E-commerce Era in Emerging Markets

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E-commerce Era in Emerging Markets
Y
                  OP
E-commerce

                TC
Era in
Emerging
Markets

              NO
             DO
E-commerce Era in Emerging Markets
Y
             OP
           TC
About
Aramex
         NO
    DO
E-commerce Era in Emerging Markets
Y
     OP
     Tracing Our

   TC
     Evolution

 NO  1982-2018
DO
E-commerce Era in Emerging Markets
‘82                                                     ‘90

       Y
     OP
      Established with offices   Co-founded with
      in Amman & New York        Airborne Express the
                                 Overseas Express

   TC
                                 Carriers (OEC)

 NO
                                 Started offering
                                 Express, Domestic &
                                 Freight under
                                 one roof

                                                        ‘94
DO
E-commerce Era in Emerging Markets
‘97

                     Y
                   OP
      Became the first Arab
      company to be listed

                 TC
      on NASDAQ

      De-listed from NASDAQ

               NO
      and returned to private         Co-founded the Global
      ownership with Abraaj           Distribution Alliance
      Capital                         (GDA) and the World
                                      Freight Alliance (WFA)
  DO
‘02                             ‘03
E-commerce Era in Emerging Markets
‘05                                                 ‘07

       Y
     OP
      Became a public        Launched a Corporate
      shareholding company   University and adopted
      trading on the Dubai   Sustainability Reporting
      Financial Market

   TC
                             Continued expansion in

 NO
                             South East Asia and
                             Africa

                                                    ‘11
DO
E-commerce Era in Emerging Markets
‘14

                    Y
                  OP
                TC
      Continued strategic agreements and expansions in
      South Africa, Turkey, China, Asia, Sub-Saharan
      Africa, Asia-Pacific as well as other growth
      markets

              NO
  DO
‘15                                                      ‘18
E-commerce Era in Emerging Markets
Y
             OP
           TC
Corporate
Facts

         NO
        DO
E-commerce Era in Emerging Markets
Aramex in Numbers

                   Y
                 OP
               TC
18,000               84             604              69
 Employees        Nationalities      Offices       Countries

             NO
 Worldwide coverage through the Global Distribution Alliance
DO
E-commerce Era in Emerging Markets
Y
                   OP
                 TC
37,000,000
customers worldwide

               NO
        DO
Y
           OP
Aramex

         TC
Services

       NO
  DO
Our Services

                 Y
               OP
             TC
           NO
Express    E-Commerce   Logistics   Freight
          DO
Our Network

                                   Y
We currently have business operations in over

                                 OP
604 cities across 73 countries worldwide

                               TC
                             NO
                DO
DO
     NO
       TC
         OP
           Y
Y
              OP
The Middle East

            TC
and North Africa
(MENA)
          NO
     DO
Geographic – MENA Region

                                                 Y
                                               OP
                                             TC
                                           NO
                       DO

  Source: https://citizenor.files.wordpress.com/2015/03/mena-map.gif
Cross Border vs. Domestic

                                                                Y
                                                              OP
                      Distribution of online shopper in the UAE                                                Distribution of cross border e-commerce in UAE
                                                                                                                          Intra MENA
                                                                                                                              10%

                                                            TC
                                                                                                                                                                    The US
                                                                               Domestic online                                                                       35%
                                                                                  shopper
                                                                                    40%
                                                                                                      Europe
                                                                                                       25%

Cross Border online
      shopper
        60%

                                                          NO
                                     DO
                                                                                                                   Asia
                                                                                                                   30%

                       Domestic online shopper   Cross Border online shopper
                                                                                                                             The US    Asia   Europe   Intra MENA

                                                                                 Source: CBEC and the Paypers
MENA – One of the Largest Markets in the World

                             Y
Current market size in the Arab

                           OP
world is $10 billion
UAE and KSA are expected to
have a combined market of over

                         TC
$15 billion by 2020

  UAE

                       NO
  $3.5 billion

  KSA
  $2.9 billion
                DO
  Egypt
  $2.4 billion

Source: PayFort 2016
Market Size

                                     Y
Retail Ecommerce Sales (Middle East & Africa)
2016-2010

                                   OP
    2016     $18.67 billion

                                 TC
    2017     $23.33 billion
    2018     $28.60 billion
    2019     $34.69 billion

                               NO
    2020     $41.56 billion
    2019
                                                    110 Million Internet users in the
Note: includes products or services ordered using   MENA region, of which more than
the internet via any device, regardless of the       30 Million are online shoppers
                 DO
method of payment or fulfillment; excludes travel
and event tickets

     Source: eMarketer, Dec 2016                               Source: Paypal
Payment Methods

                               Y
                             OP
Cash on Delivery (COD)   Card Payment       The MENA market is a COD one. Why?

                                            1. MENA customers are cynical

                           TC
                                               about online payment.

                                            2. Many of them don’t apply or use
                                               credit card.

     77%
                         NO
                          23%               3. They can refuse to accept
                                               delivery (e.g. late delivery) as
                                               there is no cost associated with
                                               the package until POD is done.
            DO
                                            4. Duty collection can be made by
                                               COD.

                                   Source: Aramex
Duty and Tax

                                   Y
                                 OP
UAE
•   Customs duties at 5% levied on CIF value

                               TC
•   VAT 5%

•   International express or courier imports with declared value below AED 1,000 (~USD 270) are duty
    free

KSA
•                            NO
    Customs tariff on imported goods varies between 5% to 12% levied on CIF value
              DO
•   VAT 5%

•   International express or courier imports with declared value below SAR 1,000 (~ USD 266) are
    duty free
                                                                                         Source: Aramex
Y
             OP
Other Emerging

           TC
Markets

         NO
     DO
Indonesia

                                          Y
                                        OP
                                      TC
                                    NO
                        DO
                      Number of Indonesian online shoppers in millions

Source: Statista
Indonesia
                                  Top 5 Origins

                                     Y
                                  China, Singapore, Japan, Malaysia, South Korea

                                   OP
                                 TC
                               NO
                       DO
Source: Statista
Indonesia

                                        Y
                                      OP
                                    TC
       USD 8.59 Billion

                                  NO
    Ecommerce Revenue in 2017

    Leading Categories:
    Fashion: USD 3.05 Billion
    Toys, Hobby & DIY: USD 1.82 Billion
                          DO
Source: Statista
Indonesia

                                          Y
                                        OP
                       Preferred Payment Methods

                                      TC
                       Cash on Delivery (COD)   Cards Payment   Bank Transfer

                            25%     NO           2%              73%
                       DO
Source: Statista
Malaysia

                                             Y
                                           OP
                                         TC
                                       NO
                           DO
                   Number of Malaysian online shoppers in millions

Source: Statista
Malaysia
                                 Top 5 Origins

                                    Y
                                 China, Singapore, Japan, USA, South Korea

                                  OP
                                TC
                              NO
                       DO
Source: Statista
Malaysia

                                        Y
                                      OP
                                    TC
       USD 1.31 Billion

  Ecommerce Revenue in 2017

  Leading Categories:

                                  NO
  Electronics & Media: USD 477.7 Million
  Furniture & Appliances: USD 356.3 Million
                          DO
Source: Statista
Malaysia

                             Y
                           OP
                         TC
Preferred Payment Methods

                       NO
                   DO
Source: Statista
Thailand

                                         Y
                                       OP
                                     TC
                                   NO
                       DO
                     Number of Thai online shoppers in millions
Source: Statista
Thailand

                                    Y
                                  OP
                                TC
                              NO
                       DO
Source: Statista
Thailand

                                       Y
                                     OP
                                   TC
       USD 2.9 Billion

  Ecommerce Revenue (2017)

  Leading Categories:
  Electronics: USD 1.3 Billion
  Fashion: USD 525 Million       NO
                         DO
Source: Statista
Thailand

                             Y
                           OP
                         TC
Preferred Payment Methods

                       NO
                   DO
Source: Statista
Y
                         International Express
       Aramex                                          Customs

                  OP
       Checkout                                        Brokerage

                TC
              NO
Value Added
Services                                                Last Mile
                                                        Delivery
    DO
        Aramex Returns                  Payment on Delivery
International Express                             Interntional
                                                    Express

for e-Commerce

                                  Y
                                OP
With Aramex’s reliable door-to-door delivery
solution, you can expand and sell your products
online to international markets.

                              TC
                            NO
                DO
Customs
                                      Brokerage

                               Y
                             OP
Customs Brokerage
Aramex is a licensed customs

                           TC
broker, and as such can perform all
necessary services regarding

                         NO
clearance formalities and customs
duties on your behalf.
             DO
Last Mile
                                          Delivery

                               Y
                             OP
Last Mile Delivery
Through its various integration tools;

                           TC
Aramex enables you to deliver your
products to your customers within your
country or city, allowing them to track

                         NO
their delivery online at any time.
             DO
Payment
                                       on Delivery

                               Y
                             OP
Payment on Delivery
Aramex will enable your website to

                           TC
provide a cash on delivery option in
markets where customers are more

                         NO
inclined to select this option. With
seamless integration and compliance
with international standards and
regulatory rules.
             DO
Aramex
                                                                                                   Returns

                               Y
                             OP
Aramex                                  In-country

Returns
                                       consolidation                              Cost-effective
                                          centers                                  bulk returns

                           TC
Through its solid and continuously                               Our key
                                                           differentiators are:
expanding reverse logistics network;

                         NO
Aramex provides you with
customized return solutions
             DO
                                                  Powerful
                                                 IT platform
Aramex
                                                                                Returns

                                       Y
                                     OP
In-Country Consolidation Centers
Localized customer experience in major e-commerce markets

                                   TC
                                     New Zealand        Australia    Spain
                                                                     Spain
         USA            Canada

        Ireland       Netherlands
                                 NO   Germany          Belgium      Hong Kong
                  DO
         Italy                        Austria               UAE     Hong Kong
                                                                       KSA
                       France
Aramex
                                                                    Returns

Why Aramex Returns

                             Y
                           OP
Fully tracked end to end return    The Return Portal can be branded
service                            according to customers’ guidelines

                         TC
Global return solution with over   Payments are taken on the Aramex
150 countries offered              Payment Services platform
Offering buyers the choice and     Automatic language selection

                       NO
convenience with the multiple      based on IP Return requests
return options                     Accepted 24/7
Complete return management         Multi language support
Ability to apply retailer return
           DO
policy (returnable Vs.
nonreturnable merchandise)
Y
          OP
        TC
FREIGHT
      NO
SOLUTIONS
   DO
Our Services
Freight Solutions

                             Y
                           OP
                         TC
                       NO
            DO
  ExpressAIR FREIGHT   E-CommerceSEA FREIGHTLogistics   LAND FREIGHT
                                                                Freight
Air Freight

                                        Y
                                      OP
Aramex offers a global and cost
effective solution to all of your air
freight needs. Through a

                                    TC
worldwide network, out teams of
cargo professionals provide global
services and local expertise to
ensure complete door-to-door

                                  NO
transportation and smooth
customs clearance at all times.
                    DO
Value Added

                                  Y
Services

                                OP
  Customs Clearance

                              TC
  & Door to door Delivery
  Special Services &
  Project Management

                            NO
  Cool Chain Management

  Third-Party Shipping
             DO
  Exhibitions Handling

  Charters
Sea Freight

                                      Y
                                    OP
Aramex provides comprehensive
Sea freight forwarding services.
Backed by our global network of

                                  TC
offices covering key shipping lines
worldwide, highly skilled teams of
experts and state of the art
technology systems.

                                NO
                   DO
Value Added

                                     Y
Services

                                   OP
  FCL & LCL to and from all
  major markets

                                 TC
  Global cargo consolidation
  programs

  Customs Clearance & Door

                               NO
  Delivery

  Container stripping / break bulk
                DO
  Full customs brokerage service
Value Added

                                Y
Services

                              OP
 Full documentation service

                            TC
 Real time information systems

 Product insurance programs

                          NO
 Cross Dock Management

 Integrated IT network of
 communication & Tracking
              DO
 systems
Land Freight

                                     Y
                                   OP
Aramex has one of the largest and
most advanced land freight
networks in the Middle East and

                                 TC
Europe. With modern truck fleets
equipped with GPS-tracking, as
well as scheduled services,
multimodal transportation

                               NO
options and strategically located
terminal hubs.
                  DO
Value Added

                                  Y
Services

                                OP
                              TC
  Customs Clearance
  & Door to door Delivery

  Multi-Modal Transportation

  Integrated IT network of
  communication & Tracking
  systems                   NO
              DO
Y
     OP
   TC
 NO
DO
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