How will a potential e-commerce bubble affect you and your business?By Pawoot Pom Pongvitayapanu

• Founder & CEO TARAD.com• President of Thai E-Commerce Association• CEO of efrastructure group

Speaker Profile

■ Social： Pawoot is Thailand IT and E-Marketing GURU. Now we be consultant for Government and big corporate. All people accepted his online marketing knowledge and abilities.

■ Current：

■ Education： 2007 – 2009: Master Degree 2 : Executive MBA : Sasin Graduate Institute Chulalongkorn University

2000 – 2001: Master Degree 1 : Internet & E-Commerce : Assumption University

1993 – 1998: Bachelor Degree : Architecture : Rangsit University.

■ Name： Pawoot (Pom) Pongvitayapanu

CEO & Founder e-frastructure inc.

Managing Director & Founder TARAD DOT COM Co ., Ltd. (Rakuten Group)

Director & Founder Winter Egency (TARAD Solution Co.,Ltd)

Director & Founder Zocial inc

President & Founder Thai E-Commerce Association

Columnist Bangkok Biz News Newspaper, SME Magazine

Teacher UTCC, Sriphathum, University.

Who is efrastructure GroupExpertOnline&InternetCompanyinThailandmorethan15 Years

1999

Build up ThaiSecondhand.com 1st E-Classifieds in ThailandApril 8, 1999

2001 2009Setup TARAD.com CompanyThe largest B2C Shopping Mall

TARAD.com join with Rakuten GroupSplit TARAD Solution from TARAD.com

Start Up with 3 FriendsYear 1999

Join with Rakuten JapanYear 2009

More than 200 staff in group company

2011 2012 2013

Re-Brand from TARAD Solution to Winter Egency

Founded Zocial Inc

Found e-fra inc.Acquired Thaiepay.com, RedRank. Comparison

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2014

One Stop E-Business and Total Solutions(more than 250 employee in group companies)

E-Commerce

E-Payment

E-Logistic

E-Marketing

E-Analytic

E-Education

Agenda

• Can e-commerce in Asia continue to expand at its current rate or is growth unsustainable?

• What initiatives can the industry take to reduce customer acquisition costs?

• Turning revenue into profits: How can we combat increasing marketing costs?

• How can we reduce the investment made into Google & Facebook while acquiring new customers?

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The Unicorn Private Companies Valued At $1B And Above

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Economic Crash.!

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

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ASEAN Digital Population 2015

B2C E-Commerce Value (Billion USD)

Source: http://data.worldbank.org, http://www.statista.com, http://www.ekosglobal.com and http://www.ETDA.or.th

Who’s E-Commerce Player in SEA

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10X15

Business Growth

Welcome to…...

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Topline = GMV, Traffic, Order

Price & Promotion War

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Do not ask about Bottom line (Profit)

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

The question is, how long can this sustain

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In my view not very long.

Why they doing that?

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Startup Bubble Competition Graph

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Company A. Company B.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Rev

enue

Time

Exit from Market

Keep Going

Company C.

Company who enter to the right time and have more money will win the game.!

Strategy to enter to market as follower• Huge Investment

• Platform, Operation, Warehouse, Logistic• Everything Free

• Platform Cost, Shipping Free• Huge Resource and Great People > People Cost up• Huge Marketing Spending > Brand awareness• Super Fast Moving

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Who’s the winner?

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Average Cost Per Click Around the World

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US average CPC, between $1 and $2 on the Search network.

Data from http://www.wordstream.com

Average Pay Per Click Trend

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

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

Facebook Ads Performance Cost

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

Summary• E-Commerce competition still keep moving• How have more money, smarter, faster will win

the game• Customer and E-Commerce ECO System will

enjoy this competition• Join the battle or find the right positioning will

be the right solution

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Kob Kun Kub (Thank You)

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