silicon valley and emerging markets
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Silicon Valley & Emerging Markets Jeff Richards@jrichliveSeptember, 2015
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Silicon Valley & Emerging Markets
Intro to GGV Capital and Venture CapitalSilicon Valley PerspectiveThe Importance of MobileInnovation and Tech in CPG/Food/GroceryChinaIndia 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 AsiaAfrica
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It’s All About Mobile
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Facebook DAU Growth By Region
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 150
50
100
150
200
250
300
0
100
200
300
400
500
600
700
800
900
1000
USA Europe Asia ROW Total Source: Facebook
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Your Customer is On the Mobile Internet
+2B new smartphone users in next 5-7 yearsPredominantly in China, India, SE AsiaMost 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 MomShopping on the FlyMerchandisingDataCross-platform / channel
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The Coming Online Grocery Boom?
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Grocery & Household Good Delivery Restaurant DeliveryDelivery-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 KitSummary: 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 SharingSummary: 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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China
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2013: The Year the Lines Crossed
China today: 600M+US today: 250M+
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Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0%
10%
20%
30%
40%
50%
60%
5% 6% 7%11% 12%
15%20%
27%
33%36%
42%
51%55%
Mobile % Share of Alibaba GMV: Q2 2012 to Q2 2015
2012 2013 2014 2015Source: 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 TrendsCross-Border Social Content Verticals
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India
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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 YouJeff Richards@jrichlive