3. Alex Rampell, Co-founder of TrialPay,
coined the term "O2O" in 2010, which refers
to the business model that leverages online
channels to acquire offline services &
products, or VICE VERSA.
. . .
O2O Definition
5. Growing young population demands
more quality services.
Brazil mainstream workforce much
younger: Brasil 41%vs. China 33%in
Y+Z Generation
Brazilian population will keep
growing up to 225MM, until 2040.
Fonte:Population Pyramid
Population Factor
6. O2O is a smart way to
pursue service and user
experience perfection,
instead of pure
technology revolution.
1%Brazilian invests +-1%of GDP in its
current R&D, while +-2.8%in US
Fonte:Wikipedia
Technical Competitiveness
7. Local Brazilian O2O
players understand and
are deeply rooted in the
local offline business
operation.
Global giants don't &won't do "Dirty Work".
Natural Barrier
9. Fonte:Teleco – Baidu BIInternalData
Even with biggest
housekeeping workers in
the world, it is still hard to
find over qualified workers.
7,233
4,206
2,405 1,926 1,851
Domestic Workers by Country
(Top 20) in MM
O2O Boom Prerequisites Met –
Unbalanced Info Flow
10. Fonte:Teleco – Baidu BIInternalData
42
52
Brazil (U$ Bi) China (U$ Bi)
O2O Boom Prerequisites Met –
Over-production
Brazilian Beauty Market
in 2012 compared with
that of China, which is
with 7x more population
11. Fonte:Teleco – Baidu BIInternalData
Average Rate
of Hotel Room
₤ 77.00
₤ 82.00
₤ 86.00
₤ 90.00
₤ 92.00
₤ 104.00
₤ 109.00
₤ 118.00
₤ 147.00
₤147.00
China
India
UK
Germany
Japan
France
Italy
USA
Russia
Brazil
O2O Boom Prerequisites Met –
Service Fee Inflation
12. 205,500
382,400
436,100
519,700
574,200
624,700
672,100
704,100
2011 2012 2013 2014 2015 2016 2017 2018
19.0%
26.3%
33.1%
38.5%
42.2%
45.5%
48.6%
51.6%
China
Smartphone Penetration
Smartphone Users
China Entered into Fast O2ODevelopment Phase in 2013, followes by
Smartphone Penetration Rate above 30%
12,100
21,600
27,100
38,800
48,600
58,500
66,600
71,900
2011 2012 2013 2014 2015 2016 2017 2018
7.0%
19.0%
20.8%
28.3%
34.4%
40.4%
45.0%
47.6%
Brazil
Fonte: Emarketer – Teleco 2015
Smartphone Penetration
BrazilStarted to Achieve Smartphone Penetration above 30%Apart from 2015
Smartphone Users
O2O Boom Prerequisites Met –
Mobile Broadband Ready
15. Empresa Tipo
$ Ativos
Gerenciados
Ex1 Ex2 Ex3
Escritório
LatAm
VC/PE $ 62 Billion SP
PE $ 17.4 Billion SP
VC/PE $ 10 Billion NO
VC $ 9 Billion NO
VC $ 7.5 Billion SP
VC/PE $ 8 Billion NO
VC/PE $ 4.4 Billion NO
VC/PE SP/RJ/MG
VC $ 640 Million SP
VC $ 270 Million SP
VC/PE SP
VC $ 230 Million SP/BA
Fonte: Tech Crunch and Lavca 2015
O2O is Where Investment Looking At
16. GroupOn
InitialServices
(Web only)
Peixe Urbano &
GroupOn entering
into O2Omarket
(Web only)
O2Otakes on
mobile format
through Taxi,
Mobile payments,
etc.
Fast O2Ogrowth in
mobile
O2OMobile App
appears
O2OMobile
services reach a
newhigh
penetration
2008 2015 Future
WillO2O
marketplace be
born?
O2Ospreads
to secondary
cities
2013 20142010
EARLYSTAGE
EARLYSTAGE
INITIALSTAGE FASTGROWTH
FASTGROWTHINICITALSTAGE
2012
2 years gap
Fonte:AppAnnie – Baidu BIInternalData
2015 Future2013 20142010 2012
2 years gap
Current Stage: 2~3 Years Behind China
& Into Fast Growth
17. 55% YoY
56% YoY
360% YoY
-13% YoY
94% YoY
44% YoY
222% YoY
45% YoY
229% YoY
240% YoY
OTA
Taxi
Food
E-Learning
Group Buying
Review
Real Estate
Cars
Tickets
Room Rental
Logistic
Pet
Housekeeping
Motel
Reservation
Top 15 Downloads IOS & Android
Fonte: AppAnnie June 2015– Baidu BI Internal Data –
Teleco 2015
104,897
406,589
1,060,000
518,418
1,177,092
356,503
1,339,369
1,535,600
1,671,423
1,690,904
2015 2014
Top 15 Downloads IOS & Android Top 15 Downloads IOS & Android
9,702
528
413
46,419
188,897
28,481
31,024
66,584
195,073
223,019
2015 2014
18% YoY
320% YoY
16K% YoY
5776% YoY
194% YoY1,800,162
4,060,066
884,758
3,500,342
3,350,149
2,787,330
3,546,495
4,072,278
5,458,863
6,490,172
2015 2014
O2O Growth is Mobile First
18. Food Delivery OTA Taxi
According to SPC
Brazil, online
delivery orders
represent 23% of
total sales; 40%
in pizza delivery.
Fonte: Associação Pizzarias Unidas, SPC Brazil,
Associação Brasileira de Bares e Restaurantes
(Abrasel )
Almost 20% of
internet users call
a taxi at least once
in the last 6
months.
1 in every 5
Brazilian
smartphone
users buy tickets
online.
Movie Ticket
Fonte: Panorama Mobile Time/Opinion Box: M-
commerce no Brasil
According to
Criteo, 57%
leisure travelers
book their flight
online.
Fonte: Panorama Mobile Time/Opinion Box: M-
commerce no Brasil. And Emarketer
Fonte: Panorama Mobile Time/Opinion Box: M-
commerce no Brasil
O2O Changing Consumer Behavior Drastically
22. Vertical China Brasil
Educação X X
Imóveis X X
Recrutamento X X
Lavanderia X
Impressão X
Casamento X X
Reciclagem X
Decoração X X
Motorista de Aluguel X
Reparos X
Logística por Motos X
Chef em domicílio X X
Serviços para Pets X
More Sub-Verticals to Come in Mobile
23. Group
Buying
Free WiFi
Hardware
/OS
Review
O2O Marketplace is Not One, But Many
Services
Services
Services Services
Services
Similar to mobile
Internet, O2O evolves
towards an fragmented
ecosystem of “Carrier
Battle Groups” :
Multiple Marketplaces &
Multiple Vertical
Services
24. User Experience： convenience, efficiency, cost
Business Model：transaction-driven, close loop
w/ payment
Evangelization：promote best practice,
awareness among users, merchants and players
Investment：dedicated financial /traffic/technology
resources
Brazil Challenges in O2O
