A look at the shifts in focus in Silicon Valley as mobile has taken technology to a global scale. This presentation looks at the impact of mobile and emerging markets on how people consume and the disruption coming to traditional industries, such as food, CPG, and spirits.

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