Silicon Valley & Emerging Markets Jeff Richards@jrichliveSeptember, 2015

Silicon Valley & Emerging Markets

Intro to GGV Capital and Venture CapitalSilicon Valley PerspectiveThe Importance of MobileInnovation and Tech in CPG/Food/GroceryChinaIndia Q&A

Europe

Japan

Silicon Valley: A Shifting Perspective (5-7 Yrs Ago)

China

“ROW”

Europe

Japan

Silicon Valley: A Shifting Perspective (Today)China

India

SE AsiaAfrica

It’s All About Mobile

Facebook DAU Growth By Region

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 150

50

100

150

200

250

300

0

100

200

300

400

500

600

700

800

900

1000

USA Europe Asia ROW Total Source: Facebook

Your Customer is On the Mobile Internet

+2B new smartphone users in next 5-7 yearsPredominantly in China, India, SE AsiaMost will never use a PC

Source: Creative Strategies

<2% of US CPG Sales

are Online

US VCs Have Gone Nuts for Food

Fueling Growth

The Mobile MomShopping on the FlyMerchandisingDataCross-platform / channel

The Coming Online Grocery Boom?

Grocery & Household Good Delivery Restaurant DeliveryDelivery-Enabled Incumbents New Entrants Marketplace Model Courier Model

Summary: Includes traditional offline grocers and internet giants that have started to offer grocery delivery svcs,

Summary: Online and mobile-only startup services offering grocery, household goods & farm delivery

Summary: Orders delivered by restaurant staff; platform processes

orders & acquires customers

Summary: Platform employs its own couriers to pick up and deliver from

restaurants; user pays a delivery fee

Vertically Integrated D2C DIY Meal KitSummary: Sources ingredients, prepares food and delivers all in-house;

relatively small menu size on any given day but offers low price point, freshness and consistent delivery experience

Summary: Sources, packages and delivers pre-measured ingredients and recipe cards for users to prepare themselves; usually sold as a subscription

model with fixed # of meals a week and regularly changing menu

Corporate Catering Hybrid Retail

Summary: Users pre-order items online or in-app, then schedule physical pick-up at a future time

Summary: Competes with traditional caterers by offering online ordering and diverse options

including restaurants, custom menus and healthy options

Meal SharingSummary: Allows chefs or other individuals to sell

tickets to privately cooked meals outside of restaurants

Food Startup Competitor Landscape

Including the $70B Spirits Industry

Variety / Complexity

Upside in the US M-Commerce Opportunity?

China

2013: The Year the Lines Crossed

China today: 600M+US today: 250M+

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0%

10%

20%

30%

40%

50%

60%

5% 6% 7%11% 12%

15%20%

27%

33%36%

42%

51%55%

Mobile % Share of Alibaba GMV: Q2 2012 to Q2 2015

2012 2013 2014 2015Source: Alibaba Group

Putting China’s Mobile Commerce in Perspective

>1B registered users>500M MAU

KFC – Doing it Right

Emerging TrendsCross-Border Social Content Verticals

India

It’s All About Mobile (v2)

Driving Increased E-Commerce Sales

Challenges and Opportunity

“10 years behind China”– Est 40M shoppers online (vs 500M+ in

China)Infrastructure – very difficult to deliver to significant portions of country

Incredible city density

Very few cars (20M vs 120M+ in China)

Different government influence / control

Heavy investment in O2O

Huge opportunity in grocery?

Thank YouJeff Richards@jrichlive