Acommerce: Full Service E-Commerce Solutions Provider in Asean

aCommerce
Full Service E-commerce Solutions Provider in ASEAN

aCommerce Solutions for Betagro | September 2016
PAGE 1
1 Market Overview & Trends
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The Procession of the Trojan Horse in Troy by Domenico Tiepolo (1773)
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PayPal is a classic example. The
first high-growth segment was power
buyers and power sellers on eBay.
These people bought and sold a ton

of stuff. The high velocity of money
going through the system was linked
to the virality of customer growth.
By the time people understood how

and why PayPal took off on eBay, it
was too late for them to catch up.
Source: http://blakemasters.com/post/22405055017/peter-thiels-cs183-startup-class-9-notes-essay
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Ant Finance
Alibabas Trojan Horse
2nd most valuable non-public tech "Ant Financial's goal is to build a new and truly
company at $60B valuation (#1 being inclusive financial system on the internet that better
serves small businesses and the public
Uber at $62.5B)
-- Jing Xiandong, CEO Ant Financial
Alipay: 82% of China payments market
share
120m transactions per day (vs. 170m

through traditional banking system)
Yue Bao: biggest mutual fund in China in

terms of investors with $108B USD; No
minimum deposits, withdraw cash
anytime
Zhaocai Bao: P2P lending platform with

$32B in transactions in first year
Small business lending services
Sesame Credit: credit-scoring related

services based on ecommerce data
Source: http://knowledge.ckgsb.edu.cn/2015/08/05/finance-and-investment/can-alibabas-ant-financial-disrupt-chinas-financial-industry
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Ant Finance
Alibabas Trojan Horse
PAGE 10
The Dis-Intermediation of Everything
10-year returns for major retailers in US
+2,262% -13% +64% -35% 0% +121%
Source: Yahoo Finance

PAGE 11
Amazons Trojan Horse
Amazon, meanwhile, is transitioning to a new model

completely. The vast majority of Amazons products are
increasingly sold with little to no margin at all: profitability
comes from fees paid by third-party merchants and Prime
subscriptions. It is a model that is completely dependent on
scale, and the lower the margin and thus prices, the higher
Amazons volume, which means ever more leverage from
Amazons massive fixed costs in infrastructure and logistics.
Source: https://stratechery.com/2016/walmart-and-the-multichannel-trap
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Dis-intermediation not just happening in retail ecommerce
Tesla UBER Xiaomi AirBnB

Cars Transportation Consumer Electronics Accommodation
$32B $51B $46B $26B
Ant Finance Zhongan The Honest Co. Dollar Shave Club

Finance & Banking Insurance Consumer Goods (incl. diapers) Consumer Goods
$60B $8B $1.7B $1.0B
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Dollar Shave Club
Source: http://www.nytimes.com/2016/07/27/business/dealbook/1-billion-for-dollar-shave-club-why-every-company-should-worry.html
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Dollar Shave Club
Gillettes model and P&Gs formula generally cost a lot of money: R&D
cost money, TV advertising cost money, and wholesalers and retailers had
to earn a margin as well, and thats before P&G realized the return on their
investment. The result was that cartridges that cost less than a quarter to
manufacture and package were sold for $4 or more. That worked as long
as P&Gs other advantages in technical superiority, advertising, and
distribution held, but were they ever to falter, it was eminently viable to sell
cartridges for less and still make a healthy margin.
Source: https://stratechery.com/2016/dollar-shave-club-and-the-disruption-of-everything
PAGE 15
Dollar Shave Club changing distribution and advertising
AWS and Amazon itself, having both normalized e-commerce amongst

consumers and incentivized the creation of fulfillment networks, made
the creation of standalone e-commerce companies more viable than
ever before. This meant that Dollar Shave Club, hosted on AWS servers,
could neutralize P&Gs distribution advantage: on the Internet, shelf
space is unlimited. More than that, an e-commerce model meant that
Dollar Shave Club could not only be cheaper but also better: having your
blades shipped to you automatically was a big advantage over going to
the store.
That left advertising, and this is why this video is so seminal: for
basically no money Dollar Shave Club reached 20 million people. Some
number of those people became customers, and through responsive
customer service and an ongoing focus on social media marketing,
Dollar Shave Club created an army of brand ambassadors who did for
free what P&G had to pay billions for on TV: tell people that their razors
were worth buying for a whole lot less money than Gillette was charging.
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Dollar Shave Club: all about brand, experience and disruption
Dollar Shave Club has over three million subscribers but only
about 190 employees. Its razors were made in South Korea by
Dorco. Distribution was initially handled in-house but
eventually was contracted to a third-party company in
Kentucky. What remained was a terrific design, marketing
and customer service shop; and a business that was easily
expandable to meet demand and that had a good niche with
men who do not like to shop.
Source: http://www.nytimes.com/2016/07/27/business/dealbook/1-billion-for-dollar-shave-club-why-every-company-should-worry.html
PAGE 17
Unilevers next acquisition target: Honest Company
Source: http://www.wsj.com/articles/unilever-is-in-talks-to-acquire-jessica-albas-honest-co-1473981465
PAGE 18
Unilevers next acquisition target: Honest Company
Source: https://www.youtube.com/watch?v=HSrGFGJJwzA
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The Honest Company
Dis-intermediation & Product Innovation in Consumer Goods
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The Honest Company
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The Honest Company
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The Honest Company
1) Subscription ecommerce service selling eco-friendly, non-toxic family-oriented products such as diapers, skin care and
cleaning products. Best known for its flagship line of baby products including baby wipes and diapers, Honest has
branched into other product categories over time
2) Founded in 2011 by Jessica Alba, Brian Lee (ShoeDazzle), Christopher Gavigan, and Sean Kane
3) Raised $222M so far and valued at $1.7B USD. Backed by General Catalyst Partners, Iconiq Capital, Lightspeed Venture
Partners
4) 80% of sales from online channels
Revenues Monthly Visits Media Mix

300 3,500,000 35%
Lazada SG 30.45%
29.22%
250 3,000,000 30%
250
25%
124% CAGR 2,500,000
200
20% 17.77%
170 2,000,000
150 15%
1,500,000 11.51%
10%
100 1,000,000 6.45%
5% 3.83%
50 500,000 0.77%
50 0%
10 0
0
2012 2013 2014 2015
Source: SimilarWeb Pro, Forbes, Privco

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The Honest Company
Innovation in Customer Acquisition Free Trial + Auto-Renewal
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The Honest Company
Innovation in Merchandising Bundling & Customization
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The Honest Company
Innovation in Merchandising Bundling & Customization
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The Honest Company
Honest Beauty Expansion into new product categories
I suspect this sort of disruption will not be a one-off: the Internet (and e-commerce) has so profoundly
changed the economics of business that it is only a matter of time before other product categories are
impacted, with all the second order effects that entails.
PAGE 27
Subscription Commerce Case Study
Nescafe Red Cup by aCommerce
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2 Betagro Digital Transformation
Strategy
Betagro Digital Transformation Strategy
Food Manufacturers already moving online in mature markets
Yurun Group Ltd is the second-largest

meat supplier in China. It is
headquartered in Nanjing, Jiangsu. It
operates in two sectors, chilled and
frozen meat, and processed meat
products, which are marketed under
the brand names of Yurun, Furun,
Wangrun, and Popular Meat Packing.
Source: http://www.chinadaily.com.cn/bizchina/2014-09/19/content_18625695.htm
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Tmall Flagship Store
Digital coupons
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239 sold this month to date
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Betagro Value Chain & Gap Analysis
Demand Generation Demand Fulfillment
Product Sales &

Technology Manufacturing Marketing Service
Design Distribution
Educate Acquire Activate Engage Convert Monetize
Event marketing Free Sampling Free Sampling Betagro.com Retail partners

(Roadshow, in Supermarket in Supermarket Betagro Society (Tops, Lotus,
University, Mall, (booth), Events (booth), Events (YouTube, Big C,
etc.) Facebook) FamilyMart,
As-Is TVC etc.)
OOH / Ambient Betagro Shops
Advertising B2B (Horeca)
Music Videos
CSR
+ Facebook Ads + Google Paid + Betagro.com + Betagro.com Criteo + Betagro

+ Display Ads Search (revamped) (revamped) Bluecore Ecommerce
(Vertical, GDN) + Facebook Ads + Betagro Blog + Betagro Blog Brand.com
+ Influencer + Display Ads & Commmunity & Commmunity + Marketplaces
Marketing (Vertical, GDN) + Content + Content (e.g. Lazada,
+ Google SEO + Influencer Marketing (e.g. Marketing (e.g. etc.)
To-Be Marketing Tastemade, Tastemade, + On-demand
+ Google SEO Tasty, etc.) Tasty, etc.) (HonestBee,
+ Affiliate + Email HappyFresh)
Marketing Marketing + O2O (Online-
to-Offline)
+ B2B
Ecommerce
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Optimal media mix throughout Betagro user journey
Data
Acquire Activate Engage Convert Monetize
Email
Marketing Online-to-
Offline
Content Marketing Ecommerce

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
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Betagro Digital Transformation Strategy : Acquire
Google SEO
SEO
Onsite Offsite
Technical Content Backlinks Social Signals
Product Content Shared

URL Structure Advertorials
Descriptions on Facebook
Page Titles SEO Footers
Cooking Blog
Meta Description
(e.g. Tastemade)
Site Speed
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Google SEO : Cdiscount SEO footers example (by aCommerce)
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Google SEO : The Outlet 24 SEO footers example (by aCommerce)
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Google SEO : Cooking Blog
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Google SEO : Blog / Articles
Content Marketing Case Study: Headlines by ShopSmart.xyz
Headlines Shopping Guide &

Product Review launched
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Google SEO : Blog / Articles
Content Marketing Case Study: Headlines by ShopSmart.xyz
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Google SEO : Advertorials for backlinks KingPowerOnline example
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Google SEO : Advertorials for backlinks KingPowerOnline example
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Google SEO : Advertorials for backlinks Nescafe example
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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
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SEM : Campaign Structure
Example ad account structure. List not exhaustive
Betagro
Adwords
Account
Dynamic
Brand Products Competitors Recipes Retail Generic Food
Search Ads
Betagro Chicken Pork Processed Pet CP Chicken Breast Tesco Lotus Fresh Food
Betagro Deli Wing Gyoza DognJoy CPF Chicken FamilyMart Dairy
Betagro Shop Drumstick Sausage Saha Farms Healthy Big C Bakery
Breast Popcorn TGM 7-11 Beverages
Spicy BBQ
Liver Belucky Snacks
Chicken
Egg S&P Desserts
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SEM : Optimization Roadmap
Enhance Content
Conversion Rate
Relevancy
Optimization
(via GTM)
Dynamic Keyword
Insertions (DKI)
Exact/Phrase/Broad
Expanded Text Ads (ETA) Match Type New Beta
Search Term Features
Optimization
Landing Page Checker Remarketing lists

Error404, Out of stock for search ads
Category (RLSA)
Dynamic
keywords
Search Ad
Brand
(DSA) Ad Customizer
keywords Location, Price, Promotion
SEM AdWords Script

Competitor
Pre-Launch Mobile Bid Keywords
Adjustment Tools SEM
Generic
Conversion Keywords
Optimizer
1st month 3rd month Next step

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SEM : Utilize Ad Extensions to Increase CTR
Cost per click of ads with high CTR is

normally lower than that of ads with low CTR
Callout Extension
Phone Extension
Structured Snippet
Sitelink Extension
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SEM : aCommerce is a Google Ecommerce Premier Partner
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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
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Facebook : Campaign Structure
Betagro Facebook
Account
Acquisition Retargeting
Always On Promotion
(e.g. free shipping, e-coupon (e.g. Mothers Day, Flash Non-Purchasers Up-sell/Cross-sell
400 THB) Sale)
Competitors Competitors Website Visitors

Website Visitors
Fanpage Fanpage who visit product
(exclude purchaser)
(e.g. CP Brand, CP Food) (e.g. CP Brand, CP Food) page(s)
Betagro Society Betagro Socienty Email Subscribers Website Visitors

Fanpage Fanpage (exclude purchaser) who add to cart
Interest Targeting Interest Targeting

Offline CRM Previous
(e.g. Health, Parenting, (e.g. Health, Parenting,
Cooking)
Database Purchasers
Cooking)
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Facebook Video Ads can get massive reach in little time
Facebook already surpassed YouTube as most powerful video marketing channel
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Food Businesses in Thailand leveraging Facebook Video Ads
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Food Businesses in Thailand leveraging Facebook Video Ads
4.8M Views
234K Likes
50K Shares
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Facebook : Ad Mockup Example
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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
PAGE 57
Betagro Digital Transformation Strategy : Acquire & Activate
Offer free samples for users who register on Betagro website
Build online database for email marketing (educational emails, drive traffic to store)
Sign up and get free sample product shipped to user
Leverage users who got samples to write product reviews / social proof, displayed on Betagro site
Activate member base for special events pop up shop, etc.
Kiehls Thailand tapped into 5 million Line users to 1) build their member database and 2) drive offline foot traffic
and orders by offering users who signed up free samples to be picked up in Kiehls offline retail stores
8,000
New
Subscribers
2,000
Store visits &
Sets of samples
redeemed
10
Online orders
(More orders offline too!)
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Betagro Digital Transformation Strategy : Acquire & Activate
Free Trial + Auto-Renewal similar to Honest.com
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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
PAGE 60
Betagro Digital Transformation Strategy : Activate
Email Marketing : Why email marketing?
Email = #1 revenue driver for ecommerce

Share of Orders Conversion Rate (CVR) Average Order Value (AOV) Cost Per Order (CPO)
EDM 24% EDM 2.17% Direct 332

EDM $6
SEM 21% Referral 1.10% SEM 237
Facebook
Retargeting 17% Direct 0.83% EDM 231 $10
(Newsfeed)
Price Comparison 11% Price Comparison 0.66% SEO 217
Price Comparison $11
Direct 11% SEO 0.57% Referral 167
Facebook
SEO 10% 0.51% Retargeting 143 Retargeting
(Newsfeed) $46
Facebook
4% Retargeting 0.47% Facebook 134
(Newsfeed)
SEM $50
Referral 3% SEM 0.39% Price Comparison 101
Source: aCommerce internal data (etailer client sample, not brand.com. Fashion & apparel ecommerce will have higher share of Facebook)
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Email Marketing : Nescafe Automated Welcome Email
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Email Marketing : Nescafe Automated Welcome Email
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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
PAGE 64
Cooking Facebook Pages for Vertical Display & Affiliate
Drive traffic via advertorials and shop now button on Facebook fan pages
Page owners make money from sending conversions to Betagro
Leverage aCommerce Affiliate Platform
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Cooking Facebook Pages for Affiliate
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aCommerce Affiliate Platform case study: One2Car + Frank.co.th
PAGE 67
Affiliate Marketing & Vertical Sites
Mai Yom Auon

Foodtravel.tv

(pantip's)
(egg menu)
Easy cooking
Tasty Easy
PAGE 68
Affiliate Marketing & Vertical Sites
Affiliate
Marketing &
Vertical Sites
Price
Health Parenting Female Comparison & Cooking
Coupon
Th.TheAsianPare Women.Mthai.co Mai Yom Auon

SiamHealth.net Priceza
nt.com m
PregnancySquar
HaaMor.com Jeban.com Promotions.co.th
e.com
ThaiLoveHealth.c BreastFeedingTh
Cosmenet.in.th ShopSmart Foodtravel.tv
om ai.com
DiscountCodeTh
LoveFit.com Maerakluke.com
ai
Baby.Kapook.co
Fit-D.com Protook
m (pantip's)
WomensHealthT (egg
Dealcha
hailand.com menu)
DooDeeDai.com Easy cooking
Tasty Easy
PAGE 69
Affiliates & Verticals : Health Publishers
Source: SimilarWeb Pro

PAGE 70
Affiliates & Verticals : Parenting Publishers

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Affiliates & Verticals : Female Publishers

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Affiliates & Verticals : Price Comparison & Coupon Publishers

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Affiliates & Verticals : Cooking
Cooking Vertical FB Likes Traffic URL

Mai Yom Auon 968,157 https://www.facebook.com/MaiYomAuon
1,367,524 https://www.facebook.com/kinkaokan
Foodtravel.tv 750,904 440,600 https://www.facebook.com/FoodTravel.tv
904,090 https://www.facebook.com/Plaocooking
(pantip's) 547,328 https://www.facebook.com/pantipfoodstuff
(egg menu) 908,312 https://www.facebook.com/Sangsanmenukai
Easy cooking 1,891,829 https://www.facebook.com/easycookingmenu
Tasty Easy 1,138,055 https://www.facebook.com/tastyeasycooking
8,476,199
Source: Facebook, SimilarWeb Pro

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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
PAGE 75
Betagro Digital Transformation Strategy : Activate + Engage
Tastemade & Tasty on Buzzfeed

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Recipes on BestFoods.com
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Search traffic to BestFoods.com from content created

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Nutricia: HIQ Kids Club - www.hiqkidsclub.com
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Articles & Content Marketing to drive traffic
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Facebook Fanpage with 258,000 followers
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Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
PAGE 82
Betagro Digital Transformation Strategy : Convert
99% of users dont buy in their first visit -> convert via retargeting
PAGE 83
99% of users dont buy in their first visit -> convert via retargeting
PAGE 84
Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
PAGE 85
Bluecore : What is Bluecore?
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Bluecore : How does it perform?
PAGE 87
Data
Email
Offline

(B2C, B2B,
E.g. Marketplaces,
On-Demand)
Sampling
Influencer
Affiliate Marketing
Marketing
PAGE 88
Betagro Digital Transformation Strategy : Monetization
B2C Ecommerce (Brand.com, Marketplaces)
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Lazada stores managed

by aCommerce:
Store Design & Setup
Store Operations (Day-

to-Day)
Merchandising
Marketing
Customer Service
PAGE 91
Marketplace Flagship Store Example: Yurun.Tmall.com
Yurun Group Ltd is the second-largest

meat supplier in China. It is
headquartered in Nanjing, Jiangsu. It
operates in two sectors, chilled and
frozen meat, and processed meat
products, which are marketed under
the brand names of Yurun, Furun,
Wangrun, and Popular Meat Packing.
Source: http://www.chinadaily.com.cn/bizchina/2014-09/19/content_18625695.htm
PAGE 92
Digital coupons
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239 sold this month to date
PAGE 95
Online-to-Offline
Build online database for email marketing (educational emails, drive traffic to store)
Sign up and get free sample product shipped to user
Leverage users who got samples to write product reviews / social proof, displayed on Betagro site
Activate member base for special events pop up shop, etc.
8,000
New
Subscribers
2,000
Store visits &
Sets of samples
redeemed
10
Online orders
PAGE 96
On-Demand (Betagro Shops, Supermarkets)
Drive traffic / orders to

Betagro Shops
Promote Betagro products in

supermarkets
Advertise / create brand

awareness for new Betagro
products and brands
PAGE 97
aCommerce Case Study: PokeSurance with Asia Insurance
PAGE 98
aCommerce Case Study: Phatra Leasing
PAGE 99
Betagro Value Chain & Gap Analysis
Demand Generation Demand Fulfillment
Product Sales &

Technology Manufacturing Marketing Service
Design Distribution
Educate Acquire Activate Engage Convert Monetize
Event marketing Free Sampling Free Sampling Betagro.com Retail partners

(Roadshow, in Supermarket in Supermarket Betagro Society (Tops, Lotus,
University, Mall, (booth), Events (booth), Events (YouTube, Big C,
etc.) Facebook) FamilyMart,
As-Is TVC etc.)
OOH / Ambient Betagro Shops
Advertising B2B (Horeca)
Music Videos
CSR
+ Facebook Ads + Google Paid + Betagro.com + Betagro.com Criteo + Betagro

+ Display Ads Search (revamped) (revamped) Bluecore Ecommerce
(Vertical, GDN) + Facebook Ads + Betagro Blog + Betagro Blog Brand.com
+ Influencer + Display Ads & Commmunity & Commmunity + Marketplaces
Marketing (Vertical, GDN) + Content + Content (e.g. Lazada,
+ Google SEO + Influencer Marketing (e.g. Marketing (e.g. etc.)
To-Be Marketing Tastemade, Tastemade, + On-demand
+ Google SEO Tasty, etc.) Tasty, etc.) (HonestBee,
+ Affiliate + Email HappyFresh)
Marketing Marketing + O2O (Online-
to-Offline)
+ B2B
Ecommerce
PAGE 100
Proposed Digital Transformation Roadmap
Phase 1 Phase 2 Phase 3

Q4 16 Q1 17 Q1 17 Q2 17
Brand awareness
Build email database Brand.com development
(samples, Lazada voucher) Performance marketing
Marketing Performance marketing
Content marketing (onsite Content marketing (onsite
articles, advertorials) articles, advertorials)
Performance marketing
Betagro Lazada Flagship

Store
WindowShop Other marketplaces
B2B Ecommerce
(WeMall, 11street, etc.)
Sales & Distribution O2O On-Demand (Honestbee,
Brand.com (E2E
Betagro Corporate Website ecommerce)
Happy Fresh)
Revamp
Betagro Blog & Community
PAGE 101
Betagro Corporate Website Revamp
PAGE 102
Betagro Corporate Website Revamp
PAGE 103
3 aCommerce Marketing
Solutions Intro
Marketing Vision
To moneyball traditional digital marketing in Southeast Asia
The way Moneyball changed the game of baseball,

we are disrupting traditional digital marketing in SEA
PAGE 105
Marketing Vision
Financial and mathematical approach towards marketing
PAGE 106
Marketing
#1 Ecommerce marketing agency in SEA
Fastest growing ecommerce marketing Unique value prop: full-stack ecommerce

agency in SEA performance marketing
Data-driven, end-to-end CPA, CAC, CLV optimization,
Active marketing clients Marketing billings ($M) approach towards marketing not vanity metrics
75
22
12
2013 2015 2015 2016e
Trusted by blue-chip SEA ecommerce Strategic partnerships and proprietary

retailers and global brands demand gen products
PAGE 107
Marketing
Our Approach: Mathematics of Marketing
ARPU
CLV Gross Margin
Avg. Customer Retention Rate

Lifetime 1 / (1-r) (r)
ROI
CPM
CPC
CAC CTR
CVR
PAGE 108
Marketing
Our Approach: Optimize for CLV, not just CAC
PAGE 109
Marketing
Our Approach: Full-Stack, Full-Cycle Media Planning
Data
Email
Marketing
Financial
Content Marketing Services
(Residential
E.g. Insurance, Fire
Insurance, Loans /
Installment, etc.)
Advertising
Services
(Home
Affiliate Improvement,
Marketing Design, etc.)
PAGE 110
Marketing
Holistic, data-driven approach towards ecommerce marketing
Demographics & psychographics

Media consumption
Purchasing behavior
Strategy & Customer lifecycles
Order cancellation & refunds Customer
Return shipping Research
Personalization & recommendations Customer Search & display
Customer surveys & feedback After-Sales Re-marketing
Acquisition &
Service Word-of-mouth
Activation
Email
Social
DW, DMP & CRM
BI Tools
Shipping & delivery Homepage
Real-time order tracking Order Landing pages
Packaging Site Landing Offers and promotions
Fulfillment
Notifications User special pages
Data
Search and filtering

Guest checkout Category browsing
Payment options Sorting and ordering
Shipping options Product Product previews
Checkout Personalization &
Promo codes Discovery
Order confirmation recommendations
Cart management
Shipping options Product description
Wish list Shopping Cart Product Images and other media
Personalization & Management Presentation Reviews & recommendations
recommendations Product configuration
PAGE 111
Marketing
Services & Product Overview
aCommerce
Marketing
Solutions
Performance B2B Marketing &

Marketing
Marketing Demand
Technology
Solutions Generation
Acquisition aCommerce
ShopSmart Bluecore ecommerceIQ
Marketing Affiliate Network
B2C (Price
Activation
Comparison & aCommerce.asia
Marketing
Coupon)
Mobile App B2B (Data &

Marketing Audiences)
Headlines &
WindowShop (PH) Trending (Content
Marketing)
Facebook Chat
LaunchPad (TH)
Bot
PAGE 112
Marketing
Regional & Country Team Leads
aCommerce Marketing
Sheji Ho, Group CMO Solutions
(Sheji)
Gilt Groupe, Moda Operandi, Groupon,
Regional teams
Dell
MBA, New York University, Stern School
11 of Business Corporate Marketing &
Performance Marketing Marketing Technology
eCommerce IQ
Solutions (Sheji)
Felicia Moursalien, Head of Corp. (Felicia)
Marketing & eCommerce IQ
Zalora, United Nations
BA, University of Toronto, Trinity College Thailand Thailand ShopSmart
5
(Ten) (Felicia) (Pat)
Ten Chantaramungkorn, Head of

Marketing, Thailand
Lazada Regional SG, MY, VN Indonesia Headlines & Trending
MS, Imperial College London (Sheji, acting) (Stephanie) (Pat)
5
Aditya Jamaludin, Head of Marketing,

Indonesia
Indonesia Bluecore
Lazada Indonesia (Adit) (Bom)
BS, Universitas Gadjah Mada (UGM)
5
Katrina Cruz, Head of Marketing,

Philippines Affiliate
Philippines
(Kat) (Bo & Intan)
Lazada Regional
BA, University of Philippines
4
PAGE 113
Marketing
Country Team Structure
Country marketing solutions team structure
Director of
Internet
Marketing
Head of
Head of Head of
Head of Internet Head of Digital Activation &
Marketing Acquisition Head of Product
Marketing Design Retention
Operations Marketing
Marketing
Product
Senior Internet Senior Internet Manager
Digital Design Digital Design
Marketing Marketing Project Manager SEM Team Lead EDM Team Lead Partnerships
Manager Manager
Manager Manager (Bluecore,
Shopline, etc.)
Internet Internet Internet Internet Product
Data Analytics Remarketing
Marketing Marketing Marketing Marketing Digital Designers Digital Designers SEO Team Lead Manager
Manager Team Lead
Managers Managers Managers Managers ShopSmart (B2C)
(Sr.) Internet (Sr.) Internet (Sr.) Internet (Sr.) Internet Loyalty & Product
Social Media
Marketing Marketing Marketing Marketing Tech Manager Retention Team Manager
Team Lead
Analysts Analysts Analysts Analysts Lead ShopSmart (B2B)
Affiliate Onsite Product Manager

Billing/Invoicing
Marketing Team Optimization Headlines &
Manager Tredning
Lead Team Lead
Mobile
Product Manager
Marketing Team Affiliate Platform
Lead
Experienced brand and technical marketers from leading ecommerce and digital agencies
PAGE 114
Marketing Technology
Leveraging existing Best-of-Breed (BoB) platforms
SEM Facebook Marketing Retargeting
Google Adwords Facebook / FBX Criteo
DoubleClick Upcast Google Adwords
Analytics Email Marketing Business Intelligence
Google Analytics Campaign Monitor RJ Metrics
Mixpanel Testing & Optimization Leftronic
Mouseflow Optimize.ly aCommerce
Affiliate Marketing Price Comparison & Personalization

Coupon
Interspace Scigineer
aCommerce ShopSmart Bluecore
PAGE 115
Bluecore: Automated, Personalized Trigger Emails
http://marketing.acommerce.asia/marketing/bluecore/tommy%20abandon%20search.gif
PAGE 116
http://marketing.acommerce.asia/marketing/bluecore/mataharimall%20window%20shopping.gif
PAGE 117
PAGE 118
Bluecore: Why email marketing?
Email = #1 revenue driver for ecommerce

Share of Orders Conversion Rate (CVR) Average Order Value (AOV) Cost Per Order (CPO)
EDM 24% EDM 2.17% Direct 332

EDM $6
SEM 21% Referral 1.10% SEM 237
Facebook
Retargeting 17% Direct 0.83% EDM 231 $10
(Newsfeed)
Price Comparison 11% Price Comparison 0.66% SEO 217
Price Comparison $11
Direct 11% SEO 0.57% Referral 167
Facebook
SEO 10% 0.51% Retargeting 143 Retargeting
(Newsfeed) $46
Facebook
4% Retargeting 0.47% Facebook 134
(Newsfeed)
SEM $50
Referral 3% SEM 0.39% Price Comparison 101
Source: aCommerce internal data (etailer client sample, not brand.com. Fashion & apparel ecommerce will have higher share of Facebook)
PAGE 119
ShopSmart: Price Comparison Engine for Thailand and Indonesia
PAGE 120
Headlines & Trending by ShopSmart Gadget & Lifestyle Portal
PAGE 121
Headlines & Trending by ShopSmart Gadget & Lifestyle Portal
Over 1 million sessions per month

Proprietary marketing channel & content marketing opportunity for 11street
PAGE 122
aCommerce Affiliate Platform & Network
Clients:
PAGE 123
ATT Skybox
O2O marketing channel

TVC, NFC, voucher distribution, offline branding
Current clients: Lazada, Central Online
PAGE 124
ATT Skybox
PAGE 125
Strategic Partnerships
aCommerce x Google
PAGE 126
Strategic Partnerships
aCommerce x Facebook
aCommerce is chosen
as a case study for
Facebook as it proves to
deliver business results
by optimizing
Facebook campaigns in
real time and delivering
personalized ads to
match the fast-moving
pace of retail
environment
PAGE 127
Case Studies O2O (Vouchers)
Leveraging online demand into offline foot traffic and sales
Build online database for O2O activation

Sign up and get voucher or QR code emailed to user
Redeem voucher in purchase in offline store
Leverage online database to drive foot traffic to offline stores
Activate member base for special events pop up shop, collaborations, etc.
8,000
New
Subscribers
2,000
Store visits &
Sets of samples
redeemed
10
Online orders
PAGE 128
Case Studies O2O (Vouchers)
Leveraging online demand into offline foot traffic and sales
aCommerces Huawei Thailand Line Hot Brand campaign targeting 5 million

Line users and offering free Bluetooth speakers for members resulted in long
lines in Jaymart, an official offline retailer for Huawei mobile phones.
PAGE 129
Case Studies O2O (Gift Cards)
Sell H&M gift cards online, driving offline redemptions
Order H&M gift cards online

Redeem gift cards in offline stores
Test apetite for ecommerce and performance of marketing channels prior to full E2E ecommerce launch
Track customer LTV and marketing channel efficiency via unique gift card IDs
Build business case for full E2E ecommerce
Global search volume for H&M gift cards and vouchers growing YoY, with peaks Starbucks selling gift cards online with customizable amount and
during gifting seasons. Selling H&M gift cards online in Indo will boost offline sales. gifting options.
PAGE 130
Case Studies Chat / Conversational Commerce
2016 will be the year of conversational commerce
Messaging apps have already surpassed social networks in terms of MAUs

Standalone, concierge apps looking to tap into chat commerce trend Magic (US), Operator (US), and
YesBoss (ID)
FB Messenger Platform launched at F8 in 2016 APIs and tools to build and automate commerce in
messaging apps (already used by Uber, Spring & More)
Leapfrogging in SEA Whilst still a novelty in the West, chat commerce is already a reality in SEA: 33%
of Thailand ecommerce GMV through Facebook, Instagram, and Line
Animated GIF demo view full screen to play
Source: https://medium.com/chris-messina/2016-will-be-the-year-of-conversational-commerce-1586e85e3991 PAGE 131

Conversational commerce process for H&M Indonesia
Pay via FB or COD Dispatch aCommerce Bring products to central Deliver to end consumer
(aCommerce) messenger to pick up in packing location (incl.
store consolidation of SKUs from
multiple stores)
Chat agent manned by aCommerce CS staff + FB Messenger Collect cash (optional)

Platform A.I. developed by aCommerce (e.g. latter for browsing
product catalog in chat)
PAGE 132
ShopSmart Price Comparison & Coupon FB Chatbot
Animated GIF, full screen to play

PAGE 133
Case Studies CRM / Loyalty
H&M Mobile Loyalty App
Create and launch H&M mobile loyalty app via Flok

Leverage online database & app install marketing to drive adoption of H&M loyalty app
Increase customer LTV through reward points for purchases in H&M offline retail
Leverage push notifications to activate member base for special events pop up shop, collaborations, etc.
Geo-targeting users based on proximity to H&M offline stores
Create your own virtual zone around your business with a neighborhood perks. Any time
a regular enters that area they will automatically get this push notification. It is a great
way to target customers close to your business or at a particular event.
PAGE 134
Marketing How do we work with our partners?
The Mathematics of Marketing: Marketing Biz Plan
ARPU
CLV Gross Margin

ROI
CPM
CPC
CAC CTR
CVR
PAGE 135
The Mathematics of Marketing: Marketing Biz Plan
ARPU Traditional
agency focus
(vanity
CLV Gross Margin
metrics)
ROI
CPM
CPC
CAC CTR
CVR
PAGE 136
Marketing Business Plan
Songkran 11/11 12/12 Low Season
M1 = March 2016 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total
Phase 1 Launch + Branding + First Time Customer Promos
Phase 2 Customer Activation
Phase 3 Optimization
MARKETING
I. Customer Acquisition Search engine marketing (SEM)
Phase 4
Promotions/Coupons 15% Off for First Time Customers
$40,000 $40,000 $40,000 $60,000

10% Off for First Time Customers
$60,000 $60,000 $100,000

11/11 + 12/12 Campaigns
$100,000 $100,000 $80,000

$80,000 $80,000 $840,000

Summary (Year 1)
& Demand Harvesting Facebook marketing (incl. Instagram) $120,000 $120,000 $120,000 $60,000 $60,000 $60,000 $100,000 $100,000 $100,000 $80,000 $80,000 $80,000 $1,080,000
Remarketing $53,333 $106,667 $106,667 $80,000 $80,000 $80,000 $133,333 $133,333 $133,333 $106,667 $106,667 $106,667 $1,226,667
Afilliate marketing $0 $10,000 $15,000 $20,000 $30,000 $40,000 $50,000 $60,000 $60,000 $60,000 $60,000 $60,000 $465,000
SEO - Offsite $5,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $115,000
Partnerships (Line, Telco, Banks, etc.) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $218,333 $286,667 $291,667 $230,000 $240,000 $250,000 $393,333 $403,333 $403,333 $336,667 $336,667 $336,667 $3,726,667
II. Customer Activation Email platform and sending

Marketing emails produced per month
Trigger emails produced per month
Email production
$699
0
2
$600
$1,199
4
$1,200
$1,999
8
$2,400
$2,299
12
$3,600
$2,969
16
$4,800
$3,349
20
$6,000
$3,789
24
$7,200
$4,749
24
$7,200
$5,229
$7,200
24
$5,709
24
$7,200
$5,709
24
$7,200
$5,709
24
$7,200
$43,408
$61,800
Budget Marketing $4,287,875
Bluecore $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $10,000 $118,000
% of Orders activated with promo code

First order promocode 15% (recommended)
Subtotal (excl. promo codes)
95%
$48,889
$1,299
86%
$61,298
$2,399
77%
$61,709
$16,399
69%
$32,915
$17,899
62%
$34,007
$19,769
56%
$34,690
$21,349
50%
$47,792
$22,989
45%
$70,547
$23,949
41%
$66,403
$24,429
37%
$54,912
$24,909
33%
$34,885
$24,909
30%
$33,299
$22,909
$581,345
$223,208
Orders 212,117
III. Onsite / Conversion Optimization Email capture popup $2,000 $2,000
IV. Tracking, Configuration & Dashboards

SEO - Onsite (setup and ongoing maintenance)
Subtotal
Google Analytics (Enhanced EC tracking)

$10,000
$12,000
$2,000
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$1,000
$1,000
$500
$21,000
$23,000
$7,500
Revenue $12,177,815
XML product feed development $2,000 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $7,500
AOV $57
Subtotal $4,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $15,000
V. Media Buying, Optimization & Management (fixed fee) $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $300,000
Effective % 11% 9% 9% 11% 10% 10% 6% 6% 6% 7% 7% 7% 8%
Total $260,632 $316,066 $335,066 $274,899 $286,769 $298,349 $443,322 $454,282 $454,762 $388,576 $388,576 $386,576 $4,287,875
Est. CPCs Search engine marketing $0.15 $0.15 $0.15 $0.15 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.13 $0.14
Facebook marketing $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09
Remarketing $0.20 $0.20 $0.20 $0.19 $0.19 $0.19 $0.19 $0.19 $0.18 $0.18 $0.18 $0.18 $0.19
Affiliate marketing $0.15 $0.15 $0.15 $0.15 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.13
Est. Clicks Search engine marketing

Facebook marketing
Remarketing
Affiliate marketing
266,667
1,200,000
266,667
0
269,360
1,212,121
538,721
67,340
272,081
1,224,365
544,162
102,030
412,244
618,366
412,244
137,415
416,408
624,612
416,408
208,204
420,614
630,921
420,614
280,410
708,105
1,062,157
708,105
354,052
715,257
1,072,886
715,257
429,154
722,482
1,083,723
722,482
433,489
583,824
875,736
583,824
437,868
589,721
884,582
589,721
442,291
595,678
893,517
595,678
446,759
5,972,442
11,382,988
6,513,884
3,339,012
ROI (Revenue) 184%
Total 1,733,333 2,087,542 2,142,639 1,580,269 1,665,633 1,752,560 2,832,419 2,932,555 2,962,177 2,481,252 2,506,315 2,531,632 27,208,326
Est. Visits Search engine marketing

Facebook marketing
Remarketing
177,778
800,000
177,778
179,574
808,081
359,147
181,387
816,243
362,775
274,829
412,244
274,829
277,605
416,408
277,605
280,410
420,614
280,410
472,070
708,105
472,070
476,838
715,257
476,838
481,655
722,482
481,655
389,216
583,824
389,216
393,148
589,721
393,148
397,119
595,678
397,119
3,981,628
7,588,658
4,342,589
ROI (Gross Margin, assuming 30%) -15%
Affiliate marketing 0 44,893 68,020 91,610 138,803 186,940 236,035 286,103 288,993 291,912 294,861 297,839 2,226,008
Partnerships (Line, Telco, Banks, etc.) 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
Organic (incl. direct, SEO, EDM) 1,000 10,000 30,000 38,400 49,152 62,915 78,643 98,304 122,880 153,600 192,000 240,000 1,076,894
Total 1,186,556 1,431,695 1,488,426 1,121,913 1,189,574 1,261,288 1,996,923 2,083,341 2,127,665 1,837,768 1,892,877 1,957,754 19,575,778
% paid visits 97% 97% 96% 94% 93% 93% 95% 94% 93% 90% 88% 86% 81%
% organic visits 3% 3% 4% 6% 7% 7% 5% 6% 7% 10% 12% 14% 19%
Est. CVR (Customers) Search engine marketing

Facebook marketing
Remarketing
0.80%
0.50%
0.70%
0.82%
0.51%
0.71%
0.83%
0.52%
0.73%
0.85%
0.53%
0.74%
0.87%
0.54%
0.76%
0.88%
0.55%
0.77%
0.90%
0.56%
0.79%
0.92%
0.57%
0.80%
0.94%
0.59%
0.82%
0.96%
0.60%
0.84%
0.98%
0.61%
0.85%
0.98%
0.62%
0.86%
0.91%
0.56%
0.79%
Marketing Metrics (Year 1)
Partnerships (Line, Telco, Banks, etc.) 0.60% 0.61% 0.62% 0.64% 0.65% 0.66% 0.68% 0.69% 0.70% 0.72% 0.73% 0.75% 0.67%
Organic 1.50% 1.52% 1.53% 1.55% 1.56% 1.58% 1.59% 1.61% 1.62% 1.64% 1.66% 1.67% 1.63%
Blended CVR 0.58% 0.66% 0.70% 0.82% 0.88% 0.93% 0.89% 0.93% 0.94% 0.99% 1.01% 1.02% 0.98%
Est. CVR (Subscribers and Registered Users) Search engine marketing 4.00% 4.08% 4.16% 4.24% 4.33% 4.42% 4.50% 4.59% 4.69% 4.78% 4.88% 4.92%
Facebook marketing 2.50% 2.55% 2.60% 2.65% 2.71% 2.76% 2.82% 2.87% 2.93% 2.99% 3.05% 3.08%
Display re-marketing 3.50% 3.57% 3.64% 3.71% 3.79% 3.86% 3.94% 4.02% 4.10% 4.18% 4.27% 4.31%
Affiliate marketing
Partnerships (Line, Telco, Banks, etc.)
Organic
Blended CVR
4.00%
3.00%
4.50%
2.89%
4.08%
3.06%
4.55%
3.07%
4.16%
3.12%
4.59%
3.17%
4.24%
3.18%
4.64%
3.51%
4.33%
3.25%
4.68%
3.62%
4.42%
3.31%
4.73%
3.73%
4.50%
3.38%
4.78%
3.77%
4.59%
3.45%
4.82%
3.87%
4.69%
3.51%
4.87%
3.95%
4.78%
3.59%
4.92%
4.08%
4.88%
3.66%
4.97%
4.17%
4.92%
3.73%
5.02%
4.23%
Budget $4,287,875
Clicks 27,208,326
Est. Paid Orders (last touch attribution) Search engine marketing 1,422 1,465 1,510 2,333 2,404 2,477 4,253 4,382 4,515 3,721 3,834 3,911 36,227
Facebook marketing 4,000 4,121 4,246 2,187 2,254 2,322 3,987 4,108 4,233 3,489 3,594 3,667 42,208
Display re-marketing 1,244 2,564 2,642 2,042 2,103 2,167 3,721 3,834 3,950 3,256 3,355 3,422 34,302
Affiliate marketing 0 980 1,442 1,885 2,772 3,623 4,440 5,223 5,121 5,021 4,922 4,826 40,254
Partnerships (Line, Telco, Banks, etc.) 180 184 187 191 195 199 203 207 211 215 219 224 2,414
Total Paid Orders 6,847 9,315 10,027 8,638 9,727 10,788 16,604 17,754 18,029 15,702 15,925 16,050 155,405
Est. Organic Orders
Est. Total Orders (Paid + Organic Orders)

15
6,862
152
9,466
459
10,486
593
9,231
767
10,495
992
11,779
1,252
17,856
1,581
19,335
1,996
20,025
2,520
18,221
3,181
19,106
4,016
20,067
17,525
172,930
Sessions (Blended) 19,575,778
Email Subscribers 731,470
Est. Total Daily Orders 229 316 350 308 350 393 595 645 668 607 637 669 5,764
Existing Email Subscribers 0
Est. Registered Users & Email Subscribers 34,278 43,958 47,133 39,435 43,091 47,055 75,211 80,543 84,074 74,919 78,933 82,840 731,470
Est. Registered Users & Email Subscribers (Cumulative)
Est. Total Customers (New + Repeat Customers)

34,278
6,862
78,237
9,466
125,370
10,486
164,805
9,231
207,896
10,495
254,950
11,779
330,161
17,856
410,704
19,335
494,778
20,025
569,697
18,221
648,630
19,106
731,470
20,067
731,470
172,930 Orders (Blended) 212,117

Est. % of New Customers in Cohort 100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 90% 94%
Est. New Customers 6,862 9,372 10,277 8,957 10,081 11,202 16,811 18,022 18,478 16,646 17,279 17,966 161,953
Est. New Customers (Cumulative) 6,862 16,233 26,511 35,468 45,549 56,751 73,562 91,584 110,062 126,708 143,987 161,953 895,228
Est. Repeat Customers 0 95 209 274 414 577 1,045 1,314 1,547 1,576 1,827 2,100 10,977
Est. Lifetime Orders Per New Customer (1-year)
Est. Total Realized Orders

1.5
6,862
1.5
9,778
1.6
11,241
1.6
10,491
1.6
12,211
1.7
14,030
1.7
20,723
1.7
23,160
1.8
24,915
1.8
24,243
1.8
26,184
1.9
28,280 212,117
CPC $0.16
CPS $0.22
Est. Total Realized Orders / Day 229 326 375 350 407 468 691 772 831 808 873 943
Est. Total Realized Revenue $343,083 $498,690 $584,743 $556,651 $660,890 $774,510 $1,166,854 $1,330,165 $1,459,600 $1,448,629 $1,595,884 $1,758,116 $12,177,815
Avg. Month-on-Month Total Orders Growth 38% 11% -12% 14% 12% 52% 8% 4% -9% 5% 5%
Avg. Paid CPA $32 $31 $29 $27 $25 $23 $24 $23 $22 $21 $21 $21 $20
Avg. Blended CPA
Est. Average Order Value (AOV)
Est. Revenue
Est. ROI (Realized Revenue)
Est. ROI (Gross Margin, assuming 30%)
$38
$50
$343,083
32%
-61%
$33
$51
$482,783
58%
-53%
$32
$52
$545,477
75%
-48%
$30
$53
$489,815
102%
-39%
$27
$54
$567,984
130%
-31%
$25
$55
$650,270
160%
-22%
$25
$56
$1,005,460
163%
-21%
$23
$57
$1,110,500
193%
-12%
$23
$59
$1,173,142
221%
-4%
$21
$60
$1,088,810
273%
12%
$20
$61
$1,164,495
311%
23%
$19
$62
$1,247,517
355%
36%
$25
$9,869,337
184%
-15%
CVR (Email Subscribers) 3.7%
CVR (Orders, incl. repeat) 1.1%
Est. ROI (Gross Margin, assuming 30%, minus coupon code cost) -79% -72% -66% -51% -43% -34% -32% -28% -18% -2% 14% 28% -28%
Est. COS (Cost of Sales) 76% 63% 57% 49% 43% 39% 38% 34% 31% 27% 24% 22% 35%
Est. COS (Cost of Sales, incl. coupon code cost) 90% 76% 68% 55% 49% 43% 42% 39% 36% 31% 27% 24% 40%
Dependencies:
Organic traffic
SKUs required
Organic traffic : SKU ratio
1,000
333
3.00
10,000
3,333
3.00
30,000
10,000
3.00
38,400
12,800
3.00
49,152
16,384
3.00
62,915
20,972
3.00
78,643
26,214
3.00
98,304
32,768
3.00
122,880
40,960
3.00
153,600
51,200
3.00
192,000
64,000
3.00
240,000
80,000
3.00 CPA (Email Subscribers) $6
Cohorts:
Monthly orders
Avg. monthly orders

6,862
312
9,466
443
10,486
505
9,231
457
10,495
534
11,779
616
17,856
958
19,335
1,065
20,025
1,132
18,221
1,056
19,106
1,135
20,067
1,222
CPA (Orders, incl. repeat) $20
312 443
312
505
443
312
457
505
443
312
534
457
505
443
616
534
457
505
958
616
534
457
1,065
958
616
534
1,132
1,065
958
616
1,056
1,132
1,065
958
1,135
1,056
1,132
1,065
COS (Cost of Sales) 35%
312 443 505 457 534 616 958
312 443
312
505
443
312
457
505
443
312
534
457
505
443
616
534
457
505
COS (Cost of Sales, incl. coupon code cost) 40%
312 443
312
PAGE 137
Marketing Business Plan Actuals vs Targets Monitoring
PAGE 138
PAGE 139
PAGE 140
Engagement Model
Traditional Digital Agencies aCommerce
Remuneration Management fee % of media Classic: management & optimization

spend + CPC/CPM markup fee % of media + a la carte services
Retainer (onsite SEO, analytics, dashboards,
CRO, CRM)
Hybrid: classic + performance bonus
Performance: COGS + CPA
Partnership Relationship-based (with agency Performance-based (hitting marketing
rebates) business plan targets)
Scope of Work Top of Funnel (ToFu) media buying, ToFu, MoFu (Mid of Funnel) & BoFu
impressions, CPM, impression share (Bottom of Funnel)
Objective Driving impressions (i.e. getting client Driving sales @ positive ROI @ scale
to spend as much as possible)
Team Communications, advertising, Comms, Marketing, Business, Finance,

marketing & language majors Engineering, Math, Stats, Computer
Science majors
PAGE 141
Launch Phase
Marketing Service Details

Tracking & Analytics Set up and configure Google Analytics (incl. e-commerce tracking) via Google Tag
Manager
Set up and configure Mixpanel tracking
Implement UTM tracking in the database
Add Adwords, Facebook, and Retargeting tracking and conversion pixels
Create dashboard for day-to-day performance tracking
SEM Create master sheet with account structure, keywords and ad copies
Upload master sheet into Google Adwords
SEO Perform full site audit and create document with detailed recommendation regarding
page titles, meta descriptions, etc.
Reach out to bloggers, webmasters, and publishers for linkbuilding
Facebook Create master sheet with account structure
Create banners
Set up ads in Facebook
Retargeting (Facebook & Display) Create XML product feed and integrate into retargeting platforms
Create dynamic creatives
Email Marketing Set up and configure Campaign Monitor for marketing emails
Design and code email templates
Work with client team to implement automated trigger emails
Personalization Set up and configure TargetingMantra tags
Implement TargetingMantra personalization widgets on client site
PAGE 142
Steady-state phase cadence
Marketing Daily Weekly Monthly

Service
Tracking & Daily performance dashboard shared Weekly meeting with client to go Monthly meeting with client to
Analytics with client team over dashboard review actuals vs. target, lessons
Pull data from database and other learned, and next months action
sources for analysis items
Cohort and LTV analysis (via
Mixpanel, database)
SEM Monitoring and optimization (budget Weekly keyword re-feed (from
re-allocation, pause/unpause actual searches and new SKUs)
campaigns/keywords, adjust bids
and bidding strategies)
SEO Linkbuilding Linkbuilding Monthly SEO performance report
(ranking for keywords, inbound links,
organic orders and revenue, etc.)
Facebook Monitoring and optimization (budget Refresh ads 2-3 times a week
re-allocation, pause/unpause Creative testing
campaigns, adjust bids and bidding
strategies)
Retargeting Monitoring and optimization (budget Refresh templates once a month
(Facebook & re-allocation, pause/unpause
Display) campaigns, adjust bids and bidding
strategies)
Email Marketing Daily performance dashboard shared Design, code, and send out weekly Monthly EDM performance report to
with client team campaign marketing email review results, learnings, and action
Monitor transactional and trigger items
email performance
PAGE 143
4 Southeast Asia Ecommerce
Macro-Level Overview
Southeast Asia macroeconomic and industry landscape
SEA slated to become a top 3-4 largest ecommerce market globally
By 2025, all SEA countries will have an ecommerce market >$5 billion;
Thailand and Indonesia expected to reach $11.1 and $46 billion
Ecommerce market ($ billion)

CAGR: 32%
2015 2025
5.5 87.9
5.4
1.0 8.2
11.1
1.0
9.7
0.9 46.0 7.5
0.5
1.7 0.4
ID VN PH TH MY SG Total ID VN PH TH MY SG Total
Ecom
% of 0.6% 0.6% 0.5% 0.8% 1.1% 2.1% 0.8% 8.0% 4.7% 4.7% 5.5% 5.4% 6.7% 6.4%
retail
Source: Google x Temasek, e-conomy SEA: Unlocking the $200 billion digital opportunity in Southeast Asia
PAGE 145
However: Google-Temasek projections for SEA too conservative
Based on China benchmarks (Total Retail % of GDP and Ecom Retail Sales / Capita), Thailand ecommerce
GMV by 2025 should be at least 3x the Google-Temasek projection, i.e. $33 billion, not $11 billion.
China 2006 2016 Change Thailand 2016 2025 Change

Ecom Retail Ecom Retail
$4 $509 127x $13 $157 12x
Sales / Capita Sales / Capita
Ecom % of Ecom % of
0.3% 13.8% 46x 0.8% 5.5% 7x
Total Retail Total Retail
Total Retail % Total Retail %
48% 45% 34% 43%
of GDP of GDP
GDP / Capita $2,082 $8,236 GDP / Capita $6,230 $6,649
Ecommerce Retail Sales / Capita ($ USD) Retail Ecommerce Sales ($ billion)

3000 $2,830 3500
$3,120
$2,592
$2,375 3000
2500 $2,713
$2,175 $2,168
$1,992 2500 $2,359
2000 $1,894
$1,825
$2,052
$1,656 $1,655
$1,503 2000 $1,784
$1,446
1500 $1,296 $1,551
$1,219 $1,264
$1,087 $1,104 1500 $1,272
$959 $910
1000 $835 $1,043 $980
$734 $750 $855 $891
$644 $618 1000 $810
$552 $701 $736
$669
$454$467$476 $509 $575 $609
500 $380 $419 $494$548
$310 $310 $422 $423
$248 $218 500 $296 $306$349$394
$197 $231$264
$98$120$155 $88$145 $96$123$157 $201
$113$137$142$146$171
$196
$3 $6 $15 $30 $52 $13.2$17 $22 $28 $36 $46 $58 $75 $28 $34 $45 $57 $73 $91$3.9 $8 $19 $39 $69
$118
0 0
Thailand Indonesia China United States Thailand Indonesia China United States
Source: eMarketer, China Internet Watch, Census.gov, World Bank, Google x Temasek
PAGE 146
SEA ecommerce fragmented but consolidation will happen
Like China in 08, ecommerce market still fragmented

1-2 key players to emerge within the next 5 years
Thailand Ecommerce Google Search Interest
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004-10
2004-18
2004-26
2004-34
2004-42
2004-50
2005-14
2005-22
2005-30
2005-38
2005-46
2006-17
2006-25
2006-33
2006-41
2006-49
2007-13
2007-21
2007-29
2007-37
2007-45
2007-53
2008-17
2008-25
2008-33
2008-41
2008-49
2009-13
2009-21
2009-29
2009-37
2009-45
2009-53
2010-17
2010-25
2010-33
2010-41
2010-49
2011-13
2011-21
2011-29
2011-37
2011-45
2011-53
2012-16
2012-24
2012-32
2012-40
2012-48
2013-12
2013-20
2013-28
2013-36
2013-44
2013-52
2014-16
2014-24
2014-32
2014-40
2014-48
2015-12
2015-20
2015-28
2015-36
2015-44
2015-52
2004-2
2005-6
2006-1
2006-9
2007-5
2008-9
2009-5
2010-9
2011-5
2012-8
2013-4
2014-8
2015-4
2016-8
lazada itruemart tarad kaidee weloveshopping ensogo advice zalora jib shopat7 cdiscount moxy central online
China 2008Q1 Vancl, 0.5% China 2014Q1

Gome, 1.7% Others, 10.4%
Dangdang, 16.2% Dangdang, 2.0%
Yhd.com, 1.9%
Others, Suning.com, 2.0%
MainOne, 0.5%
7cv, 18.9%
0.8% Amazon, 2.1%
Menglu, 2.5%
Amazon/Joyo, Yixun.com, 2.6%
PPG, 2.7% 15.4% Tmall,
VIP.com, 3.0% JD.com, 50.6%
99read, 3.8% 23.3%
Redbaby, 4.6%
139shop, 8.8% 360buy, 15.0%
m18, 10.8%
Source: iResearch, Google Trends

PAGE 147
Back of the envelope calculations for Thailand ecommerce
Total market:
Lets say $1B market size today (AT Kearney / Google x Temasek)
AOV of $20 (incl. C2C transactions which are typically smaller)
$1B / 365 / $30 = 91K orders per day
B2C:
Lets say $1B market size today
50% B2C
AOV of $50 (due to more electronics/mobile phones in B2C)
$0.5B / 365 / $50 = 27K orders per day
C2C:
91K 27K = 64K orders per day
$0.5B / 365 / 64K = $21 AOV
PAGE 148
Predictions for SEA should be based on China, not global average
Source: https://www.youtube.com/watch?v=eh1c5G7gXQE
PAGE 149
Predictions for SEA should be based on China, not global average
Why did Internet e-commerce grow so much

faster in China than in the USA? Because the
infrastructure of commerce in China was bad.
Unlike here, where you have all the (physical)
shops: Wal-Mart, K-Mart, everything,
everywhere. But in China, we have nothing,
nowhere. So e-commerce in the US is just a
dessert; it's complementary to the main
business. But in China, it's the main course.
Jack Ma
Source: https://www.youtube.com/watch?v=eh1c5G7gXQE
PAGE 150
Ecommerce in SEA today is China circa 2007/08
1) Based on ecommerce penetration, SEA is 8 years behind China. However, SEA will catch up faster due to leapfrogging 5 years estimate
2) China is the model to predict SEAs ecommerce future due to similarities in the ecosystem. US/EU/Japan/Korea/Singapore not the right models
for SEA
3) There are differences though: a) SEA is more mobile-first/mobile-only than China; b) China had a headstart in terms of logistics infrastructure
due to the top-down, planned economy nature of the government; c) China made the rapid transition from COD to Alipay as preferred payment
method due to the massive distribution power of Alibaba; d) SEA is more competitive due it being an open market vs. Chinas closed market,
making it easier for foreign companies to enter SEA
China Ecommerce SEA?

China Ecommerce Penetration (% Online
Retail / Total Retail) Lack of offline retail infrastructure
(especially outside Tier 1 cities)
35%
30%
Surging domestic consumption spurred
by growth in GDP / capita
SEA today 28.6%
25%
23.8%
Major capital investment into
ecommerce businesses
20% 19.6%
Young, digitally savvy consumers
15%
12.4%
15.9% COD as dominant payment method (in
the early days)
10%
7.4%
Lack of cross-border ecommerce due
to high import duties and taxes
6.3%
5%
1.3%
2.1%
3.5%
4.4%
No-Tail ecosystem
0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Hyper-competition
Source: CNNIC, eMarketer
PAGE 151
Ecommerce in SEA today is China circa 2007/08
~5 years
Source: Euromonitor, Planet Retail, eMarketer, iResearch, Technavio, A.T. Kearney

PAGE 152
Key factors influencing ecommerce in SEA
Large addressable markets with young populations

Offline retail is underpenetrated
Rising income levels
Social media - well connected + social commerce
High-degree of mobile Internet penetration (exceeding US and China)
No-Tail ecosystem
Online payment still dominated by Cash-on-Delivery
Logistics under-developed (especially B2C)
Import duties, taxes and online prices lack of cross-border ecom
(excl. Singapore)
Open market (compared to China) hyper-competition (easier for
global entrants to enter and compete)
Private/direct equity funding more money than talent available
Source: CLSA, aCommerce

PAGE 153
Key drivers for ecommerce in SEA
Offline retail underpenetrated
Offline retail in SEA under-developed (especially outside major metropolitan

areas). Lack of offline retail legacy will enable SEA ecommerce to accelerate
at rates similar to China levels (>30-40% CAGRs)
Total store count, top 10 Total retail GFA, top 10 Total retail GFA / capita (RHS)
retailers retailers 2.5
35,000 180,000 2.2
32,473
157,631
160,000
30,000 2
140,000
25,000
120,000
1.5
20,000 100,000
15,000 80,000 1
0.8
60,000
10,000
0.5 0.5
6,415 40,000 34,666 0.5
0.3
5,000
2,178 1,804 20,000
941 0.1
847 3,999 2,698 1,736 4,702
0 0 0
Source: CLSA
PAGE 154
Income levels GDP growth
Rising GDP per capita and income levels across Southeast Asia will spur
domestic retail consumption. Similar to China, most of this will happen via
ecommerce due to lack of offline retail infrastructure.
GDP per capita ($)

$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
China Indonesia Malaysia Philippines Thailand Vietnam
Source: World Bank

PAGE 155
SEA is the only truly mobile-first region
Average Thai user has 1.4 mobile phones. Mobile phone penetration rate in
Thailand already exceeds that of developed countries like US and China.
Mobile Phone Penetration (# mobile phone subscribers / population)
160%
143%
140%
132%
120% 121%
112%
104%
100% 98%
84%
80%
64%
60%
49%
44%
40%
34%
28%
20%
0%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
US China Thailand
Source: Wikipedia, CTIA, Pew Research Center, NBTC, iimedia, ITU

PAGE 156
Mobile leapfrogging in SEA
Thailand already surpassed US and China in mobile Internet penetration in

less than 1 year after introducing 3G
Mobile Internet Penetration (# mobile Internet users / population)
60%
56%
50% 3G launched in Thailand
40%
30% 30%
20%
17%
10%
3%
0% 1%
2006 2007 2008 2009 2010 2011 2012 2013
US China Thailand
Source: Wikipedia, CTIA, Pew Research Center, NBTC, iimedia, ITU, CNNIC, Nielsen, eMarketer, NSO, AIS, dtac, TRUE
PAGE 157
High mobile Internet penetration driving mobile commerce
1) Mobile phone usage for shopping and research exceeding that of developed countries in SEA
like Singapore and Malaysia (urban areas)
2) Access to the rural and rapidly emerging consumer base 85% mobile commerce penetration
in non-urban Thailand; 79% in non-urban Indonesia
Source: Bain & Company

PAGE 158
Lazada getting over 50% of traffic from mobile only
Source: Lazada Group Investor Report

PAGE 159
No-Tail ecosystem
Thailand (and rest of SEA ex. Singapore and Malaysia) skipped Web 1.0/1.5 and
leapfrogged straight into Web 2.0. As a result, long-tail content creation nowadays is
mainly happening on closed, social media platforms like Facebook and Instagram
instead of blogs and websites. As a result, well see accelerated development and
proliferance of ecommerce and other non-ad based business models in SEA.
Internet penetration as % of population

90% Web 2.0
Social Media
80% Web 1.5
Self-Publishing/Blogging/UGC
70%
US: 75%
60% TH: 20%
US: 61.7% ID: 5.8%
50% Web 1.0
Homepages TH: 9.3%
40% ID: 2.4%
30%
US: 30.1%
20%
TH: 1.1%
10% ID: 0.3%
0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
US China Thailand Indonesia
Source: World Bank, Tech in Asia, Techcrunch

PAGE 160
No-Tail ecosystem implications
Relatively simple ad tech environment

Affiliate marketing still nascent
Demand-side platform (DSP) market still nascent
Accelerated development and proliferance of e-
commerce and other non-ad based business
models
Traditional digital agencies scope reduced to
executing global contracts and buying offline media
(in US, these agencies still have a role to play due
to complicated ad tech environment)
PAGE 161
Logistics under-developed
SEA ecommerce growth is highly dependent on fixing logistics and payments
LPI
Germany 4.12
Singapore 4
United States 3.92
Malaysia 3.59
China 3.53
Thailand 3.43
Vietnam 3.15
India 3.08
Indonesia 3.08
Philippines 3
Somalia 1.77
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Source: World Bank Logistics Performance Index 2014

PAGE 162
Import duties and taxes lack of cross-border ecom (excl. Singapore)
1) Singapore is the outlier in SEA majority of transactions are cross-border, not domestic
ecommerce. Cross-border ecommerce driven by zero or low custom duties
2) SEA (excl. Singapore) mainly domestic (local leaders) and fragmented. AEC, while great on
paper, wont move the needle in intra-SEA cross-border ecommerce
Source: Bain & Company

PAGE 163
Private/direct equity funding
1) Tech investments in SEA on the rise peaking at 1.6 billion in 2015

2) Given hypergrowth projections, majority of Asia and SEA investments going into ecommerce,
with notable names such as Lazada, Tokopedia, and MatahariMall in SEA
2015 Asia VC funding by Tech investments in SEA 5 top startup investment

vertical ($billion) ($million) categories in SEA ($million)
$18 $1,800 $700
$16 $1,600 $600
$14 $500
$1,400
$12 $400
$1,200
$10 $300
$1,000
$8 $200
$800
$6 $100
$600
$4 $0
$2 $400
$0 $200
$0
2010 2011 2012 2013 2014 2015 2014 2015
Source: Tech in Asia

PAGE 164
Ecommerce in Thailand
Key players Traffic
1) Overall, Lazada leads the pack among all types of ecommerce players
2) Among C2C platforms, Kaidee beats WeLoveShopping and Tarad
3) iTruemart (now WeMall) #2 in B2C but big gap between #1 (Lazada) and #2
4) Zalora biggest loser in terms of traffic loss over the last 6 months
Traffic sessions to top ecommerce sites in Thailand (excluding mobile app only ecommerce
players e.g. Shopee and Line Shop)
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
2015-9 2015-10 2015-11 2015-12 2016-1 2016-2
Source: SimilarWeb Pro; excluding mobile app only ecommerce players e.g. Shopee and Line Shop
PAGE 165
Key players Search interest
Thailand ecommerce market has become more fragmented with new entrants coming in over time
and challenging incumbents. Based on search interest, Lazada is the clear market leader
Google Search Interest

100%
itruemart moxy
90%
cdiscount shopat7
jib
80% zalora
70%
60%
kaidee
50%
col
40%
advice
ensogo
30%
20%
weloveshopping
lazada
10%
tarad
0%
2012-24
2013-27
2014-30
2015-33
2004-2
2004-13
2004-24
2004-35
2004-46
2005-5
2005-16
2005-27
2005-38
2005-49
2006-7
2006-18
2006-29
2006-40
2006-51
2007-10
2007-21
2007-32
2007-43
2008-2
2008-13
2008-24
2008-35
2008-46
2009-5
2009-16
2009-27
2009-38
2009-49
2010-8
2010-19
2010-30
2010-41
2010-52
2011-11
2011-22
2011-33
2011-44
2012-2
2012-13
2012-35
2012-46
2013-5
2013-16
2013-38
2013-49
2014-8
2014-19
2014-41
2014-52
2015-11
2015-22
2015-44
2016-3
2016-14
lazada itruemart tarad kaidee weloveshopping ensogo advice zalora jib shopat7 cdiscount moxy central online
Source: Google Trends
PAGE 166
Lazada dominates all ecommerce traffic (34%) and B2C (61%)
Lazada, the Rocket Internet-backed venture, has leveraged its first mover advantage
and $710 million war chest to propel itself to a #1 position in Thailand
% of Total Ecommerce Traffic (excl. Mobile % of Total B2C Ecommerce Traffic (excl.
App) Mobile App)
Lazada.co.th 34% Lazada.co.th 61%

Kaidee.com 20%
iTruemart.com 13%
WeLoveShopping.com 13%
Tarad.com 7% Advice.co.th 6%
iTruemart.com 7%
Zalora.co.th 5%
Ensogo.co.th 4%
Advice.co.th 4% Central.co.th 4%
Zalora.co.th 3% Munkonggadget.com 3%
Central.co.th 2%
Jib.co.th 3%
Munkonggadget.com 2%
Jib.co.th 2% ShopAt7.com 2%
ShopAt7.com 1%
Cdiscount.co.th 2%
Cdiscount.co.th 1%
Moxy.co.th 1% Moxy.co.th 1%
0% 5% 10% 15% 20% 25% 30% 35% 40% 0% 10% 20% 30% 40% 50% 60% 70%
Source: Crunchbase, SimilarWeb Pro; excluding mobile app only ecommerce players e.g. Shopee and Line Shop
PAGE 167
What do people buy online?
1) Home & Living, Automotive and Food & Beverage are Top 3 for In-Store purchase
2) Typically, in early stages of ecommerce development consumers buy commodities (i.e. products easily
comparable such as mobile phones and electronics) and low price-point items such as fashion & apparel.
China went through the same phases and Thailand is going through the same now
3) Home & Living, despite online supply from players like Index and SB Furniture, struggles with the complexities
of fulfillment and logistics due to its bulky and heavy product nature
Online shopping categories bought in-store vs. online

120%
100%
9% 16%
30% 32% 37%
80% 43% 47%
58%
60%
91% 84%
40%
70% 68% 63% 57% 53%
20% 42%
0%
Home & Living Automotive Food & Electronics Books Health & Fashion & Travel Services
Beverage Beauty Apparel
In-Store Online
Source: ecommerceIQ
PAGE 168
Why do people buy online?
1) Convenience & choice are key driving forces for Thai online shoppers
2) Not a price war: Choice and convenience matter (Bain & Company: Can Southeast Asia Live
Up to Its E-commerce Potential?)
Top reasons why people buy online in Thailand (% of survey respondents)

40% 38%
35%
30% 28%
25%
22%
20%
15%
12%
10%
5%
0%
Convenience Selection Price I don't shop online
Source: ecommerceIQ, Bain & Company

PAGE 169
Social commerce (unique to SEA excl. SG and MY)
Buying and selling on social media platforms is big in Thailand. Based on a survey
done in Bangkok by ecommerceIQ, 48% of respondents indicated to have purchased
something on Facebook, Instagram, and LINE in the last 3 months.
% of total responses
Facebook 23%
Instagram 19%
LINE 16%
Lazada 16%
Other (please specify) 7%
Rakuten 6%
Zalora 6%
Central Online 5%
Moxy 2%
Cdiscount 1%
Source: ecommerceIQ
PAGE 170
1/3 of Thailand ecommerce GMV estimated from social platforms
Lazada isnt Thailands biggest ecommerce platform; Facebook and Instagram are.
An estimated 1/3 of total Thailand ecommerce GMV comes from transactions on
shadow marketplaces Instagram, Facebook, and LINE
Source: AT Kearney, Tech in Asia, aCommerce internal data

PAGE 171
Visit Instagram shop Browse products Inquire about product via LINE
PAGE 172
Get payment details Confirm payment Ship & track order
PAGE 173
LINE jumping on the social commerce bandwagon
LINE launched its Flash Sale product in Q4, 2013, its first B2C ecommerce pilot globally due to the
popularity of LINE and social commerce in general in Thailand. LINE partnered with aCommerce
for this project and sold a variety of products from LOreal cosmetics to LINE merchandise to
offline vouchers.
Source: Tech in Asia, LINE, aCommerce

PAGE 174
Following up on its Flash Sale success, LINE launched a grocery shopping and
delivery project, partnering up with aCommerce again for fulfillment and logistics.
Source: Techcrunch
PAGE 175
Following up on its Flash Sale success, LINE launched a grocery shopping and
delivery project, partnering up with aCommerce again for fulfillment and logistics.
Source: Techcrunch
PAGE 176
A peek into the future Thai college students homescreen
1) No commerce apps all buying and selling done inside Instagram, Facebook, and LINE
2) No Google apps direct discovery through apps; less searching on mobile (web)
PAGE 177
Future of Ecommerce in Thailand
Stages of development for ecommerce
1) All markets typically go through the same stages of ecommerce development, moving from classifieds to C2C to B2B2C and brand.com. The
difference between Thailand (and SEA) vs. mature ecommerce markets like US and China is that the timeline is much more compressed here
i.e. everything is happening in a much shorter period (and sometimes all at once)
2) Being a truly mobile-first market, traditional business models are moving much faster to mobile. For example, Shopee, a mobile-only C2C
marketplace by Garena is rapidly eclipsing traditional desktop C2C platforms like Tarad and WeLoveShopping.
3) In China, brands progressed from selling via Tmall as a stepping stone towards operating their own brand.com site. In Thailand, we see
brands doing both at the same time, selling via Lazada as well as their brand.com stores. This is driven by technology making it much easier
to sell through different channels but also by the high degree of fragmentation in the ecommerce market (consolidation happening soon
though).
4) Other leapfrogging happening is the accelerated move towards B2B2C (3P vs. 1P) with Lazada getting over 70% of GMV from third-party
marketplace sellers vs. Amazons 59%
Classifieds
US: C2C
Craigslist
US: B2C
China: eBay
Ganji, 58
US: B2B2C
China: Amazon (41%),
Thailand:
OLX/Kaidee
Taobao Shopbop US: Brand.com
Thailand: Amazon (59%)
China:
Tarad, JD.com US:
WeLoveShopping, China: Estee Lauder, Dell,
Shopee, LINE Shop Tmall (100%), JD Nike, Under Armour
Thailand:
iTruemart, Central Thailand:
Online, Cdiscount, China:
Lazada (70%) Lancome, Estee
Sephora, Lazada
(30%), Zalora Lauder, Dell, Nike
Thailand:
Maybelline, Kiehls,
Estee Lauder, Adidas
Source: ChannelAdvisor, aCommerce

PAGE 178
Stages of development for ecommerce Ecommerce 1.0 vs. 2.0
Andy Dunn, Founder & Chairman of Bonobos.com:
On Ecommerce 1.0:
If youre selling other peoples brands, you are competing not via a local group of competitors but with
everyone. In this type of market, you might imagine having one large national winner. You might imagine that
winner is ruthless about scale and cost, and is run by a visionary leader who with an extreme long-term
focus. Such a company might not make real money for a long time but when it does it will be incredibly
powerful.
On Ecommerce 2.0:
When I got to New York in 2007 as founding CEO of Bonobos, many people asked me if Id heard of Gilt
Groupe. I said no. Next thing I knew they had five hundred employees. Their rise is well documented as
theyre one of the largest e-commerce 2.0 players in the US.
Source: https://medium.com/@dunn/e-commerce-is-a-bear-d233f02d52a5#.3nbomul3e
PAGE 179
Ecommerce 1.0
Competitive advantage:
Economies of scale
Long-term focus (losses
in short-term)
Acquire competitors that
are a threat
Exceptional loyalty
program to lock
customers in
Deep pockets / lots of
funding
PAGE 180
Ecommerce 2.0
Competitive advantage:
Proprietary pricing
Proprietary selection
Proprietary experience
Proprietary merchandise
PAGE 181
Ecommerce 2.0 in Thailand & Indonesia Proprietary Merchandise
Founded by the ex-Thailand Lazada founding team, Pomelo Fashion is one of the first Ecommerce 2.0
companies in Southeast Asia. Rather than selling other brands products with low margins, Pomelo Fashion
has taken a M2C/D2C (Manufacture/Direct-to-Consumer) approach, focusing on building its own fashion
brand and vertically integrating its supply chain, going as far as manufacturing its own clothing and apparel.
Traffic sessions to Pomelo Fashion

800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
2015-9 2015-10 2015-11 2015-12 2016-1 2016-2

PAGE 182
Ecommerce 2.0 in Thailand & Indonesia Proprietary Merchandise
Inspired by Warby Parkers success in the US, Glazziq.com and FrancNobel.com are applying the
proprietary merchandise model in the eyewear space in Thailand and Indonesia, respectively. Glazziq
adds a local spin by positioning itself as prescription eyewear for Asians.
PAGE 183
Ecommerce 2.0 in Thailand Proprietary Selection
Motif Official is a fashion retailer based in Bangkok focusing on proprietary merchandise and selection.
Their Motif Official label is designed and manufactured in-house. For their Motif Select range, they select
and curate minimalist brands from across the world. Motifs ecommerce strategy eerily resembles that of
Nasty Gal in the US, where founder Sophia Amoruso started the business in 2006 by curating vintage
clothing sourced from second hand stores.
Following pure play ecommerce companies in the US like Warby Parker and Birchbox who went offline to
augment their brand, Motif also operates physical stores in Central World and Siam Discovery in the heart
of Bangkok.
PAGE 184
Future of Ecommerce in SEA
Ecom 2.0 still early in SEA, but it WILL happen
Global SEA
Ecom 1.0 (generic) Amazon, Tmall, JD.com Lazada, MatahariMall,
Central.co.th, iTruemart,
Cdiscount, Sephora, Shopee,
Line Shop
Ecom 1.0 (mid- high-end Shopbop, ASOS Zalora

fashion)
Ecom 2.0:
Proprietary pricing Gilt, Zulily, One Kings Lane, Ensogo, Groupon
Ideeli, Mogujie
Proprietary selection ModCloth, Nastygal Motif Official, Orami (Moxy)
Proprietary experience Birchbox, ShoeDazzle
Proprietary merchandise Bonobos, Warby Parker, Pomelo Fashion, Glazziq,

Dollar Shave Club Franc Nobel, Sale Stock
Source: SimilarWeb Pro; Note: Groupon and Ensogo both shut down or sold in SEA
PAGE 185
2016-2020 predictions
Prediction Why? Examples / Pioneers
1. Brand.com Is Poised To Be The New The evolution of e-commerce commonly follows the trajectory of P2P and C2C to B2C to eventually Brand.com. The U.S. went from Craigslist Estee Lauder, LOreal, Adidas
Black and eBay to Amazon to brand sites like Nike, J.Crew and Gap. China went from Taobao to Tmall and JD to the many standalone and
marketplace brand sites, like Estee Lauder, Burberry and Coach. Todays Southeast Asia is following a similar pattern, yet at a much faster
pace due to 1 to n, horizontal progress and the resulting leapfrogging behavior. In our region, we have P2P (OLX), C2C (Rakuten, Tokopedia,
Shopee), B2C (Lazada, Zalora, MatahariMall) and Brand.com (LOreal, Estee Lauder) all happening at once within a very short time frame.
2. Omni-Channel Awakens: There Will Be Traditional offline retailers like Central and Big C have a leg up vs. ecommerce pure players due to the existing offline footprint already Central Online, Big C, MatahariMall
No More E-Commerce, Only Commerce available. These assets can be used for O2O commerce e.g. pick up in store, pay in store, order in store/delivery at home, etc. Also, having (Indonesia), Nguyen Kim (Vietnam)
this infrastructure enables these players to fulfill and deliver much faster than pure players as stores are the new fulfilment centers.
3. Niche-Commerce Models Will Evolve With B2C ecommerce being a winner-takes-all game, new entrants looking for opportunities will have to find them in emerging Ecommerce Pomelo Fashion, Sale Stock Indonesia
To Avoid The B2C Bloodbath 2.0 models. (Indonesia)
4. Cross-Border E-Commerce Will Be Despite all the media hype and lofty expectations, the ASEAN Economic Community (AEC) will not have a significant impact on e-commerce in Alibaba, JD, merchants selling on
Driven By Silk Road 2.0, Not AEC 2016. Facebook and Instagram who source
their products from China
Governments are too fragmented on policy; coupled with the immediate growth opportunity within the domestic markets, it doesnt make
sense to focus on cross-border within ASEAN, as evidenced by companies such as Lazada and MatahariMall doubling-down on Indonesias e-
commerce opportunity.
Cross-border e-commerce in 2016 will be driven mainly by what we call Silk Road 2.0. These are Greater China-based companies that will
bring their products into Southeast Asia, laying the foundation for our generations version of the Silk Road and attempting to expand Chinas
soft power and hegemony through commerce and digital.
5. Payments: COD Will Continue Its Reign The next double-digit billion dollar opportunity in Southeast Asia e-commerce is the third-party online payment space. US has PayPal and Lazada, aCommerce
While Third-Party Payments Struggle China has AliPay; what does Southeast Asia have?
Contrary to what many people believe, building a successful payment product isnt about technology, its about distribution. Payment
technology is a commodity; everyones building the same thing, including banks (SCB UP2ME), telcos (TrueMoney, PAYSBUY), media (LINE
Pay, AirPay by Garena), retailers (helloPay by Lazada) and payment-focused startups (2C2P, Omise).
The hard part is distribution. How do you reach critical mass in order to cruise off network effects? Until this happens, COD will remain the
dominant payment method in Southeast Asia. Based on aCommerces latest aggregated numbers, COD made up 74 percent of transactions in
Southeast Asia, up from 53 percent the year prior. This validates the importance of COD to e-commerce in our region, and already exceeds
the COD penetration rate at the height of its popularity in China back in 2008.
Eventually, COD will naturally reach its shelf life and be replaced by a modern third-party online payment product. Even then, the most
likely scenario will be one leading payment product per country in Southeast Asia due to the region being fragmented.
6. The Fizzle Of Fast Fashion E-Tailers Well see mass, fast-fashion players like Zalora struggle and either fizzle out or be rolled into cousin Lazada. People familiar with the history Zalora
of e-commerce in China will see similarities between Zalora and VANCL. VANCL, a mono-brand fast-fashion retailer founded by Chen Nian
(who sold his previous business, Joyo, to Amazon), rose to prominence in 2009, raised up to $570 million and even planned for an IPO, but
then gradually faded away. Selling your own fashion products is less about retail economics and much more about brand building.
In addition, VANCL suffered from competition from Taobao merchants who sold similar products for higher quality at lower prices. Replace
Taobao with Instagram and Facebook and youll understand the pain that Zalora and other mono-brand, mass-fashion retailers are going
through in Southeast Asia.
Source: Techcrunch, Tech in Asia

PAGE 186
7. New Channels Will Emerge To Unfortunately for e-commerce players in our market, the range of channels available is quite limited due to historical and socio-economic Priceza, ShopSmart, Shopback
Challenge Google And Facebooks factors unique to Southeast Asia. The appearance of a no-tail landscape in terms of publishers severely hampers the effectiveness of
Dark Side traditional tools, such as affiliate marketing and programmatic display.
In Southeast Asia, players are already exhausting the usual suspect channels, such as Google Search, Facebook and Criteo, with the result
being CPCs rising to all-time highs and companies tapping into offline marketing to seek better returns. This is Andrew Chens Law of Shitty
Clickthroughs in full effect.
Companies and savvy entrepreneurs will start addressing this gap by designing and building new demand-generation platforms to offer an
alternative to the Googles and Facebooks out there. Expect to see more e-commerce firms adding channels such as price comparison, coupon
sites and cash-back sites, as well as innovative affiliate marketing solutions to balance their media mix.
8.The Battle For The Last Mile Companies like Lazada (LEX), MatahariMall and aCommerce are investing in building out their own delivery fleet in order to help relieve the Lazada Express, aCommerce, MatahariMall
Continues As 3PLs Fail To Adapt industry-wide capacity issues and serve the anticipated record-breaking transaction volume. The pressure will only become bigger in 2016 as (Indonesia)
transaction volume is expected to hit record highs in Southeast Asia.
Challenges with last-mile delivery in Southeast Asia, if not addressed properly, will become the biggest bottleneck to e-commerce growth in the
region. The industry is currently witnessing industry-wide capacity bottlenecks beyond what the JNEs, Kerry Logistics and DHLs of this world are
able to handle.
Part of this is the poor infrastructure to begin with. China, the worlds largest e-commerce market, never really had this issue because of the
socialist and central government mindset of prioritizing infrastructure investments. By the time e-commerce took off, the infrastructure was
already there, which resulted in last-mile delivery becoming a commodity service.
Also, many existing delivery companies were never built for B2C deliveries to begin with. Their core competencies are in B2B deliveries, which
typically dont face B2C headaches, like returns management, reverse logistics, pre-calling, multiple delivery attempts and cash on delivery.
9. Channel Management Will Be The real programmatic opportunity in Southeast Asia will be in e-commerce, not in display advertising. With the advent and fragmentation of Branch8, aCommerce
The New Programmatic Ad online marketplaces, the challenge for brands will be to choose on which channels to be present and what products to push in each of these
Agencies Still Stuck In 2011 channels.
Business of Fashion predicts a near future where the retailer/vendor relationship will begin to look a lot more like a media buy than the
wholesale product purchase agreement of today. Physical stores have the potential to be the most powerful and effective form of media
available to a brand because it offers an experience, which if crafted properly, cannot be replicated online.
10. The Talent War Will Inflate One of the biggest issues faced by all e-commerce players in Southeast Asia is the lack of talent. In 2015, it was common to see employees being
Salaries Faster Than Ubers poached left and right with new salaries of 1.5-3x. Obviously, this isnt sustainable, but it is the current foundation of the talent war in Southeast
Valuation Asia.
Source: Techcrunch, Tech in Asia, Business of Fashion

PAGE 187
11. B2C Bloodbath Will Drive Retail B2C is a winner-takes-all market. Players with the most long-term view and deepest pockets will survive. In US and China, B2C ecommerce WhatsNew (Petloft, Venbi, Sanoga,
Consolidation has boiled down to a 1-2 player game (Amazon, JD, Tmall). SEA and Thailand are still fragmented but well expect to see 1-2 clear leaders to Lafema) acquiring Moxy
emerge over the next five years as funding runs out for B2C and investors will look for returns, not growth. Moxy merging with Indonesias Bilna to
become Orami
Cdiscount sold to BJC (Asiabooks,
Berlivery)
Zalora Thailand and Vietnam sold to
Thailands Central Group
12. C2C game will shift towards Traditional C2C platforms like Tarad and WeLoveShopping have been running out of steam as they missed the shift towards mobile. With an Shopee, Line Shop, Carousell (Singapore,
mobile, leaving behind traditional estimated 1/3 of total Thailand ecommerce GMV happening on Instagram and Facebook, and supported by LINE messaging, Thai users have Indonesia)
C2C platforms become accustomed to buying and selling on mobile. Mobile-only C2C platforms like Shopee and Line Shop have leveraged this opportunity to
stake their claims and take C2C marketshare away from the desktop only platforms.
Source: Techcrunch, Tech in Asia

PAGE 188
Contact
Thank You!
Sheji Ho
Group CMO
Email: sheji@acommerce.asia
Mobile: +66 9 2596 5656
Skype: sheji_ho
Address: 33rd Floor, 689 Bhiraj Tower

Sukhumvit Road, Bangkok 10110, Thailand
Thailand Philippines Indonesia Singapore

33rd Floor, 689 Bhiraj Tower Bldg 1A Rey Marketing Compound PT Acommerce Solusi Lestari Sahid 74B Duxton Road
Sukhumvit Road, Bangkok 10110, C. Raymundo Ave, Pasig, 1609 Sudirman Center lantai 17 A Jl Jend Singapore 089533
Thailand Metro Manila, Philippines Sudirman no 86 Jakarta Pusat 10220
PAGE 189

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These people bought and sold a ton

By the time people understood how

120m transactions per day (vs. 170m

Yue Bao: biggest mutual fund in China in

Zhaocai Bao: P2P lending platform with

Small business lending services

Sesame Credit: credit-scoring related

+2,262% -13% +64% -35% 0% +121%

Source: Yahoo Finance

Amazon, meanwhile, is transitioning to a new model

Tesla UBER Xiaomi AirBnB

Ant Finance Zhongan The Honest Co. Dollar Shave Club

AWS and Amazon itself, having both normalized e-commerce amongst

Revenues Monthly Visits Media Mix

Source: SimilarWeb Pro, Forbes, Privco

Yurun Group Ltd is the second-largest

Tmall Flagship Store

239 sold this month to date

Demand Generation Demand Fulfillment

Product Sales &

Educate Acquire Activate Engage Convert Monetize

Event marketing Free Sampling Free Sampling Betagro.com Retail partners

+ Facebook Ads + Google Paid + Betagro.com + Betagro.com Criteo + Betagro

Acquire Activate Engage Convert Monetize

Content Marketing Ecommerce

Acquire Activate Engage Convert Monetize

Content Marketing Ecommerce

Technical Content Backlinks Social Signals

Product Content Shared

Page Titles SEO Footers

Content Marketing Case Study: Headlines by ShopSmart.xyz

Headlines Shopping Guide &

Content Marketing Case Study: Headlines by ShopSmart.xyz

Acquire Activate Engage Convert Monetize

Content Marketing Ecommerce

Example ad account structure. List not exhaustive

Betagro Deli Wing Gyoza DognJoy CPF Chicken FamilyMart Dairy

Betagro Shop Drumstick Sausage Saha Farms Healthy Big C Bakery

Breast Popcorn TGM 7-11 Beverages

Egg S&P Desserts

Landing Page Checker Remarketing lists

SEM AdWords Script

1st month 3rd month Next step

Cost per click of ads with high CTR is

Acquire Activate Engage Convert Monetize

Content Marketing Ecommerce

Competitors Competitors Website Visitors

Betagro Society Betagro Socienty Email Subscribers Website Visitors

Interest Targeting Interest Targeting

Acquire Activate Engage Convert Monetize

Content Marketing Ecommerce

Acquire Activate Engage Convert Monetize

Content Marketing Ecommerce

Email = #1 revenue driver for ecommerce

EDM 24% EDM 2.17% Direct 332

SEM 21% Referral 1.10% SEM 237

Price Comparison 11% Price Comparison 0.66% SEO 217

Price Comparison $11

Direct 11% SEO 0.57% Referral 167

Acquire Activate Engage Convert Monetize

Content Marketing Ecommerce