global web the emerging https://www.flickr.com/photos/curious_e/10642468063
The Emerging Global Web
Sep 08, 2014
The web was first conceived 25 years ago, by an Englishman. Fifteen years later, as the first crop of dot.coms were going bust, close to 60% of its users (and all Alexa "top 20" sites) came from developed nations. Fast forward to today, and the picture is strikingly different. Almost half the Alexa "top 20" now comes from emerging economies. Economies where close to 3 billion people have yet to use the web, but thanks to mobile--won't have to wait much longer to discover it. This presentation will introduce you to fascinating and innovative services that are re-shaping the web to serve the consumers of tomorrow. Driven by mobile, the power of personal relationships, and the breakneck pace of globalisation, these services provide a glimpse into the business models, opportunities and challenges we will face, when growing a truly global web.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
global web the emerging
httpswwwflickrcomphotoscurious_e10642468063
httpwwwflickrcomphotospsd3149878971
the web was first conceived
25 years ago
by an Englishman
Source CERN
the initial concept was revised with the help of a Belgian computer scientist
Source Wikipedia Robert Cailliau
built in France ()and the first web site finally
Courtesy Google MapsSource Exact location where the web was invented
and hosted on a computer
designed in California
Source Wikipedia
(note the critically important ldquodo NOT power downrdquo sticker)
but within the walls of a Swiss
research institute
httpswwwflickrcomphotoscalistan4034215937
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpwwwflickrcomphotospsd3149878971
the web was first conceived
25 years ago
by an Englishman
Source CERN
the initial concept was revised with the help of a Belgian computer scientist
Source Wikipedia Robert Cailliau
built in France ()and the first web site finally
Courtesy Google MapsSource Exact location where the web was invented
and hosted on a computer
designed in California
Source Wikipedia
(note the critically important ldquodo NOT power downrdquo sticker)
but within the walls of a Swiss
research institute
httpswwwflickrcomphotoscalistan4034215937
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
by an Englishman
Source CERN
the initial concept was revised with the help of a Belgian computer scientist
Source Wikipedia Robert Cailliau
built in France ()and the first web site finally
Courtesy Google MapsSource Exact location where the web was invented
and hosted on a computer
designed in California
Source Wikipedia
(note the critically important ldquodo NOT power downrdquo sticker)
but within the walls of a Swiss
research institute
httpswwwflickrcomphotoscalistan4034215937
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
the initial concept was revised with the help of a Belgian computer scientist
Source Wikipedia Robert Cailliau
built in France ()and the first web site finally
Courtesy Google MapsSource Exact location where the web was invented
and hosted on a computer
designed in California
Source Wikipedia
(note the critically important ldquodo NOT power downrdquo sticker)
but within the walls of a Swiss
research institute
httpswwwflickrcomphotoscalistan4034215937
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
built in France ()and the first web site finally
Courtesy Google MapsSource Exact location where the web was invented
and hosted on a computer
designed in California
Source Wikipedia
(note the critically important ldquodo NOT power downrdquo sticker)
but within the walls of a Swiss
research institute
httpswwwflickrcomphotoscalistan4034215937
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
and hosted on a computer
designed in California
Source Wikipedia
(note the critically important ldquodo NOT power downrdquo sticker)
but within the walls of a Swiss
research institute
httpswwwflickrcomphotoscalistan4034215937
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
but within the walls of a Swiss
research institute
httpswwwflickrcomphotoscalistan4034215937
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
fifteen years on
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
as the first crop
of dotcoms went bust
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
30North America
29Europe
19JapanKorea
2Australia
13rest of Asia
5LATM
1Middle East
1Africa
most of the internetrsquos users came from developed economies
Source Internet world stats - Internet users by region 2000 per the IMF definition of ldquodevelopedrdquo in 2000)
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
1 USA
2 USA
3 USA
4 S Korea
5 S Korea
6 S Korea
7 USA
8 Japan
9 USA
10 USA
as did all the traffic on the Alexa ldquotop 10rdquo
Source Alexacom Sept 2000 via Wayback Machine
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
today the situation is quite different
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Internet penetration nears saturation in developed economies
Internet Population and Penetration
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
5 Baidu (China)
7 QQ (China)
11 Taobao (China)
13 googlecoin
14 Sina (China)
10 hao123 (China)
17 Weibo (China)
20 Yandex (Russia)
and traffic from fast growing emerging economies such as China India and Russia now makes up almost half of the Alexa ldquotop 20rdquo
Source Alexacom April 2014
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Source Age of Man - interactive map National Geographic
close to 3 billion of us
have yet to use the internet
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Xiaomi Hongmi
yet thanks to devices such as this
wonrsquot have to wait much longer
to discover it
(within a year similar devices will cost half this much)
Android platform
pound83 ($130)built amp designed in China
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
but the internet the next billion will discover isnrsquot quite like ldquooursrdquoand thatrsquos what wersquore going to discuss today
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
begin this story by talking
httpswwwflickrcomphotosgoingslo9328307647
which is why wersquoll
about sheep
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
on Instagram
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquohellipif you have an Instagram account you can slap a tagon anything take a picture of it and sell itrdquo ndash Fatima Al Qadiri Mousse magazine
httpswwwflickrcomphotosbombardier5456285991
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
you knowmdashhacked productsrdquo
She sells dried fruit A friendrsquos cousin is selling
weird potted plantspeople are creating
ndash Fatima Al Qadiri Mousse magazine
ldquoeven my grandmother has an Instagram business
httpswwwflickrcomphotosqilin3923289556
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Instagram businesses are
particularly popular in Kuwait
httpswwwflickrcomphotosjackversloot5023997659
(for some unknown reason)
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
more than 10000 similar businesses
are powered by Facebook
but over in Thailand
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
businesses such as these provide a glimpse
informal economyof a new digital and mobile-fuelled
the last few 1000 years of ldquoinformal economyrdquo has looked something like this
httpwwwflickrcomphotosdgmckelvey7053122601
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
theyrsquore still relatively ad-hoc
no shopping cart or online form just contact her using your mobile and a popular
social messaging app
are a bit differenton the one hand
these new kinds of ldquoinformalrdquo business
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
and poses a new level ofsophistication
orders shipped daily by courier with
tracking number
yet they are modern global
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
follow on Instagram
contact on mobile and WhatsApp
the goat man has fans
gotta love the q8animals hashtag
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpwwwflickrcomphotos57634952N003031070035
These services donrsquot offer ldquoa great experiencerdquo but are rdquogood enoughrdquo and offer a good balance of reach effort functionality and adaptability to local circumstances They also fill an important gap
83 of Thai internet users use Facebook
Facebook even works on his
crappy old phone
she can manage the ldquositerdquo and respond to inquiries on mobile
while sitting here all day
the motorcycle taxi around the corner can make quick
deliveries if needed
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquomost of these pages see their largest growth
out in the countryside where the populationis largely underserved by other e-tailers
as well as brick-and-mortar shopsrdquondash Thailandrsquos powerful wave of Facebook commerce
httpwwwflickrcomphotoswakxy5233200705
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
but reaching the underserved doesnrsquot merely apply to large rural populations
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
China has 14 cities with populations
over five million
httpswwwflickrcomphotosdecar666341327886
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
a whopping 41 cities with
more than 2 million inhabitants
httpwwwflickrcomphotostahini10468208216
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
and a middle class growing at a rate of
80000 people a day
httpwwwflickrcomphotostahini10468208216 Source China Connect
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
rural residents can be hard
httpwwwflickrcomphotoslukewebber4588854679
reaching Chinarsquos 600 million
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
its close to 700 million urban residentsbut opening enough stores to service
can be outrageously expensive
httpwwwflickrcomphotostuchodi5620884999
(or downright implausible)
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpwwwflickrcomphotosmilo_riano4336541309
so to many Chinese shopping online
isnrsquot so much an electronic version of commerce
it is commerce pure and simple
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotoscurious_e10473440064
and using their mobile to do so isnrsquot just
a modern alternative to using a PC itrsquos their primary
(or sometimes only) means of using the internet
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Chinese e-commerce is also different in one very important way
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
76of online retail
involves individual merchants
of online retail is sold through online marketplaces
90
Source The Economist
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Chinarsquos giant virtual marketplaces enable
buyers and sellers to find themselves
a modern virtual version of this
httpwwwflickrcomphotosmckaysavage135932500
like public markets and town centres
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
The largest marketplace is Alibabarsquos Tmall With more than 180 million customers Tmall contains products from more than 150000 merchants and 200000 well known brands
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Tmall charges an entry fee and a commission for each sale but in return provides a high visibility high traffic customizable social-media and mobile optimized e-commerce platform
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
For major brands such as Apple hosting a virtual storefronts on TMall is a good alternative to opening hundreds (or possibly thousands) of brick and mortar stores across the country
appletmallcom
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Alibaba also offers a C2C site called Taobao which enables consumers (and smaller merchants) to sell products online Taobao is a bit like EBay but vendors arenrsquot limited to selling things
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
They can also sell services This Taobao-based travel agent doesnrsquot just sell you a trip they can also arrange a travel visa sell you a Thai 3G SIM card a wi-fi dongle a subway pass or local transportation
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
C2C and B2C commerce on Taobao
T-Mall merchants pay a commission and an
entry fee
wersquoll discuss this bit laterTaoBao merchants donrsquot pay to sell
stuff they buy advertising and other services to help them stand out
andldquoA mix of
with a dash of rdquo
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
This family of sites enables consumers to shop for a huge range of products that might otherwise never be available in their region (And yesTmall can sell you a new Peugeotor a Lamborghini)
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquosuch is Taobaorsquos success these days that
running a ldquoTaobao shoprdquo is a national pastimesort of like a second job or hobby for tens of thousands
of Chinese office workers housewives and studentsrdquo- Owning a Taobao shop is a new national hobby
httpwwwflickrcomphotosmckaysavage135932500
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
For many people however itrsquos far more than a hobby These sites have enabled millions of new jobsmdashespecially in smaller towns or rural areas where residents can now sell their locally made products or produce to an audience of billions
httpwwwflickrcomphotostuchodi5642172895
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotostuchodi5628755801
1 millionby the end of
2012 more than
T-Mall and Taobaostores were registered
in rural areas
Source CNN
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotosahenobarbus7979295403
one halfT-Mall amp Taobao also
accounted for more than
of all parcel deliveriesin China
Source CNN
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
the Chinese marketplace model has already slipped beyond its borders
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquomost of the people have phones but
there are only 3 malls per 20 million inhabitantsItrsquos a unique timethe right time to leapfrog over lsquoofflinersquordquo- jumiacom co-founder
THE BIGGEST ONLINE SHOPPING MALL IN AFRICAEgypt | Kenya | Uganda| Ivory Coast| Nigeria | Morocco
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Access to marketplaces is creating opportunities for Westernmicro-businesses that can now source materials directly from factories around the world
Julie sources cake decorating supplies direct from China using
Alibaba and sells them to customers around the world using Etsy
Hi My name is Julie I live in the Bay Area and I am the owner of Cakes And Kids I am wife mother and entrepreneur and I am forever grateful that I get to do what I love every day
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Small and mid-size companies in emerging economies are also taking advantage of western platforms to reach western customers with unique and often personalized products
family business
5 people
1 designer 2 tailors
clothes advertised on Etsy and made
to order
delivery in 1-2 wks
Kelans Art Couture Foshan China
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Chinese entrepreneurs in Western markets or ldquoonline shopping agentsrdquo in China are also acting as middlemen shipping hard to find (or highly taxed) Western goods to Asia then re-selling them on sites such as Taobao
ldquo even if [Western] retailers or consumer product
companies havenrsquot stepped foot in mainland Chinatheir products are already here Unofficiallyrdquo- Think your brand is not for sale in China yet
httpswwwflickrcomphotosjohnas7652202244
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
This is creating a new and fast-growing group of highly globalized digital-first consumers Consumers who live in one region but actively shop or seek out products from another
httpswwwflickrcomphotosding_zhou11902149336
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotosdecar665150814952
but with millions of vendors in
consumers find products they truly want
these giant marketplaces how can
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquoMeet Jing
Jing is an affluent young Chinese girl who started blogging about her life and style while studying abroad in the UK
She is now your competitionrdquo
httpjingxujingblog163com
Source 青年志 | Open Youthology
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquoShersquos a marketer
Her Weibo micro-blog now has over 28000 followers She blogs about her life her style and tips for beauty and fashionrdquoSource 青年志 | Open Youthology
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquoShersquos a retailer
Her Taobao shop offers copies of luxury products she wears on her blog All her products are limited edition and priced low
It usually takes her a couple of hours tosell outrdquoSource 青年志 | Open Youthology
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Jing promotes products
but uses Taobao to transact
on her blog and social media
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
The millions of people without Jingrsquos time or commitment can instead sign up for an account at an ldquoonline shopping neighbourhoodrdquo
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquoOnline shopping neighbourhoods are
online destinations created by social media
where consumers can explore a curated
selection of choicesrdquo青年志 | Open Youthology
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
one of the largest sites is Meilishuo
with over 32 million users
(which means ldquobeauty talkrdquo)
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Sourrce Technode and Pando Daily
5-6 millionMeilishuo generates
clicks for online merchants per day
pound300 million
and in 2012 generated an estimated
($500M) in revenue for downstream
merchants
Similar to an online travel agent Meilishuo gets a cut for each outbound transaction it generates
httpwwwflickrcomphotosducdigital2892313560
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
If you think this sounds kind of boring because itrsquos all about girls discussing shoes
imagine translating this model to geeks talking about gadgets or fans talking about books
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Part of the reason these services work is that they feed into the virtuous circle of mobile and social media adoption
Source The internet economy in the G20 (PDF)
Developing markets are going ldquostraight to socialrdquoUsers adopt social networking quickly as they come online
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
China loves
social media
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
but the most popular social media services in China arenrsquot just ldquositesrdquomdashtheyrsquore platforms
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
one of the most popular(lately) is WeChat
three years old
500 million users
or Wēixigraven - 微信 - in China
mobile-only
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquoLiterally every single person I know
everyone Irsquove met in China is on WeChat
I donrsquot use email I donrsquot use the phone I donrsquot use
SMS to communicate with anyone ndash only WeChatrdquoHugo Barra VP Xiaomi Global (ex VP Android Product at Google)
Photo httpwwwoezrattynet watch the video interview from LeWeb 2013 on YouTube
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
(recorded) voice chat
RSS-style subscription content
mobile contact exchange
highly customizable API
payment platform
text chat
group text or video chat
photo blogging
mobile-only and far more than just a messaging app
virtual wallet
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
WeChatrsquos API is extensive enabling brands to create ldquomini-sitesrdquo containing news IVR style support or full-blown transactions through with WeChatrsquos virtual wallet and payment platforms
WeChat subscription channels API integration enables customizations such as sub-sections
download our app
find nearby stores
and product or service inquiries using an automated short messaging service
herersquos the stuff you can ask regarding coffee
ldquocappuccinordquo
tell me about ldquocoffeerdquo
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
(if yoursquore looking for fragments of a ldquoone webrdquo philosophy yoursquore sadly not going to find it here)
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
5 millionthis Chinese New Year
more than
people used WeChat to purchase 20 million virtual ldquoHongbaordquo (red envelopes
containing money)in one 24 hour period
Thanks to clever campaigns WeChat wallet usage is rising fast
Source TechInAsia
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpwwwflickrcomphotosducdigital2892313560
virtual wallets mobile payment and alternative finance models are quite popular in emerging economies as they
help address a whole host of local challenges
14 of adults
across sub-Saharan Africa as a whole only
have accounts at formal financial institutions
less than
of Indonesians have a credit card
15
Source Wall Street Journal
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpwwwflickrcomphotoskiwanja3169409467
In countries such as Kenya India and the Philippines entirely virtual banks such as MPESA enable customers to send and receive money or pay for goods and services on or offline using even the most basic mobile phone
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Indonesia consumers can also choose to pay for
httpswwwflickrcomphotoskamshots468265643
in countries such as China Nigeria and
online purchases using cash on delivery
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
with so much commerce
taking place on giant marketplaces
there is also a natural fear of counterfeits
httpswwwflickrcomphotosornellas3308925864sizesl
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
To increase trust Alibaba created Alipay an online payment platform (like PayPal) that also doubles as an escrow service and only releases payment once goods have been received and accepted by shoppers
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
With more than 800 million registered users Alipay is now so common that it can be used to pay for almost anythingmdashincluding school fees and loans utility and mobile phone bills and even hospital charges
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
T-Money - Korealaunched in 2004
Octopus - Hong Konglaunched in 1997()
Some of these ldquopay for everythingrdquo platforms are now decades old starting with one ldquomobilerdquo technology then migrating to progressively more modern (or relevant) ones as they come along
contactless card
wristbands
keychains
NFCQR enabled apps
(PC) dongles
SIM integration
contactless card
keychains
NFCQR enabled apps
(PC) dongles
AliPay integration
SIM integration
20 million cards in circulation(for 7 million people)
71 million cards in circulation(for 50 million people)
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
and when yoursquove run out of real things to pay for virtuallywhy not invent a few virtual things to pay for
Combining (social) platforms with a virtual currency has also enabled entirely new forms of commerce
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Meet yycommdasha giant ldquoGoogle Hangoutsrdquo style platform with over 300 million users and 11 million channels and programs ranging from karaoke to ldquotalk radiordquo and educational topics
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Unlike YouTube or SkypemdashYY has itrsquos own virtual currency
Users purchase credits from the site and use these to show affection for their favourite stars by buying them virtual gifts such as roses and lollipops
Gifts range in cost from mere pennies to as much as $50 (pound35)
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquotop Karaoke singers regularly make $20K (pound15K) a monthoff of virtual gifts with one college student reportedly
earning an astonishing $188K (pound150K) per month
using the site to give Photoshop lessonsrdquo- The largest social network yoursquove never heard of
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
meanwhile in Korea 1000s tune in to AfreecaTV
a similar service where Choi Ji-hwan earns
about 2 million S Korean won ($1880) each month
eating mountains of noodles and kimchi live each nightSource Iamkorean
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
In most cases mobile devices are the glue that tie these platforms services and communities together
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
WeChat has for examplebuilt much of its functionality
around the QR code
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
WeChat automatically generates a QR code for each accountTo follow a person or brand simply scan the code (on a device business card poster web site etc)
(WeChat even provide templates enabling personalization of the code to suit your personality or your brand)
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
This reliance on QR codes works because in China (and many other parts of Asia) almost every app (including locally built web browsers) has a built in QR code reader
Qunar (travel brand) Baidu web browserTaobao
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Some Chinese-made Android smartphones even have QR and WeChat recognition built right into into the camera
(In Japan where QR codes were invented manufacturers added this capability close to 10 years ago)
the Xiaomi Mi3 camera
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
using QR codes to interactand transact with brands has therefore
become common (one might say mundane)
These college students sell fruit on campusin person but also through WeChat
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
WeChat AliBaba and other platforms are also working with department stores and other ldquoofflinerdquo goods merchants to extend their reachmdashenabling customers to purchase goods in store by scanning QR codes on products
kind of like this John Lewis and Barclay Card concept except that 300 million people have a WeChat account and 800 million have an Alipay account
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
these brands and consumers arenrsquot merely ldquoleapfroggingrdquo desktop or finance or physical retail
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
in mobile transactions in 2013
25 billionin mobile
transactions in 2013
150 billion
(Alipay)
they inhabit a giant rapid-prototype of our future
Source Business Insider
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
a future inhabited by people
httpswwwflickrcomphotospaulk4693602730
for whom the words ldquoofflinerdquo ldquoonlinerdquo
and ldquomobilerdquo have become irrelevant
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
with little baggage to weigh them down
they can ignore whatrsquos ldquonormalrdquo and
turn constraints into opportunities
httpswwwflickrcomphotosyto3640718959
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
the cool thing about prototypesis that theyrsquore allowed to be a little crazy
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Russian e-commerce brand Lamoda has turned poor postal infrastructure into an excuse to try something that seems completely un-scaleable
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquoLamoda sends sales assistants directly to shoppersrsquo
homesuniformed delivery men bring the clothes
wait for [customers] to try them on offers fashion advice
take returns and process payments on the spotrdquo- Russia Where the Deliveryman Gives Fashion Advice
httpswwwflickrcomphotos41738141N066814977720
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotosmarketingfacts6323249188
in Korea grocery stores are embedded
on Subway platforms where users scan QR codes to
buy items that are delivered just-in-time for dinner
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotosivanwalsh4317318193l
in China online grocery chain Yihaodian
cleverly positioning them in high traffic
locations such as the Forbidden City
launched 1000 virtual reality branches in one day
- Watch the campaign video
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
ldquoWhy build expensive roads to remote rural locations
when drones can do the job just as well- Forget Amazon Drone delivery will take off in Africa
httpswwwflickrcomphotosgabrielgm9520473233
meanwhile in Africa
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
(combine drones with Lamodarsquos up-selling at your doorstep and things could get interesting)
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotosjohnas8235466005
and the internet have already
the rise of mobile
changed our world beyond recognition
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
no one can predict what will happen next
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotosrapidtravelchai8280368709
what we do know
is that in the future the opportunities
will be more global than theyrsquove ever been(even Oreos arenrsquot sacred)
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
to meet tomorrowrsquos challenges
and compete in this giant marketplace
httpswwwflickrcomphotosjohnas9483233878
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpwwwflickrcomphotosbrownpau4969358409
we should always remember
that what may seem futuristic to us
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpswwwflickrcomphotosrodriguez500012149403593The Economist The next frontier
ldquoTo Westerners lsquomobile bankingrsquo is a new way
of doing something old To many Africans itrsquos theobvious way of doing something newrdquo
may merely feel new
and practical to others
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
httpwwwflickrcomphotostinou453593446
thank you
many thanks to the amazing photographers on
httpcreativecommonsorglicensesby20
yiibu
helloyiibucomcontact usat
Presentation deck available
httpwwwslidesharenetyiibu
Related Documents
