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10 Reasons why you shouldn’t move into SEA or Singapore for E-commerce business?

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10 Reasons why you shouldn’t move into SEA or Singapore for E-commerce business?

  1. 1. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. The Qoo-ler Way to Shop! 10 Reason why you shouldn’t move into SEA or Singapore for Ecommerce business Ver. 2015
  2. 2. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. 8th ~10th most visited Web site in Singapore
  3. 3. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 3,750,000 daily page view 408,000 daily user 1,630,000 members 43,000 daily orders “ We are No 1 in Singapore, but it’s just beginning” Sales Growth YoY : 80% 15M Jan 2013 27M Dec 2014 47M Dec 2015 40,000 ~ 50,000 daily transactions
  4. 4. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. 1. Customers don’t search 10% of transaction comes from Search. 70% of search query is Qoo10 “ Customers don’t search for shoppping”
  5. 5. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. 2. Customers don’t click 1% of transaction comes from Display Ads “ Customers don’t react to display Ads intended for shoppping”
  6. 6. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. 3. Advertisement cost is high (most effective case) 10,000 clicks, 300 transactions, $5000 sales, $250 profit => USD $10000
  7. 7. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. 4. Shipping cost is high (still depending on postal service) Average transaction amount $20 but delivery cost $10
  8. 8. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. 5. Fast migration to mobile 50% of browsing happens on mobile devices 40% of transactions comes from mobile App “requires superb mobile technology/operational capability ”
  9. 9. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. Summary 1. Ecommerce business cannot grow by conventional search campaign. (Waste of money, threat to initial set up) 2. Ecommerce business cannot grow through usual display Ads campaign. (for the same reason mentioned) 3. Shipping cost or logistics infrastructure is expensive. It may not be feasible to provide superb customer experience because of higher cost. (setting your own is another cost) 4. Mobile is a must. You need a superb mobile team ready to change or modify mobile experience fast.
  10. 10. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. Success case or Recommendation Your own platform Google/Facebook/Etc Strong Financial back-up (eg. Rocket Internet)
  11. 11. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. Success case or Recommendation Qoo10 store platform (Web, Mobile) Qoo10 Search Engine http://www.onemart.sg/ http://www.cocomo.sg/
  12. 12. Copyright (C) Giosis Pte. Ltd. All Rights Reserved. THANK YOU

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