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heading
a
Bangkok
based
skin
care
products
manufacturer
he
has
a
significant
personal
stake
in.
Australian
David
Christensen
(55),
is
a
veteran
of
multinational
businesses
distributing
products
in
and
across
the
Asia
Pacific
region.
In
1997,
then
an
executive
with
insurance
and
funds
management
giant
AXA
in
Australia
and
New
Zealand,
he
was
responsible
for
establishing
an
online
subsidiary
to
take
advantage
of
the
latest
development
at
that
time:
internet
distribution.
Still
passionate
about
this
concept,
he
argues
the
strategy
and
formula
was
right,
and
borrowed
much
from
a
number
of
highly
acclaimed
similar
ventures
around
the
world
like
egg
by
Prudential
plc
in
the
UK
which
had
added
significant
value
to
the
Prudential
share
valuation.
But
the
business
really
never
gained
any
real
momentum
and
some
years
later
was
sold
to
a
bank,
allowing
AXA
to
roughly
break
even.
Few
of
the
new
entrants
that
had
been
held
up
as
fantastic
initiatives
at
the
time,
including
egg,
fared
better
and
most
fared
worse.
Moving
into
a
strategic
consulting
role
based
in
Hong
Kong,
during
the
mid
2000s,
with
this
knowledge
still
top
of
mind,
David
was
involved
in
several
projects
to
investigate
and
possibly
establish
internet
based
businesses
in
China,
Russia,
and
South
East
Asia.
In
each
case,
after
weighing
the
facts,
his
advice
to
the
corporate
client
was
not
to
proceed,
as
the
elements
that
were
critical
for
success
simply
were
not
in
place.
It
became
clear
to
me
that
regardless
of
the
theory
about
internet
distribution,
and
irrespective
of
the
industry
or
its
location,
there
were
three
major
pieces
of
infrastructure
that
were
pre-conditions
for
success,
and
unless
all
three
of
these
were
in
place
and
could
be
seen
to
operate
smoothly,
a
B2C
internet
based
business
of
any
scale
was
simply
a
pipe
dream,
says
Mr
Christensen.
But
the
benefit
of
taking
a
strategic
perspective
on
this
issue
was
to
also
become
firmly
convinced
that
once
all
three
of
these
elements
were
in
place,
there
would
be
a
very
high
likelihood
of
web-based
business
being
viable,
and
once
that
happened
it
was
likely
this
could
stimulate
rapid
and
highly
dislocative
change
across
the
entire
B2B
and
B2C
commercial
Royal Siam Natural Health & Beauty Company Limited B106 New Spring Mansion | 19/98-99 Soi Suphapong 3 | Srinarakin Road | Nhongbon | Pravet, Bangkok 10250 | Thailand | Ph +66 2 3308 740 | Fax +66 2 3308 741 Email info@royalsiam.asia | Website www.royalsiam.asia
landscape. Mr Christensen summarizes these three enabling infrastructure elements succinctly. First, there needed to be a broadly based, easy to use, reliable and secure payments system that was in the hands of the average man and woman in the street and not just an elite. Secondly the global distribution system needed to mature sufficiently to enable small parcels to be sent to most destinations quickly, reliably, and inexpensively, and finally there needed to be a change in consumer behavior from treating the internet as an information collection tool only and to become and end to end distribution channel in its own right. The second half of the decade saw Mr Christensen heavily involved in B2B commercial landscape in Asia Pacific with regional VP roles managing airline and hotel commercial relationships firstly with American Express and then with Carlson Wagonlit Travel, and he returned to a consumer-focused business less than 12 months ago. I am speechless at what has taken place in consumer marketing during those 5 years of focusing on other things, he states and I dont think many senior or experienced consumer product marketers have really grasped the magnitude of change which is taking place. Its a bit like a tsunami for many marketers they know there has been an earthquake somewhere but it seems quite manageable the sea is calm and has even receded somewhat. But like the pictures we have seen of Thailand/Indonesia and Japan over recent years whats coming could completely wash away everything that people now know and currently accept. In his current role, Mr Christensen heads a Bangkok-based manufacturer and distributor of premium skin care and related health and beauty products, based on natural and traditional Thai ingredients and manufacturing processes. He goes on to say Over the past five years or so, the three major stumbling blocks to widespread and successful online retailing have by and large been solved. The rise of debit cards and services like PayPal with more to come have solved the payment system impediment; there are now multiple viable and inexpensive shipping solutions including both courier and a re-energized global small packet airmail system, and the dam has finally burst in terms of people transacting online with the growth rates for online shopping for many consumer products compounding at well into double digits. And an entire industry has grown around the provision of support to businesses who need to reorient themselves to compete in this new and unfamiliar environment and these services are rapidly maturing from glorified snake-oil merchants to professional B2B service providers as it becomes more and more difficult to manipulate or circumvent the gatekeepers to cyberspace like Google, Bing and Yahoo. These factors, plus the availability of information and tools to make sense of this information have fundamentally shifted the way products will be bought and sold in the near future according to Mr Christensen, who believes the changes will be more far-reaching than most people realize. Today our Thai based skin care business which has a clear point of differentiation in the market is actively competing for sales globally, through its active online presence in a way that would not have been possible ten, or even five years ago, he believes. Because our potential reach for online communications is so massive, we can concentrate on some very
specific
market
segments
which
would
be
insignificant
if
we
were
limited
to
the
tools
and
technologies
1-2
decades
ago,
as
although
the
percentage
of
people
who
may
purchase
online
from
is
small,
when
we
calculate
a
small
percentage
by
the
massive
numbers
of
people
in
our
target
markets
globally,
it
becomes
very
exciting.
And
when
you
replicate
these
same
parameters
across
multiple
markets
and
many
competitors
both
large
and
small,
it
seems
clear
to
me
that
traditional
B2C
channels
are
going
to
quickly
be
eroded
he
points
out.
As
a
result,
he
believes
it
may
be
only
a
matter
of
time
before
the
point
is
reached
that
some
companies
cant
or
wont
survive,
and
once
this
starts
occurring
it
is
often
the
harbinger
of
more
rapid,
systemic
change
owing
to
the
compounding
nature
of
some
of
these
major
trends
in
society
and
business.
He
concludes
with
a
quote
from
Charles
Dickens
from
the
preface
of
A
Tale
of
Two
Cities,
which
goes
It
was
the
best
of
times,
it
was
the
worst
of
times
and
according
to
Mr
Christensen
exemplifies
the
business
world
we
are
entering.
Times
of
upheaval
and
dislocative
change
such
as
what
we
will
see
over
the
next
few
years
will
provide
opportunities
that
some
companies
will
grasp
and
show
dramatic
growth,
while
for
others
Kodak
being
an
excellent
example
it
will
signal
their
demise.
However
my
interpretation
of
history
is
that
in
the
majority
of
situations
it
is
the
new
business
entrants
who
experience
the
best
of
times,
while
large
companies
often
cant
change
as
quickly
as
they
need
to.
The
result
is
they
are
the
ones
who
will
be
saying
that
the
second
decade
of
the
21st
Century
was
the
worst
of
times
for
legacy
consumer
marketing
organizations,
many
of
whom
will
have
become
largely
irrelevant
to
consumers
by
the
time
they
are
able
to
implement
sufficient
change,
and
find
their
place
at
the
VIP
table
has
been
taken
over
by
companies
that
no-one
had
ever
heard
of
just
5
years
ago,
with
bizarre
names
like
Facebook,
Google,
Instagram,
Vimeo,
and
Pinterest
while
at
the
same
time
the
door
closes
or
sun
sets
household
names
like
Kodak.
#
END
#
Author:
David
Christensen,
August
2012
About
the
Author:
A
veteran
of
the
Asia
Pacific
business
scene,
David
Christensen
is
an
Australian
(with
New
Zealand
roots),
currently
based
in
Bangkok,
Thailand
where
he
is
CEO
of
premium
skincare
and
anti
aging
products
manufacturer
Royal
Siam
Natural
Health
and
Beauty
(http://www.royalsiam.asia)
Having
lived
and
worked
in
14
countries
as
wide
afield
as
Russia,
India,
and
Japan,
David
has
a
background
in
advertising
with
Saatchi
&
Saatchi
and
DDB,
extensive
international
business
strategy
consulting
experience
as
a
Partner
with
Gravitas
Partnership
in
Hong
Kong,
and
senior
regional
line
management
roles
across
Asia
Pacific
with
American Express, Carlson Wagonlit, and AXA Asia Pacific. His LinkedIn profile can be seen at this link LinkedIn Profile and you can contact him by email at david@royalsiam.asia