e-commerce and m-commerce€¦ · e-commerce growing fast… 304,1 347,3 392,5 440,4 491,5 2014...

E-COMMERCE AND M-COMMERCE

Pedro Pinto

53% 69% 63%

SONAE INDÚSTRIA SONAE CAPITAL SONAE

CORE BUSINESSES CORE PARTNERSHIPS RELATED BUSINESSES

Telco

NOS Specialised

Retail

SONAE SR Retail

Properties

SONAE RP Investment

Management

SONAE IM Shopping Centres

SONAE SIERRA

100% 100% 100% 16% to 89.9% 50% 24.4% (*)

Food Retail

SONAE MC

EFANOR

Sonae…

67* COUNTRIES

International presence…

82 BRANDS

92,000 PRODUCTS

Sonae is a house of brands…

Sonae MC…

E-Commerce growing fast…

304,1

347,3

392,5

440,4

491,5

2014 2015 2016 2017 2018

U.S. E-Commerce Sales, 2014-2018 (in billions USD)

166,4

185,9

206,7

227,5

248,3

2013 2014 2015 2016 2017

WEurope E-Commerce Sales, 2013-2017 (in billions USD

Source: Internet Retailer

CAGR

+13% CAGR

+11%

E-Commerce growing fast…

6,3% 7,3%

8,5% 9,8%

10,6%

2011 2012 2013 2014 2015

E-commerce Share of Total U.S. Retail Sales 2011-2015 (%)

Online Channel Share, 2014-2018 (%)

Source: Internet Retailer; Forrester Research

6,3% 6,9%

7,3% 7,8% 8,2%

2014 2015 2016 2017 2018

Leveraging in the growth of digital…

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Internet Users Worlwide (2000-2016)

Investment in Advertising in USA in % (2014-2020)

2014 2015 2016 2017 2018 2019 2020

TV 39,1 37,7 36,8 35,8 34,8 33,7 32,9

Digital 28,3 32,6 35,8 38,4 40,8 43,1 44,9

Imprensa 17,4 15,4 13,9 12,9 12,2 11,6 11,1

Radio 8,4 7,8 7,4 7.0 6,7 6,4 6,1

Exterior 4,0 4,9 3,9 3,8 3,7 3,5 3,4

Outros 2,8 2,5 2,2 2,0 1,9 1,7 1,6

For the first time, in 2017, advertising investments in digital will surpasse the TV.

Impacting the retail structure…

3,5%

9,5% 7,2% 7,7%

1,8%

-2,8%

6,8%

-0,8%

4,7% 3,8% 2,7%

25,8%

Wal-Mart Costco The Kroger Schwarz Tesco Carrefour Aldi Metro The HomeDepot

Walgreens Target Amazon.com

Top 12 Retailers CAGR 2009 - 2014

Impacting the retail structure…

Ranking 2011 Banner Sales (USD

bn)

Ranking 2020

(forecast)

Banner Sales (USD

bn)

1 Walmart 483 Walmart 602

2 Carrefour 150 Amazon 211

3 Tesco 116 Walgreens Boots

Alliance 156

4 AEON 108 Costco 153

5 Metro Group 106 Carrefour 146

6 Seven & l 99 Kroger 140

7 Schwarz Group 98 Schwarz Group 135

8 Kroger 94 Seven & l

133

9 Costco 94 2015: 5º Amazon Aldi

115

10 Casino 86 Tesco

108

Impacting the retail structure…

May 2015

Still with differences between categories…

1% 2% 2% 2% 3% 3% 3%

6% 7%

11% 11% 12%

14% 14%

16% 27% 27%

32% 33%

37% 38%

48% 58%

Other

Jewelry/watches

Alcohol

Garden, tools & home improvement

Health products

Food & drink

Beauty & cosmetics

Sports equipment

Footwear

Household goods and furniture

Household appliances

Clothing

Car parts

Toys

Baby equipment

Consumer electronics

Books

Event tickets

Computer peripherals

Computer software and video games

Computers

Videos & DVDs

Music

Online Share by Category (Europe) (2015F) (%)

Source: Forrester Research

Adding more value…

Volume Share (%)

Value Share (%)

ONLINE MULTI CHANNEL PHYSICAL STORE

28%

39% More value in multi channel

shopper

Both online and offline…

ROPO

Source: Google

Going Mobile

11%

23% 32%

44%

51%

89%

77% 68%

56%

49%

2011 2012 2013 2014 Aug 2014

Mobile Non-Mobile

% Traffic for top Retailers

Source: Internet Retailer (Branding Brand Sept 2014)

Going Mobile

Source: Internet Retailer (Branding Brand Sept 2014)

56,67

88,53

123,13

151,11

178,27

208,58

242,08

19%

26%

32% 35% 37% 39% 41%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 %

0

50

100

150

200

250

300

2014 2015 2016 2017 2018 2019 2020

M-Commerce Sales (billions) % Ecommerce Sales

U.S. Retail M-Commerce Sales, 2014-2020 (in billions USD)

M-commerce sales will represent 41% of e-commerce in

2020

Going Mobile

Revenue percentage from sales channel for survey US and UK retailers

2011 % 2015 (E) % 2017 (E) %

Brick & Mortar Stores 89,5 81,3 76,5

E-Commerce 6,9 12,1 14,6

Mail Order 0,5 0,4 0,3

Call Center 1,2 0,7 0,7

M-Commerce 1,0 4,1 6,5 Social Commerce 0,2 0,7 0,8

Other Channels 0,7 0,7 0,7

+21%

-6%

+59%

Source: Gartner;

E-Commerce in Portugal?

2012 2013 2014 2015F 2016F 2017F 2018F

Portugal Online Retail Sales 2013-2018 (in millions EUR)

Source: Forrester Research;

CAGR

+15%

53

81 79 78 73 71 71 71

65

42

31

EU-2

8

Un

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De

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ark

Luxe

nb

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Ge

rma

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Ne

the

rla

nd

s

Fin

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Swe

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Fran

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Spai

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(…)

Po

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(…)

Proportion of individuals who purchase online within the last 12 months (%)

E-Commerce in Portugal?

Source: Forrester Reserach

0,2%

0,5%

0,8%

0,5%

1,2%

0,2%

0,4%

1,7%

6,7%

5,8%

1,4%

1,9%

2,5%

2,7%

5,6%

14,8%

32,5%

21,2%

21,4%

11,0%

12,9%

19,9%

31,5%

1,6%

2,2%

4,1%

4,4%

5,1%

9,8%

10,3%

13,0%

15,9%

16,3%

16,5%

17,5%

20,9%

20,9%

25,8%

31,5%

35,9%

36,9%

40,2%

41,0%

44,7%

59,8%

63,7%

Other

Jewelry/watches

Alcohol

Garden, tools & home improvement

Beauty & cosmetics

Health products

Food & drink

Sports equipment

Car parts

Toys

Footwear

Household appliances

Clothing

Household goods and furniture

Baby equipment

Consumer electronics

Computer software and video games

Computer peripherals

Computers

Event tickets

Books

Videos & DVDs

Music

UK PT

Online Share by Category (PT vs UK) (2015F) (%)

Still oportunities to grow in multiple

categories.

E-Commerce in Portugal?

2011 2012 2013 2014 2015

Mobile Internet Retailing 2010-2015 (in millions EUR)

Source: Euromonitor

CAGR

+62%

E-Commerce in Sonae MC…

15 years +30 k SKUs Marketplace (Wells Store – health and beauty) Product information Theme Pages Search based Shopping Lists Online leaflets and catalogues

E-Commerce in Sonae MC…

What do we provide to our

clients?

What does the new customer

want?

The new customer…

Urban

By 2050, 66% of world population will be urban

Older

The proportion of persons aged 60 or

over will double between 2017 and 2050

Lonier

Household sizes and birth rates

decreasing

Time Constrain

Connected

By 2018 half of the world population will

use a smartphone

Source: Planet Retail

Time

Constrained Connected

E-Commerce in Continente

Convenience to order with “The EntregaZero”

Delivery pass to remove the

delivery fee barrier and to promote

frequency…

PVP = 26,90 € 4 Months of free deliveries (orders > 25 €) In all marketplace continente.pt

Convenience to order with “The EntregaZero”

…and with exclusive

benefits and promotions.

Convenience in delivery…

Despite the 2 hour slot to schedule a

delivery, the customer receives an SMS with the 30 min

period where the delivery will occur.

Convenience through personalisation …

Information of personal discount coupons available

at login and the ability to select

them at checkout.

AnyTime, AnyWhere with “Click&Go”

Click & Collect inside the store or drive thru.

AnyTime, AnyWhere with “Click&Go”

Click & Collect

anywhere with collection points where they are

more convenient:

• Petrol stations • Railway Stations • Corporate Parks

M-Commerce APP

M-Commerce APP

Steadily increasing penetration since launch.

APP Listas

APP that allows the customer to add products to online cart by reading the bar codes in the packages.

APP Listas

APP Cartão Continente

In store experience…

Without constrains…

ATAWAD in a seamless way…

Customer journeys are getting more complex…

Finds the product.

Goes to the phisycal store to try the

product.

Picks Up the produt in the store.

Not happy with the product he returns it in

the store.

Goes to website to know more.

Goes to the brick&mortar to

try.

Buys in the m-commerce APP

and chooses click & collect.

Picks Up in store.

Calls for advice.

Returns it in the store.

A possible customer journey…and usually not that linear…

And its happening now…

Multi-Channel experiences are a

reality…

Source: Google

SINGLE CHANNEL

MULTI CHANNEL

OMNICHANNEL

One single touch point with the customer.

Customer sees multiple touch points but they

act independently.

Customer has a seamless experience in all touch points experiencing then as a unique

brand experience. The touch point is the brand not the channel.

HOW?

• LEVERAGING ON MOBILE

• BLUR THE BORDERS BETWEEN CHANNELS

• KNOWING THE CUSTOMER

New paradigms of convenience emerge….

New paradigms of convenience emerge…

New changes in the business…

Amazon opening a brick and mortar store.

Alternative business models.

Unexpected players joining the market

Wrapping Up…

• E-Commerce is growing rapidly and will

continue to grow. • The growth of E-Commerce is changing

the structure of retail. • M-Commerce also growing and

becoming an important part of the digital business.

• Portugal: online sales also growing as global retail sales growth slows down but still oportunities to grow in multiple categories.

• Omnichannel experiences change the customer journey.

• Customers looking for convenience in multiple dimensions: ...to order ...to pick up ...to use ...because its tailored for me and its available anytime, anywhere and in any device with a seamless brand experience (channel and device agnostic) !

THANK YOU

pmpinto@sonaemc.com