Shopify Case Competition Deck

Make commerce better for everyone.

SERENE CHEN KATIE CHENROSIE FAN

Canada: 6.9%

USA: 72.9%

United Kingdom: 6.7%

Australia: 4.7% Rest of the world: 8.8%

91% of Shopify merchants are concentrated in4 English-speaking countries

OPPORTUNITY: BRAZIL

Technological - 66% internet penetration - Increase to 74% by 2021

Political

- High import tax rate of 60% - Increasing pressure to simplify the procedures to start a business

Economic

Social - 1 in 6 adults is an entrepreneur - Most popular e-commerce good is fashion/accessories

Explosive e-commerce growth and macro trends makes Brazil a hotbed of aspiring entrepreneurs

- $26B e-comm market by 2018- Largest Latin American market- Double digit growth rates

SUPPORTING PAYMENTIntroducing a native payment

system to streamline the Brazilian shopping experience

Our two-pronged solution improves the Shopify experience for Brazilians and cultivates an entrepreneurship ecosystem

SUPPORTING DEVELOPMENTDeveloping Portuguese digital

materials to foster entrepreneurship learning

supporting paymentDemonstrate commitment to e-commerce in Brazil by making payment intuitive and easy

Collecting the CFP number is also a mandatory step in the payment process for Brazil

Brazilian vendors have been asking for a native payment system for years

Charges on both ends makes it extra costly for Brazilian vendors when PagSeguro is known to be expensive

PAYMENTMETHODS

The major payment gateways supported in Brazil do not reflect the reality of payment popularity in Brazil.

PAYMENTMETHODS

3%

The major payment gateways supported in Brazil do not reflect the reality of payment popularity in Brazil.

PAYMENTMETHODS

Boleta Bancario is a clear leader in payment methods in Brazil, second only to Credit Cards.

Pagseguro Integration

2014

NATIVEPAYMENT

PAYMENTMETHODS

The Pagseguro integration is only a temporary solution that still leaves Brazilian vendors needing more.

Pagseguro Integration

➔ Redirects customers to an external site

➔ Complicated and unsatisfactory customer service from Pagseguro in solving and identifying issues

BRAZILIAN VENDORS ARE STILL UNSATISFIED WITH THIS SOLUTION

➔ Lack of features common to Brazilian commerce

NOW, IT’S 2017It’s time to give Brazilian vendors what they are asking for

Capture CFP Numbers, necessary

by law

Duplicate documentation

Overlaying charges from both platforms

that are costly

NATIVE INTEGRATION

NOW, IT’S 2017It’s time to give Brazilian vendors what they are asking for

Much more cost effective than

PagSeguro for vendors

Enjoys the same brand recognition and trust

to end consumers

Has the same goal of breaking into the Brazil

market

Already offers numerous features that Brazilian customers are used to

supporting developmentEntrepreneurial education is underserviced and a barrier to entrepreneurship in Brazil

Education has grown to the 10th largest economy sector in Brazil, at $75B annually

Brazilians increasingly use online resources to help build businesses

Less than 10% of Brazilian adults aged 18-64 have had any entrepreneurship training

THE ENTREPRENEURIAL JOURNEYHow can we support Brazilian entrepreneur development?

Product Ideation + Launch

The Restless Go-Getters

The Casual Conversationalists

The Education Seekers

Lift-Off + Stability

Enciclopédia Empresarial Aprenda tudo sobre como administrar uma empresa

COMO VENDER PREÇOS BLOG RECURSOS

ex. lucro bruto, empreendedorismo, etc. Pesquisa

PESQUISA POR LETRA

Ajuda EntrarLingua: Português Iniciar

The Education Seekers

➔ Don’t have the luxury of, or academic reach for, traditional universities

➔ Not selective enough for other resourceful, application-based organizations like Endeavor

Enciclopédia Empresarial Aprenda tudo sobre como administrar uma empresa

COMO VENDER PREÇOS BLOG RECURSOS

ex. lucro bruto, empreendedorismo, etc. Pesquisa

PESQUISA POR LETRA

Ajuda EntrarLingua: Português Iniciar

The Education Seekers

➔ Don’t have the luxury of, or academic reach for, traditional universities

➔ Not selective enough for other resourceful, application-based organizations like Endeavor

ADDRESS: Language translation of E-Commerce University through existing application programs

Bring functionality like Weglot to the back-end client side

The Start-Up Checklist: Brazil

Registering Your Business

Regulatory

Filing for Your Website

Regulatory

Filter: Brazil

Understand Tax and Labour Laws

Legal

10 Relevant App Add-Ons

Shopify Tips

Case Study StoriesAdditional

The Restless Go-Getters

➔ Ready to turn their product ideation into a launch

➔ Difficulty navigating bureaucratic, legal, and financial obstacles in launching their business

The Start-Up Checklist: Brazil

Registering Your Business

Regulatory

Filing for Your Website

Regulatory

Filter: Brazil

Understand Tax and Labour Laws

Legal

10 Relevant App Add-Ons

Shopify Tips

Case Study StoriesAdditional

The Restless Go-Getters

➔ Ready to turn their product ideation into a launch

➔ Difficulty navigating bureaucratic, legal, and financial obstacles in launching their business

ADDRESS: A Start-Up Checklist for business launches, tailored to Brazil and other regional markets

Allow them to navigate the regulatory and unique environment of Brazil adequately

EntrarCOMO VENDER AjudaLingua: Português IniciarPREÇOS BLOG RECURSOS

ENGLISH: Learn how to successfully set up pop-up shops as as distribution channel, featuring the success story of Mia, a Brazilian entrepreneur based in Rio

Capitalizando Em Lojas Temporárias: Rio de Janeiro

Lição 1: Porque você precisa de uma loja temporárias

The Casual Conversationalists

➔ Growing entrepreneurs not quite fitting in with Brazil’s structured society

➔ Looks to other countries, like the U.S. for sources of inspiration and business strategies

EntrarCOMO VENDER AjudaLingua: Português IniciarPREÇOS BLOG RECURSOS

ENGLISH: Learn how to successfully set up pop-up shops as as distribution channel, featuring the success story of Mia, a Brazilian entrepreneur based in Rio

Capitalizando Em Lojas Temporárias: Rio de Janeiro

Lição 1: Porque você precisa de uma loja temporárias

The Casual Conversationalists

➔ Budding entrepreneurs not quite fitting in with Brazil’s structured society

➔ Looks to other countries, like the U.S. for sources of inspiration and business strategies

ADDRESS: Expand the content series to more visibly include case studies and content on international

entrepreneur culture, including Brazil

Create an international dialogue and connectivity

FINANCIALS The key action items of crafting, testing, and launching the implementation ideas will happen within the next 4 months

Cost of Entrepreneurial Development Support

Cost of Integrating Payment Systems

$1.03M

$150k

Expected ROIBreakeven Point

2.9KSubscriptions

HIGHLY FEASIBLEThe current size of the Brazilian retail e-commerce space is $23.79 Billion, a number which is only projected to grow

27%Increase in Sales

in Brazil

TIMELINE The key action items of crafting, testing, and launching the implementation ideas will happen within the next 4 months

Long-Term Expansion and Growth: Successful implementation and penetration of the Brazilian market will provide us resources and insight into

expanding these recommendations to other BRIC countries

Supporting payments

Supporting development

“Make commerce better for everyone.”

We welcome your questions.

Appendix

Risks and Mitigations Competitive Landscape

Localization: Amazon

Localization: Wix

Customer Case Studies

Financial Feasibility: New Resources

Financial Feasibility: Payment Systems

APPENDIX A Risk & Mitigations

Risk: Restrictive regulations on start-ups in a still-developing e-commerce environment, and entrepreneurial education competitors

Service those disregarded by selective universities by becoming the forefront online resource for casual yet

connected and informative learning

Miti

gatio

ns

Outcomes

Ability to implement and sustain our recommendations, and generalize our findings to

other BRIC countries in the future

Aside from PagSeguro, there are a number of other suitable payment platforms to partner with and that

Shopify should explore

Geographic expansion is a major operational risk that Shopify has identified in its annual report, and Brazil would be a good market to test expansion strategies

Competitive Landscape in BrazilAPPENDIX B

Localization strategy case studies: APPENDIX C

Localization strategy case studies: APPENDIX C

APPENDIX D Brazil specific features that customers expect to see

APPENDIX E Financial Feasibility of Entrepreneurial Dev Support

HIGHLY FEASIBLEThe current size of the Brazilian retail e-commerce space is $23.79 Billion, a number which

is only projected to grow

https://www.quora.com/How-much-does-it-cost-to-build-a-payment-gatewayhttp://blog.polipay.co.nz/poli/how-much-do-online-payment-systems-cost

APPENDIX F Financial Feasibility of Integrating Payment Systems

HIGHLY FEASIBLEThe current size of the Brazilian retail e-commerce space is $23.79 Billion, a number which

is only projected to grow

https://www.glassdoor.ca/Salary/Shopify-Salaries-E675933.htmhttps://hingemarketing.com/blog/story/what-is-the-cost-of-video-production-for-the-web