Mobile Story of n11.com

Private & Confidential Private & Confidential 1

Webrazzi e-Commerce ‘16

YU-SHIK KIMChief Strategy and Planning Officer

March 2016

Private & Confidential

MOBILE STORY OF N11.COM IN 5 QUESTIONS

• What is the Mobile Environment in Turkey ?• What is n11.com’s Situation ?• What are Global Trends in the mobile space ?• What are Implications ?• What is Next ?

2

AGENDA

Private & Confidential 3

What is the Mobile Environment in Turkey?


What is the Mobile Environment in Turkey ?

187181

172

156152

145 142137 134 133

128 127 126

115113

107 106102 100

95 9477

0

20

40

60

80

100

120

140

160

180

200

Source: GSMA Intelligence, WeRsocial (based # of SIM connections)

Mobile Penetration by Country (%)

Global Average: 99%

4

Turkey, compared to other markets, is relatively low in mobile penetration


But Turkey smartphone penetration is growing fast with CAGR 36% in ‘13-’15

20.4 13.6 10.2

49.3 58.3 63.1

91% 93%94%

2013 2014 Q3 20152G 3G Mobile Share

Mobile Users (Mn) & % of Population

Source: BTK, TUİK, WeRsocial, YStat

20.029.8

36.8

28.7%

41.4%50.2%

2013 2014 2015

Users Share, %

Smartphone Users (Mn) & % of Mobile Phone Users(%)

CAGR ‘13-’15

-29%

13%CAGR ‘13-’15

36%

5



Data usage is increasing, the most preferable one is 1-4 GB data plan

Source: BTK

Internet Data Usage among Mobile Internet Users (%), 2014 Q4 vs 2015 Q3

25%

2% 3% 3%4%

8%

23%

28%

4%

1%

19%

1% 2% 2% 3%

7%

23%

35%

6%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0-5 MB 5-10 MB 10-25 MB 25-50 MB 50-100 MB 100-250MB

250 MB -1GB

1-4 GB 4-8 GB >8 GB

2014 Q4 2015 Q3

6



81% 86%

13%13%

6% 1%

Jan'14-Sep'14 Jan'15-Sep'15

Others

IOS

Android

Turkey is Android dominated

Source: GFK

Operating System of Smartphones (Sales ‘000 Units)

48%45%

10%8%

13%13%

5%

3%

3%

4%

6%11%

13% 13%


Others

Vodafone

LG

Asus

HTC

Turkcell

Apple

General Mobile

Samsung

8,77,6

Brand Share % of Smartphones / (Sales ‘000 Units)

8,87,5

7



Display size has been increasing towards bigger screen

10%2%

40%

15%

45%

74%

6% 9%


> 5.5

4.5 - 5.5

3.5 - 4.5

0 - 3.5

Display Size % /(Sales ‘000 Units)

8,77,6

4.0 inch decreasing

5.5 inch display

Samsung Galaxy S3 Samsung Galaxy J7

8



Price and capacity shifted towards more expensive phones with

increased capacity

Source: GFK

17% 11%

26%17%

11%

18%

17%23%

12% 10%

13%12%

4% 9%


> 2500 TL

2000 - 2500 TL

1500 - 2000 TL

1000 - 1500 TL

800 - 1000 TL

600 - 800 TL

0 - 600 TL

5%

29%

50%

16%

Jan'15-Sep'15

>= 32 GB

16 - 32 GB

8-16 GB

<8 GB

Capacity /(Sales ‘000 Units)Price of Smartphones /(Sales ‘000 Units)

600 –800 TL

800 –1500 TL

9



What is n11.com’s Situation?


This is also reflected in n11.com; mobile shares of GMV, Traffic and

Transactions are increasing

11

0%

50%

100%

2014 2015 2016 2017 2018

Web Mobile

GMV Shares, %

Traffic Shares, %

0%

50%

100%

2014 2015 2016 2017 2018

Web Mobile

Transaction Shares, %

0%

50%

100%

2014 2015 2016 2017 2018

Web Mobile

What is n11.com’s situation ?


But the behavior in terms of frequency and visits are different

12

0

5

10

15

Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 Nov'15

Web Mob. Web Mob. App

Frequency (Visit/UV)

Visits (‘000) per Day(10 Nov-6

Dec‘15)

0

200

400

600

800

1,000Web Mob. Web Mob. App

~4-6 times



This stems from a younger and more female oriented user base

13

Gender

Source : Google Analytics, Jan’16

Web

75%

25%

0%

100%

Jan'15Male Female

53% 47%

0%

100%

Jan'15Male Female

MWeb App (Android)

78%

22%

0%

100%

Jan'15Male Female

App (iOs)

54% 46%

0%

100%

Jan'15Male Female

Age

Web

19%

39%

23%

0%

50%

100%

Jan'16

65+

55-64

45-54

35-44

25-34

18-2424%

48%

20%

Jan'16

65+

55-64

45-54

35-44

25-34

18-2419%

56%

21%

Jan'16

65+

55-64

45-54

35-44

25-34

18-24

28%

34%

16%

Jan'16

65+

55-64

45-54

35-44

25-34

18-24

MWeb App (Android) App (iOs)

Source : Google Analytics, Jan’16



Cross device usage is also a common trend

14

X-CHANNEL USER %

X-CHANNEL GMV %

[desktop] 56% 50%

[mobile] 21% 2%

[tablet] 3% 1%

[desktop]<->[mobile] 17% 37%

[desktop]<->[tablet] 2% 4%

[desktop]<->[mobile]<->[tablet] 1% 6%

[mobile]<->[tablet] 1% 1%

1 Device User

Cross Device User

Source: Google Analytics, 1 Nov – 31 Dec ‘15



What are Global Trendsin the mobile space?


Curation & Personalization

* Aliexpress Flash deals only on Mobile (time base deals)

Flipkart mobile only Deals

* Amazon & Aliexpress(Skyscanner)alerts with upcoming Deals

*Amazon recommendations in mainpage

What are global trends in the mobile space?


* Flipkart Ping (chatting)

* Amazon & Flipkart friend invitation * Shop savvy barcode scanner

* Walmart / Target coupons

What are global trends in the mobile space?Social & Offline to Online


Mobile specialized functions & optimized UI

18

Alixexpress seller chatting Coupang’s swipe control UI

eBay Barcode scan search

* Amazon 1 letter auto completion search

* SnapDeal’s Shake and get deal


Coupang app.mp4

Coupang app.mp4


Loyalty & Retention

* Amazon prime

Amazon/Flipkart gift card

* 11st mileage

Aliexpress 1click payment payment



What are Implications ?


Mobile has become inevitable

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• Necessity in Life

• Increasingly cannibalizing

web usage

• Requires different value

proposition due to

different behavior patterns

What are implications ?


What is Next ?


More and more convergence channels, mobile will be the facilitator

23

Mobile will be the

key facilitator to provide an

ubiquitous shopping

experience

What is Next ?


THANK YOU…

Date post:	22-Jan-2018
Category:	Presentations & Public Speaking
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Mobile Story of n11.com

Presentations & Public Speaking