Presented by:Presented by:Shameem AhsanShameem AhsanCEOCEO

Technology should be better Technology should be better leveraged meeting the MDGsleveraged meeting the MDGs

Information and communications technologies are engines of economic growth and development and can help transform people's lives.

New technology-based solutions that did not exist when the Goals were endorsed can and should be leveraged to allow for rapid scaling up. The most important of these technologies involve use of mobile telephones, broadband Internet, and other information and communications technologies. ”

“

Ban Ki Moon, UN Secretary General

Why eCommerce for Why eCommerce for developing nations?developing nations?

• Increase Revenue & bring foreign currency

• Boost employment and welfare

• Gain expertise in information technology

• Lead to better business practices and enhance transparency

• Increase efficiency & Reduce cost in Business

• Decrease urbanization

• Increase productivity

eCommerce eco-SystemeCommerce eco-System

Govt. Regulator

Policy, Law

Govt. Regulator

Policy, Law

LogisticsLogistics

Product

Return Product

Product/Service

PaymentSupplierSupplier ConsumerConsumerePortal

mPortalePortalmPortal

BankTelecom

MerchantProcessor

Product

Return Product

Product

Return

Pro

duct

Authorizatio

n, security

, priv

acy

FraudReturn/refundPrivacyBusiness credentialBanking LawSecurity

eCommerce in AsiaeCommerce in Asia

Looking at our Looking at our neibouring countryneibouring country• $5.6 billion (2011)

• 100 million connected to net

• 600 million on mobile

• About 14 million Online Customers

• $1 billion in investments in 2011

• Market Share in 2010• Online travel 80% (rail & Air)• E-- retailing-- 6.5%‐ ‐• Financial Services-- 6.31%‐

Source: MSL Group India

Progression ModelProgression ModelWhere is Bangladesh?Where is Bangladesh?

Phase 0: Get on the internet

Phase 1: Connecting and EntertainmentFetching Data, connecting with people

Phase 2: eBusiness BasicsInternet Banking, Booking tickets, Paying taxes, filling returns (get users to transaction online)

Phase 3: Comparable Goods PurchasesBuy standard products available offline such as books, laptops, mobile sets etc. (don’t require touch and feel)

Phase 4: Subjective Goods PurchasesPeople develop trust to buy online

Mobile CommerceMobile Commerce• M-Commerce is the ability to conduct commerce

using a mobile device. • Future is to bring all shopping and payments on

Mobile

mCommerce & BangladeshmCommerce & Bangladesh• Mobile Penetration 63% and Growing

• Expecting USD 14b remittance in 2012

• 300 microfinance institutions serving around 24 million borrowers, around 6 million active borrowers

• 98 million+ Mobile Phone users and its growing, around 50 million users do not have access to formal banking platform

• 14 banks got mobile financial service license from central bank, 4 are found operational in market

mCommerce Market mCommerce Market StructureStructure

Bangladesh Mobile Phone Bangladesh Mobile Phone Subscribers, Oct 2012Subscribers, Oct 2012

Operators Active Subscribers

Grameenphone 40.7 million

Banglalink 26.6 million

Robi 21.1 million

Airtel 6.9 million

CityCell 1.6 million

Teletalk 1.4 million

TOTAL 98.3 million

Source: Bangladesh Telecommunication Regulatory Commission (Oct 2012)

Bangladesh Internet Bangladesh Internet Subscribers, July 2012Subscribers, July 2012

Category Subscribers

Mobile Internet 27.8 million

ISP + PSTN 1.2 million

WiMax 400k

TOTAL 29.4 million

Source: Bangladesh Telecommunication Regulatory Commission (Jul 2012)

ChallengesChallenges• Payment Collections – High Fees, Charge backs, Fraud Charges

• Lack of 3D Secure technologies in Bank

• Credit card is off by default by Banks

• Logistics – Deliver the exact product purchased – Safe & Secure to the right person within a Reasonable

timeframe – Charges of couriers – Insurance for High Value Goods – Returns

• Internet Access & Reach

• Trust issues – Privacy issues – Business Data security

Opportunities• 30% of the global population is now connected

with more than 2 billion internet users• Global business-to-consumer e-commerce sales

will pass the 1 trillion euro ($1.25 trillion) mark by 2013

• The total number of Internet users expected to increase approximately 3.5 billion by 2017

• Business-to-consumer e-commerce sales is growing @ 20%

• China’s e-commerce sales growing more than 130% in 2011

• 39% of college students buy more online than in person

• In China, 190 Million people transact online (35%)

• In India, 7 Million People transact online (7%)

OpportunitiesOpportunities• In developing economy eCommerce

transactions are 3% of GDP

• Everyone embracing technology with reasonable success

• Busy lifestyle of people and there increasing dependence on internet also is creating favorable field for e-commerce

• Some leading eCommerce companies are renting eStores

• 60% of the country’s population is less than 25 years of old, the tech savvy generation

Thank youThank you

ceo@akhoni.com

http://bd.linkedin.com/in/shameemahsan

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