Opportunities for Financial Services in eCommerce · 2020. 7. 27. · UNSERVED SEGMENTS CAPTURE...

© Ipsos | Opportunities for Financial Services in eCommerce – July 2020

Presented By:

Jessica Chung Engagement Manager

Ipsos Strategy3, Hong Kong

23 July 2020

Opportunities for Financial Services in eCommerce


IPSOS STRATEGY3 – THE STRATEGY CONSULTING ARM OF IPSOS

Leaders in Consumer Market Research

Global Big 3 market research group; largest Asia

market research & consulting group

Growth Strategy Specialists

Leaders in Industry Market Research

Specialised division within Ipsos providing fact-

based consulting services to help clients build,

compete and grow• #1 research firm in Asia;

• 18,000 employees worldwide, 3,000 in the Greater

China Region and Hong Kong;

• Publicly traded in the Paris Stock Exchange (IPS:EN

Paris)

• A global firm, present in 90 countries across the

world

• Top ranked growth strategy consultancy in

Asia Pacific;

• Over 25 years of industry track record

• Global consulting hubs for worldwide coverage

Introduction to Ipsos and Strategy3


NEW REVENUE FROM

UNDERSERVED OR

UNSERVED SEGMENTS

CAPTURE GROWTH IN

ACCELERATING MASS

SPENDING CHANNEL

MANAGE CREDIT AND

LENDING RISK WITH RELIABLE

AND REAL-TIME DATA

3 ‒

eCommerce Opportunities for Financial Services

B2B and B2C space

Target shopping categories

Fast receivables and cashflow cycles

Credit and transaction history

Review risks of default on loans

Enable faster and

smaller size loans

Credit Cards

Commercial Credit and Loans

Expand existing banking

relationships


1. How many customers are underbanked or underserved?

2. Which customer segments and characteristics should I target to define

my addressable market? What are these customers looking for?

3. What type of products can I offer competitively in the eCommerce

financing space?

4. What channels and programs attract and retain eCommerce customers

most suitable to my offerings?

5. What are barriers for my products and services to compete?

6. How should I assess risks and lending approvals for eCommerce

platforms?

7. Who are my competitors for my product and target customers?

8. What partnership structures should I pursue to tap into the eCommerce

financing space?

4 ‒

Key Questions for Successful Roll-out Strategy

© Ipsos | Opportunities for Financial Services in eCommerce – July 20205 ‒

We support clients with developing a robust customized growth strategy supported by in-depth market insights and stakeholder workshops

MARKET

DIAGNOSTICS

CUSTOMER

INSIGHTS

INTERNAL

ASSESSMENT

ANALYSIS AND

VALIDATION

STRATEGY

DESIGN

• Industry landscape

• Market Sizing and

Forecast

• Market Segmentation

• Ecosystem/Channel

Mapping

• Competitive Landscape

• Market Opportunity

Evaluation

• B2B (Enterprise) and

B2C (Consumer)

customer research

• Path-to-purchase

• Key decision factors

• Customer

segmentation

• Internal alignment with

client’s business

performance,

challenges, and

capabilities

• Competitive positioning

• Identify direction on

high-level opportunities

• Assess competitive

opportunities and

white space for

Client

• Detailed route-to-

market development

• Business model

development

• Actionable strategy

for top line and

bottom line growth

• Growth scenario

planning on

financial outcomes

1 2 3 4 5

Ipsos provides a modular approach to strategy development and design


• COVID-19 accelerated adoption, usage and growth of eCommerce globally, especially in APAC

• Many consumers and merchants now need to use eCommerce platforms for retail sales

• New eCommerce behaviours are becoming new habits for many consumers

6 ‒

COVID-19 continues to accelerate the rise of ecommerce

• Global eCommerce market projected to reach USD 5 trillion by 2022

• Half of eCommerce market value, and fastest growth, will be from APAC

• Combined growth of at least 15% by 2022

Covid-19 Update


30%

32%Believe pandemic will not

end before in Q3 2020

Believe Hong Kong will only recover in 2021 (18% expect recovery towards Q2 2021)

7 ‒

Consumers believe covid-19 will last beyond 2021, increasing use of online retail in the meantime

Respondents in Hong Kong

Q32020

Q22022

Sources: Ipsos Hong Kong, Hong Kong Consumer & COVID-19 Study March 2020

48%

36% Spend more time browsing on

online shopping platforms

Purchased more groceries online

or used more mobile payments

Covid-19 Update


A Closer Look at eCommerce in APAC

120+Marketplace

PlatformsA PA C

Local

PlatformsDominate

Landscape

PrioritisingAccess to

SMEsIpsos eCommerce

Database

Market Diagnostics and

Partner Scan



Largest

Value

Apparel and

Electronics

Fastest

Growth

Online

Groceries

shopping

in AsiaA PA C

Cross-border


Partner Scan



A PA C

Room for

Growth in

Other APAC

Markets


Partner Scan

Mature

Markets

Japan

South

KoreaSingapore

1 Trillion +USD

China eCommerce

in 2020

~ 5 million merchants30 million + customers

Lazada and Shopee

Singapore Cross-border SEA region

~ 20+ million merchants180 million + customers

Bukalapak, Tokopedia, Blibli, Ralali

Indonesia

~ 4 million merchants400 million + customers

PinDuoDuo

China


CONSUMERS

11 ‒

Rapid eCommerce Adoption is Providing New Opportunities and Potential Competition to Banks

Monetary Flow & Requirements

Lending And Credit Flow

FINTECH COMPANIESBusiness

Cash Flow

Requirements

Receive

PaymentsPayment on Platform

Cash Points

Credit/Loan

Trade Flow

Provide Commercial

Loans/Credit Line Provide Consumer

Credit, rewards, lending FINANCIAL INSTITUTIONS

Competitive Landscape and

Partnership Deep-Dive

ECOMMERCE PLATFORM(B2C example)

ECOMMERCE

ENTERPRISES


SIMPLE, SECURE, AND

STREAMLINED PAYMENT

TOUCHPOINTS

LOYALTY REWARDS

Credit lines or loan approvals

that are simple and streamlined

with the eCommerce platform

they are using

Social distancing and economic instability from COVID-19 will accelerate adoption of eCommerce retail channels

12 ‒

What commercial financial services are needed for eCommerce retail customers?

Loyalty rewards such as

cash back and rewards

programs offered by the

platform or partnered

financial service provider

LOANS AND INSTALMENT

FOR BIG TICKET ITEMS

Consumers require loans or

instalment options for larger

ticket items, such as

electronics

Customer Insights


FAST APPROVAL TIMEUNIFIED STREAMLINED

PROCESS

LOW INTEREST RATES

• Traditional applications take

a few days to a month

• Now in 24 hours or down to

30 mins for loan

approvals and to cash

To capture financial service opportunities in the eCommerce ecosystem, Ipsos has also conducted focus groups to

uncover offerings and touchpoints needed by merchants to have competitive advantages on 4 key fronts

• Traditional loans 4%-13% or

higher*

• eCommerce and fintech

offering from 0.2%

13 ‒

What commercial financial services are needed for eCommerce merchants (enterprise) customers?

• Seamless and transparent

management system

between platform and

financial accounts

• Especially for cross-border

receivables and

transactions

CAPITAL REQUIREMENTS

• Small and frequent loans or

credit lines to match payment

schedule and pace of sales on

eCommerce platforms

• Critical for financial shortfalls;

working capital, payment

release, inventory

management, and business

expansion

Customer Insights


Developments by fintech and platforms

are creating new financial ecosystems

14 ‒

Platforms and financial institutions are

aggressively pursuing financial service

opportunities in eCommerce

Banking institution and platforms

successfully expanding in this

market acted fast

THANKYOU


CONTACTS

Markus SchererHead of Strategy3, Hong Kong

Jessica ChungEngagement Manager

[email protected]

+852 2830 2531

[email protected]

+852 2839 0647

© Ipsos | Opportunities for Financial Services in eCommerce – July 2020© Ipsos | Opportunities for Financial Service in eCommerce – July 202018 ‒

ABOUT IPSOS

Ipsos is the third largest market research company in the world,

present in 90 markets and employing more than 18,000 people.

Our research professionals, analysts and scientists have built

unique multi-specialist capabilities that provide powerful

insights into the actions, opinions and motivations of citizens,

consumers, patients, customers or employees. Our 75

business solutions are based on primary data coming from our

surveys, social media monitoring, and qualitative or

observational techniques.

“Game Changers” – our tagline – summarises our ambition to

help our 5,000 clients to navigate more easily our deeply

changing world.

Founded in France in 1975, Ipsos is listed on the Euronext

Paris since July 1st, 1999. The company is part of the SBF 120

and the Mid-60 index and is eligible for the Deferred Settlement

Service (SRD).

ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg

IPS:FP

www.ipsos.com

GAME CHANGERS

In our world of rapid change, the need for reliable information

to make confident decisions has never been greater.

At Ipsos we believe our clients need more than a data supplier,

they need a partner who can produce accurate and relevant

information and turn it into actionable truth.

This is why our passionately curious experts not only provide

the most precise measurement, but shape it to provide True

Understanding of Society, Markets and People.

To do this we use the best of science, technology

and know-how and apply the principles of security, simplicity,

speed and substance to everything we do.

So that our clients can act faster, smarter and bolder.

Ultimately, success comes down to a simple truth:

You act better when you are sure.


We are Strategy3, Ipsos’ business and growth advisory firm

19 ‒

We approach every challenge through three lenses

We believe that in order for any business strategy, marketing plan, brand positioning, or new innovation to be successful, it must do

three things: be rooted in the organization’s strategy, be informed and inspired by customer research, and it must drive through to

actual in-market activation. While there are many firms that advise on growth, very few deliver on all three: traditional management

consultancies rarely delve deep enough into the world of the customer; creative firms don’t truly leverage the power of data; research

agencies can sometimes lose the big picture in the midst of analysis. That’s why we are Strategy3.

1Strategy-Led

2Research-Driven

3Activation-Focused


What We DoDrawing from our global network of

consultants across four practice

areas, we work with clients to

Build • Grow • Compete

Corporate/Business StrategyDetermining the right markets in which to play, and how to win

Market Sizing • Go-to-Market Strategy • Distribution/Channel Strategy •

Competitive Benchmarking • Due Diligence

Brand Strategy

Customer/Consumer Strategy

Innovation Strategy

Developing strategies to help your brand and products stand out

Brand Stretch • Brand Architecture/Portfolio Optimization • Brand Positioning •

Brand Purpose • Brand Valuation and Investment ROI

Understanding and reaching the right customers

Strategic Segmentation • Customer Prioritization • Consumer Journey •

Omnichannel Strategy • Value Proposition Development

Planning for and conceptualizing new products and offers

Trends/Futures Scenario Development • Early Stage Innovation Development •

Innovation Scouting • Innovation Strategy and Process Development

20 ‒ © Ipsos | Opportunities for Financial Services in eCommerce – July 2020

© Ipsos | Opportunities for Financial Services in eCommerce – July 202021 ‒

Ipsos Syndicated Study: Ecommerce UnleashedeCommerce Unleashed is a global syndicated study capturing durable change during the COVID-19 crisis and beyond. Our cost-efficient insights help marketers

reinvent their plans for future recovery and growth in light of COVID-19. By capturing shopper emotions and behaviors, eCommerce Unleashed Illuminates emerging

shopping patterns and durable changes to help future-proof shopper strategies.

OVERVIEW

COVID-19 is unleashing eCommerce shopping globally and will drive

permanent long-term shopping behavior changes. People are trying new

channels, services and products – and forcing shopper marketers to re-think

how they will meet their rapidly expanding needs.

eCommerce Unleashed is a global syndicated study capturing durable

change during the COVID-19 crisis and beyond. Our cost-efficient insights

help marketers reinvent their plans for future recovery and growth in light of

COVID-19. By capturing shopper emotions and behaviors, eCommerce

Unleashed Illuminates emerging shopping patterns and durable changes to

help future-proof shopper strategies.

eCommerce Unleashed covers 1,500 shoppers per country in Wave 1, and1,000 shoppers per country in Wave 2 (females and males 18+). Our 15minute online survey incorporates Ipsos’ proprietary view of COVID-19emotions, behavior and shopper migration.

Categories: Alcohol and Tobacco, Banking and Credit, Beauty, ElectronicDevices, Food and Beverage, Healthcare, Home Care, and Personal Care.

Syndicated Countries: Canada, USA, Mexico, Colombia, Spain, Malaysia,Indonesia, Thailand, Vietnam

Additional country availability: Brasil, Chile, Peru, Argentina, Australia,Japan, South Korea, Hong Kong, China, India, Belgium, France, Germany,Italy, Netherlands, Norway, Sweden, Czech Republic, Hungary, Poland, SaudiArabia, South Africa, Turkey , UK

eCommerce Unleashed helps you adapt your shopper strategies during COVID-19 and beyond by

providing:

• Comparisons of new and experienced eCommerce shopper behaviors

• Shoppers’ financial, health, and recovery sentiment

• Channel search, social media use, purchase locations, and retailer satisfaction

• Category triggers, barriers, brand planning, trial, and future purchase intent

• Shoppers’ plans to continue their emerging shopping behavior

DELIVERABLES

BUSINESS QUESTIONS WE WILL ANSWER

Pictures are for indicative purposes only

Country Report delivered via

Portal: Shopper sentiment,

behaviors & channel migration

Custom Region or Global

Report: Custom multi-country

reporting designed for client

business need

Virtual Activation Workshops;

Strategy3 virtual workshops to help

you develop strategies and tactics

OVERVIEW

APPROACH

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