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Southeast Asia
Why you should pay attention NOW
Adrian Vanzyl, CEO
Bangkok, Thailand October 2013
2
More people live inside this circle than outside
3
• Head office in Bangkok
• Portfolio companies must have team and customers in Southeast Asia
• Prefer transactional e-c...
4
Southeast Asia is bigger (2x) than the US and bigger than the EU
Southeast Asian Population
5
Source: International Telecommunications Union (Geneva)
Internet penetration grew significantly from 2000 to 2012
Singap...
6
By 2020, over 60% of Southeast Asians will be online
24M
31M
18M
4M
55M
34M
194m
New internet
users
360m
Internet users
...
7
Source: The Digital Media and Attitudes of Southeast Asian Consumers 2011, Nielsen; eMarketer
14
19.8
21.5
25
16.6 16
20...
8
37%
40%
38%
40%
21%
45%
23%
27%
26%
31%
33%
30%
24%
30%
24%
26%
22%
17%
15%
20%
27%
14%
21%
22%
9%
7%
9%
8%
19%
7%
18%
1...
9
28.3 27.7
18.2
16.5 16.4
13.5
24.2
22.2
14.5
16
15.2
13.6
0
5
10
15
20
25
30
Thailand Vietnam Singapore Philippines Mala...
10
Smartphone sales have
been robust and are
expected to have a
compound annual growth
rate of 43% from 2008 to
2016, reac...
11 Southeast Asians are more willing to do all internet surfing
on their phones
65%
61% 60%
55%
37% 36%
31%
Indonesia Phil...
12 Southeast Asia is outpacing the US toward an equal
mobile/desktop traffic share…
92 91 91 90
86 85
82
76
71 69
8 9 9 10...
13
Southeast Asians are Social
With 13.8m registered users, there are more Facebook
users in Bangkok than any other city i...
14 Southeast Asians spend a large share of their internet time
on social networks
16.1%
19.7%
21.6%
25.4%
30.8%
32.3%
41.5...
15
43%
25%
20%
12% 9% 6%
19%
14%
52%
58%
56%
52% 58%
47%
54%
46%
5%
17%
25%
36% 34%
47%
27%
39%
0%
10%
20%
30%
40%
50%
60%...
16
Source: Nielsen
Almost 70% of Southeast Asian consumers have ‘liked’ or
followed a brand, company or celebrity on a soc...
17
1.95
2.71
3.86
4.80 5.07
7.57
9.90
13.05
2005 2006 2007 2008 2009 2010 2011 2012
Online Retail Sales Value in Indonesia...
18
Most e-commerce segments in Southeast Asia had
double-digit growth rates from 2005-2012, with
Sports & Leisure Equipmen...
19 The ASEAN Economic Community (AEC) represents a
tremendous opportunity for business in Southeast Asia
Free flow of
good...
20
Online advertising is totally out of line
In Southeast Asia, people spend 44% of their media time online, but only 2%
o...
21
1. Big and Young – bigger than US (2x), bigger than EU, with a younger
population than both
2. Internet Focused – more ...
22
 Expand into Southeast Asia
 Start a company in Southeast Asia
 Invest in Southeast Asia
 Come and visit us in Bang...
23
Adrian Vanzyl
adrian@ardentcap.com
This presentation is available at www.ardentcap.com
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Southeast asia -_why_you_should_pay_attention_now

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Southeast asia -_why_you_should_pay_attention_now

  1. 1. Southeast Asia Why you should pay attention NOW Adrian Vanzyl, CEO Bangkok, Thailand October 2013
  2. 2. 2 More people live inside this circle than outside
  3. 3. 3 • Head office in Bangkok • Portfolio companies must have team and customers in Southeast Asia • Prefer transactional e-commerce businesses generating real revenue • Two key areas of focus – Venture fund (6 investments to date) – Labs business (similar to Idealabs/Science, currently with 80 staff in Bangkok) • Core founding team has over 10 years of experience in Southeast Asia, with 3 major exits over 100m USD Focused exclusively on Southeast Asia Ardent Capital
  4. 4. 4 Southeast Asia is bigger (2x) than the US and bigger than the EU Southeast Asian Population
  5. 5. 5 Source: International Telecommunications Union (Geneva) Internet penetration grew significantly from 2000 to 2012 Singapore 36% 74% Vietnam 0.25% 40% Thailand 4% 26% Indonesia 1% 15% Malaysia 21% 66% Philippines 2% 36% 2000 2012
  6. 6. 6 By 2020, over 60% of Southeast Asians will be online 24M 31M 18M 4M 55M 34M 194m New internet users 360m Internet users Source: We are Social, Accenture 2010 2020 62% Estimated internet penetration 25% 2010 internet penetration
  7. 7. 7 Source: The Digital Media and Attitudes of Southeast Asian Consumers 2011, Nielsen; eMarketer 14 19.8 21.5 25 16.6 16 20.5320.3 10.6 13.3 12 10.9 16.6 35.7 8.3 5.8 6.3 7.5 5.2 4.8 14 4 4.3 3.6 5 3.7 3.9 2.22 Indonesia Malaysia Philippines Singapore Thailand Vietnam USA Hours Spent per Week on Media Internet TV Radio Newspaper Unlike the US, internet has surpassed TV in most Southeast Asian countries as the #1 medium
  8. 8. 8 37% 40% 38% 40% 21% 45% 23% 27% 26% 31% 33% 30% 24% 30% 24% 26% 22% 17% 15% 20% 27% 14% 21% 22% 9% 7% 9% 8% 19% 7% 18% 14% 6% 5% 6% 2% 9% 4% 15% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Malaysia Indonesia Vietnam Philippines Singapore Thailand Europe Worldwide Agedistributionofinternetusers 15-24 25-34 35-44 45-54 55+ Southeast Asian internet users are younger than the rest of the world’s In Thailand, 75% of internet users are under 35 Source: Southeast Asia Digital Future in Focus 2013, ComScore
  9. 9. 9 28.3 27.7 18.2 16.5 16.4 13.5 24.2 22.2 14.5 16 15.2 13.6 0 5 10 15 20 25 30 Thailand Vietnam Singapore Philippines Malaysia Indonesia Usage hours per week Age under 35 Age over 35 …and young people spend more time on the internet Source: Southeast Asia Digital Future in Focus 2013, ComScore
  10. 10. 10 Smartphone sales have been robust and are expected to have a compound annual growth rate of 43% from 2008 to 2016, reaching 59 million units in 2016 Source: GoogleResearch, Euromonitor 2013
  11. 11. 11 Southeast Asians are more willing to do all internet surfing on their phones 65% 61% 60% 55% 37% 36% 31% Indonesia Philippines Thailand Vietnam Singapore Malaysia Global % of Consumers Who Say They Would be Happy to Do All Their Internet Surfing on Their Mobile Devices Source: Surfing Southeast Asia’s Powerful Digital Wave, Accenture 65% of the Indonesian population would be happy to do all their internet surfing on mobile devices, compared to only 30% of the global population
  12. 12. 12 Southeast Asia is outpacing the US toward an equal mobile/desktop traffic share… 92 91 91 90 86 85 82 76 71 69 8 9 9 10 14 15 18 24 29 31 95 94 93 92 92 91 89 86 88 85 5 6 7 8 8 9 11 14 12 15 0 10 20 30 40 50 60 70 80 90 100 2010-06 2010-09 2010-12 2011-03 2011-06 2011-09 2011-12 2012-03 2012-06 2012-09 2012-12 2013-03 2013-06 Mobilevs.Desktop%Traffic Southeast Asia Desktop Southeast Asia Mobile USA Desktop USA Mobile Mobile and desktop usage are rapidly converging in Southeast Asia Source: StatCounter 2013
  13. 13. 13 Southeast Asians are Social With 13.8m registered users, there are more Facebook users in Bangkok than any other city in the world (One cannot overstress how social Southeast Asia is) Source: Accenture
  14. 14. 14 Southeast Asians spend a large share of their internet time on social networks 16.1% 19.7% 21.6% 25.4% 30.8% 32.3% 41.5% 0% 10% 20% 30% 40% 50% Singapore Worldwide Vietnam Indonesia Thailand Malaysia Philippines Social Network Share of Time Spent Online Source: Southeast Asia Digital Future in Focus 2013, ComScore
  15. 15. 15 43% 25% 20% 12% 9% 6% 19% 14% 52% 58% 56% 52% 58% 47% 54% 46% 5% 17% 25% 36% 34% 47% 27% 39% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Vietnam Philippines Thailand Malaysia Indonesia Singapore SE Asia Global % of People Who Say They Are… Not at all influenced Somewhat influenced Highly influenced Source: Nielsen 73% of Southeast Asian consumers are influenced by ads on social media, compared to 60% globally 73% 60%95% 83% 76%
  16. 16. 16 Source: Nielsen Almost 70% of Southeast Asian consumers have ‘liked’ or followed a brand, company or celebrity on a social network 79% 75% 69% 69% 61% 61% 69% 52% 17% 19% 26% 27% 35% 33% 26% 42% 4% 6% 5% 4% 4% 7% 5% 6% Vietnam Philippines Malaysia Thailand Indonesia Singapore SE Asia Global % of People Who… Don't Know Have Never 'Liked' or Followed a Brand Have 'Liked' or Followed a Brand
  17. 17. 17 1.95 2.71 3.86 4.80 5.07 7.57 9.90 13.05 2005 2006 2007 2008 2009 2010 2011 2012 Online Retail Sales Value in Indonesia, Malaysia, Philippines, Thailand (US$ Billion) E-commerce has seen spectacular growth in Southeast Asia Source: Online Retailers in Emerging Asia to 2015, ICD Research
  18. 18. 18 Most e-commerce segments in Southeast Asia had double-digit growth rates from 2005-2012, with Sports & Leisure Equipment and Electronics growing over 63% and 47% on a compound annual basis Source: Online Retailers in Emerging Asia to 2015, ICD Research
  19. 19. 19 The ASEAN Economic Community (AEC) represents a tremendous opportunity for business in Southeast Asia Free flow of goods Free flow of services Free flow of investment Free flow of capital What it means… Free flow of skilled labor What it is comprised of… More attractive to foreign direct investment Easier to obtain/move capital across the region Easier to recruit talent from countries in Southeast Asia Cheaper and easier to sell goods across borders Easier to provide services and establish companies in the region In 2015, Southeast Asia will transform into an integrated market, making it easier for businesses in Southeast Asia to expand Source: ASEAN
  20. 20. 20 Online advertising is totally out of line In Southeast Asia, people spend 44% of their media time online, but only 2% of advertising spending is devoted to online advertisement; however, e-commerce is changing this Source: Euromonitor, Nielsen 50.87% 34.48% 4.79% 1.88% 32.32% 9.46% 14.63% 43.59% 0% 10% 20% 30% 40% 50% 60% TV Print Radio Online % of Total Ad Spend vs % of Total Time Spent on Media % Ad Spend % Time Spent out of line
  21. 21. 21 1. Big and Young – bigger than US (2x), bigger than EU, with a younger population than both 2. Internet Focused – more time spent on the internet than on TV 3. Mobile – well over 100% penetration in most markets 4. Social and Socially Influenced – everyone is on social media (read Facebook), and social advertising strongly influences purchase decisions 5. Growing fast – eCommerce CAGR of 31% 6. Disproportionately Spending Ad Dollars – significant disconnect between time and money spent online vs TV Southeast Asia also has: • Less competition • Available capital Southeast Asia is: Summary
  22. 22. 22  Expand into Southeast Asia  Start a company in Southeast Asia  Invest in Southeast Asia  Come and visit us in Bangkok Next steps
  23. 23. 23 Adrian Vanzyl adrian@ardentcap.com This presentation is available at www.ardentcap.com

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