The Development of Crossborder E commerce Collaboration TAI

The Development of Cross-border E -commerce Collaboration TAI, Fan. Chan Ph. D. Commerce Development Research Institute http: //www. cdri. org. tw 1

The foundations of internet economy Computing Capacity Satellite Globalization Communication Connectivity Fiber Technology Digitization Commerce Development Research Institute Internet economy /Digital economy refers to an economy that is based on digital computing technologies and internet connections http: //www. cdri. org. tw 3

The nature of internet economy Cloud Network Point Hybrid 雲端計算 網際網路消費者使用 大數據 物聯網 裝置-資料 Instant Data Sharing mobility Consumer-centric Coordination ew N e h T ture c u r t s Infra bility - Mo The New Factor of Production-Data The N e Valu w Form o e Cre ation f Netw ork Internet Economy Commerce Development Research Institute http: //www. cdri. org. tw 4

Internet economy brings tsunami to our lives Share Economy Subscription Economy Connectivity and Sharing Application on Demand Anywhere Anytime Business Model Commerce Development Research Institute Internet Metric http: //www. cdri. org. tw Virtual Reality Life Change 4

New Business Model－C 2 B/Empowerment C 2 B Lean Production Modularized Production Mass Customization Personalized Production B 2 C Standardization 2016 1920 1990 Consumer Centric Personalized Marketing C 2 B Flexible Production Commerce Development Research Institute http: //www. cdri. org. tw Intelligent Store 5

The merits and barriers of cross-border ecommerce • merits 稅賦 減免 供給面 因素 品質 保證 通關 檢驗 市場 測試 快速切 入市場 價格 誘因 需求面 因素 更多 選擇 更快 取得 barriers 文化 Commerce Development Research Institute 物流 金流 http: //www. cdri. org. tw 產品適地化 7

Chile enjoys the highest bandwidth Commerce Development Research Institute http: //www. cdri. org. tw 11

The Latin American e-commerce market is still in early stages of growth relative to other major geographic regions 2013 e. Commerce Penetration of Total Retail 15% 10% 5% 0% Source: Euromonitor Commerce Development Research Institute http: //www. cdri. org. tw 12

Enormous opportunity: LATAM e. Commerce market to double by 2018 Figures in US$ billions CAGR ‘ 13 -’ 18 $ 47 CAGR: 15. 5% $ 41 20. 2 % $ 36 9. 5 % $ 31 $ 27 17. 3 % $ 23 14. 1 % 2013 2014 Brazil 2015 Mexico 2016 Argentina 2017 2018 Rest of Lat. Am % of Total Retail 2. 1 % 2. 4 % 2. 7 % 3. 0 % 3. 3 % 3. 8 % % of Total Retail (USA) 7. 4 % 8. 2 % 9. 0 % 9. 9 % 10. 8 % 11. 6 % Source: Euromonitor International Commerce Development Research Institute http: //www. cdri. org. tw

Latin America has huge opportunities • Significant Consumer Base: +600 Million People • Increase of internet adoption and fast growth of Internet User Base • 176. 3 MM Of Online Users • Expansion of mobile penetration • High Level of Engagement of users • Latin Americans spend 21. 7 Hours online per month • Growing consumer trust of online retailers Commerce Development Research Institute http: //www. cdri. org. tw 1 4

But also has some challenges…. • Varying consumer purchase behavior based on three key aspects of the online shopping process • Engagement measure by online usage • Product preferences • Purchase execution through different payment methods • Underdeveloped infrastructure • Gap between online purchase and delivery • Rapid expansion of e-commerce was not matched by equivalent infrastructure growth • Lack of or unfavorable regulations (Taxes, liability, etc. ) Commerce Development Research Institute http: //www. cdri. org. tw 1 5

World Class Major Player Retail Worldwide Ranking (Millions of Unique Visitors) 433 #16 Retail Worldwide Ranking 395 244 166 138 119 105 93 88 60 Commerce Development Research Institute 58 http: //www. cdri. org. tw 57 56 56 55 49 47 42 41 41 16

Public policies to help fostering the ecosystem Flexible and modern set of rules Foster investment and development of the sector Public Policies Multi-stakeholder effort and collaboration Increase adoption of ITCs, creation of local content and innovation Commerce Development Research Institute http: //www. cdri. org. tw 17

Thank You Commerce Development Research Institute http: //www. cdri. org. tw 18