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Silicon Valley & Emerging Markets Jeff Richards @jrichlive September, 2015
Silicon Valley & Emerging Markets Intro to GGV Capital and Venture Capital Silicon Valley Perspective The Importance of Mobile Innovation and Tech in CPG/Food/Grocery China India Q&A
Europe Japan Silicon Valley: A Shifting Perspective (5-7 Yrs Ago) China “ROW”
Europe Japan Silicon Valley: A Shifting Perspective (Today) China India SE Asia Africa
It’s All About Mobile
Facebook DAU Growth By Region Source: Facebook
Your Customer is On the Mobile Internet +2B new smartphone users in next 5-7 years Predominantly in China, India, SE Asia Most will never use a PC Source: Creative Strategies
<2% of US CPG Sales are Online
US VCs Have Gone Nuts for Food
Fueling Growth The Mobile Mom Shopping on the Fly Merchandising Data Cross-platform / channel
The Coming Online Grocery Boom?
Grocery & Household Good Delivery Restaurant Delivery Delivery-Enabled Incumbents New Entrants Marketplace Model Courier Model Summary: Includes traditional offline grocers and internet giants that have started to offer grocery delivery svcs, Summary: Online and mobile-only startup services offering grocery, household goods & farm delivery Summary: Orders delivered by restaurant staff; platform processes orders & acquires customers Summary: Platform employs its own couriers to pick up and deliver from restaurants; user pays a delivery fee Vertically Integrated D2C DIY Meal Kit Summary: Sources ingredients, prepares food and delivers all in-house; relatively small menu size on any given day but offers low price point, freshness and consistent delivery experience Summary: Sources, packages and delivers pre-measured ingredients and recipe cards for users to prepare themselves; usually sold as a subscription model with fixed # of meals a week and regularly changing menu Corporate Catering Hybrid Retail Summary: Users pre-order items online or in-app, then schedule physical pick-up at a future time Summary: Competes with traditional caterers by offering online ordering and diverse options including restaurants, custom menus and healthy options Meal Sharing Summary: Allows chefs or other individuals to sell tickets to privately cooked meals outside of restaurants Food Startup Competitor Landscape
Including the $70B Spirits Industry
Variety / Complexity
Upside in the US M-Commerce Opportunity?
2013: The Year the Lines Crossed China today: 600M+ US today: 250M+
Mobile % Share of Alibaba GMV: Q2 2012 to Q2 2015 2012 2013 2014 2015 Source: Alibaba Group
Putting China’s Mobile Commerce in Perspective
>1B registered users >500M MAU
KFC – Doing it Right
Emerging Trends Cross-Border Social Content Verticals
It’s All About Mobile (v2)
Driving Increased E-Commerce Sales
Challenges and Opportunity “10 years behind China” Est 40M shoppers online (vs 500M+ in China) Infrastructure – very difficult to deliver to significant portions of country Incredible city density Very few cars (20M vs 120M+ in China) Different government influence / control Heavy investment in O2O Huge opportunity in grocery?
Thank You Jeff Richards @jrichlive