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ecommerceIQ, together with Sasin SEC, created the Leadership Ecommerce Accelerator Program (LEAP) to provide the fundamental knowledge and skills needed to successfully run an ecommerce business in the world’s fastest growing market.

As ecommerce widely becomes second nature around the world, developing countries must take charge with new models, mindsets and regulations to assist businesses in catching up with their consumers. Thailand has long been making moves towards a new economic model – Thailand 4.0.

In the ninth week of LEAP, global payments unicorn, Adyen, shared insights on the region’s check out habits and Korn Chatikavanij, former Finance Minister of Thailand, discussed the country’s much needed progression to new policies and attitudes.

1. Why a Payment Can Fail?  

Bradley Riss, Adyen Head of Business Development APAC

 

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Not many students in the room or across the Southeast Asia for that matter have heard about Adyen, but that’s because the global payments provider works in the background for clients such as: Uber, ofo, MANGO, Spotify, Dropbox and ZARA.

While the concept of payments may seem extremely simple for those accustomed to digital transactions, in a region where bank accounts and credit cards aren’t trusted, facilitating ecommerce payment can be tricky.

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According to the World Bank, over 150 million adults above 25 do not have a bank account and based on Adyen’s data, these are the top reasons why a payment can fail:

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The “Do not honor” or Invalid Service Code messages indicate that the customer’s card issuing bank will not validate the transaction and provide an authorization code or the credit card being used for the transaction has been rejected by the bank.

To resolve the issue, the shopper must contact their credit card issuing bank and obtain a verbal authorization code for the transaction. Once obtained, the transaction can be captured manually.

A student asks, “if my customers haven’t adopted online payments yet, what can I do as a business to facilitate transactions?”

Bradley’s reply?

You can only offer a local solution. For example, work with convenience store providers like 7-11 and allow them to facilitate transactions.”

2. Korn Chatikavanij: Technology is Coming to Save Us

Korn Chatikavanij, President of Thai Fintech Club

 

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The former Finance Minister of Thailand started with encouraging words about the country’s development such as the country’s national income per capita has grown by 300% from 1986 at $800 to $2,500 at 1994. But he also highlighted certain issues that have caused the government to decide that it requires a new economic model in order to keep up with the world.

The income inequality between the richest 20% and the poorest 20% has remained at a 13 times difference for the last 30 years. And while this means that the entire Thai population has benefited from the booming economy, 13 times is severely high in even the most unfair circumstances. This is especially true when looking at a developed economy such as Japans, which has an income gap of only 3 times.

What is the best solution Korn believes can tackle this problem?

Access to good education and technology.

Urbanisation in his eyes is a good thing. When farmers become city dwellers, they will have more money in their pockets because economic opportunity is better in cities. And when people have more money to spend, their behavior changes to that of an urban middle class – more leisure travel, more consumption.

 

And even if more farmers move to the city, the country has enough natural resources to sustain itself and for export but without technology, the Thai people cannot capture and utilize its full potential.

The way we manage a key source as a country that calls itself an agricultural center is damning.”

He is referring to the amount of natural rainfall that occurs in Thailand. If the quantity is scaled to 100 droplets, the country only uses four out of the hundred.

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Korn concluded with a word of advice for the entrepreneurs and C-levels in the classroom,

Consumers don’t change just because your tech is better. They change because the service provider has not adapted to their needs.”

My Thai channel provider stopped providing me with HBO, so it was only then I finally decided to switch to Netflix and now I’m hooked because their technology is superior.

The final class of the 10-week program will conclude on Thursday November 16th, with a tour of a fulfillment center to understand how 11.11 and 12.12 campaigns impact day to day ecommerce operations. Stay tuned for next week’s takeaways and keep up with learnings from the last eight weeks.

[LEAP Week 1] eIQ Insights: The New Ecommerce Opportunity in Thailand
[LEAP Week 2] eIQ Insights: Refinement of an Ecommerce Channel Strategy
[LEAP Week 3] eIQ Insights: Market-Product Fit First Before Anything
[LEAP Week4] eIQ Insights: Central Marketing Group’s Shares Phase II of Digital Strategy
[LEAP Week 5] eIQ Insights: Startups Need to Have an Independent Source of Income to Survive
[LEAP Week 6] eIQ Insights: In Mobile Commerce, App Install is Only the Starting Point
[LEAP Week 7] eIQ Insights: Logistics and Fulfillment, The Other Side of The Ecommerce Coin
[LEAP Week 8] eIQ Insights: Looking to Succeed in Fulfillment and Logistics? Start with Data and People

ecommerceIQ, together with Sasin SEC, created the Leadership Ecommerce Accelerator Program (LEAP) to provide the fundamental knowledge and skills needed to successfully run an ecommerce business in the world’s fastest growing market.

A shopper tapping the ‘buy now’ button is often seen as the last stage in the ecommerce funnel, but companies should understand that it doesn’t stop there.

The warehouse hustle bustle, weight of package, and even presentation of the delivery man not to mention the possibility of a return all can determine the extent of local success a company finds and whether if their operations make expansion plausible.

In the eighth week of eIQ x Sasin: LEAP, lecturers stress the details that make e-fulfillment successful and how each tiny misstep can lead to additional man power, longer work hours and missed deadline.

1. Setting Up a Fulfillment Center Requires A Lot Data and Elbow Grease

Kenneth Thean, aCommerce Regional Director of Solutions Design

 

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Ask anyone about a warehouse and they’ll probably draw a building with some shelves and people in it. While these elements exist, creating the right framework to manage the flow of inbound and outbound goods means companies need accurate data.

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First step in designing a fulfillment center, analyze. Source: aCommerce

Before investing in a large costly warehouse, sophisticated technology and assets, use data to assess your actual requirements. Kenneth shares a few mistakes clients often make when planning.

“Very commonly, companies expect to see exponential growth and overestimate order volumes. Always consider the accuracy of your data, do a check to avoid unrealistic forecasts to ensure the sustainability of your fulfillment center.”

2. Kerry Express: How We Grew From Nobody to Somebody

Alex Ng, Kerry Express Executive Director

 

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Kerry Express launched in Thailand in 2013 and in four short years, the company ships 500,000 packages a day, operates 500 distribution centers and is the number one parcel delivery company in the country.

How did they grow and ensure customer satisfaction at the same time? Alex attributes it to having the best people and keeping it ‘stupid simple’.

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The growth of Kerry Express in five years. Source: Kerry Express

A student asked Alex, “how do you ensure that the workplace environment is genuinely a happy one?”

“Reduce the mundane routines, bureaucracies and eliminate workplace politics. There is no room for politics at Kerry, only for real work.”

3. Market Expansion? It’s Ok to Copy and Paste

Kawin Prachanukul, Country Head and Co-founder ShopBack Thailand

 

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The components Kawin had to assess when launching UberX in Thailand in only 10 days.

 

“Uber has its ups and downs, but what they have been able to accomplish in terms of market expansion is admirable,” says Kawin, ex-Uber Thailand Operations Manager.

While at Uber, Kawin shared how his first major task was to launch UberX in only 10 days. How?

“It was only possible because the company’s global team has documented and tracked each and every one of their multiple steps when launching a new market, including learnings and failures. It makes expansion easier because all the local market needs to do is copy and implement.”

The last in-class session of the program will finish on Thursday November 9th, covering payments with case studies by global unicorn, Adyen. Stay tuned for next week’s takeaways!

[LEAP Week 1] eIQ Insights: The New Ecommerce Opportunity in Thailand
[LEAP Week 2] eIQ Insights: Refinement of an Ecommerce Channel Strategy
[LEAP Week 3] eIQ Insights: Market-Product Fit First Before Anything
[LEAP Week4] eIQ Insights: Central Marketing Group’s Shares Phase II of Digital Strategy
[LEAP Week 5] eIQ Insights: Startups Need to Have an Independent Source of Income to Survive
[LEAP Week 6] eIQ Insights: In Mobile Commerce, App Install is Only the Starting Point
[LEAP Week 7] eIQ Insights: Logistics and Fulfillment, The Other Side of The Ecommerce Coin