7 (not so…) Secrets of How to Scale your Startup from Home Country to SEA
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This slide is part of my Keynote at Techsauce Summit 2016, Thailand's Biggest Tech Start Event. The topic is How to Scale your Startup from Home Country to Southeast Asia. Keynote by Thanawat Malabuppha - Co-Founder and CEO of PriceZa. Venue: Lotus Suite 5-6 Bangkok Convention Centre @Central World 23 July 2016.
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7 (not so…) Secrets of How to Scale your Startup from Home Country to SEA
- 1. by Thanawat Malabuppha, CEO & Co-Founder at Priceza23 JULY 2016 7 (not so…) Secrets of How to Scale your Startup from Home Country to SEA
- 2. SearchProduct Name … Priceza is the leading Shopping Search Engine and Price Comparison Shopping targeting SE Asia. Shopping Search Engine 12M Visits/month +50M Products from +10,000 Merchants
- 3. Priceza Philippines Pop: 108m Launching March 6, 2015 Priceza targets >600m consumers Aiming to Dominate Market to be NO.1 Price Comparison in SE Asia Priceza Thailand Bangkok Pop: 68m Jan 1, 2010 Priceza Malaysia Pop: 30m Launching March 6, 2015 Priceza Indonesia Pop: 254m May 1, 2013 Priceza Vietnam Pop: 93m Launching June 2015 Source: CIA World Factbook, Priceza Singapore Pop: 6m Launching March 6, 2015
- 4. 1) Win on your home country (first)
- 5. 1) Win on your home country (first) • Beauty of internet business • Global + Local = Glocal • Focus is KEY • Product-Market FIT • Priceza’s International Expansion
- 6. 2) Leverage your international expansion
- 7. 2) Leverage your international expansion • Startup Scalability • What is your leverage? • Priceza’s 4 Key Leverages from Internation Expansion – Regional Deal – Tech Scalability – Investor network & partnership – Cross-border Ecommerce
- 8. Me and Mr. William, CEO of Tokopedia and CyberAgent Ventures Indonesia Team
- 10. 3) Market Validation • What country to expand to and why? • Market Validation – Desk research – Primiary research • Country Strategy
- 11. My First Foot Step in Indonesia, July 2012
- 12. 4) Brand Name Consideration
- 13. 4) Brand Name Consideration • Brand blunder • Trademark registration • Local domain name registration • Priceza local domain name
- 14. 5) Company Structure & Partnership
- 15. 5) Company Structure & Partnership • This is important! We learn it the hard way! • Company Structure – Local law – Holding Co – Joint Venture – Subsidiary – M&A local player – Reseller partner – Rep office – Exporting service from home country
- 17. Event & Exhibition Show
- 18. 5) Company Structure & Partnership • Team structure – Local people? – Regional team in Home country HQ – Priceza >> local sale rep – English speaking culture for the whole org.
- 19. 5) Company Structure & Partnership • Tax implication – Foreign direct investment promotion & support – WHT – VAT • Bank & payment – Local bank account – Cross country bank transfer
- 20. 6) Localization Your home country product Your localized product
- 21. 7) Immerse yourself into the Market
- 22. 7) Immerse yourself into the Market • Local Tech Startup event • Local Startup pitching event • Local media coverage • Meetup • Event & Exhibition • Networking & Party! • Local team
- 23. My Indonesian favorite dish “Nasi Goreng”
- 24. Fierce Competiton of Bike Service
- 25. Pitching Priceza to Investors in Jakarta, June 2014
- 26. Speaking at Internet Retailing Expo Indonesia
- 27. 7 (not so…) Secrets of How to Scale your Startup from Home Country to SEA 1. Win on your home country (first) 2. Leverage your international expansion 3. Market validation 4. Brand Name consideration 5. Company structure & Partnership 6. Localization 7. Immerse yourself into the market
- 28. Open for Questions Thanawat Malabuppha (Wai) • Website: http://waiwaiworld.com • FB.com/Wai.Thanawat
Editor's Notes
- So Priceza comes in to answer this need. Priceza is the leading price comparison shopping website It aggregates all the leading and trustworthy online sellers into one single place So consumer can search for the product I want to buy and compare prices in one click! So they don’t miss the best deal ever.
- Priceza is operating in this high growth potential market. We are operating in 6 major countries in SEA Priceza will grow together with the Massive Growth of Ecommerce. Our biggest markets are Thailand and Indonesia. With Malaysia and Philippines are the second biggest markets for us.
- Beauty of internet business The beauty of internet business is that it can fly to any market in the world where internet is accessible. So when you start your business, let’s not focus only in your home country. Global + Local = Glocal You should have the global/international mindset right at the beginning. You can think that one day when you can win on your home country after that I will scale. Focus is KEY There are so many things to do for Startup. If you start in many countries/markets at the beginning, you can lost your focus easily. So my recommendation is that you start on your home country first. One market at a time. Product-Market FIT The high priority task is to make sure that you have the “product-market fit” Focus on solving the problem, make sure that it’s the real pain problem and you have the very best solution. After you win on your home country, you can scale after that. Priceza’s International Expansion For Priceza, we start in Thailand market first in 2010. I aim at the beginning that one day I will sale it out of Thailand. It’s until in 2012 that we start the exploration to Indonesia.
- Startup Scalability Startup is very different from Small & Medium traditional business in terms of scalability. For example, a traditional business of coffee shop, if you want to double revenue, we need to open another branch and your cost double or nearly double as well. But for Startup, when you want to scale out of your home country, your cost should not be double or triple. Your cost should increase in a very not proportional to your revenue potential. What is your leverage? The key question here is that when you scale, what is your leverage? Every startup has its own kind of Lever and you need to utlize that. Priceza For Priceza, there are 4 major leverage. Regional Deal We see that our big clients have presence in other countries in SEA e.g. Lazada, Zalora, 11street, international shipping sites, StrawberryNet. Many advertisers deal advertsing campaign with us in several country at the time so they don’t need to woth with several partners in several countries. Tech Scalability Priceza has two core proprietary technologies i.e. Search and Index System and Priceza Bot. It’s scalable, multi-language support. When we scale out of Thailand, we don’t need to build the whole system again. We can utilize the same tech in TH and customize it to other markets. Investor network & partnership For us, CyberAgent Ventures is our investor and they have many portfolio companies in Indonesia. So it’s no brainer for us to ask for their help to connect with several key players there. Cross-border Ecommerce Connect people across countries
- What country to expand to and why? The next question is which country in the world that you should scale first? Your neighborhood country or in other region. For Priceza, we are aiming for SEA region becasue in other developed countries, there are several of strong competitors already. There is not an easy way for us to grow there. Market Validation In SEA, we’ve done two major research. Desk research basic suffs. we need to know market environment, tech eco-system, consumer behavior, competitive landscape. We need to know it all and need to make decision of whcich market is the best to expand to. We see the potential of Ecommerce in SEA and local market environment: UC browser, Opera, moble first mobile first Primary research I went to JKT first time in 2012. I joined the Ecommerce Tour and went to meet a lot of tech founders in the country. What I see is that I can map major tech players in ID to those of TH. For example, Kaskus, Bhinneka, Blibli. Country Strategy You need to have your market expansion strategy. 6 market startegy: Tier1/2/3 why? roll-out and test it out, collect data
- Brand blunder check brand name meaning in local language You don’t want to end up seeing users laughing about your brand name and you need to change it later on when you’ve done all the marketing Trademark registration Brand is your asset. Make sure that you protect your brand name in the market that you expand to. I guarantee that it’s worth registering trademark. It will take a long time to process and check so make sure that you hire some vendor to help you register it early on. Again, you don’t want to end up knowing later that your brand name has infringement with some other local brands. Local domain name registration Domain name is also as important as trademark registration. To get the good short domain name is not easy. Try checking it early on if you want to register local domain name. Priceza local domain name Back then in 2009, do you know how I came up with the name Priceza? It’s basically that I want to use the keyword price in the name and I try checking a combination of Priceza with other one syllable word to see if the .COM domain is available. And I find that Priceza.com is available. So that’s it. Our strategy for domain name in other country is that we register local domain one by one for each local country.
- This is important! We learn it the hard way! We learn it the hard way for company structure and I don’t want you to get in trouble of company restructuring later. Can you scale service there yourself? Do you need partner to help you on that local market? What should it be like? There are a lot of options... Company Structure Local law Holding Co Joint Venture Subsidiary M&A local player Reseller partner Rep office Exporting service from home country
- Team structure Local people? Regional team in Home country HQ Priceza >> local sale rep sale with Skye and it sucks English speaking culture for the whole org.
- Tax implication Foreign direct investment promotion & support WHT VAT Bank & payment Local bank account Cross country bank transfer
- Double-check localization from two vendors use traslation company at the beginning and found our later that it sucks]
- Local Tech Startup event Local Startup pitching event local startup pitching >> rise expo Local media coverage Meetup Get to know people in the local market, local players Event & Exhibition Exhibition, event, IRX ==> bomb before I will go there in Jan-16 Networking & Party! Local team local sale that stay there and meetup