1. Omni-Channel is the New Retail Reality
A CONNECTED WORLD
Omni-Channel is the New Retail Reality
by Hoseok Kim, Chief Executive Officer, 11street
at the Asia Pacific Retailers Convention & Exhibition (APRCE) 2017

2. AGENDA Company Introduction The Current State of E-commerce
A successful Omni Channel Strategy

3. The Implications of adopting E-commerce
Part I
Company Introduction
The Current State of E-commerce
A successful Omni Channel Strategy
The Implications of adopting E-commerce

4. Company Introduction 11ST.CO.KR Launched in 208 No.1 Open Marketplace
No. 1 in Mobile / Traffic / Brand Value
N11.COM
Launched in 2013
No.1 Open Marketplace
JV with Dogus Group
Korea
Turkey
Malaysia
Thailand
11STREET.CO.TH
Launched in February 2017
Open Marketplace
11STREET.MY
Launched in 2015
No. 2 Online Marketplace
JV with Axiata

5. The Implications of adopting E-commerce
Part II
Company Introduction
The Current State of E-commerce
A successful Omni Channel Strategy
The Implications of adopting E-commerce

6. Home to the largest retail market worldwide E-commerce Penetration
Ecommerce in Asia Pacific
Home to the largest retail market worldwide
E-commerce Penetration
* According to the share of population
South Korea
Japan
Taiwan
Singapore
Australia
Hong Kong Malaysia
Thailand
China
Indonesia
Vietnam
Philippines
India
72%
52%
28%
USD 9.3T
by the end of 2017
with 7.7% of CAGR
E-commerce will account for 14.7% of total retail sales in APAC by 2017 and will climb to 25.4% by 2021 on average*.
* Source ¹

7. OFFLINE ONLINE Offline vs. Online Product
More mass or short-tail products based
Price
Higher compared to Online due to cost structure
Promotion
Mass/Segment marketing
More ATL/BTL focused
Product
Relatively more long-tail products
Price
Lower
Promotion
Personal offering
Integrated marketing focused

8. Matters for Online Consumers
Price / Discount
Convenience / Experience
Onsite shopping journey
Delivery/Exchange/Return CS
Product Variety

9. A successful Omni Channel Strategy
Part III
A successful Omni Channel Strategy

10. Suggestion for Omni Channel Strategy
LONG TERM
SHORT TERM
PRODUCT
Develop online specific products (ex: Anker, Gucci online only)
Start selling existing products online in order to accumulate right knowledge and experience to develop products for online
PRICE
Bundling – To create more value at the similar price
Different packaging
Develop pricing which considers the change of cost structure

11. Suggestion for Omni Channel Strategy, Cont’d
LONG TERM
SHORT TERM
PLACE
Secure online channels (including its own) which fit to brand characteristics
Adjust channel strategy (offline vs. online) along with the evolvement of online retail market
Leverage online market place rather than building its own channel in the beginning
PROMOTION
Secure personal marketing capability
Digital marketing
Marketing automation
Secure Integrated marketing capability
Leverage online marketplace capability to promote products online
Assign appropriate budget for online promotion

12. Case Studies Built an Established EC Presence in Less Than 6 Months
Impactful promotion
Efficient marketing plan
Data driven insights for strategic planning
Differentiated the Brand with Distinct Value Propositions
Online specific product line
Exclusive online promotion
Value-based offer

13. A CONNECTED WORLD
Thank you