E-Commerce industry in Asia getting hot. Do you think it bubble? let's check the presentation that I'm present in Etail Asia 2016 (Singapore)

1. How will a potential e-commerce
bubble affect you and your
business?
By Pawoot Pom Pongvitayapanu
• Founder & CEO TARAD.com
• President of Thai E-Commerce Association
• CEO of efrastructure group

2. Speaker Profile
■ Social： Pawoot is Thailand IT and E-Marketing GURU. Now we be consultant for
Government and big corporate. All people accepted his online marketing
knowledge and abilities.
■ Current：
■ Education： 2007 – 2009: Master Degree 2 : Executive MBA : Sasin Graduate
Institute Chulalongkorn University
2000 – 2001: Master Degree 1 : Internet & E-Commerce : Assumption
University
1993 – 1998: Bachelor Degree : Architecture : Rangsit University.
■ Name： Pawoot (Pom) Pongvitayapanu
CEO & Founder e-frastructure inc.
Managing Director & Founder TARAD DOT COM Co ., Ltd. (Rakuten Group)
Director & Founder Winter Egency (TARAD Solution Co.,Ltd)
Director & Founder Zocial inc
President & Founder Thai E-Commerce Association
Columnist Bangkok Biz News Newspaper, SME Magazine
Teacher UTCC, Sriphathum, University.

3. Who is efrastructure Group
Expert Online & Internet Company in Thailand more than 15 Years
1999
Build up ThaiSecondhand.com 1st E-Classifieds in ThailandApril 8,
1999
2001 2009
Setup TARAD.com Company
The largest B2C Shopping Mall
TARAD.com join with Rakuten Group
Split TARAD Solution from TARAD.com
Start Up with 3 Friends
Year 1999
Join with Rakuten Japan
Year 2009
More than 200 staff in group company
2011 2012 2013
Re-Brand from TARAD Solution
to Winter Egency
Founded Zocial Inc
Found e-fra inc.
Acquired Thaiepay.com, RedRank.
Comparison
3
2014

4. One Stop E-Business and Total Solutions
(more than 250 employee in group companies)
E-Commerce
E-Payment
E-Logistic
E-Marketing
E-Analytic
E-Education

5. Agenda
• Can e-commerce in Asia continue to expand at its
current rate or is growth unsustainable?
• What initiatives can the industry take to reduce
customer acquisition costs?
• Turning revenue into profits: How can we combat
increasing marketing costs?
• How can we reduce the investment made into Google
& Facebook while acquiring new customers?
5

6. 6

7. The Unicorn Private Companies Valued At $1B And Above
7

8. Economic Crash.!
8

9. LinkedIn stock's drastic drop of 47%
following Q4 earnings
9

10. 10

11. 11

12. ASEAN Digital Population 2015

13. B2C E-Commerce Value (Billion USD)
Source: http://data.worldbank.org, http://www.statista.com,
http://www.ekosglobal.com and http://www.ETDA.or.th

14. Who’s E-Commerce Player in SEA
14

15. 10X
15
Business Growth
Welcome to…...

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18. 18

19. 19

20. 20

21. 21

22. 22
Topline = GMV, Traffic, Order

23. Price & Promotion War
23

24. 24

25. 25

26. 26

27. Do not ask about Bottom line (Profit)
27

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29. 29

30. 30

31. 31
Flipkart leads the race here to losing 2.23 rupees for
every 1 rupee of revenue. Amazon loses 1.90 and
Snapdeal has least amount of losses at Rs. 1.72.

32. The question is, how long can this sustain
32
In my view not very long.

33. Why they doing that?
33

35. 35

36. Startup Bubble Competition Graph
36
Company A. Company B.
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue
Time
Exit from Market
Keep Going
Company C.
Company who enter to the right time and
have more money will win the game.!

37. Strategy to enter to market as follower
• Huge Investment
• Platform, Operation, Warehouse, Logistic
• Everything Free
• Platform Cost, Shipping Free
• Huge Resource and Great People > People Cost up
• Huge Marketing Spending > Brand awareness
• Super Fast Moving
37

38. Who’s the winner?
38

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40. 40

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42. 42

43. Average Cost Per Click Around the World
43
US average CPC, between $1 and $2 on the Search network.
Data from http://www.wordstream.com

44. Average Pay Per Click Trend
44

45. 45

46. 46
** Data from Salesforce.com report analysed the top 25 countries globally

47. 47
** Data from Salesforce.com report analysed the top 25 countries globally

48. Facebook Ads Performance Cost
48
** Data from Salesforce.com report analysed the top 25 countries globally

49. Summary
• E-Commerce competition still keep moving
• How have more money, smarter, faster will win
the game
• Customer and E-Commerce ECO System will
enjoy this competition
• Join the battle or find the right positioning will
be the right solution
49

50. Kob Kun Kub
(Thank You)
Pawoot (Pom) Pongvitayapanu
• President of Thai E-Commerce Association
• CEO of efrastructure group
• CEO and Founder TARAD.com
E-Mail : pawoot@tarad.com
Let’s connect after this
• Facebook.com/pawoot
• Instagram.com/pawoot
• Twitter.com/pawoot