Harnessing  the  Power  of  Digital  Marke4ng  and  Online  Commerce  for  

Retail  Growth  

The  backdrop  to  e-­‐commerce  in  Philippines  

There  is  an  inherent  reluctance  to  “trade”  through  the  Internet  

Lack  of  ‘accredita4on  and  guarantees'…by  default  modern  trade  actually  encourages  des4na4on  shopping  

Presence  of  counterfeits  and  

knock-­‐offs  

High  reliance  on  inter-­‐personal  rela:onships  

IT  and  Banking  infrastructure  “evolving”  

Tradi:onal  trade  legacy  

Buyers  need  to  ensure  quality  by  physical  inspec4on  

Buyers  feel  the  comfort,  dealing  with  

known  vendors  

Low  levels  of  confidence/trust  in  

transac4ng  online  

3 1

2010 2011

Online  Transac:ons  (%)  

Ques4on:  Have  you  purchased  products  online  in  the  past  12  months…  payment  could  be  online  or  offline?  

Base: Past month Internet users aged 10+ across National Urban Philippines Source: Yahoo!-Nielsen Net Index 2011

Online  transac:ng  remains  in  it’s  infancy  

53

36

10

9

4

1

1

1

Cash  (face  to  face)  

Credit  card  

Transfer  via  ATM/Bank  

Internet  Banking  

Deposited  cash  at  bank  branch  

Online  accounts  such  as  Paypal  

Cheque  

Debit  card  

Payment    methods  (%)  

Payments  largely  made  offline,  given  current  trust  and  comfort  levels  with  e-­‐payment  

Projected  e-­‐commerce  revenue  in  the  Philippines  is  at  P5  billion  pesos  excluding  airline  bookings.  

If  online  booking  included,  that  will  be  an  addi4on  of  es4mated  P17  billion.  (factoring  50%  of  Cebu  Pacific  sales  which  is  online)  

Sulit.com.ph  has  established  its  remarkable  strength  in  the  internet  owning  to  its  high  rankings  in  the  internet  search  engines,  searching  from  the  different  search  engines,  looking  for  products  and  services  plus  the  millions  of  users  directly  browsing  and  searching  the  website.      

#  Prepare  for  the  sweet  spot  

#  Home,  hangout,  hideout  

h^p://business.manilastandardtoday.com/2012/03/28/tetangco-­‐says-­‐popula4on-­‐will-­‐bolster-­‐growth/  

Help  me  belong…  

Help  me  be  significant…  

Source:  h^p://mobileyouth.org  

The  10%  (fans)  that  influences  the    90%  (mass  market)  

•  Teenage  Pirates  •  Cashless  Innovators  •  Disrup4ve  Diva  

•  Discover  the  social  currency  in  a  product  

Source:  h^p://mobileyouth.org  

Brand  vs.  fan  ambassador  

•  No  more  big  ideas.  •  Ideas  from  ground-­‐up.  

Yahoo  Purple  Hunt  2009  

Disrup4ve  Diva  

•  Social  tools  (product,  story,  usage  behaviors)  to  reclaim:  – Social  space  – Social  arrival  

Source:  h^p://mobileyouth.org  

h^p:/mul4ply.com/marketplace  

  Established  in  2004   Moved  from  Social  Media  to  E-­‐Commerce  in  2011  

  The  biggest  online  mall  in  the  Philippines   Mul4ply  enables  thousands  of  Businesses  to  sell  online  

The  New  Mul:ply  

85M  monthly  page  views  

6M  members  

130,000+  online  stores  16  categories  to  shop  from  

Quick  Stats  

2,500  new  seller  registra4on/month  

28  mins  average  4me  spent/visit  

50,000  new  items  uploaded/month  

50,000  new  users  sign-­‐up/month  

Deep  Engagement  

#5  Merchant  ships  the  item  to  the  buyer  

How  Buyers  Buy  on  Mul:ply    

#2  Buyer  visits  Mul4ply  to  purchase  the  product  

#3  Buyer  pays  via  Mul4ply.com  

#4  Mul4ply.com  transfers  collected  money  to  merchant  

#1  Merchant  posts  products  for  sale  on  Mul4ply  

  Provide  the  payment  facility    Verify  transac4ons  of  Buyers    Receive  payments  from  Buyers  and  disburse  to  Merchants  the  following  day    

  Don’t  charge  any  transac4on  fees    Provide  delivery  op4ons  

What  Mul:ply  does  for  Merchants?  

Mul:ply’s  New  Process  

#2  Buyer  visits  Mul4ply  to  purchase  the  product  

#1  Merchant  posts  products  for  sale  on  Mul4ply  

E-­‐commerce  Pla]orm  

– Founded   in   early   2012   to   become   the   No.   1  fashion  e-­‐commerce  in  the  PH  

– Successful   start   with   customers   and   orders  falling  above  plan  

– Backing   from   experienced   German   investors  who  launched  many  other  fashion  ecommerce  ventures,   e.g.   market   leaders   in   several   EU  countries,  Russia,  Australia,  etc.  

– Strong   presence   in   the   region   with   sister  companies  in  most  Southeast  Asian  countries  

Offering  – Offering  already  includes  500+  brands  and  15,000+  products  

– Service  includes  free  delivery  na4onwide,  COD  and  same  day  shipping  in  Metro  Manila,  30day  returns  

Suppor4ng  each  other  online  and  offline.  

Fascina4ng  the  audience  in  a  variety  of  ways  to  s4mulate  diverse  engagement.  

TV   PRINT   POS   CRM  

digital  

social  

game  

digital  

social  

game  

digital  

social  

game  

digital  

social  

game  

mobile   mobile   mobile   mobile  

•  Slide  1  -­‐  About  you-­‐  PLEASE  FIND  ATTACHED  MY  SHORT  DESCRIPTION  AND  PHOTO  

Started  her  career  as  an  Account  Officer  in  the  Corporate  Banking  Group  of  Unionbank  of  the  Philippines.  Looking  for  a  more  exci4ng  and  dynamic  working  environment,  she  then  joined  Inquirer.net  in  2003.  She  started  as  a  Business  Development  officer  for  web,  then  she  was  eventually  given  the  role  to  manage  the  mobile  business  as  well  as  the  Marke4ng  team.  Aner  spending  6  years  with  Inquirer.net,  she  was  then  offered  to  join  Sulit.com.ph  in  2009,  in  which  she  now  leads  the  Business  Development,  Marke4ng  and  Sales  Groups.    

Jack  Madrid  Country  Manager  Mul:ply  Philippines  

25+  years  of  general  management  experience  with  the  following  companies  

Gigi  Mabanta  –  head  buyer  

Genera4ng  interest  to  the  site  

Above-­‐the-­‐line      TV  Ads    Print  Ads      Radio  Ads      Out  of  Home  (Billboards,  Bus  Ads)    

Below-­‐the-­‐line      Trade  Marke4ng/Giveaways    Event  Management    Event  Sponsorships      Promos  &  Raffle  

Web  Adver:sing      Google  Ads        Facebook  Ads      Youtube  Ads    

Engagement      Facebook      Twi^er      Google  +      Pinterest      Instagram       Youtube  

•  Slide  1  -­‐  About  you-­‐  PLEASE  FIND  ATTACHED  MY  SHORT  DESCRIPTION  AND  PHOTO  

December  2011  vs.  June  2012

Sta:s:cs   December  2011     June  2012    

Members      1,  204,  300    1,587,894  

Ads  Posted      

688,684   985,347  

Page  Views    

112,715,036   177,570,756  

Unique  Visitors     6,916,741   16,054,568  

Visits       16,047,516   29,056,363  

Facebook        Followers     176,983   367,687  

Twi^er                    Followers     25,145   31,126  

Campaign  Info.   Analysis  of  On-­‐Site  User  Behavior   Analysis  of  Off-­‐Site  User  Intent   Breakdown  of  Relevant  User  Behavior  into  Segments  

 Define  Solu4ons  for  Users  in  each  Segment  

 Cran  Targeted  Search  and  Display  Campaigns  around    each  Segment    

Mul:ply  User  Behaviors  

Expected  Results.   Average  Display  Network  CTR  of  0.2%   Average  Search  Network  CTR  of  10%   Average  Conversion  Rate  of  3%  

E-­‐commerce  retailers  benefit  from  be^er  knowledge  of  customers  and  their  behavior  

– More  informa:on  about  customers’  demographics    •  Upon  registra4on,  customers  typically  reveal:  gender,  age,  address,  contact  info  •  Brick-­‐and-­‐mortar  stores  would  only  get  this  upon  asking  individually  

–  Track  clients’  shopping  behaviour  in  the  store  •  Every  single  click  can  be  observable  •  Store  layout  can  be  adapted  accordingly  

– Observe  pacerns  over  :me  and  learn  about  customers’  preferences  

•  Allows  custom-­‐tailored  marke4ng,  e.g.  ads  related  to  previous  purchases    •  Category-­‐Brand-­‐Age-­‐rela4ons  transparent  •  Other,  more  difficult  ques4ons  can  be  examined  and  used  for  marke4ng    

Lessons  learned?  

•  Slide  1  -­‐  About  you-­‐  PLEASE  FIND  ATTACHED  MY  SHORT  DESCRIPTION  AND  PHOTO  •  Experiment,  and  don’t  be  afraid  to  make  mistakes    

•  Should  have  an  integrated  campaign  across  mediums    

•  Measure,  measure,  measure    

•  When  doing  a  campaign  in  Social  Media,  it  shouldn't  just  be  your  bulle4n  board.  Engage  your  users    

•  Involve  your  whole  team  

Lessons  Learned.   Understanding  On-­‐Site  User  Behavior  and  Intent  is  Important  

 Having  Properly  Segmented  Data  is  Key   Accept  that  any  Conversion  Funnel  is  a  Leaky  Funnel  

 Define  Solu4ons  to  Patch  the  Leaks  and  Find  Crea4ve  Ways  to  Remarket  to  the  Spills  

E-­‐commerce  very  different  from  tradi4onal  retail  regarding  skills  required  for  success  Ecommerce   Brick-­‐and-­‐Mortar  

•  Data  analy4cs  is  key:  ability  to  design  and  run  smart,  automated  and  integrated  system  and  react  based  on  pa^erns  in  the  data    

•  24/7  up4me  required  and  expected  by  clients  

•  Seamless  integra4on  across  interac4ons  (via  customer  communica4on  mix);  need  to  respond  to  feedback  immediately  

•  Need  to  deliver  entertainment  value  on  top  of  shopping  func4on  

•  Key  success  factors  (among  others)  are  loca4on  and  face-­‐to-­‐face  customer  experience  

•  Customers  used  to  opening  hours  

•  Customer  more  tolerant  towards  push  marke4ng  and  disconnected  services  processes    

•  Shopping  part  of  larger  (mall,  etc)  experience,  no  need  for  in-­‐store  entertainment  

h^p://slideshare.net/jane^etoral