Apresentação feita para participantes do GSMD China Ignition 360

1. China 360 Experience
Outubro-2017

2. China?

3. China?

4. China?

5. China?

6. China?

7. China?

8. China?

9. Bem-Vindos à Nova China

10. China “Growth” x RETURN
In many periods of the last 2000 years, China had the world biggest GDP

11. Factors for the
Exponential Growth of China

12. Market
Explosion of Middle Class
Digitalization
(technology leapfrogging)
Infrastructure Investments
Venture Capital Investments
Cultural
Competition from Day Zero
Results driven culture
Immigration
Focus in Education
Shanzhai culture
(Customer Focus)
996
Speed of Execution

13. Competition from DayZero

14. Competition from DayZero

15. Competition from DayZero

16. Competition from DayZeroResults driven culture (and family)
“Tiger Mom”

17. Competition from DayZeroResults driven culture (and family)
“Tiger Mom”
Immigration

18. Focus in Education
5 MM STEM students 2016
India 2,6 MM
USA 560 K

19. Shanzhai Culture
(maker culture)

20. 996 Culture

21. Speed of Execution
+ Customer Focus

22. Speed of Execution

24. Explosion of Middle Class
200 MM+
(or 400 MM)

25. Digital China
Technology leapfrogging 800 MM Internet Users
90% mobile

26. Infrastructure
Investments 44% of GDP

27. Venture Capital
United States: US$ 74 Bi (17% YoY)
China: US$ 71 Bi (50% YoY)

28. Full Investment Cycle
Tech IPOs
YTD 2018 US$
14.7 Bi 7 Bi

29. Chinese Innovation

30. PresentPast
Does China really innovate?

31. US still reference
but China is catching up

32. eGDP
Percentage of Country GDP from Internet Economy
Source: Boston Consulting Group, 2017
China already IS digital benchmark

33. China Business Model and Strategy
Platform
Business
Model
Capital as
competitive
advantage
(M&A)
Digitalization
of Everything
Speed of
Execution

34. Empire
Model
Ecosystem
Model

35. Alibaba Ecosystem
New Retail
New
Manufacturing
New Finance
New
Technology
New Energy

36. Smart Business
=
Network Coordination + Data Intelligence
Alibaba Platform Model
capability to rapidly and
automatically improve using
machine learning
autonomous management of the
simultaneous interactions of multiple
parties to a business task

37. BAT Candidates
USA (FAMGA) x China (BAT)

38. 2016: US$ 1 bilhão nos primeiros 5 minutos
Single´s Day (11-11)

39. Single´s Day (11-11)

40. Single´s Day (11-11)

41. Single´s Day (11-11)

42. E o Single´s Day (11/11)? Por que importa pro Brasil?
ALIBABASingle´s Day (11-11)

43. VR em larga escala
Single´s Day (11-11)

44. Entretenimento + Ecommerce
Conversão viewer/carrinho: 32%

45. Entretenimento (influencer) +
Ecommerce
R$ 10 milhões sales in 2 hours

46. E-Commerce Cross-border
China comprando do mundo
US$ 85 bilhões em 2016

47. Daigou (agendas de compras)
US$ 15 bilhões em 2014

48. Daigou de produtos de luxo
US$ 12 bilhões em 2014

49. Direct to Consumer (D2C)
Marcas Nativamente Digitais
Marca 3 Esquilos:
. 4 anos de existência
. nasceu somente vendas online
. US$ 73 milhões no 2016 Single´s Day

50. Direct to Consumer (D2C)
Marcas Nativamente Digitais
Marca Luckin Coffee:
. Criada com mentalidade de startup para
concorrer com Starbucks
. Fundada em Novembro 2017
. 1000 lojas abertas
. Funding de US$ 200 milhões

51. Direct to Consumer (D2C)
Marcas Nativamente Digitais
Marca 3 Esquilos:
. 4 anos de existência
. nasceu somente vendas online
. US$ 73 milhões no 2016 Single´s Day
Influencers: Marca própria + e-commerce
Marcas Nativamente Digitais
. Pequenos estoques
. Flash-sales
. Inversão do processo produtivo

52. Case Xiaomi
Direct2Consumer (D2C)
Indústria para o Consumidor
US$ 15 billion em 2015
(>80% das vendas)

53. Produtos criados a partir de dados
Consumer2Business (C2B) Innovation é a utilização de dados de comportamento
para criar produtos, invertendo o processo tradicional de empurrar os produtos
desenvolvidos para os clientes
Agile Product DevelopmentFlexible ManufacturingAccess to DistributionCustomer Data
Case Midea + Alibaba (2015)
- Consumidores chineses não compravam máquina de
lavar louça
- Midea criou produto a partir de dados de diversas
plataformas,
desde comentários até jornada do consumidor no e-
commerce
- No piloto, testou receptividade vendendo online, com
maior agilidade

54. Chinese Consumer

55. Modern Customer Journey
Interest &
Awareness
Search Research Purchase Experience
$
Social-search
advertising
Email-text marketing
Loyalty program
Youtube-videos
Televion
Billboard
Online display advertising
Newspaper-Magazine
Radio
Word of mouth
Organic search
PPC
Maps
Directories
Apps
Near me
GPS
Blogs & articles
Reviews
Social media
Word of mouth
Website
Online booking
Purchase via app
In store purchase
Salesperson
Marketing materials
Post-purchase
expectations vs reality
Social post
Write a review
Blog
Word of mouth

56. EC remained
strong, while
hypermarket
slowed down
and declined
Fash Channel Shift
Source: Total FMCG Kantar WorldPanel

57. Chinese
Shoppers:
Highly social &
Content
Creative
Digital Shift
5.4
connected
74%
consume
digital media
96% mobile
penetration
95%
Wechat
penetration
38% leave
comment
64%
influenced
by internet

58. >40% sales
penetration
over total sales
2017
ECommerce penetration
Source: Total FMCG Kantar WorldPanel

59. In China, E-commerce is no longer a sales platform,
but a lifestyle platform (Jack Ma)
For brands, it´s a sophisticated platform to connect with consumer
Awareness Internet
Brand
Loyalty
Online - Offline Online - Offline Online - Offline
Purchase
Online - Offline
repeat purchase

60. Unilever Smart Retail Strategy in China
eRTM Efficiency
6 million grocery stores
opportunity
Online Lead
- Hema
- 7 Fresh
80% online
20% offline
Offline
- Carrefour
- Walmart
Omnichannel
Shopper
experience
Integration
- alibaba
- RT-mart
EComm + Brick
Mortar
Home Delivery
Delivery < 1 hours
- Ele.me
- Meituan
B2B - eRTM
Omnni shopper insight Omnni shopper marketing Big data Organization Strategic Partnership
Online e Offline
Key enabler

61. Online + Offline: Retailer x Tencent Ecosystem
Key Focus
Traffic Enabler
Experience
Enabler
Retail Touchpoints
Digitalized shopper
Wechat Account
Wechat Moment
Wechat eStore
Payment +
Promotion
CRM
Meituan
Carrefour
Total channel
campaign
Wechat Account
Scan & Go
JD.com
Walmart
JD.com
YH APP
Wechat Account
Payment +
Promotion
CRM
Scan & go
JD.com
YH
Digital Promotion
to drive efficiency
Wechat Account
eStore
Social Gift Card
Payment +
Promotion
CRM

62. <New Retail>