The document discusses the impact of mobile technology on emerging markets, particularly focusing on China and India, and how it has transformed the grocery and e-commerce sectors. It highlights the rapid growth of mobile users and online grocery services, with a focus on different delivery models, including meal kits and corporate catering. The analysis also compares the e-commerce landscapes of China and the US, emphasizing the opportunities and challenges in expanding mobile commerce in India.

1. Silicon Valley & Emerging Markets
Jeff Richards
@jrichlive
September, 2015

2. Silicon Valley & Emerging Markets
Intro to GGV Capital and Venture Capital
Silicon Valley Perspective
The Importance of Mobile
Innovation and Tech in CPG/Food/Grocery
China
India
Q&A

3. Europe
Japan
Silicon Valley: A Shifting Perspective (5-7 Yrs Ago)
China
“ROW”

4. Europe
Japan
Silicon Valley: A Shifting Perspective (Today)
China
India
SE Asia
Africa

5. It’s All About Mobile

6. Facebook DAU Growth By Region
0
100
200
300
400
500
600
700
800
900
1000
0
50
100
150
200
250
300
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
USA Europe Asia ROW Total
Source: Facebook

7. Your Customer is On the Mobile Internet
+2B new smartphone
users in next 5-7 years
Predominantly in China,
India, SE Asia
Most will never use a PC
Source: Creative Strategies

8. <2%
of US CPG Sales
are Online

9. US VCs Have Gone Nuts for Food

10. Fueling Growth
The Mobile Mom
Shopping on the Fly
Merchandising
Data
Cross-platform / channel

11. The Coming Online Grocery Boom?

12. Grocery & Household Good Delivery Restaurant Delivery
Delivery-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 Kit
Summary: 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 Sharing
Summary: Allows chefs or other individuals to sell
tickets to privately cooked meals outside of
restaurants
Food Startup Competitor Landscape

13. Including the $70B Spirits Industry

14. Variety / Complexity

15. Upside in the US M-Commerce Opportunity?

16. China

17. 2013: The Year the Lines Crossed
China today: 600M+
US today: 250M+

18. 5% 6%
7%
11% 12%
15%
20%
27%
33%
36%
42%
51%
55%
0%
10%
20%
30%
40%
50%
60%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Mobile % Share of Alibaba GMV:
Q2 2012 to Q2 2015
2012 2013 2014 2015
Source: Alibaba Group

19. Putting China’s Mobile Commerce in Perspective

20. >1B registered users
>500M MAU

21. KFC – Doing it Right

22. Emerging Trends
Cross-Border Social Content Verticals

23. India

25. It’s All About Mobile (v2)

26. Driving Increased E-Commerce Sales

27. 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?

28. Thank You
Jeff Richards
@jrichlive