The web was first conceived 25 years ago, by an Englishman. Fifteen years later, as the first crop of dot.coms were going bust, close to 60% of its users (and all Alexa "top 20" sites) came from developed nations. Fast forward to today, and the picture is strikingly different. Almost half the Alexa "top 20" now comes from emerging economies. Economies where close to 3 billion people have yet to use the web, but thanks to mobile--won't have to wait much longer to discover it. This presentation will introduce you to fascinating and innovative services that are re-shaping the web to serve the consumers of tomorrow. Driven by mobile, the power of personal relationships, and the breakneck pace of globalisation, these services provide a glimpse into the business models, opportunities and challenges we will face, when growing a truly global web.
11. 1. U.S.A.
2. U.S.A.
3. U.S.A.
4. S. Korea
5. S. Korea
6. S. Korea
7. U.S.A.
8. Japan
9. U.S.A.
10. U.S.A.
...as did all the traļ¬c on
the Alexa ātop 10ā.
Source: Alexa.com, Sept 2000, via Wayback Machine
14. 5. Baidu (China)
7. QQ (China)
11. Taobao (China)
13. google.co.in
14. Sina (China)
10. hao123 (China)
17. Weibo (China)
20. Yandex (Russia)
...and traļ¬c from fast
growing emerging
economies such as China,
India, and Russia now
makes up almost half of
the Alexa ātop 20ā.
Source: Alexa.com, April 2014
15. Source: Age of Man - interactive map, National Geographic
close to 3 billion of us
have yet to use the internet...
16. Xiaomi Hongmi
yet thanks to devices such as this,
wonāt have to wait much longer
to discover it...
(...within a year, similar devices will
cost half this much)
Android platform
Ā£83 ($130)
built & designed in China
17. but the internet the next billion will discover isnāt quite like
āoursā...and thatās what weāre going to discuss today
18. begin this story by talking
https://www.ļ¬ickr.com/photos/goingslo/9328307647
which is why weāll
about sheep...
20. āā¦if you have an Instagram account, you can slap a tag
on anything, take a picture of it, and sell it...ā
ā Fatima Al Qadiri, Mousse magazine
https://www.ļ¬ickr.com/photos/bombardier/5456285991
21. you knowāhacked products.ā
She sells dried fruit. A friendās cousin is selling
weird potted plants...people are creating,
ā Fatima Al Qadiri, Mousse magazine
ā...even my grandmother has an Instagram business.
https://www.ļ¬ickr.com/photos/qilin/3923289556
23. more than 10,000 similar businesses
are powered by Facebook...
but over in Thailand,
24. businesses such as these provide a glimpse
informal economy...
of a new, digital and mobile-fuelled
the last few 1000 years of
āinformal economyā has
looked something like this
http://www.ļ¬ickr.com/photos/dgmckelvey/7053122601
25. theyāre still relatively ad-hoc...
no shopping cart or online
form, just contact her using
your mobile and a popular
social messaging app
are a bit diļ¬erent...on the one hand
these new kinds of āinformalā business
26. and poses a new level of
sophistication...
orders shipped daily
by courier with
tracking number
yet they are modern, global,
28. http://www.ļ¬ickr.com/photos/57634952@N00/3031070035/
These services donāt oļ¬er āa great experienceā but are āgood enoughā
and oļ¬er a good balance of reach, eļ¬ort, functionality and
adaptability to local circumstances. They also ļ¬ll an important gap...
83% of Thai internet
users use Facebook
Facebook even
works on his
crappy old phone
she can manage the
āsiteā and respond to
inquiries on mobile
while sitting here all day
the motorcycle taxi around the
corner can make quick
deliveries if needed
29. ā...most of these pages see their largest growth
out in the countryside, where the population
is largely underserved by other e-tailers
as well as brick-and-mortar shopsā
ā Thailandās powerful wave of Facebook commerce
http://www.ļ¬ickr.com/photos/wakxy/5233200705/
30. but reaching the underserved doesnāt merely
apply to large rural populations...
31. China has 14 cities with populations
over ļ¬ve million...
https://www.ļ¬ickr.com/photos/decar66/6341327886
32. ...a whopping 41 cities with
more than 2 million inhabitants
http://www.ļ¬ickr.com/photos/tahini/10468208216
33. ...and a middle class growing at a rate of
80,000 people a day
http://www.ļ¬ickr.com/photos/tahini/10468208216 Source: China Connect
34. rural residents can be hard
http://www.ļ¬ickr.com/photos/lukewebber/4588854679
reaching Chinaās 600 million
35. its close to 700 million urban residents
but opening enough stores to service
can be outrageously expensive
http://www.ļ¬ickr.com/photos/tuchodi/5620884999
(or downright implausible)
39. 76%
of online retail
involves individual
merchants
of online retail is sold
through online
marketplaces
90%
Source: The Economist
40. Chinaās giant, virtual marketplaces enable
buyers and sellers to ļ¬nd themselves
a modern virtual
version of this
http://www.ļ¬ickr.com/photos/mckaysavage/135932500/
like public markets and town centres,
41. The largest marketplace is Alibabaās Tmall. With more than 180 million
customers, Tmall contains products from more than 150,000
merchants and 200,000 well known brands.
42. Tmall charges an entry fee, and a commission for each sale, but in
return provides a high visibility, high traļ¬c, customizable, social-
media and mobile optimized e-commerce platform.
43. For major brands such as Apple, hosting a virtual storefronts on TMall
is a good alternative to opening hundreds (or possibly thousands) of
brick and mortar stores across the country.
apple.tmall.com
44. Alibaba also oļ¬ers a C2C site called Taobao, which enables consumers
(and smaller merchants) to sell products online. Taobao is a bit like
EBay, but vendors arenāt limited to selling things...
45. They can also sell services: This Taobao-based travel agent doesnāt
just sell you a trip, they can also arrange a travel visa, sell you a Thai
3G SIM card, a wi-ļ¬ dongle, a subway pass, or local transportation.
46. C2C and B2C
commerce on Taobao
T-Mall merchants pay
a commission and an
entry fee
weāll discuss
this bit later...!TaoBao merchants donāt pay to sell
stuļ¬, they buy advertising and other
services to help them stand out
andāA mix of ,
with a dash of .ā
47. This family of sites enables consumers to shop for a huge range of
products that might otherwise never be available in their region.
(And yes...Tmall can sell you a new Peugeot...or a Lamborghini).
48. ā...such is Taobaoās success these days that
running a āTaobao shopā is a national pastime,
sort of like a second job or hobby for tens of thousands
of Chinese oļ¬ce workers, housewives, and studentsā.
- Owning a Taobao shop is a new national hobby
http://www.ļ¬ickr.com/photos/mckaysavage/135932500/
49. For many people however, itās far more than a hobby. These sites have
enabled millions of new jobsāespecially in smaller towns or rural
areas where residents can now sell their locally made products or
produce to an audience of billions.
http://www.ļ¬ickr.com/photos/tuchodi/5642172895
53. ā...most of the people have phones but
there are only 3 malls per 20 million inhabitants...
Itās a unique time...the right time to leapfrog over āoļ¬ineā.ā
- jumia.com co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICA
Egypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
54. Access to marketplaces is creating opportunities for Western
micro-businesses, that can now source materials directly from
factories around the world.
Julie sources cake decorating
supplies direct from China using
Alibaba and sells them to customers
around the world using Etsy
Hi! My name is Julie, I live in the Bay
Area and I am the owner of Cakes And
Kids. I am wife, mother and entrepreneur
and I am forever grateful that I get to do
what I love every day!
55. Small and mid-size companies in emerging economies are also taking
advantage of western platforms to reach western customers with
unique and often personalized products.
family business
5 people
1 designer, 2 tailors
clothes advertised
on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture, Foshan, China
56. Chinese entrepreneurs in Western markets, or āonline shopping agentsā in
China are also acting as middlemen, shipping hard to ļ¬nd (or highly
taxed) Western goods to Asia, then re-selling them on sites such as Taobao.
ā... even if [Western] retailers or consumer product
companies havenāt stepped foot in mainland China,
their products are already here. Unoļ¬cially.ā
- Think your brand is not for sale in China yet?
https://www.ļ¬ickr.com/photos/johnas/7652202244
57. This is creating a new and fast-growing
group of highly globalized digital-ļ¬rst
consumers. Consumers who live in
one region, but actively shop or seek
out products from another.
https://www.ļ¬ickr.com/photos/ding_zhou/11902149336
59. āMeet Jing
Jing is an aļ¬uent young Chinese girl who started blogging
about her life and style while studying abroad in the UK.
She is now your competitionā.
http://jingxujing.blog.163.com/
Source: é幓åæ | Open Youthology
60. āSheās a marketer.
Her Weibo micro-blog
now has over 28,000
followers. She blogs
about her life, her style
and tips for beauty and
fashionā.
Source: é幓åæ | Open Youthology
61. āSheās a retailer.
Her Taobao shop oļ¬ers copies
of luxury products she wears on
her blog. All her products are
limited edition and priced low.
It usually takes her a
couple of hours to
sell outā.
Source: é幓åæ | Open Youthology
63. The millions of people without Jingās time or commitment can instead
sign up for an account at an āonline shopping neighbourhoodā.
64. āOnline shopping neighbourhoods are
online destinations created by social media,
where consumers can explore a curated
selection of choicesā.
é幓åæ | Open Youthology
65. one of the largest sites is Meilishuo
with over 32 million users,
(which means ābeauty talkā)
66. Sourrce: Technode and Pando Daily
5-6 million
Meilishuo generates
clicks for online
merchants per day
Ā£300 million
...and in 2012
generated an estimated
($500M) in revenue
for downstream
merchants
Similar to an online travel agent, Meilishuo gets a cut
for each outbound transaction it generates....
http://www.ļ¬ickr.com/photos/ducdigital/2892313560
67. If you think this sounds kind of boring,
because itās all about girls discussing shoes,
imagine translating this model to geeks talking
about gadgets, or fans talking about books...
68. Part of the reason these services work, is that they feed into the virtuous
circle of mobile and social media adoption.
Source: The internet economy in the G20 (PDF)
Developing markets are going āstraight to socialā
Users adopt social networking quickly as they come online
70. ...but the most popular social media services in China
arenāt just āsitesāātheyāre platforms...
71. one of the most popular
(lately) is WeChat
three years old
500 million users
or WÄixƬn - å¾®äæ” - in China
mobile-only
72. āLiterally every single person I know,
everyone Iāve met in China, is on WeChat.
I donāt use email, I donāt use the phone, I donāt use
SMS to communicate with anyone ā only WeChat.ā
Hugo Barra, VP Xiaomi Global (ex VP Android Product at Google)
Photo: http://www.oezratty.net/, watch the video interview from LeWeb 2013 on YouTube
73. (recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only, and far more
than just a messaging app
virtual wallet
74. WeChatās API is extensive, enabling brands to create āmini-sitesā
containing news, IVR style support or full-blown transactions
through with WeChatās virtual wallet and payment platforms.
WeChat subscription channels API integration enables
customizations such as sub-
sections...
download our app
ļ¬nd
nearby
stores
...and product or service
inquiries using an automated
short messaging service
hereās the
stuļ¬ you can
ask regarding
coļ¬ee...
ācappuccinoā
tell me about
ācoļ¬eeā
75. (if youāre looking for fragments of a āone webā
philosophy, youāre sadly not going to ļ¬nd it here)
76. 5 million
this Chinese New Year,
more than
people used WeChat to
purchase 20 million virtual
āHongbaoā (red envelopes
containing money)
in one 24 hour period
Thanks to clever campaigns, WeChat wallet usage is rising fast!
Source: TechInAsia
77. http://www.ļ¬ickr.com/photos/ducdigital/2892313560
virtual wallets, mobile payment and alternative ļ¬nance
models are quite popular in emerging economies, as they
help address a whole host of local challenges...
1/4 of adults
across sub-Saharan
Africa as a whole only
have accounts at formal
ļ¬nancial institutions
less than
of Indonesians have a
credit card
15%
Source: Wall Street Journal
78. http://www.ļ¬ickr.com/photos/kiwanja/3169409467/
In countries such as Kenya, India and the Philippines, entirely virtual banks
such as MPESA enable customers to send and receive money, or pay for
goods and services on or oļ¬ine using even the most basic mobile phone.
79. Indonesia, consumers can also choose to pay for
https://www.ļ¬ickr.com/photos/kamshots/468265643/
in countries such as China, Nigeria and
online purchases using cash on delivery
80. with so much commerce
taking place on giant marketplaces,
there is also a natural fear of counterfeits
https://www.ļ¬ickr.com/photos/ornellas/3308925864/sizes/l
81. To increase trust, Alibaba created Alipay, an online payment platform
(like PayPal) that also doubles as an escrow service and only releases
payment once goods have been received and accepted by shoppers.
82. With more than 800 million registered users, Alipay is now so common
that it can be used to pay for almost anythingāincluding school fees
and loans, utility and mobile phone bills and even hospital charges.
83. T-Money - Korea
launched in 2004
Octopus - Hong Kong
launched in 1997(!)
Some of these āpay for everythingā platforms are now decades old...
starting with one āmobileā technology, then migrating to
progressively more modern (or relevant) ones as they come along.
contactless card
wristbands
keychains
NFC/QR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFC/QR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation
(for 7 million people)
71 million cards in circulation
(for 50 million people)
84. ...and when youāve run out of real things to pay for
virtually...why not invent a few virtual things to pay for...
85. Meet yy.comāa giant āGoogle
Hangoutsā style platform with
over 300 million users and 11
million channels, and programs
ranging from karaoke, to ātalk
radioā and educational topics.
86. Unlike YouTube or Skypeā
YY has itās own virtual
currency.
Users purchase credits from the
site and use these to show
aļ¬ection for their favourite stars
by buying them virtual gifts
such as roses and lollipops.
Gifts range in cost from mere
pennies to as much as $50 (Ā£35).
87. ātop Karaoke singers regularly make $20K (Ā£15K) a month
oļ¬ of virtual gifts, with one college student reportedly
earning an astonishing $188K (Ā£150K) per month
using the site to give Photoshop lessonsā
- The largest social network youāve never heard of
88. ...meanwhile in Korea, 1000s tune in to AfreecaTV,
a similar service where Choi Ji-hwan earns
about 2 million S. Korean won ($1,880) each month
eating mountains of noodles and kimchi live each night
Source: Iamkorean
89. In most cases, mobile devices are the glue that tie
these platforms, services and communities together...
90. WeChat has for example,
built much of its functionality
around the QR code
91. WeChat automatically generates a QR code for each account.
To follow a person or brand, simply scan the code (on a device,
business card, poster, web site etc.)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand.)
92. This reliance on QR codes works, because in China (and many other
parts of Asia) almost every app (including locally built web
browsers!) has a built in QR code reader.
Qunar (travel brand) Baidu web browserTaobao
93. Some Chinese-made Android smartphones even have QR and
WeChat recognition built right into into the camera.
(In Japan, where QR codes were invented, manufacturers added this capability close to 10 years ago.)
the Xiaomi Mi3 camera
94. using QR codes to interact
and transact with brands has therefore
become common (...one might say mundane)
These college students sell
fruit on campus...in person,
but also through WeChat.
95. WeChat, AliBaba and other platforms are also working with department
stores and other āoļ¬ineā goods merchants to extend their reachāenabling
customers to purchase goods in store by scanning QR codes on products.
...kind of like this John Lewis and Barclay
Card concept... except that 300 million
people have a WeChat account, and 800
million have an Alipay account.
96. these brands and consumers arenāt merely
āleapfroggingā desktop, or ļ¬nance, or physical retail...
97. in mobile
transactions in 2013
25 billion
in mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future...
Source: Business Insider
98. a future inhabited by people
https://www.ļ¬ickr.com/photos/paulk/4693602730
for whom the words āoļ¬ineā, āonlineā
and āmobileā have become irrelevant
99. with little baggage to weigh them down,
they can ignore whatās ānormalā and
turn constraints into opportunities
https://www.ļ¬ickr.com/photos/yto/3640718959
100. ...the cool thing about prototypes,
is that theyāre allowed to be a little crazy...
101. Russian e-commerce
brand Lamoda has turned
poor postal infrastructure
into an excuse to try
something that seems
completely un-scaleable...
102. ā...Lamoda sends sales assistants directly to shoppersā
homes...uniformed delivery men bring the clothes,
wait for [customers] to try them on, oļ¬ers fashion advice,
take returns and process payments on the spotā
- Russia: Where the Deliveryman Gives Fashion Advice
https://www.ļ¬ickr.com/photos/41738141@N06/6814977720/
105. āWhy build expensive roads to remote rural locations
when drones can do the job just as well?
- Forget Amazon: Drone delivery will take oļ¬ in Africa
https://www.ļ¬ickr.com/photos/gabrielgm/9520473233
meanwhile in Africa...
106. (...combine drones with Lamodaās up-selling at your
doorstep and things could get interesting...)