Aramex eTrends in the Middle East 2015

Aramex eTrends in the Middle East 2015 by Iyad Kamal. Delivered at ArabNet 2015 in Dubai.

Transcript

1. Arabnet 2015
   Dubai
   IYAD KAMAL
   IYAD@ARAMEX.COM
   IYAD KAMAL
   @IYADKAM
   Confidential
   

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2. eBUSINESS TRENDS
   OPS, PAYMENT & RETURNS
   SOCIAL TRENDS
   ALL NEW
   Confidential
   

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3. % 15
   GLOBAL ECOMMERCE SALES?
   eBUSINESS TRENDS
   Source: eMarketer
   

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4. OF AGE COMPRISE ABOUT
   MENA POPULA
   TION
   ONCE A
   MONTH
   43%
   60% INTERNET USER IN THE GCC ARE MAKING ONLINE PURCHASES
   25 YEARS
   Source: Wamda - 25 Essential Stats on E-Commerce in the Middle East
   REGIONAL ECOMMERCE POTENTIAL
   eBUSINESS TRENDS
   

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5. Source: eMarketer
   WHY DO PEOPLE BUY FROM ABROAD?
   OPPORTUNITIES FOR REGIONAL ETAILER
   eBUSINESS TRENDS
   

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6. SNS, ecommerce; domestic, regional, international
   ARAMEX SPECIFIC DATA!
   eBUSINESS TRENDS
   

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7. Source: Aramex eCommerce Data
   31%
   Saudi
   94%
   Saudi
   29%
   Egypt Egypt
   20%
   UAE UAE
   14%
   UAE Saudi
   Origin Destination % of total packages
   WHERE ARE THE REGIONAL ECOMMERCE VOLUMES COMING
   FROM?
   eBUSINESS TRENDS
   

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8. Source: Aramex eCommerce Data
   Intra MENA $102
   Into MENA $139
   willing to pay more shipping
   as variety has a price with duty % being an
   advantage
   VALUE OF ORDER?
   eBUSINESS TRENDS
   

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9. SHOES
   APPAREL BEAUTY SUPPLIES BOOKS/BAGS
   20%
   19%
   19%
   2013
   2014
   BEAUTY SUPPLIES
   APPAREL SHOES
   TOOLS
   Source: Aramex Shop&Ship Data
   WHAT DO PEOPLE BUY
   eBUSINESS TRENDS
   

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10. eBUSINESS TRENDS
    OPS, PAYMENT & RETURNS
    SOCIAL TRENDS
    ALL NEW
    Confidential
    

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11. COD VS. CREDIT CARD PAYMENT
    Source: Aramex eCommerce Data
    Year Credit Card Cash on Delivery
    2011 29% 71%
    2012 29% 71%
    2013 27% 73%
    2014 24% 76%
    It is still a COD market and etailers promote it!
    Mainly domestic COD today but changing!
    GLOBAL ECOMMERCE SALES?
    OPS, PAYMENT &
    RETURNS
    

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12. PAYMENT MEANS USED
    Source: Aramex Shop & Ship Data
    2012 2013 2014
    56% 52% 44%
    35% 29% 23%
    6% 16% 30%
    3% 3% 3%
    OPS, PAYMENT &
    RETURNS
    

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13. WHO PAYS ONLINE (SHIPPING) MORE
    Source: Aramex Shop & Ship Data
    36%
    26%
    24%
    23%
    UAE
    BAHRAIN
    LEBANON
    QATAR
    SAUDI ARABIA 22%
    OPS, PAYMENT &
    RETURNS
    

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14. AVERAGE DELIVERY ATTEMPTS
    Source: Aramex Shop & Ship Data
    9%
    50%
    20%
    9%
    25%
    Card: 1 1
    COD: 1.88 1.50
    2013 2014
    
    
    OPS, PAYMENT &
    RETURNS
    

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15. LAST MILE PAYMENT CONVERGANCE
    Source: Aramex Shop & Ship Data
    COD becoming POD
    With SADAD and mobile payment devices with couriers
    OPS, PAYMENT &
    RETURNS
    

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16. MENA LOGISTICS RETURNS
    Source: Aramex eCommerce Data
    Payment 2012 2013 2014
    COD 24% 21% 19%
    Credit Card 7% 7% 8%
    
    OPS, PAYMENT &
    RETURNS
    

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17. TOP RETURN REASONS
    Source: Aramex eCommerce Data
    No response 42%
    Bad address 13%
    Client not available 10%
    OPS, PAYMENT &
    RETURNS
    

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18. EUROPEAN LOGISTICS RETURNS
    Source: Aramex eCommerce Data
    Less
    than 1%
    Why?
    - Orders are made with credit card
    - Addresses are correctly structured in Europe
    and customers provide accurate addresses
    including postcode
    - Carriers can leave at a safe place or deliver
    to a neighbor if the customer wasn’t
    available
    OPS, PAYMENT &
    RETURNS
    

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19. GROWTH OF PICKUPS
    Source: Aramex eCommerce Data
    17% from service
    centers
    as more pick up points become available
    OPS, PAYMENT &
    RETURNS
    

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20. MYADDRESS RESPONSE RATES
    Source: Aramex Operations Data
    50%
    Saudi: 25%
    UAE: 31%
    direct impact on call center!
    OPS, PAYMENT &
    RETURNS
    

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21. eBUSINESS TRENDS
    OPS, PAYMENT & RETURNS
    SOCIAL TRENDS
    ALL NEW
    Confidential
    

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22. WHERE ARE THE REQUESTS COMING FROM?
    Source: Aramex Social Media Data
    9%
    50%
    20%
    9%
    25%
    KSA 53%
    KUWAIT 12%
    UAE 10%
    INDIA 9%
    EGYPT 5%
    QATAR 4%
    OTHER 9%
    2013 2014
    65%
    5%
    5%
    4%
    3%
    14%
    1%
    SOCIAL TRENDS
    

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23. CUSTOMER SERVICE REQUESTS?
    Source: Aramex Social Media Data
    58% 78%
    68% 94%
    2013
    2014
    SM a main customer service channel!
    SOCIAL TRENDS
    

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24. eBUSINESS TRENDS
    PAYMENT & RETURNS
    SOCIAL TRENDS
    ALL NEW
    Confidential
    

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25. WHAT KEEPS US BUSY?
    Simple: delivery on time and at an affordable price
    ALL NEW
    

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26. FURTHER CONNECTING WITH THE CLIENT
    Client Courier
    Objectives:
    - Satisfied
    - Delivery on time
    - Affordable price
    Objectives:
    - Satisfied
    - Deliver on time
    - Affordable cost
    Focus: How to get them closer, physically and technically?
    (information and consistency)
    ALL NEW
    

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27. ARAMEX KEY INVESTMENT AREA!
    Why?
    - Mobile is your address!
    - C2C communication, bypass the
    CC
    - Live tracking and avoid calls
    - Online payment, reduce cash
    management
    - Big data analysis:
    - Non payers
    - Not at home
    - Same address delivery,
    don’t call…
    TECHNOLOGY is making it happen
    (mobile in specific with more than 90% penetration)
    App App
    ALL NEW
    

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28. LAST MILE SOLUTIONS / LAST MILE TO LOCKERS
    NEVER MISS A DELIVERY AGAIN!
    - Available 24/7
    - 100% safe & secure
    - Quick, simple and fun
    - Cheapest delivery option
    ALL NEW
    

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29. Announcement!
    

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30. OUR NEW OFFERING to grow the industry…
    eCommerce Package
    o Classify clients by shipping tiers
    o Provide shipping rates based on tier volumes
    o Advance COD payment which equates to paying of COD amounts upon
    shipping
    o July 1st 2015
    

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31. Thank You
    IYAD KAMAL
    IYAD@ARAMEX.COM
    IYAD KAMAL
    @IYADKAM
    

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