart Micro-moments
Micro-moments assistants?
Figure 5. 2020 – technology’s making life easier
2015
You're making my life easier! I want products in the quality I need to be connected, always. I need to be sure about my
Everything's so much more efficient promised to me! purchase - I want to get to
with less travel and less time used. know a product, before I buy it.
Technology makes life easier in 2020
• Intuitive technology • Real time feedback • Online shopping • Virtual reality
more social
• Shortened research • Performance tracking • 3D fitting rooms
process • Gamification is the
• Information on new way to engage
• Swifter fulfillment demand
process • Easier customization
with 3D printing
9By 2025, consumers’ lifestyles have Loyalties are shifting inexorably from CPG companies need to think about
evolved to become even smarter – and brands to solutions and there’s a growing the strategic value of their product to
thanks to technology, shopping is expectation that companies will be on Consumers. There are some products
becoming seamlessly integrated into hand to provide solutions at every micro- and brands where the consumers will
their day-to-day lives. The purchase moment along the path to purchase.
want to have a deep engagement and
journey has accelerated and it’s in
a continuous state of motion, with CPG companies need to recognize this relationship with the brand. Many
consumers expecting instant gratification shift and act now. Outside of China, of the cosmetic companies come to
and no hassles. Automated purchases where the e-commerce market is evolving mind as brands that consumers have
are the norm for certain types of rapidly, they have an opportunity to significant passion around and will
products. Leading companies are take the lead in fast-growing and look to engage in a deep way. Other
predicting when consumers need key increasingly sophisticated consumer products are more transactional.
items and delivering them automatically. markets – notably Indonesia and As a consumer goes through the
They’ve become true ‘smart assistants’ Singapore. Wherever they concentrate
micro-moments, it is important
and they’re reaping the rewards. their efforts, the priority must be to focus
that the brand is there and relevant.
on the new consumer, understand how
The rules of the game are changing their needs are changing and develop While cooking or putting together a
rapidly (see Figure 6 below). Consumers’ the capabilities needed to meet them. shopping list, a CPG company wants a
lives are becoming increasingly seamlessly consumer to think of their brand, not
integrated with technology and, as this generically the category. Getting your
happens, we’re witnessing a dramatic specific brand on the “auto-mated
evolution in the consumer journey. shopping list” or default categories
will be critical.
Figure 6. Marketing Evolution - From 4Ps to 4Es.
Product Price
Physical, tangible product. Experience Static prices printed on store Exchange
From… From…
We make it; you buy it. Period. shelves.
To… Living services: Solutions and To… Anytime, anywhere price comparison.
constantly evolving content; Negotiable, dynamic, demand-driven.
personalized, interactive, shareable
Place Promotion
Purchase at the physical retail Everywhere “Buy” your audience; more Evangelism
From… From…
location from a physical person money=more impressions TV/
Radio/ Print
To… Omni-channel seamless experience
across physical and virtual worlds To… Ongoing conversations; power of
social
Source: http://www.ogilvy.com/On-Our-Minds/Articles/the_4E_-are_in.aspx
1011
Digital changes everything...and
there’s tough competition
Up to now, CPG companies across online competition for shoppers’ hearts Asia is seeing a fast-growing population
Asia have focused on building their and minds from the same disruptive of connected consumers – and a
brands and business value in a digital platforms that have enabled vibrant new ecosystem of suppliers and
linear way (see Figure 7 below): the upsurge in connected commerce vendors with strong footholds in the
across Asia. And with the region’s digital digital space (see Figure 8 below):
But just as the path to purchase has infrastructure growing more developed
become less linear and more convoluted, (and more pervasive) all the time, this
so has the operating environment for CPG competitive threat can only escalate.
companies. There’s increasingly fierce
Figure 7. Traditional CPG value chain
It’s time to reinvent the old view of value chain and path to purchase
Value Chain: Traditional CPG
Crop and Other Production, Consumer
Commodity Packaging Marketing & Distribution Retail Delivery /
Development Sales Last Mile
Figure 8. The new digital infrastructure
Developed Infrastructure Connected Consumers
Growing consumer devices and proliferation of technology is The synergies of the digital environment and joint innovation at
likely to evolve and develop the region’s infrastructure so as to the infrastructure end will drive connectivity at the end point.
drive further adoption.
Asia’s smartphone Rapid migration to Digital wallets such as 2 billion world internet users, of The top 4 mobile messaging app
shipments would cross higher speed mobile Alipay and WeChat which 42% will be in Asia by 2018 (Whatsapp,FB Messenger, WeChat,
1 billion, i.e.84% of broadband Payment getting more Viber) have almost 3 bn users
the total mobile phone networks, both 3G mainstream
shipments in 2018 and 4G in Asia
Vibrant Ecosystem
Strong ecosystem of suppliers and vendors who have a foothold in the
digital space.
These ecommerce point solution vendors have created a strong local
ecosystem in their own countries and provide a wide range of products
and services to the end consumer.
Examples include TaoBao (China), Flipkart (India), Alibaba.com (China),
Lazada (Southeast Asia), JD.com (China) and Redmart (Singapore), etc.
Source: Forrester Predictions 2016: The Entitled Customer Emerges In Asia Pacific Nov 2015
http://www.emarketer.com/Article/Asia-Pacific-Boasts-More-Than-1-Billion-Smartphone-Users/1012984
http://www.idc.com/getdoc.jsp?containerId=prSG25293414
http://www.adweek.com/socialtimes/social-media-asia-pacific-stats/614053
http://www.nielsen.com/in/en/press-room/2015/more-than-half-of-global-consumers-are-willing-to-buy-groceries-online.html
https://www.techinasia.com/talk/top-10-ecommerce-businesses-asia-startups-learn
Accenture Shift to Digital - Perspectives on digital transformation in Consumer Goods industry, Jan 2015
12Looking ahead, projected growth in Companies like Amazon, FedEx and
digital technologies – from connected Google are using drones to speed delivery
devices, wearables,5 and virtual reality6 times way beyond their competitors.9
to 3-D printing7 and advanced machine With augmented reality, Ikea’s customers
learning8 – will empower consumers to can see products in their homes before
seek even greater control along the path they buy them.10 Consumers can watch
to purchase. Companies that are ahead of the ‘Hilfiger Collection’ runway via
the curve in Asia realize this. They’re using 360-degree 3D virtual reality, before
these technologies to influence purchase shopping the collection online.11 And
decisions and capture a greater share of Mondelez stores can now display
the marketplace (see Figure 9 below). products on smart shelves with sensors
that analyse faces and behavioural
Technological advances are derailing characteristics for consumer profiling.12
traditional CPG ways of thinking. The
shift to how consumers will shop
and buy in future has already begun.
And driven by early adopters in this
space, it’s gathering momentum.
Figure 9. The new digital toolkit
Consumer Needs
Personalization
Technologies Examples
Customer Centric Analytics Customized content arbitration
Automated Intelligence Real-time data & decisions Convenience
Personalization Engines Customized landing pages
Personalization tools Favorites, dashboards Technologies Examples
Omnichannel tools Mobile, online ordering
Virtual Assistants Virtual employee/ staff
Augmented reality Virtual Supermarket
Integrated supply Click and collect
chain
Social Acceptance
Technologies Examples
Social Targeting Geo targeted advertising
Customer engagement hub CEH + CRM Instant Gratification
Social Feedback Management Social media listening
Technologies Examples
Social Commerce Customer polling
Mobile Wallet Digital wallet and payment
Real-Time Communications Customer service chat/IM
Digital Coupons Loyalty management
QR scanning Scan and order from TVs
across devices
13For companies like these, it’s all about We’re seeing technology evolve at
using new technologies to ensure that a rapid pace to keep up with new
consumers are central to everything they consumers. Leading-edge companies
do. Leading disruptors like Alibaba13 have like Alibaba are embracing these
redefined the entire value chain to achieve developments and creating new
this objective (see Figure 10 below): ecosystems to facilitate consumers’ paths
to purchase and meet their demands
From its roots as an e-commerce for improved digital engagement.16
company serving small and medium-sized How can CPG companies compete?
business, Alibaba’s steadily expanded
its offering. From incorporating online
payment services and launching an online
marketplace, to adding monetisation
platforms and developing a cloud
computing platform, it’s put in place
a future-focused infrastructure for
e-commerce that leaves most CPG
companies trailing in its wake.14 15
Figure 10. Alibaba redefines the value chain
Alibaba has been self tuning & reinventing; it has constantly factored consumer needs e.g. contributing to the payment ecosystem
with Alipay
Disruptive technology
changes What consumers need ?
B2C Online Technology catalyzing
Retail
consumer evolution
Consumer feedback trigger
technology improvements
Mobile
eCommerce Wallet
Platform
Extended ecosystem by
reaching out to the
consumers at maximum
touch points
Constant experimentation
Innovation
14The digital commerce opportunity for
CPG companies
However rapidly the market’s being This represents an outstanding channels beyond the ‘buy’ button
transformed by digital, it’s clear from opportunity for traditional CPG so they can begin to harness new
our research that consumers are still not companies. The objective? Focus on using opportunities for driving sales and
satisfied with their purchase journeys. digital commerce technologies to bridge measuring success in as many of these
Today’s top ‘ask’, according to our online existing gaps in consumers’ purchase situations as possible (see Figure 11).
consumer communities,17 is for a single journeys and provide the seamless
platform where they can search, buy, shopping experiences they’re looking for.
share experiences and be rewarded.
In other words, seamless shopping We know that the battle for consumers
experiences are still in short supply. is already being fought in the micro-
moments that make up each purchase
journey. The priority for CPG companies
is to expand their view of digital
Figure 11. The new normal path to purchase
6 1
Attract
Social Multi-Channel
Enterprise Traffic (Mobile,
Web, Physical)
Actionable
Insights / Propose
2 User Experience and
Digital Performances
Predictive Relevant Optimization
5
Analytics Experiences
Capabilities
Act
eCommerce Increase
(eRetailer/Instore/ Conversion &
Pub) Engagement Rate
3
Pause Play
4 Advocate
Understand the
consumer
15The first step is to develop a strategic • Integrating e-commerce initiatives with Establish partnerships with
e-vision for the future. This needs to social platforms to engage consumers
be built on in-depth understanding and build trust e-commerce platforms
of the trajectory of travel for APAC It sounds counter-intuitive, but
• Investigating opportunities for product
consumers and familiarity with the CPG companies should consider
testing and product development
‘new normal’ path to purchase. To shape developing partnerships with the
through crowd-sourcing
this e-vision around their needs, CPG same digital players that threaten
companies need to start asking the • Leveraging insights from big data to seize competitive advantage in
right questions (see Figure 12 below): to enhance and fine-tune consumer many Asian consumer markets.
interactions across multiple touchpoints.
Once their e-commerce vision takes shape, Some CPG companies are already doing so.
they’ll be ready to take essential next Enhance interactions across Last year, for example, Unilever partnered
steps. These might include: multiple touchpoints with Alibaba to extend its access to China
through the digital native’s data-driven
• Enhance interactions across multiple CPG companies need to discover the role ecosystem.18 Key areas for collaboration
touchpoints of each digital touchpoint in the consumer between the two organisations include
journey (shown in Figure 11), unbundling rural China penetration, cross-border
• Partnering with e-commerce platforms
activities along the path to purchase and e-commerce, consumer protection
to reach new consumers/markets
beyond into smaller, more manageable (and and big data. Unilever’s also forged a
• Leveraging value from cross-border win-able) scenarios. partnership with JD.com to expand its
e-commerce direct selling capabilities in China.19
• Investing in brand building, with By launching a flagship store on the
integrated marketing initiatives spanning JD.com website, the company can now
online/offline promote some of its most popular global
brands to a massive new audience.
• Adopting a ‘Mobile First’ approach
Are we enabling cross
Figure 12. Asking the right questions selling and up selling?
What is our eCommerce vision?
What kind of investments do
Are we wary of selling we have in terms of
online and overestimating eCommerce related packaging
sales from brick-and- and for perishables?
mortar stores?
Are we meeting the
niche desires of our
buyers?
Do we have Account
Managers for our eCommerce
partners (similar to what we
have in the B&M space)?
Have we built-in
capabilities to leverage
data from eCommerce
platforms?
Do we have the right
product mix?
Have we focused on the
opportunities in the
hinterland?
16Partnerships like these will help CPG Leverage value from cross- deliver. That means ensuring information
companies to secure market share fits screen sizes, contains deep details and
in a hyper-competitive connected border e-commerce appetising images and, above all, is easy to
marketplace. But it’s essential for them Catering to demand for genuine, use and navigate from start to checkout.
to protect their brands on these digital quality, foreign products, cross-border
platforms. Robust data management is e-commerce platforms are driving Develop online-to-offline
key. So is sophisticated analytics that can the development of a completely new
deliver real-time insights into consumer ecosystem with sellers and consumers at
capabilities
experiences on digital platforms – and how its heart (see Figure 13 below): By 2020, 65 percent of transactions in
these can be improved. Asia will begin online and finish offline.
It’s a massive opportunity for CPG CPG companies must develop seamless
Identify ‘Hunger marketing’ companies. Cross-border e-commerce is online-to-offline (‘O2O’) capabilities that
predicted to soar in value; in China alone, complement and expand e-commerce
opportunities a compound annual growth rate (CAGR) of related opportunities. Amway, the health
In the ‘internet of me’ world, CPG over 50 percent has been predicted for the and beauty products business, shows
companies need to explore opportunities period 2014-2020 (from US$21 billion to what can be achieved. The company’s
for ‘hunger marketing’ – creating US$245 billion).20 already built seven experience spaces
exclusivity for specific products through in China, soon to expand to 50. These
online-only offers. We know that 22 Think ‘Mobile First’ include interactive installations that allow
percent of impulse food sales are online consumers to better understand its brand
Asia’s gone mobile: the number of unique
exclusive items. The same trend applies and help create unique brand experiences
users of smartphones in the region will
in categories including baby products in physical settings. The efficiency of
double between 2014 and 2019 (from
and personal care. Online-only offerings internet-based business models allows
one billion to two billion),21 Singapore
can also include product customisation stores, and sales representatives in
already has the world’s highest smartphone
(targeted at urban consumers with high Amway’s case, to offload a large amount
penetration (at 85 percent)22 and mobile
expectations) and value-based promotions of inventory online and focus on more
internet penetration in Indonesia should
(retailing prices on e-commerce platforms interesting areas in-store, such as serving
top 56 percent by 2019. Today’s Asian
are typically 20-30 percent lower than its customers and creating an experience
consumer expects to remain connected
in-store prices). that reflects the company’s brand values.23
round the clock and CPG companies’ digital
commerce strategies have to be built to
Figure 13. Platform-based business ecosystem
Cross-border B2C Platform-Based Business Ecological System
Other parties
Taxation
Consumer
protection
Infrastructure
Commercial
inspection Internet provider IT resource/
access cloud service
provider
Mobile Airport
operator and port
Relevant service
Custom
provider Industrial/
commercial
Logistics
Payment Advertising association
and marketing
Training
and
consulting
Trade platform Data
analysis
Third party
Self-run platform Manufacturer
platform platform
Consumer &
Seller
Source: https://www.accenture.com/t20150826T030349__w__/cn-zh/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Local/zh-cn/PDF_5/Accenture-Insight-Global-
Source: https://www.accenture.com/t20150826T030349__w__/cn-zh/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Local/zh-cn/PDF_5/
Cross-Border-B2C-Electronic-Commerce-Market-Prospect.pdf
Accenture-Insight-Global-Cross-Border-B2C-Electronic-Commerce-Market-Prospect.pdf 17Moving ahead: next steps
CPG companies have an outstanding of subscriptions to existing e-commerce along with technology architecture and
opportunity to position themselves as ventures should jumpstart growth by integration opportunities, governance
leaders in fast-growing digital markets in positioning CPG companies to secure and models, optimum partnership/operating
Asia, including China, India, Indonesia and retain a greater share of the consumer’s models and omni-channel commerce
Singapore. Development of more scalable shopping basket. frameworks. We recommend companies
technology platforms and back-end select partners who can straddle the bigger
processes will be key to delivering seamless To help companies get started on this spectrum of services and provide value
omni-channel shopping experiences. journey, Accenture has developed an based deals, as opposed to working with
Implementing advanced analytics is e-commerce value assessment (EVA) multiple smaller niche vendors. To find out
another priority. This will equip companies methodology. Designed to gauge more, please visit: https://www.accenture.
to predict and influence purchases, helping e-commerce readiness and identify priority com/sg-en/service-accenture-interactive-
them move closer to the role of ‘smart actions for the business, this provides our omni-channel-commerce
assistant’ where they can provide hyper- clients with audits and assessments of their
personalised solutions – before consumers existing ecommerce solutions, suggestions
request them. Meanwhile, the addition for improvement, and identification of
future ecommerce growth opportunities,
1819
Case study
Indonesia consumer experience
Meet Aminah in 2015 How does she buy? Like consumers across APAC, Aminah
expects convenience from online / offline
Limited shopping online.
shopping, with seamless experiences every
Word of Mouth & Family choices time. But she doesn't always get them.
influence her. Unmet needs include:
Active on social media - looks for • “I wish online shopping was reliable and
reviews online payment more secure
Aminah prefers... • “I wish there was more relevant online
information available to help with
Shopping with family - spend purchase decisions”
quality time
• “I wish someone could be my personal
Purchasing from mall or conve- shopping assistant, preventing me from
nience stores forgetting important items and remind-
Aminah, 34 Teacher
What Aminah buys? ing me when I’m running low”
Who is she?
Beauty & personal care products, • “I want to enjoy my shopping time
Aminah lives in Jakarta & works as a bonding with family. I wish purchasing
food & soft drinks, home care
teacher in a girls high school was less time-consuming – offline (less
Trusts Indonesian brands time queuing at checkout) and online
Lives with her husband and two kids -
9 years old daughter and 3 years old son Increased discretionary spending (faster delivery).”
20How has Life changed for Aminah in 2020 ?
Discover…Compare…Consider in No need to wait ! Experience Anywhere Anytime ?
One Click Long queues take up time. Lack of multi-sensorial
2015 2015 immersive experience for trying
Research (online + offline) Slow unreliable deliveries often
2015 very time consuming & tiring. beauty products online
ruin plans
Exhaustive information not Virtual reality & 3D Fitting
available Virtual carts means easy quick 2020
2020 rooms help them to experience
check outs. Retailers have been
Online platforms aggregating the products the same way they
evolved to integrate the best of
2020 data all required information both worlds – offline & online
do in stores
across retail data…..scientifically
combined with consumer’s
purchase history gives best deals
in ONE Click
Online = Offline Fewer things to think about ?
Is online shopping safe & Needs a personal assistant to help
2015 2015
reliable ?? in scheduling
Ecosystem has evolved to Connected devices & wearables
2020 provide a secure experience to 2020 help her schedule, alert her about
consumer & win their trust what she needs to do
with flexibility in payment
options & stringent delivery
protocols
How Aminah lives in 2025 ???
Fast forward another five years…what will Aminah’s life look like in 2025?
By then, the internet will be like electricity…invisible, omnipresent24 25 and taken for granted. It’s become impossible to imagine life
without this enabling technology. Consumers want to take things off their ‘thinking lists’.26 They expect companies to be their ‘smart
assistants’. And they demand seamless experiences that flow through every single touchpoint on the path to purchase.
Truly Connected Lives Online Shopping goes Social Click and Choose
Aminah no longer makes a list. Her wearable Aminah likes to involve family while shopping… Aminah clicks a picture of products with her
prepares a list with the information available Merge social with shopping glasses and gets the best deal on product.
from her connected devices…..connected
Shop together to get discounts On sharing her purchase on social media, she
fridge, connected wardrobes
gets redeemable points / cashback
Skin is the new interface Secure, reliable online ecosystem
…..Not your screen. The implantable
27
Aminah finds online payments are more secure
measures what personal care products she with retinal scans & biometrics.
needs to use, swimwear that absorbs
All formats have integrated to provide unique
pollution, shirt that measures heart beat The
LIQUID consumer experience…across formats
real time data has altered and influenced
her decision making
21Reference
1
http://www.ibtimes.com/amazon- 15 Alibaba Group Holding Limited
launches-amazon-elements-its-own- – SEC Filing Form F-1, Pg No. 69
brand-premium-products-1734384 “Our Major Corporate Milestones”
(www.sec.gov/Archives/edgar/
2
OECD Development Center, Working data/1577552/000119312514184994/
Paper no.285 d709111df1.htm)
3 Accenture Analysis, Euromonitor 16 https://hbr.org/2015/06/the-self-
tuning-enterprise
4 “Might of micro moments”, “Take
things off the thinking list” Basis Fjord 17 Ipsos/Accenture survey
Trends Report 2016 (www.slideshare.net/
fjordnet/fjord-2016-trends) 18 www.businesswire.com/news/
home/20150719005029/en/Alibaba-
5 http://www.idc.com/getdoc. Group-Unilever-Sign-Strategic-
jsp?containerId=prUS25658015 Partnership-Agreement
6 http://techcrunch.com/2015/04/06/ 19 http://www.wsj.com/articles/unilever-
augmented-and-virtual-reality-to-hit- expands-online-presence-in-china-with-
150-billion-by-2020/ new-jd-com-deal-1434356553
7 http://www.forbes.com/sites/ 20 http://gbtimes.com/business/its-boom-
louiscolumbus/2015/03/31/2015-roundup- time-chinas-cross-border-e-commerce
of-3d-printing-market-forecasts-and-
estimates/#1c2c51571dc6 21 https://www.forrester.com/Asia+Pacific
+Will+Have+2+Billion+Smartphone+Users
8 http://techcrunch.com/2015/07/27/ +By+2019/-/E-PRE8244
the-next-wave-of-enterprise-software-
powered-by-machine-learning/ 22 http://intpolicydigest.org/2015/08/26/
building-a-smart-nation-a-nuanced-
9 www.businessinsider.in/History-Tells- understanding-of-hyper-connected-
Us-That-Aerial-Drones-Really-Could- singapore/
Change-The-Face-Of-The-Retail-Industry/
articleshow/30742936.cms; www. 23 www.linkedin.com/pulse/experience-
businessinsider.in/DRONES-Quickly- o2o-marketing-strategies-max-
Navigating-Toward-Commercial- lee?forceNoSplash=true
Application/articleshow/29317779.cms
24 www.pewinternet.org/2014/03/11/
10 www.cnbc.com/2015/04/24/retails- digital-life-in-2025/
new-reality-four-ways-technology-can-
boost-sales-commentary.html 25 www.ijstr.org/final-print/dec2015/
Internet-Of-Things-changing-The-Game.
11 www.businesswire.com/news/ pdf
home/20151020005626/en/Tommy-
Hilfiger-Introduces-Store-Virtual-Reality- 26 www.slideshare.net/fjordnet/fjord-
Experience 2016-trends
12 www.rt.com/usa/smart-shelves-store- 27 http://www.techtimes.com/
sensors-228/ articles/21876/20141210/cicret-bracelet-
turns-your-skin-into-touch-screen-
13 https://hbr.org/2015/06/the-self- android-interface.htm
tuning-enterprise
14 https://hbr.org/2015/06/the-self-
tuning-enterprise
2223
For more information, please contact Mohammed Sirajuddeen mohammed.sirajuddeen@accenture.com Edward Stark edward.stark@accenture.com About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 15-5182
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