Trends From Silicon ValleyE-commerceFDIH event - June 19, 2013

Lene S Schulze - lsa@innovationcenterdenmark.com - @ICDKInnovation Centre Denmark, Silicon Valley

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How to compete with these guys?

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Commodity Commerce Nailed

- Virtually every area of consumer goods- Huge selection- “good-enough” pricing- Personalized shopping recommendations- Top-notch convenience (Amazon Prime, Subscription, Easy returns)

Selection - Price - Speed

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Customer service quality has replaced price point as the key e-commerce metric.

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Emotional CommerceDesign centric

More thoughtful purchase decisions

Having fun while shopping

Emotional connection with brands

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Emotional Commerce Keywords

DesignSocial ExperiencesCrowdsourcingPersonalization and CurationSubscription

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Opportunities in Emotional Commerce

USD 63 bill dollar Furniture market w. 4% online sales - Imagine a world where 10-20% is sold online

“Is it possible to build a multi billion dollar eCommerce business in an Amazon world? In Commodity CommerceI say probably not. In Emotional Commerce, absolutely yes.”

Jason Goldberg, Founder & CEO Fab.com

“Lots of Disruption waiting to happen”

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Peer to Peer Market Places

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Peer to Peer Market PlacesPeer to Peer Commerce

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M-Commerce

- Expected 25% of online retail on mobile devices by 2017- Tablets will prevail

- The shopping experiences are improving

There are ways to go = Many opportunities aheadWednesday, June 19, 13

Innovation Centre Denmark

–  Globaliza(on*Strategy*of*2006:"A"vision"of"Denmark"becoming"the"

leading"knowledge"based"na8on"in"the"world"in"2016"

–  Centers"placed"in"Silicon*Valley*(2006),*Shanghai"(2007),"Munich"(2008)"

and"Sao"Paolo,"Seoul"and"DelhiHBagalore"(2013)"

–  The"centers"facilitate"access"to"interna(onal*sources*of*innova(on*such"as"capital,"networks,"knowledge,"technology,"partnerships"and"markets."

–  Mission:"create*long*term*growth*and*job*crea(on*in*Denmark*–  Sector"focus:"ICT,*Cleantech,*Life*Science*

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“From&fruits&to&technology”&!  The%end%of%World%War%II%–%a%big%economic&upturn&!  Strong%technical&universi7es:%Stanford,%UC%Berkeley%!  The%Hewle>!Packard%garage%in%Palo%Alto%!%startup&wave&!  Growth%in%semiconductor&in%the%1960s%!  Growth%in%computer&hardware&in%the%1970!80s%!  Growth%in%computer&so:ware&in%the%1980!90s%!  The%Networks&and&the&Internet&in%the%1990!2000s%!  2000s:%biotech,%security%IT,%media,%telecom,%medical%devices,%

cleantech,%advanced%materials%%!  Today%!%CleanTech,%web%2.0,%social%media,%mobile,%cloud,%SaaS,%big%

data,%gaming%

Silicon Valley

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Why?%10%Reasons%why%Silicon%Valley%works%1.  Strong)“Wild%West”%ideals:)Hard)work,)eternal)

op4mism,)restless,)appe4te)for)risk9taking)(Gold)Rush)))

2.  Strong)educa4onal)tech%talent%pool:)E.g.)Stanford,)UC)Berkeley)

3.  )Few)or)no%barriers,)e.g.,)social/racial/ethnic/class)4.  )Strong)flow)of)tech<talented%immigrants:))China,)

India,)EuropeFailure%is%not%sAgmaAzed)

5.  :)Valued)as)“educa4on”)

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10#Reasons#con+nued!

6.  Ecosystem!open#and#dynamic!

7.   Network,!abundant,!informal,!open,!focused!on!knowledge:sharing!

8.   Entrepreneurial#Service#Providers:#Strong!support!from!key!service!providers!(legal,!accoun?ng,!HR,!marke?ng!etc…)!

9.  Abundance!of!capital!!1/4!of!the!world´s!venture!capital!in!SV!

10.   #Stock!op?ons!and!IPOs!create!“serial#entrepreneurs”!

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SCALEit(bridges(scalable(Danish(technology(companies(with(Silicon-

Valley--

Alumni(

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Ecosystem)Silicon'Valley'

TALENT'

SCALABILITY'

EXPERIENCE'

CAPITAL'

MARKET'

CAPITAL)

MARKET) TALENT)

SCALABILITY)

EXPERIENCE)

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Inspiring(entrepreneurs(in(Denmark…(

!Speaker!series!from!successful!Silicon!Valley!entrepreneurs!

…Introducing(Danish(startups(to(the(eco(system(for(one(week..(

…obtain(a(foothold(by((staying(for(3(months(

!Touring!all!of!Denmark!to!promote!the!SCALEit!programs!and!educate!Danish!startups!

!Get!feedback!on!the!company!and!review!the!business!model!in!the!world!centre!of!technology!

!Network!with!venture!capitalists,!advisors,!successful!entrepreneurs!and!cuCng!edge!companies!

!Making!their!products!ready!for!the!American!market!and!rapid!growth!

!Dedicated!mentorship!programs!to!ensure!they!develop!their!businesses!

Inspire( Ignite( Accelerate(The SCALEit Program

Wednesday, June 19, 13

Awesome'event.'Super'condensed,'relevant'and'to'the'point'program'with/interes0ng/speakers,'company'visits'and'fun'networking'events'with'like:

minded'peers.'

It'is'very'simple,'if'you'are'a'Danish'startup'and'you'can'afford'this,'DO/

IT!/

The'SCALEit'program'gives'you'insights'on'all'the'"unknown/unknowns",'

which'makes'it'possible'to'grow/your/business/interna0onally!'

Great'week.'StressmAPP'now'accelerates'faster.''

Feedback'Only'posiJve'feedback'from'our'alumni'companies'

Team' Market' Product' Customers' Financials'and'next'step'SituaJon'

100%'Of'the'companies'will'improve'or'opJmize'their'business'because'of'SCALEit'O

verall'saJsfacJon

'

0%'10%'

90%'StaJsJcs…'

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Thank you - Questions?

Lene S Schulze - lsa@innovationcenterdenmark.com

http://icdk.um.dk/

www.facebook.com/innovationcenterdenmark

@ICDK@lsjorslev

www.linkedin.com/in/lenesjorslevschulze

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Wednesday, June 19, 13