Marion FreijsenPayCargo International

May 7th 2019

Cargo –the C in e-Commerce

EcommerceHow will it affect Air Cargo?

* Data from The Global Ecommerce Playbook

Introduction

Global e-Commerce – a rapidly growing market:

• 276.9% increase in worldwide ecommerce

• 2020: global market predicted to be US$ 4.2 trillion

• 2021: global marketing predicted to be close to US$ 5 trillion*

There are huge amounts of money at stake…

10 largest ecommerce markets in 2019 By billions of USD

China$740

U.S.$561

Canada$44

UK$93

Germany$77

France$55

Russia$19

South Korea$69

Japan$87

Brazil$16

Data via Statisca

E-commerce B2C

The landscape froma Cargo perspective

How great would it be….

Data Data

Data optimisation• Customer centric

• Faster customer check-out next time

Plug-in

It is NOT a straightforward process in the Cargo Space

E-Commerce

As the market evolves, there are a number of key trends*

Customer expects seamless

omnichannel journey

Commerce Business Models continue to evolve

Data driven

Mobile (smartphone + tablet) has eclipsed desktop traffic

Bought on-line, picked up in-store in the last 30 days

Online retail will be transacting on marketplaces by 2020

Received a subscription box in the last month Millenials (18-29)

Of businesses are using AI in one or more commerce application or service

Of leaders stated that analytics have significantly improved competitive position

54%

32%

40%

25%

75%

58%

* Source Adobe Systems

As the market evolves, there are a number of key trends that are

Customer expects seamless

omnichannel journey

Commerce Business Models continue to evolve

Data driven

Mobile (smartphone + tablet) has eclipsed desktop traffic

Bought on-line, picked up in-store in the last 30 days

Online retail will be transacting on marketplaces by 2020

Received a subscription box in the last month Millenials (18-29)

Of businesses are using AI in one or more commerce application or service

Of leaders stated that analytics have significantly improved competitive position

54%

32%

40%

25%

75%

58%

Cargo

“It’s almost impossible for a company to call it correctly every time. What matters, though, when you have been taken by surprise or something negative occurs, is what you do next…”

~ Rita McGrath

Digital transformation requires continuous monitoringto adapt, innovate and create new advantages

SystematicApproach toinnovation

Biggest

Disruption

to the industry

• Companies like Alibaba and Amazon are investing heavily in systems and even airplanes themselves.

• They own the entire chain

• Each purchase delivers DATA with which they can finetune offerings and logistics

• Amazon gaining ground and threatening the traditional cargo models.

Taking

Action

What can you do as an industry to prevent others taking over the

space?

Current position

Strengths:

• You know Cargo better then any one out there

• Handling of goods is in your DNA

• Dangerous goods

• Complicated shipments

• Global networks and pathways

Weaknesses:

• You do not OWN the customer

• Data is not fully utilised

• Data is fragmented across multiple parties

What’s next

• You have to become more DATA DRIVEN

• You have to become more CUSTOMER CENTRIC

• You have to take a hard look at all our processes & procedures

And we here at PayCargo can help you….

PayCargo: where does it fit

• Accelerate release of goods

• Financial data available to all parties

• Integration between your financial systems

• New innovative solution – working towards blockchain

• Allowing you to be faster & more efficient

FreightForwarder

Handler

Consumer

Airline

Freight & Data Flow

• Let’s become inspired by the super integrators

• Let’s really learn why they are successful and what we cando to think out of the box ourselves

• Let’s become visible

We have to ADAPT to survive

Marion Freijsen

PayCargo Europe BV

Contact: mfreijsen@paycargo-eu.com

Please come and see usat booth #10