Download - Takeaways from CES Asia 2017: Day 2 - Deborah Weinswig...Takeaways from CES Asia 2017: Day 2 The Fung Global Retail & Technology team is attending CES Asia 2017. Taking place on June

1

June9,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Takeaways from CES Asia 2017: Day 2

TheFungGlobalRetail&TechnologyteamisattendingCESAsia2017.TakingplaceonJune7–9inShanghai,theshowbringssomeofthemostexcitingglobaltechinnovationstotheAsianmarketplace.

1) DeborahWeinswig,ManagingDirectorofFungGlobalRetail&Technology,tookpartinapaneldiscussiononthefutureoffashiontechinAsia,whereshehighlightedthegrowthandinnovativepotentialofre-commerce.

2) Baiduhasseriousautonomousvehicleambitions:thecompanydiscussedtwoofitsprojects—RoadHackersandApollo—whichareopencollaborationplatformsthataimtodrivetheautonomousdrivingecosystemforward.

3) JD.comdiscussedits12-yearAIstrategy,whilealsoshowcasingthelogisticsofthefuture,whichconsistsofunmanneddeliveryunitsandunmannedwarehouses.ThecompanyalsoannouncedJDAlpha,aone-stopcontentandcommercedestinationthatbringsproductsandservicestothesmart-homeconsumer.

Thisyear’sCESAsiahasattracted450exhibitorsfrom22countries,withmorethan30,000attendeesfrom80countries.Over1,100mediaarecovering19productcategoriesfromaugmentedreality(AR),tovirtualreality(VR),toemergingtechnologies,todronesandInternetofThings(IoT).

2

June9,2017


TakeawaysfromDay2Baidu’sWaveofAutonomousDrivingBaidu,theleadingsearchengineinChina,hasbeenabletopersonalizesearchresultstodifferentuserbehaviors,benefitingfromadvancesintechnologysuchasmachinelearningandfastercomputing.However,asthecompanyhasventuredintotheautonomousdrivingindustry,itisfacingevenmorecomplexchallengesthanthoseinitssearchbusiness.Onesuchchallengeisreal-timeimageprocessing,whichrequiresmoresophisticated,deeplearningprocesses,inadditiontoevenfastercomputationspeeds.

BaidulaunchedaprogramcalledRoadHackers,anopenplatformwhichusesdatafromconsumer-gradecamerasinvehiclestotrainBaidu’sdeeplearningalgorithmsandcreateaself-drivingsolutionatalowercost.

Source:FungGlobalRetail&Technology

AccordingtoBaidu’spresentationatCESAsia2017,itsautonomousdrivingsolutionhasthreeadvantages:

• Bigdata:BaiduhasChina’sfirst3D,high-precisionmappingandpositioningsystem.Thecompanymanagesover1000PBofdata,withdailyprocessingdatavolumeofmorethan100PB.

• Algorithms:Itboaststheworld’slargestDeepNeuralNetworks(DNN)andtheworld’sleadingtraffic-situationrecognitiontechnologywithanaccuracyrateof90.13%.

• Cloudcomputing:Baiduleveragestheworld’smostprecisecomputervisionsystem—DeepImage—whichrunsonthesupercomputerMINWA.ThecomputingvolumeisaslargeastwoTianhe-1.

3

June9,2017


Baidu’sProjectApolloProjectApollowillprovide“anopen,completeandreliablesoftwareplatformforBaidu’spartnersintheautomotiveandautonomousdrivingindustry.”Thecollaborativeplatformhasfourmaincomponents:

• BaiduApollocloudservices

• Apolloopensoftwareplatform

• Referencehardwareplatform

• Referencevehicleplatform

Industrypartnerscanleveragetheplatformtobuildtheirownautonomousdrivingsystem/hardwarethemselves.AglobalannouncementregardingtheprojectwillbereleasedthisJulyinBeijing.

AsianFashionTechnology2017DeborahWeinswig,ManagingDirectorofFungGlobalRetail&Technology,tookpartinapaneldiscussiononthefutureoffashiontechinAsia.ThepanelincludedIchiroAmimori,FounderofXenoma;HeikalGani,Co-FounderofIndochino;andVincentDjen,Co-FounderofFashionEx.


Weinswigtouchedonthegrowingtrendofre-commerce—wherebyconsumerstradeapparelwitheachotheronlineratherthanpurchasingnewitems.Aninnovativemodelwithintheindustry,re-commerceisgrowingmuchfasterthantraditionalretail.

4

June9,2017


Amimoriintroducedhiscompany’ssportswearproducte-skin,whichisanext-genshirtenablingmotionandgesturetrackingexperienceapplicabletoarangeofusecases,fromVRgamestopersonalizedfitnessandhealthcare.Theshirtismadefrom80%polyesterand20%spandex,andiscompletelywashable.Theshirtfeaturesacentralizedcontroller,thee-skinHub,whichtransmitsinformationtoasmartphone,tablet,orlaptopviaBluetooth.Thee-skinHubisdetachableanditsbatterylifeisaroundfourhours.

SeenatCESAsia:Haomaiyi’sVirtualfittingroomAChinesestartupcalledHaomaiyi(好买衣)hasdevelopedandlaunchedavirtualfittingroomapplicationinChina.Thecompanywasfoundedin2013andhasalreadygrowntobecomealargeplatformthatsupportsmanyglobalapparelbrands,includingC&A,Pull&Bear,Bershka,MassimoDutti,PaulFrankandsomelocalbrandsincludingLily,PeacebirdandHStyle.HaomaiyialsoworkswithTmallasanonlinevirtualfittingroom,andofflineaswellbydevelopingavirtualfittingmirror,whichsupportsanonlinein-storeuserexperience.

Thisvirtualfittingroomapplicationallowscustomerstoscantheirfaceandmanuallyinputtheirphysicaldatalikeheightandweight.Thesystemwillmakepersonalconfigurationsandrecommendations(suchasstyle,size,etc.)basedonthedata,andthedatawillbestoredandreusedthenexttimethecustomershopsusingtheapplication.Theultimategoaloftheplatformistominimizethereturnsrateforproductsthatdonotfitproperly.




5

June9,2017


JD’s12-YearAIStrategyJDannouncedits12-yearAIstrategywiththeslogan“SmartJD,SmartLife”atCESAsia.JDwilltransformitselffromane-commerceplatformtoaninternettechnologyenterprise.Thecompanyplanstofocusonthreecoreelements:userexperience,costandoverallefficiency.

JD’sstrategyfeaturesfivecoreelementsthataimtopositionthecompanyasChina’slargestinfrastructuresolutionsproviderintheretailindustry:

• Languageandimageprocessing:ThisincludesJD’ssmartCSandits“DingDong”serieshomeassistant

• Smartlogistics:Unmanneddeliveryvehicles,dronesandunmannedwarehouses

• Smartsupplychainandmarketing:Viapreciseforecastingandpricingmodels

• Financialtechnology:Riskmanagementandfinancialproducts

• Cloudcomputing

Thecompanycommentedon“trafficcustomization,”anewconceptproposedbyJD,whichunderliestheuserexperiencewhenitcomestointeractivewithdigitalservices.Asincreasinglymoretrafficisflowingtosmartphones,peoplerequiremoreaccurateresultswithlessper-pagecontent.Customizingthesearchresultswillultimatelyincreaseconversionrates,andwill,atthesametime,drivemoreaccuratetraffictoonlinesellers.JD’sbigdataanalyticsissupposedtoallowsellersanddistributorstotakeadvantageofamorerefinedconsumergroupinteractingwiththeirproductsonlinebyofferingspecialdiscountsandpromotions.

Intermsoflogistics,JDindeployingmultiplesophisticatedtools,including:

• Drones:DroneswillmostlybenefitlogisticalcapabilitiesintheruralareasofChina,wheregoodscannotbeeasilydeliveredviathenormaltransportationsystem.AsJDemploysmoreandmoredeliverymeninruralareas,droneswillbetheconnectingtoolbetweenthegoodsandthedeliverymen,ultimatelyincreasingthepenetrationintothismarket.


6

June9,2017


• Unmanneddeliveryvehicles:OnceJDreachesthelimitofhumanresourceutilization—i.e.,reachingtheoptimalnumberofdeliverieseachemployeecanhandleonadailybasis—unmannedvehicleswillhelptofurtherboostdeliveryefficiency.JDhasalreadymadeinroadsinthisarea.Duringthisyear’s“June18ShoppingFestival,”itusedunmannedvehiclestodelivergoodsinsomecitiesinChina.

• Unmannedwarehouses:Inordertobetterusethescarcelandresources,andincreasewarehouseefficiencyanddecreasepackagingcosts,unmannedwarehousesaresettooptimizestoragevolumebyincreasingittenfoldandimprovingdistributionefficiencyby5‒6times.However,oneconcernistheelectricitycostthatwouldbeneededtopowerthesefacilities.JDhasalreadystartedtomoveinthisdirection;itrecentlybuiltadronecommandanddispatchcenterinSuqian,anditisplanningitsfirstunmannedwarehouseinWuhan.

JDAlphaAccordingtotheJDresearchcenter,JD’shardwaresalesinthepastsevenyearshasreachedacompoundedannualgrowthrate(CAGR)of155%,andbyendof2017,theIoTequipmentvolumeisestimatedtoreach8.4billionglobally,growthof31%yearoveryearcomparedwith2016.ThemarketsizeofIoTisforecasttoreach$11trillionby2025.JDisusingthisopportunitytodeployitssmartbusinessintomultipleproductsincludingPCs,smartphones,fridges,speakers,AR/VRequipment,etc.,andisinvestingmoreintoChina’ssmart-homeconsumerindustry.

Inordertoenhancethisstrategy,JDannounceditsintelligentserviceplatformJDAlpha,essentiallylaunchinganewbusinessmodelforthegroup.

JDalphaintegratesmultipleservicesandcontent—includingnews,shopping,movies,music,O2Oservice,foodordering,searchingengine,weather,FMradio,translationandotherthird-partyskills—withJD’sownbusinesses,includingJDSupermarket,JDFresh,JDDaojiaandJDPay,andalsoits

ownlogistics,tobuildanentireecosystemcombininggoodsdeliverytothesmarthome.Third-partybrandsarewelcometojointhisplatformtooffergoodstocustomerswhoareusingtheJDecosystem.

ThiscompletesourcoverageofCESAsia2017,ashowthatkeepsgrowinginsizeandclout.Wesawsomeinnovativeandinspiringnewtechnologiesatthisyear’sconference,whilealsohearingfromindustryexpertsandwitnessingthelaunchesofnewproductsandservicestargetingtheAsianconsumer.Untilnextyear!


7

June9,2017


DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comSimonSuiMarketingOfficer

HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017FungGlobalRetailTech.com