Leveraging the Massive Cross

Border e-Commerce Growth

Charles Brewer
CEO, DHL eCommerce

DHL eCommerce – Excellence. Simply delivered.

• INSERT THE GOOGLE YOU TUBE VIDEO – JUST
MAKE SURE WE TEST IT TOMORROW TO
ENSURE T WORKS AND PLAYS NICE AND LOUD
AT THE VENUE
This is a GROWTH story
Source: Accenture and AliResearch
 By the numbers..

vs.
12.8% 1.6bn $3.4 trillion $1,582
Share of global retail e- Estimated number of Value of domestic and Average annual online
commerce of total retail people shopping online cross-border e-commerce spend per e-shopper in
spend by 20191) in 20182) trans-actions worldwide by 20164)
20203)

$17.8 billion 60% $192 billion 47%

One day sales revenue Share of China and USA Value of global e-commerce Share of online
of Alibaba group on of global e-Commerce logistics industry incl. shoppers who expect
Singles’ day5) market in 20164) fulfillment in 20166) free shipping

1) eMarketer, 2016 2) By 2018, a quarter of the world’s population will be online shoppers (DHL, 2015); 3) Accenture & AliResearch, 2016) 4) ‘Global B2C E-commerce Report 2016’ by E-
commerce Foundation 5) Forbes, 2016; 6) Transport Intelligence, 2016
Key trends

The digital age Customer satisfaction highly depends on a convenient last mile delivery &
increases returns experience
customer
expectations of Direct-to-Consumer is on the rise and will affect both B2C and B2B
logistics commerce

True Omni-channel will become a reality

The right Customer expectations regarding ever faster delivery will also drive new
logistics ways of B2C fulfillment
solution is key
to business
Effective eFacilitation enhances the success of e-commerce business
success

Cross-border e-commerce enables access to new markets without major

investments
Cross-border
In 2015 cross-border..

15%
USD 300bn

Source: The 21st Century Spice Trade, DHL

And by 2020..

27%
USD 900bn
Source: The 21st Century Spice Trade, DHL
 The largest markets and trade lanes

China 1 Germany 6

€ 413bn € 52bn
% 18.3% 13% % 9.7% 9%

RU
United States 2 France 7
CA
€ 359bn € 40bn
12% UK DE 7%
% 9.3% % 8.1%

US FR
Japan 3 KR JP India 8
CN
€ 94bn € 21bn
% 9.6% 6% IN % 4.0% 31%

United Kingdom 4 Canada 9

€ 85bn BR € 19bn
% 16.1% 7% % 6.7% 16%
AU

South Korea 5 Brazil 12 Russia 11 Australia 10

€ 53bn € 12bn € 15bn € 15bn

% 22.3% 16% 12% % 5.9% 8% % 4.9% 12%
% 4.1%

E-COMMERCE MARKET SIZE 2016 E-COMMERCE SHARE IN RETAIL 2016 XX% E-COMMERCE CAGR 2016–2020

Source: Euromonitor International 2016; Modern Spice Route (PayPal, 2013)

 Exciting and fast growing sub-regions

China 1 Germany 6

€ 413bn € 52bn
% 18.3% 13% % 9.7% 9%

RU
United States 2 France 7
CA
€ 359bn GCC + Egypt € 40bn
12% UK DE 7%
% 9.3% % 8.1%
147mn
FR 34%
3 US JP 8
Japan KR India
EUR 17bn CN
€ 94bn Southeast Asia € 21bn
% 9.6% 6% IN % 4.0% 31%
Africa 623mn
15%
4 1bn 9
United Kingdom Canada
EUR 13bn
12%
€ 85bn Latin America BR € 19bn
% 16.1% 7% EUR 2bn % 6.7% 16%
626mn AU
12%
South Korea 5 Brazil 12 Russia 11 Australia 10
EUR 43bn
€ 53bn € 12bn € 15bn € 15bn
% 22.3% 16% 12% % 5.9% 8% % 4.9% 12%
% 4.1%

Source: Euromonitor International 2016; Modern Spice Route (PayPal, 2013)

Insert our three slides on
LATAM, SEA and MENA here
 What drives cross-border sales

Availability Offering Trust

Better Appealing Better Recommendations Trustworthiness

Availability Offer Conditions From others Of E-Tailer

31 %
31 36 % %
14 %
11 %

Source: The 21st Century Spice Trade, DHL

And it isn’t just electronics and apparel

Beauty Pet Care F&B Sporting Goods

32% 30% 27% 26%

Source: The 21st Century Spice Trade, DHL
Everyone sees the cross-border potential
76
69 68
Ø 71
63

E-Commerce Giants Pure Online Brick-and-Mortars Manufacturers

Retailers

Source: The 21st Century Spice Trade, DHL - share of respondents who forecast significant growth in cross-border over the next 2-3 years
..but it isn’t all plain sailing

Inadequate Physical Payment Methods Customs Regulations and

Addresses Transport Infrastructure

Security of High-Speed/Secure
Language and diversity
Transactions Connectivity
..and delivery is the new ‘battleground’

Inadequate Physical Payment Methods Customs Regulations and

Addresses Transport Infrastructure

Security of High-Speed/Secure
Language and diversity
Transactions Connectivity
Source: Accenture, The New Delivery Reality
Winning the cross-border game

Strategic Clarity: Identify your cross-border opportunity

The Right Assortment: Understand local tastes and rules

The Global Local Webshop: Let the world shop like locals
Warehousing and Fulfillment: Find the best footprint-company fit

Delivery Choices: Use them as a powerful tool for conversion

 Charles.Brewer@dhl.com

linkedin.com/in/BrewerCharles

@BrewerDHL

DHL eCommerce – Excellence. Simply delivered.