how lamudi approaches rolling out its model in emerging and early stage markets
TRANSCRIPT
Building an Online Real Estate Portal in
Emerging Markets
Kian Moini
Co-Founder and Global Managing Director
Lamudi
Our mission
Our backing - Rocket Internet
Our markets – Emerging and Frontier
Seizing the Opportunity
Ability to scale
Overview
Founded in
2007
+100 companies
incubated
+20 business
models
+5bn people
targeted worldwide
+25,000 people
on the ground
Backed by Rocket Internet
Rocket Internet identifies proven business models that focus on basic needs
Rocket Internet quickly builds companies for these business models using highly standardized and optimized
processes and then scales these companies to a leading position in all its markets.
1. Identify
Continuous monitoring
of customer behavior in
all markets.
2. Build
Functional experts from IT,
SEM, SEO, BI, CRM etc.
build companies from
scratch.
3. Scale
Roll out of companies to
>100 markets and aim to
scale them to #1 positions.
Global
Network of
Companies
How Rocket Internet Is Different
The Three Asias
Developed Markets Australia, Singapore, New Zealand
Indonesia, Philippines, Thailand, Vietnam, Malaysia,
Sri Lanka
Emerging Markets
Pakistan, Bangladesh, Myanmar,
Cambodia, Nepal, Laos
Frontier Markets
Lamudi
focus
Emerging Markets Philippines , Sri Lanka, Thailand, Vietnam,
Indonesia, Malaysia
38% year-on-year growth
in mobile broadband
penetration*
*wireless connection
to internet including
3G and 4G internet
Population
• 561,825,000 total population
• 176.11% of USA population
• 35-50% smartphone penetration
• 35-75 % internet penetration
• US$ 3,568
GDP per capita
Connectivity
Distinct Markets of Asia: Emerging
• Populous markets
• Smartphone penetration
increase from 21 % in 2013 to
44 % in 2018 expected*
• Limited competition
Key attractors
• Infrastructure still developing
• Consumer trust
• On-boarding local talent
Key challenges
GDP annual Growth
(average)
% Mobile Penetration Population Growth
21%
increase in
mobile penetration
2010-2013
5.2%
average increase
2010-2017
(estimated)
62.4mm
more people 2010-
2018
(estimated)
*APAC region excluding China and India
0
20
40
60
80
100
120
140
2007 2010 2013
0
1
2
3
4
5
6
2010 2014 2017
500
520
540
560
580
600
620
2010 2014 2018
Frontier Markets Myanmar, Bangladesh, Nepal, Pakistan, Laos, Cambodia
154% year-on-year growth
in mobile broadband
penetration*
*wireless connection
to internet including
3G and 4G internet
Population
GDP per capita
• 447,788,000 total population
• 140.36% of USA population
• 1-8% smartphone penetration
• 1-11% internet penetration
• US$ 1,022
Connectivity
Distinct Markets of Asia: Frontier
• Populous markets
• Very little competition
• Large verticals still open
Key attractors
• Lack of infrastructure
• Consumer awareness
• On-boarding local talent
Key challenges
GDP annual Growth
(average)
% Mobile Penetration Population Growth
52%
increase in
mobile penetration
2010-2013
6.4%
average increase
2010-2017
(estimated)
76.3mm
more people 2010-
2018
(estimated)
0
20
40
60
80
2007 2010 2013
0
2
4
6
8
2010 2014 2017
380
400
420
440
460
480
500
520
2010 2014 2018
Seizing the Opportunity
Scale
Identify Evaluate
fundamental
attractiveness
Invest in talent Rocket Speed
Focus on the basic, then fill in the gaps
1h
Book a flight
to market
15
Hours
Travel to
destination
2 Days
Find an office
1 Week
Recruit team
2 Weeks
Onboard sellers
4 Weeks
Populate site
GO LIVE
Go live
SCALE
Scale
Identify Evaluate Invest
Rocket
Speed
2013
April Mai July
Indonesia
February
Bangladesh
Pakistan
Myanmar
January
Philippines
2014
Sri Lanka
April
Identify Evaluate Invest Rocket Speed
Scale
Growing at Rocket Speed
Employees
2014 2015
60
209 Lamudi Asia
Listings
2014 2015
457,870
178,263
2014 2015
7,030
Agents
2,447
2013 2015
6
Countries
1
High degree of centralization
CEN
TRA
L
LOC
AL
Product & IT
Online Marketing
CRM
SEO
Business Intelligence
Operations
Sales
Account Management
PR
HR
Finance
PR
HR
Finance
Employees: 90 Employees: Ø 20 per country
Low degree of localization required
25%
Operations
Finance
PR
HR
Account Management
20%
15%
Sales
25%
25%
LOCAL FUNCTIONS DEGREE OF LOCALIZATION
20%
How Lamudi wins markets (1/2)
LOC
AL
Operations
Sales
Account Management
PR
HR
Finance
CEN
TRA
L
Product & IT
Online Marketing
CRM
SEO
Business Intelligence
PR
HR
Finance
Centralization has allowed Lamudi to develop a high degree of expertise across all core supporting functions
Learnings from key processes that are same across countries has allowed Lamudi to achieve a high degree of optimisation of those processes
25%
Operations
Finance
PR
HR
Account Management
20%
15%
Sales
25%
25%
20%
How Lamudi wins markets (2/2)
Expertise
Execution
Strategy
Access to capital
Product Above all: focus on the right
topics at the right time
Where markets are heading
50% 40%
10%
Market Leader Second Largest
Player
Other Players
Typical Market Shares in Developed Online RE Classifieds Markets
Consolidation is demanded by all stakeholders – and thus
only a matter of time for every single market