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global web
the emerging
https://www.flickr.com/photos/curious_e/10642468063
http://www.flickr.com/photos/ducdigital/2892313560
“To understand China’s Internet sector, start by thinking
of the service...
it’s easy to explain
these differences away
as purely cultural
https://www.flickr.com/photos/maureendidde/12691105824/
Internet Population and Penetration
…or due to low internet
penetration…
Source: Age of Man - interactive map, National Geographic
…or vastly different
income levels
But these factors (even combined) merely tell part of
the story—especially when it comes to commerce—

and that’s what we’...
China has 14 cities with populations
over five million...
https://www.flickr.com/photos/decar66/6341327886
...a whopping 41 cities with
more than 2 million inhabitants
http://www.flickr.com/photos/tahini/10468208216
...and a “middle class” growing at a rate of
80,000 people a day
http://www.flickr.com/photos/tahini/10468208216 Source: Ch...
rural residents can be challenging
http://www.flickr.com/photos/lukewebber/4588854679
reaching China’s 600 million
its close to 700 million urban residents
but opening enough stores to service
can be outrageously expensive
http://www.flic...
http://www.flickr.com/photos/milo_riano/4336541309
isn’t so much an electronic version of commerce,
it *is* commerce, pure ...
https://www.flickr.com/photos/curious_e/10473440064
...and using their mobile to do so isn’t just
a modern alternative to u...
Chinese e-commerce is also different in one more
very important way...
76%
of online retail
involves individual
merchants
of online retail is
sold through online
marketplaces
90%
Source: The Ec...
China’s giant, virtual marketplaces enable
buyers and sellers to find each other
a modern virtual
version of this
http://ww...
The largest marketplace is Alibaba’s Tmall which contains products from more than
150,000 merchants and 200,000 well known...
Tmall charges an entry fee, and a commission for each sale, but in return provides a
high visibility, high traffic, customi...
apple.tmall.com
For major brands such as Apple, hosting a virtual storefronts on Tmall is a good
alternative to opening hu...
Alibaba also offers a C2C site called Taobao, which enables consumers and smaller
merchants to sell products online. Taoba...
They can also sell services. This Taobao-based travel agent doesn’t just sell you a trip,
they can also arrange a travel v...
C2C and B2C
commerce on Taobao
Tmall merchants pay a
commission and an
entry fee
we’ll discuss
this bit later...!
TaoBao m...
This family of sites enables consumers to shop for a huge range of products that
might otherwise never be available in the...
They’ve also enabled millions of
new jobs—especially in smaller
towns or rural areas where micro-
businesses can now sell ...
The Chinese marketplace model has already slipped
beyond its borders...
“...most of the people have phones but [in Lagos]
there are only 3 malls per 21 million inhabitants...
It’s a unique time....
https://www.flickr.com/photos/davidrosenphotography/15137403228/
we literally have some customers who have ordered
multiple...
https://www.flickr.com/photos/decar66/5150814952
but given the size of these
giant marketplaces, how can consumers
find the ...
where consumers can explore a vast
user-curated selection of choices”.
| Open Youthology
“Online shopping neighbourhoods a...
Meilishuo
(which means “beauty talk”)
32M users in 2012
similar to an online travel agent
these sites get a cut for each o...
Part of the reason these services work, is that they feed into the virtuous circle of
mobile and social media adoption.
So...
China *loves*
social media
...but the most popular social media services in China
aren’t just “sites”—they’re platforms.
one of the most popular
(lately) is WeChat
or Wēixìn - - in China
five years old
mobile-only
700+ million MAU
mobile-only, and far more
than just a messaging app
(recorded) voice chat
RSS-style subscription content
mobile contact ex...
WeChat’s API is extensive, enabling brands to create “mini-sites” containing
news, chat-based support* or full-blown trans...
Messaging, bots and other ‘native’ services are enhanced by mobile-only ‘light apps’ (
) “one-off, zero-download, hyper-ta...
“Philosophically, while Facebook and WhatsApp measure growth by
the number of daily and monthly active users…WeChat cares ...
http://www.flickr.com/photos/ducdigital/2892313560
Virtual wallets, mobile payment and alternative finance models are
quite ...
http://www.flickr.com/photos/kiwanja/3169409467/
M-Pesa in Kenya is the poster-child of mobile banking, but as of early 201...
consumers without credit cards can also choose to pay
https://www.flickr.com/photos/kamshots/468265643/
in countries such a...
https://www.flickr.com/photos/wippetywu/14295584182/
or M-Pesa on delivery, or [mobile] airtime
on delivery, or whatever it...
In most cases, mobile is the glue that ties these
platforms, services and communities together...
WeChat has for example,
built much of its functionality
around the QR code
WeChat automatically generates a QR code for each account. To follow a person
or brand, simply scan the code (on a device,...
This reliance on QR codes works, because in China (and many other parts
of Asia) almost every app (including locally built...
in China using QR codes to transform
virtual activities into physical ones
(and vice versa) has become common
(...one migh...
These brands and consumers aren’t merely
“leapfrogging” desktop, or finance, or physical retail...
in mobile
transactions in 2013
$25 billion
in mobile
transactions in 2013
$150 billion
(Alipay - Alibaba’s virtual currenc...
a future inhabited by people
https://www.flickr.com/photos/paulk/4693602730
for whom the words “offline”, “online”
and “mob...
It also enables brands operating in these markets to
try things that might otherwise sound a little crazy...
In Russia, e-commerce
brand Lamoda turned poor
postal infrastructure and
payment on delivery into an
excuse to try somethi...
“...Lamoda sends sales assistants directly to
homes...uniformed delivery men bring the clothes,
wait for [customers] to tr...
https://www.flickr.com/photos/rodriguez5000/12149403593
The Economist: The next frontier
“To Westerners, ‘mobile banking’ i...
http://www.flickr.com/photos/tinou/453593446
thank you
many thanks to the
amazing photographers on
http://creativecommons.o...
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The emerging global web

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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.

Published in: Internet
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The emerging global web

  1. 1. global web the emerging https://www.flickr.com/photos/curious_e/10642468063
  2. 2. http://www.flickr.com/photos/ducdigital/2892313560 “To understand China’s Internet sector, start by thinking of the services you know and love in the U.S. Then change all their names, combine four of them into one, drop any fees and reduce the number of ads.”
 — Jessica E. Lessin, The Information
  3. 3. it’s easy to explain these differences away as purely cultural https://www.flickr.com/photos/maureendidde/12691105824/
  4. 4. Internet Population and Penetration …or due to low internet penetration…
  5. 5. Source: Age of Man - interactive map, National Geographic …or vastly different income levels
  6. 6. But these factors (even combined) merely tell part of the story—especially when it comes to commerce—
 and that’s what we’re going to discuss today
  7. 7. China has 14 cities with populations over five million... https://www.flickr.com/photos/decar66/6341327886
  8. 8. ...a whopping 41 cities with more than 2 million inhabitants http://www.flickr.com/photos/tahini/10468208216
  9. 9. ...and a “middle class” growing at a rate of 80,000 people a day http://www.flickr.com/photos/tahini/10468208216 Source: China Connect
  10. 10. rural residents can be challenging http://www.flickr.com/photos/lukewebber/4588854679 reaching China’s 600 million
  11. 11. its close to 700 million urban residents but opening enough stores to service can be outrageously expensive http://www.flickr.com/photos/tuchodi/5620884999 (or downright implausible)
  12. 12. http://www.flickr.com/photos/milo_riano/4336541309 isn’t so much an electronic version of commerce, it *is* commerce, pure and simple so to many Chinese, shopping online
  13. 13. https://www.flickr.com/photos/curious_e/10473440064 ...and using their mobile to do so isn’t just a modern alternative to using a PC, it’s their primary (or sometimes only) means of using the internet
  14. 14. Chinese e-commerce is also different in one more very important way...
  15. 15. 76% of online retail involves individual merchants of online retail is sold through online marketplaces 90% Source: The Economist
  16. 16. China’s giant, virtual marketplaces enable buyers and sellers to find each other a modern virtual version of this http://www.flickr.com/photos/mckaysavage/135932500/ like public markets and town centres,
  17. 17. The largest marketplace is Alibaba’s Tmall which contains products from more than 150,000 merchants and 200,000 well known brands.
  18. 18. Tmall charges an entry fee, and a commission for each sale, but in return provides a high visibility, high traffic, customizable, social-media and mobile optimized e- commerce platform.
  19. 19. apple.tmall.com 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.
  20. 20. Alibaba also offers a C2C site called Taobao, which enables consumers and smaller merchants to sell products online. Taobao is a bit like EBay, but vendors aren’t limited to selling things...
  21. 21. They can also sell services. This Taobao-based travel agent doesn’t just sell you a trip, they can also arrange a travel visa, sell you a Thai 3G SIM card, a wi-fi dongle, a subway pass, or local transportation.
  22. 22. C2C and B2C commerce on Taobao Tmall merchants pay a commission and an entry fee we’ll discuss this bit later...! TaoBao merchants don’t pay to sell stuff, they buy advertising and other services to help them stand out and“A mix of , with a dash of .”
  23. 23. 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).
  24. 24. They’ve also enabled millions of new jobs—especially in smaller towns or rural areas where micro- businesses can now sell their locally made products or produce to an audience of billions. http://www.flickr.com/photos/tuchodi/5642172895
  25. 25. The Chinese marketplace model has already slipped beyond its borders...
  26. 26. “...most of the people have phones but [in Lagos] there are only 3 malls per 21 million inhabitants... It’s a unique time...the right time to leapfrog over ‘offline’.” - jumia.com co-founder THE BIGGEST ONLINE SHOPPING MALL IN AFRICA Egypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco *that’s 60K people per retail outlet compared to 7K in APAC and 389 in the U.S.
  27. 27. https://www.flickr.com/photos/davidrosenphotography/15137403228/ we literally have some customers who have ordered multiple times and never spoken to us… - How WhatsApp helped Jumia disrupt Africa “…our [agents] chat all day long never placed an order online” on messaging and social media with our customers…
  28. 28. https://www.flickr.com/photos/decar66/5150814952 but given the size of these giant marketplaces, how can consumers find the product they really want?
  29. 29. where consumers can explore a vast user-curated selection of choices”. | Open Youthology “Online shopping neighbourhoods are online destinations created by social media,
  30. 30. Meilishuo (which means “beauty talk”) 32M users in 2012 similar to an online travel agent these sites get a cut for each outbound transaction (for this site alone, that was 5-6M clicks a day in 2012)
  31. 31. 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 “straight to social” Users adopt social networking quickly as they come online
  32. 32. China *loves* social media
  33. 33. ...but the most popular social media services in China aren’t just “sites”—they’re platforms.
  34. 34. one of the most popular (lately) is WeChat or Wēixìn - - in China five years old mobile-only 700+ million MAU
  35. 35. mobile-only, and far more than just a messaging app (recorded) voice chat RSS-style subscription content mobile contact exchange highly customizable API payment platform text chat group text or video chat photo-blogging virtual wallet
  36. 36. WeChat’s API is extensive, enabling brands to create “mini-sites” containing news, chat-based support* or full-blown transactions through with WeChat’s virtual wallet and payment platforms. WeChat subscription channels API integration enables customizations such as sub-sections... download our app find nearby stores ...and product or service inquiries using an automated short messaging service here’s the stuff you can ask regarding coffee... “cappuccino” tell me about “coffee” *delivered by a mixture of bots and humans
  37. 37. Messaging, bots and other ‘native’ services are enhanced by mobile-only ‘light apps’ ( ) “one-off, zero-download, hyper-targeted mini-sites” that enable more creative or complex experiences.
  38. 38. “Philosophically, while Facebook and WhatsApp measure growth by the number of daily and monthly active users…WeChat cares more about how relevant it is in addressing the daily, even hourly needs of its users…[its] goal is to address every aspect of its users’ lives, including non-social ones.” — Connie Chang, a16z
  39. 39. http://www.flickr.com/photos/ducdigital/2892313560 Virtual wallets, mobile payment and alternative finance 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 financial institutions less than of Indonesians have a credit card 15% Source: Wall Street Journal
  40. 40. http://www.flickr.com/photos/kiwanja/3169409467/ M-Pesa in Kenya is the poster-child of mobile banking, but as of early 2015, there were 261 different mobile finance services across the world.
  41. 41. consumers without credit cards can also choose to pay https://www.flickr.com/photos/kamshots/468265643/ in countries such as China, Nigeria and Indonesia for online purchases using cash on delivery
  42. 42. https://www.flickr.com/photos/wippetywu/14295584182/ or M-Pesa on delivery, or [mobile] airtime on delivery, or whatever it is…" - interview with Parinaz Firozi, Jumia MD, Kenya if it will be delivered…we allow cash on delivery, “…if you’re not sure if this is a scam,
  43. 43. In most cases, mobile is the glue that ties these platforms, services and communities together...
  44. 44. WeChat has for example, built much of its functionality around the QR code
  45. 45. WeChat automatically generates a QR code for each account. To follow a person or brand, simply scan the code (on a device, business card, web site etc.) (WeChat even provide templates enabling personalization of the code to suit your personality or your brand.)
  46. 46. 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
  47. 47. in China using QR codes to transform virtual activities into physical ones (and vice versa) has become common (...one might say mundane)
  48. 48. These brands and consumers aren’t merely “leapfrogging” desktop, or finance, or physical retail...
  49. 49. in mobile transactions in 2013 $25 billion in mobile transactions in 2013 $150 billion (Alipay - Alibaba’s virtual currency) they inhabit a giant rapid-prototype of our future... Source: Business Insider
  50. 50. a future inhabited by people https://www.flickr.com/photos/paulk/4693602730 for whom the words “offline”, “online” and “mobile” may have already become irrelevant
  51. 51. It also enables brands operating in these markets to try things that might otherwise sound a little crazy...
  52. 52. In Russia, e-commerce brand Lamoda turned poor postal infrastructure and payment on delivery into an excuse to try something that seems completely un- scaleable...
  53. 53. “...Lamoda sends sales assistants directly to homes...uniformed delivery men bring the clothes, wait for [customers] to try them on, offers fashion advice, take returns and process payments on the spot” - Russia: Where the Deliveryman Gives Fashion Advice https://www.flickr.com/photos/41738141@N06/6814977720/
  54. 54. https://www.flickr.com/photos/rodriguez5000/12149403593 The Economist: The next frontier “To Westerners, ‘mobile banking’ is a new way of doing something old. To many Africans, it’s the obvious way of doing something new”
  55. 55. http://www.flickr.com/photos/tinou/453593446 thank you many thanks to the amazing photographers on http://creativecommons.org/licenses/by/2.0 @yiibu hello@yiibu.com contact us at Presentation deck available @
 http://www.slideshare.net/yiibu

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