7 Deadly Sins of the Internet in Brazil
31
7 DEADLY SINS OF THE INTERNET IN BRAZIL YAN DI President of CEO of Baidu Brasil
Transcript of 7 Deadly Sins of the Internet in Brazil
7 DEADLY SINS OF THE INTERNET IN BRAZIL
YAN DIPresident of CEO of Baidu Brasil
THE APP BOOM IS OVER.
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
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
YOU DO NOT KNOW THE COST TO DISTRIBUTENo one can survive by organic growth and
it costs USD 0.5-1.2 to distribute.
70% OF THE APPS CAN NOT SURVIVE EVEN THE FIRST DAY
Even you can afford USD 0.5-1.2 to distribute,
WHERE IS THE WAYOUT
WHAT IS YOUR BARRIER
THINKLOCAL
CONTENT
THINK LOCAL SERVICE
THINKLOCALMISTAKES
1ST SIN IGNORE
OFFLINE
WORLD’S ECONOMY TODAY IS STILL DOMINANTLY OFFLINE.
Online contributes only 2.4% to Brazil’s GDP.
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:
2ND SIN IGNORE HALFOF THE INTERNET
HALF OF THE INTERNET IS IN CHINA.
Among Top10 internet companies by market cap: 6 US-based4 China-based & none European.
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
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
26 unicorns in China’s O2O market, only.
CHINA IS LEADING INNOVATION IN A DIFFERENT WAY.
3RD SIN FAIL TOGO THEEXTRA MILE
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
4TH & 5TH SINFAKEDEMAND &NOEFFICIENCY
/INCOMEBONUS
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.
6TH SINNO PRICING DIFFENTIAL
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.
7TH SINNO CROSS-SECTORAL
CO-OP
THE FUTURE IS CROSS-SECTORAL CO-OPEach Brazilian O2O sector is about 1% of that in China
AND ACT LIKE ONE
THANK YOU
