Optimising E-commerce Strategies for MNOs
2014.05.29   |   48 pages   |   Direction, Strategy and Brand Differentiation

Patrizia Balia

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The e-commerce industry has been experiencing double-digit growth in recent years and still offers plenty of room for growth with only a fraction of retail sales currently taking place online. Increases in internet penetration (often based on mobile broadband access) and an upsurge in smartphone ownership are driving new e-commerce growth and opening new revenue opportunities for MNOs.

In emerging markets such as India a growing middle class, comprising largely younger people equipped with a mobile phone and with more disposable income, is encouraging large scale investment in e-commerce businesses. In developed markets, browsing on mobile devices is extremely popular and, aside from playing a key role in influencing consumer choices in terms of in-store visits and purchases, is becoming a strategic shopping tool for online purchases.

In theory, MNOs have the opportunity to fulfil multiple roles in the e-commerce value chain, ranging from the basic development of own online store and digital content portals to the provision of managed retail solutions (inclusive of opt-in consumer lists for personalised promotions) and mobile wallet platforms. In practice, Mobile Market Development's analysis reveals a rather patchy level of engagement by mobile operators highlighting an absence of coherent e-commerce strategies.

In this report we look at the trends affecting the e-commerce industry and explore the multiple roles and different levels of engagement by mobile operators across different market environments. The report concludes with a set of recommendations aimed at helping MNOs optimise their e-commerce strategies with the ultimate objective of expanding new service revenues.

Companies: Akbank, Alexa, AllSaints, Amazon, Asda, ASOS, Avea, Bakrie Group, Bharti Airtel, Bjinneka, BKM, Black & Decker, Boston Consulting Group, Capgemini, Celcom , Centre for Retail Research, Dixons, eBay, eDigitalResearch, EE, eMarketer, Euromonitor, Garanti Bank, GittiGidiyor, Goldman Sachs, GP Bullhound, Groupon, GSMA, HomeShop18, Idea, Indosat, Integer Group, Internet and Mobile Association of India, IMRG, Jaguar, Joob, Kaskus, KPMG, Land Rover, Lazada, LivingSocial, MasterCard, Maxis, Mizado, Mobily (Etisalat), Monitise, Morgan Stanley, Multimedia Nusantara, Nahel, NCB bank, Nielsen, O2 UK, Oasis, Odeon Cinemas, Pay-Pal, Post Office, Rakuten, Redwing Asia, Reliance, RetailMeNot Inc., Sacha Orloff Consulting, Smartfren Telecom , Snapdeal, State Bank of India (SBI), STC,Telkom Group, Telkomsel, Tesco, Tokobagus, Turkcell, Turktell Information Services, Turkish Statistical Institute, Visa Europe, VisionMobile, Vodafone India, Vodafone Turkey, Weve , White Rose , XL Axiata, Yapi Kredi, Zain KSA

Countries: Germany, France, India, Indonesia, Italy, Malaysia, Netherlands, Poland, Saudi Arabia, Spain, Sweden, Turkey, UK, USA

Keywords: O2 Gurus, Bezaat.com, Tajra.net, Plasa Trade, digital coupon, PT.MetraPlasa, Airtel Money, BachaBooku, Plasa Trade Center, Blanja.com, The Crescent, m-money, Sukar.com, digital content, Cep-T Cüzdan, NFC, Cep-T Paracard, digital spending, Plasa.com, T-Cash, myDeals, bavul.com, Tap Izy, e-commerce, location-based advertising, online sales, e-auction, ForeSee Experience Index, Connected Retail, Cobone.com, classified ads, ticketing, co-marketing, AirCash, Alexa rankings, Plasa Tiket, Buzzaar, m-wallet, Maxis Pay, internet retailing, VIVASocio, Tsel Store,

Table of Contents
1 Overview 1
2 Introduction 2
2.1 Background to the Report 2
2.2 Report Content 2
2.3 Currency and Conversions 2
2.4 Further Questions and Feedback 3
3 E-commerce Industry Overview 4
3.1 Market Size and Trends 4
3.2 Market Players & E-commerce Categories 6
3.3 Significance of the Mobile Channel 8
4 MNO Roles 13
4.1 Connectivity 13
4.2 ICT E-commerce Solutions 13
4.3 Mobile Money & Payment Services 13
4.4 E-commerce Sites & Partnerships 14
4.4.1 Mobile Content & Ticketing 14
4.4.2 Online Shop & Channel Integration 14
4.4.3 E-commerce Sites Partnership 15
4.4.4 Indirect Involvement Through Parent Companies 15
5 E-commerce Initiatives by MNOs 16
5.1 Airtel Money E-commerce Campaigns in India 16
5.1.1 Market Overview 16
5.1.2 MNO Role in the Indian E-commerce Market 17
5.1.3 Bharti Airtel Profile 18
5.2 Telkomsel and Telkom Group Initiatives in Indonesia 20
5.2.1 Market Overview 20
5.2.2 MNO Role in the Indonesian E-commerce Market 21
5.2.3 Telkomsel and Telkom Profile 21
5.3 Celcom's End-to-End Model & the Maxis Advertising Platform in Malaysia 23
5.3.1 Market Overview 23
5.3.2 MNO Role in the Malaysian E-commerce Market 25
5.3.3 Celcom Profile 25
5.3.4 Maxis Profile 27
5.4 Mobily's Integrated Third-party E-commerce in Saudi Arabia 29
5.4.1 Market Overview 29
5.4.2 MNO Role in the Saudi Arabian E-commerce Market 29
5.4.3 Mobily Profile 30
5.5 Turkcell Multifaceted Approach in Turkey 32
5.5.1 Market Overview 32
5.5.2 MNO Role in the Turkish E-commerce Market 33
5.5.3 Turkcell Profile 33
5.6 O2 and EE Multi-channel Integration in the UK 36
5.6.1 Market Background 36
5.6.2 MNO Role in the UK E-commerce Market 37
5.6.3 EE Connected Retail Solution 38
5.6.4 O2 Profile 41
5.6.5 Weve Partnership 43
6 Findings & Recommendations 46
6.1 Key Findings 46
6.2 Recommendations 47
  Appendix - Feedback Questions 49

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