7 deadly sins of the internet in brazil
TRANSCRIPT
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7 DEADLY SINS OF THE INTERNET IN BRAZIL
YAN DIPresident of CEO of Baidu Brasil
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THE APP BOOM IS OVER.
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WE ARE NOT SELLING MORE SMARTPHONES.YOY smartphone shipment growth dives into less than 1%.
Top 5 smartphone vendors’ shipments & YOY growth, Q2 2016 preliminary data (units in millions)
Vendor 2Q16 shipment volumes
2Q15 shipment volumes
YOYchange
Samsung 77.0 73.0 5.5%
Apple 40.4 47.5 -15%
Huawei 32.1 29.6 8.4%
OPPO 22.6 9.6 136.6%
Vivo 16.4 9.1 80.2%
Others 154.8 173.6 -10.8%
Total 343.3 342.4 0.3%
Source: IDC
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WE ARE NOT USING MORE APPS. The average American smartphone user downloads <1 app per month.
Average number of smartphone apps used per day: 1-5
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YOU DO NOT KNOW THE COST TO DISTRIBUTENo one can survive by organic growth and
it costs USD 0.5-1.2 to distribute.
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70% OF THE APPS CAN NOT SURVIVE EVEN THE FIRST DAY
Even you can afford USD 0.5-1.2 to distribute,
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WHERE IS THE WAYOUT
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WHAT IS YOUR BARRIER
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THINKLOCAL
CONTENT
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THINK LOCAL SERVICE
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THINKLOCALMISTAKES
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1ST SIN IGNORE
OFFLINE
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WORLD’S ECONOMY TODAY IS STILL DOMINANTLY OFFLINE.
Online contributes only 2.4% to Brazil’s GDP.
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ONLINE PROVIDES 2X TRAFFIC,BUT OFFLINE 10X BETTER CONVERSION IN
SALES.
Wangcai O2O
Marketing Platform has being tracking the performance of 1080 offline channels (TV/Mag/Outdoor…)& 2389 online channels (Social/ Landing Pages…), and found out:
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2ND SIN IGNORE HALFOF THE INTERNET
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HALF OF THE INTERNET IS IN CHINA.
Among Top10 internet companies by market cap: 6 US-based4 China-based & none European.
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U$60.5B &4489 Deals
in Total
CHINA IS WHERE MONEY IS.In 2015 venture capital deployed U$60.5B in China vs. U$68B in US
4489 deals invested in China vs. 4893 in US
Source:TechAsia
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Last year mobile transactions of $235 billion, pushing China ahead of the U.S. ($231 billion).
Emarketer estimates that in 2016 195MM Chinese use mobile payment vs. 37.5MM in US.
CHINA IS LEADING INNOVATION IN A DIFFERENT WAY.
Data by WSJ
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26 unicorns in China’s O2O market, only.
CHINA IS LEADING INNOVATION IN A DIFFERENT WAY.
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3RD SIN FAIL TOGO THEEXTRA MILE
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USER EXPERIENCE IS EVERYTHING.
Do you have the guts/thought to:
• Full cash-back if not satisfied with the services;
• Free manicure/shoe shine to those waiting in the queue;
• Print customers’ photos taken on-spot for free;
• Clean your glasses while you are eating;• Buy you medicine when notice you are
sick;• Place a teddy bear for single & young
client company
A fondue restaurant chainthat sells R$1.3B/year
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4TH & 5TH SINFAKEDEMAND &NOEFFICIENCY
/INCOMEBONUS
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UBER MODE IS NOT ALWAYS WORKABLE.Do not go against the established user habits.
When there is no • Commercial density• Efficiency improvement• More income 2B & 2C
Going against user habits can cost you money and life.
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6TH SINNO PRICING DIFFENTIAL
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FOOD DELIVERY
56
38 40
8
Reason to Use
FIRSTCONCERN
GROUPBUYING
Reason to Use
Cost
Eficie
ncy
User
Expe
ri...
Other R
easo
n
76.4
36.8 33.9
5.7
FIRSTCONCERN
FOOD DISCOUNT
Reason to Use
Cost
Eficie
ncy
User
Expe
r...
Other R
e...
56
38 40
8
FIRSTCONCERN
Costco born 20 years later than Walmart, now world’s No.2 retailer
U$110 executive-membership retention rate 91%!
Average SKU gross margin 7%, >15% report to the Board;
PRICE IS IMPORTANT & USE IT WISELY. Build up your brand and scale up.
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7TH SINNO CROSS-SECTORAL
CO-OP
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THE FUTURE IS CROSS-SECTORAL CO-OPEach Brazilian O2O sector is about 1% of that in China
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AND ACT LIKE ONE
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THANK YOU