Conteúdo apresentado aos participantes do curso Ecommerce Experience 2018

1. China New Retail
Outubro-2018

2. IN Hsieh
- CEO of Chinnovation
- Former Head of E-Commerce Latam at Xiaomi
- Founder of 4vets (pet B2B ecommerce)
- Founder of Baby.com.br (baby B2C ecommerce)
- Startup team Submarino 1999
- Angel investor

3. China?

4. China?

5. China?

6. China?

7. China?

8. China?

9. China?

10. Welcome to the New China

11. China “Growth” x RETURN
In many periods of the last 2000 years, China had the world biggest GDP

12. Factors for the
Exponential Growth of China

13. Competition from DayZero

14. Competition from DayZeroResults driven culture (and family)
“Tiger Mom”

15. Focus in Education
5 MM STEM students 2016
India 2,6 MM
USA 560 K

16. Shanzhai Culture
(maker culture)

17. 996 Culture

18. Speed of Execution
+ Customer Focus

19. Speed of Execution

21. Explosion of Middle Class
200 MM+
(or 400 MM)

22. Digital China
Technology leapfrogging 800 MM Internet Users
90% mobile

23. Infrastructure
Investments 44% of GDP

24. Venture Capital
United States: US$ 74 Bi (17% YoY)
China: US$ 71 Bi (50% YoY)

25. Full Investment Cycle
Tech IPOs
YTD 2018 US$
14.7 Bi 7 Bi

26. Chinese Innovation

27. PresentPast
Does China really innovate?

28. US still reference
but China is catching up

29. eGDP
Percentage of Country GDP from Internet Economy
Source: Boston Consulting Group, 2017
China already IS digital benchmark

30. Clear leader in Mobile Payment

31. And in E-Commerce as Well

32. China Business Model and Strategy
Platform
Business
Model
Capital as
competitive
advantage
(M&A)
Digitalization
of Everything
Speed of
Execution
digitalize the 80%,
not increase the 20%

33. BAT Candidates
USA (FAMGA) x China (BAT)

34. Alibaba Ecosystem
New Retail
New
Manufacturing
New Finance
New
Technology
New Energy

35. Empire
Model
Ecosystem
Model

36. Tencent Ecosystem
Over 1 billion users

37. Smart Business
=
Network Coordination + Data Intelligence
capability to rapidly and
automatically improve using
machine learning
autonomous management of the
simultaneous interactions of multiple
parties to a business task

38. Chinese E-Commerce

39. EC remained
strong, while
hypermarket
slowed down
and declined
Fash Channel Shift
Source: Total FMCG Kantar WorldPanel

40. Chinese
Shoppers:
Highly social &
Content
Creative
Digital Shift
5.4
connected
74%
consume
digital
media
96% mobile
penetration
95%
Wechat
penetration
38% leave
comment
64%
influenced
by internet

41. >40% sales
penetration
over total sales
2017
ECommerce penetration
Source: Total FMCG Kantar WorldPanel

42. In China, E-commerce is no longer a sales platform,
but a lifestyle platform (Jack Ma)
For brands, it´s a sophisticated platform to connect with consumer
Awareness Internet
Brand
Loyalty
Online - Offline Online - Offline Online - Offline
Purchase
Online - Offline
repeat purchase

43. U-brand Smart Retail Strategy in China
eRTM Efficiency
6 million grocery stores
opportunity
Online Lead
- Hema
- 7 Fresh
80% online
20% offline
Offline
- Carrefour
- Walmart
Omnichannel
Shopper
experience
Integration
- alibaba
- RT-mart
EComm + Brick
Mortar
Home Delivery
Delivery < 1 hours
- Ele.me
- Meituan
B2B - eRTM
Omnni shopper insight Omnni shopper marketing Big data Organization Strategic Partnership
Online e Offline
Key enabler

44. Connected Supermarkets
Hema
. Alibaba Group
. 30 minutes free delivery 3km
. Over 50% of sales from delivery
. In-Store analytics with APP

45. Unmanned Store (lojas autônomas)
BingoBox
. Created with startup mindset
. over 1000 stores

46. Direct to Consumer (D2C)
Digitally Native brands
Luckin Coffee:
. Created with startup mindset
. Founded in Nov 2017
. over 1000 stores
. Funding US$ 200 million

47. Tech branded convenience store
T-Mall Store
. Alibaba group
. Small neighbourhood store converted
. Technology, brand, traffic and inventory

48. World leading service e-commerce (O2O)
Meituan

49. Convenience store (dark room) focused in delivery

50. 2016: US$ 1 bilhão nos primeiros 5 minutos
Single´s Day (11-11)

51. Single´s Day (11-11)

52. Single´s Day (11-11)

53. Single´s Day (11-11)

54. E o Single´s Day (11/11)? Por que importa pro Brasil?
ALIBABASingle´s Day (11-11)

55. VR em larga escala
Single´s Day (11-11)

56. Entertainment + Ecommerce

57. Entertainment (influencer) +
Ecommerce
R$ 10 million sales in 2 hours

58. E-Commerce Cross-border
China purchasing from the world
US$ 85 billion in 2016

59. Daigou (purchase agents)
US$ 15 billions in 2014

60. Daigou luxury products
US$ 12 billion in 2014

61. Direct to Consumer (D2C)
Digitally Native Brand
Three Squirrels:
. 4 years
. started as online sales only
. US$ 73 million in 2016 Single´s Day

62. Direct to Consumer (D2C)
Marcas Nativamente Digitais
Marca 3 Esquilos:
. 4 anos de existência
. nasceu somente vendas online
. US$ 73 milhões no 2016 Single´s Day
Influencers: private brand + e-commerce
Digitally Native Brand
. Flash-sales
. Invertion in the productive process

63. Case Xiaomi
Direct2Consumer (D2C)
US$ 15 billion in 2015
(>80% of sales through own channel)

64. Take Aways

65. Think really Big
Customer focus
Build Ecosystem
Competitive Mindset
Hands-on + Execution
AI + BI already reality
Take Aways

66. How your company is going to position in this new digital
puzzle?

67. <New Retail>