Silicon Valley & Emerging Markets

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Silicon Valley & Emerging Markets Jeff Richards @jrichlive September, 2015

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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

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Europe Japan Silicon Valley: A Shifting Perspective (5-7 Yrs Ago) China “ROW”

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Europe Japan Silicon Valley: A Shifting Perspective (Today) China India SE Asia Africa

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It’s All About Mobile

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Facebook DAU Growth By Region Source: Facebook

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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

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<2% of US CPG Sales are Online

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US VCs Have Gone Nuts for Food

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Fueling Growth The Mobile Mom Shopping on the Fly Merchandising Data Cross-platform / channel

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The Coming Online Grocery Boom?

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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

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Including the $70B Spirits Industry

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Variety / Complexity

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Upside in the US M-Commerce Opportunity?

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2013: The Year the Lines Crossed China today: 600M+ US today: 250M+

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Mobile % Share of Alibaba GMV: Q2 2012 to Q2 2015 2012 2013 2014 2015 Source: Alibaba Group

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Putting China’s Mobile Commerce in Perspective

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>1B registered users >500M MAU

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KFC – Doing it Right

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Emerging Trends Cross-Border Social Content Verticals

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It’s All About Mobile (v2)

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Driving Increased E-Commerce Sales

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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?

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Thank You Jeff Richards @jrichlive