kolektiva - jeffrey treichel

Investor Pitch Full - 2 18 08 1

The Moment of TruthOctober 27, 2010

Investor Pitch Full - 2 18 08

An interesting thing happened last week…

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An observation is made …

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WHAT?!!!

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Can we buy, can we buy?

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And then in Serbia …

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But Croatians are least likely to buy ANYTHING online!

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*Source: Nielson, Global Trends in Online Shopping, June 2010


Exactly …

WTF ?!

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Deal is SIMPLE: 1 city, 1 huge deal, 1 day

We offer 50-90% off fun things to do If enough people buy in, the deal is on!

Time limit =viral, word-of-mouth effect If deal works, buyers receive e-coupon

• Buyer simply prints and redeems any time


Intriguing, Indeed


S&P 500 Index

Bad Day!!!


Let’s travel back in time …

• The economy was tanking … With no end in sight


What are pain points in Croatia & Serbia?

• Small business problems- Fewer customers due to

recession- No idea how to start with

marketing- Agencies are expensive - No guaranteed results

• Problems for customers- Tightened budgets due to

recession- Either laid off, or working 1.5+

jobs - HIGHER taxes


How can they be solved?

1) Create/Advertise deal 2) Gather customers 3) Deliver customers 4) Guarantee a result


Collective buying model could work …

• Small business problems- Fewer customers due to

recession- No idea how to start with

marketing- Agencies are expensive - No guaranteed results

• Problems for customers- Tightened budgets due to

recession- Either laid off, or working 1.5+

jobs - HIGHER taxes

• Small business solutions- Deliver 1000’s of new customers- Kolektiva creates ads- Zero upfront costs- We guarantee results

• Solutions for customers- 50%+ off on great things to do- No hassles, redeem anytime - Pay LESS PDV


…

Except almost NO ONE in ex-YU buys online!!!


Why not?!

• Identify pain points

• Competitive advantage can be created through superior customer insight and understanding

• Companies that create products/services that meet customer needs will win if they can relentlessly execute against superior insights


Croatian online shopping experience

• Small market issues - Largest sites still don’t have scale for great discounts- Niche sites are almost invisible

• Few incentives to buy online- Online is often a MORE expensive channel- Distribution of physical goods is problematic- Limited online payment mechanisms

• Consumer issues- Mentality of wanting to touch & feel merchandise- Security, fraud concerns


Kolektiva delivers a SUPERIOR experience

Avg Cro/Serb e-commerce site

• No incentives to buy

• Poor customer service

• Lack of transparency

• Cost/hassle of shipping

• Cost of returns

• Items not in stock


Kolektiva delivers a SUPERIOR experience

Avg Cro/Serb e-commerce site

• No incentives to buy

• Poor customer service

• Lack of transparency

• Cost/hassle of shipping

• Cost of returns

• Items not in stock

KOLEKTIVA

• Exclusive, attractive deals

• Customer loyalty team

• Fully transparent

• Immediate delivery @ no cost

• No cost to return

• Consumers trust auction model


Deal # 1 - June 15, 2010

• 36 coupons sold

• Kolektiva in 5 cities, 2 countries

• 8.500+ TOTAL coupons sold

Deal #1 - Jan. 22, 2010

• 42 coupons sold

• Kolektiva present in 1 city

Kolektiva’s evolution


• Award for most innovative contribution to e-commerce in 2010

Kolektiva as an innovator


Michael BrehmCEO & FounderPrevious Executive Director of Germany's biggest Social Network (VZnet Netzwerke)

Michael BrehmCEO & FounderPrevious Executive Director of Germany's biggest Social Network (VZnet Netzwerke)

Stefan GlänzerChair & Co-FounderFounder of Whitebearyard.com and Executive Director at mendeleyEx- CEO of Ricardo & last.fm

Stefan GlänzerChair & Co-FounderFounder of Whitebearyard.com and Executive Director at mendeleyEx- CEO of Ricardo & last.fm

Our partners


So where are we now?

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MostDeals Sold:

8.592

MostDeals Sold:

8.592

MostDeals Sold:

269

MostDeals Sold:

269

MostDeals Sold:

1.376

MostDeals Sold:

1.376

MostDeals Sold:

5.725

MostDeals Sold:

5.725

MostDeals Sold:

11.708

MostDeals Sold:

11.708


So what’s going on in Serbia?

• Online payment is a HUGE pain point- Only 7,6% of sites claim to offer “online” payments/uplatnica)1

• No startup culture?

• No credit/debit cards?

• Paying online isn’t safe?- Online fraud big in Serbia?- No trust in banks?

• Banks open for business?

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• Uplatnica have a major breakage rate. It comes down to the moment of truth!

• We’re all here aren’t we?!

• 914.402 individuals w/ 1.169.528 CREDIT CARDS in Feb. 20092

- 0,5% fraud claim rate in Serbia3, 1.13% in USA!!!4

- 48% trust banks, but ONLY 26% trust gov’t!!!!5

• Impossible to hook up to payment gateways, no competition, no PR, no discussion on safety!


So what’s really going on in Serbia?

• Critical mass is formed

• Tipping point for e-commerce adoption still elusive

• Serbian checkout is complicated, time consuming

- Register as user on Kolektiva 1 click FB connect

- Intent to purchase Fill out info Accept terms/submit

- Register as user on EMS 4 step process

- Accept terms- Register on EMS- Choose card- Enter card info/pay

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*Source: Clifton, Advanced Web Metrics with Google Analytics, 2008


The Moment of Truth?

• Group buying and social commerce have the potential to “tip” e-commerce adoption

• Tens of thousands “friends” in social networks are interested buyers

• If Croatians are willing to buy in Serbia, why aren’t Serbs?- Requires more proactive focus, funding, development, attention and PR from banking sector

- Requires competition- Requires easier, more integrated payment solutions

APIs 1 click process

- Requires lawsuits and swift decisions against cheaters and illegal webshops- Requires bloggers in this room to discuss the issue, take a stand!

• We’re on the cusp of making it happen. It’s the moment of truth …


External Sources

1. Republički Zavod za Statistiku Srbije (RZSS), Upotreba Informaciono-komunikacionih tehnologiji u Republici Srbiji, 2010.

2. http://www.bifonline.rs/vesti/article.php?storyid=294

3. RZSS

4. https://www.paypalobjects.com/html/mit-1201.html

5. Goran Tintor, GFK Belgrade Custom Research Director http://www.gfk.rs/public_relations/press/articles/005902/index.en.html

kolektiva - jeffrey treichel

Technology

investor pitch

online paymentsuplatnica1

online fraud big

huge deal

online isnt safe

s of new customers kolektiva

kolektiva present

customers tightened