Date post: | 15-Apr-2017 |
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Small Business & Entrepreneurship |
Upload: | lalamove-easyvan |
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Both China and SEA; That is the Question
Starting a web-platform or a market place?Key Questions When Scaling An O2O Business Platform Across Asia
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What You WillLearn
Whos lalamove?Starting your market placeGrowing your market placeTakeaways
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Whos lalamove?1
Blake LarsonHead Of International
Boris Stoyanov-BrignoliCreative Lead | Marketing
AboutUs
STARTINGGROWINGTAKEAWAYINTRO
About Us4
Who Islalamove?
Van, motorcycle, lorry, & truck
Instant matching
Tracking
24/7
20145 cities201520 citiesDEC.2013Launch250kusers+USD10M450kusers+USD10M
STARTINGGROWINGTAKEAWAYINTRO
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OurPositioning
STARTINGGROWINGTAKEAWAYINTRO*(cash / livestock / frozen meat)What type of goods?RegularSpecial*
What distances?Intra-cityIntercityInter-provinceInternational
O2O, Why Is ItUnique?
STARTINGGROWINGTAKEAWAYINTRO
10% online, 90% offline
Create a consistent experience from on-line to off-lineIts all about tech; actually lots of CS / Ops offline workMore = Better; wrong; Less Drivers, More trainingConsumer > Business; sometimesProduct Features and Web App
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Starting your market place2
Platform vs.Marketplace
GROWINGTAKEAWAYINTROSTARTINGA matter of price& quality control
ConceptDo you set the price? Do you let the market do it?What's you quality control over final price?
What we doWe set the priceWe align our prices and twist them a little based on the market / competition
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Platform vs.Marketplace
GROWINGTAKEAWAYINTROSTARTINGWhats your levelof implication?
ConceptWhat is your level of implication?Who do you blame in case of problem?Example: Uber, Airbnb, eBay
What we do- People will blame us before the driversHigh quality controlBackground check for driversVerificationTrainingWe insure users get a vehicle: implies operations in this process 11
ProductEvolution
GROWINGTAKEAWAYINTROSTARTING
ConceptWhat product(s) serve the best your customers? Do I need to be cross platform? Depends on target and clients expectationsStarted as consumer, then went SME, now larger companies
What we doStarted with an appExtended to desktop and tablet for multipurpose:
Ex tablet: IKEA boothEx desktop: Corporate orders
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KeyChallenges
GROWINGTAKEAWAYINTROSTARTING
Who am I talkingto?
ConceptExpectation higher on business side rather than customer.Customer retention harder, cost a lot of marketing Business demand is a longer process, more sustainable long termNetwork Effect for B2C target
What we doTheres no rule, adapt to market evolution and demandStarted 100% consumer oriented, them moved to business and professional demand13
KeyChallenges
GROWINGTAKEAWAYINTROSTARTING
Chicken & eggs
ConceptWhich side to grow first and whyHow to grow at same time
What we doWhich side is harder to grow first? We build supply first We balance supply and demand. Tactics
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KeyChallenges
GROWINGTAKEAWAYINTROSTARTING
Tactics
What we doSubsidies. Driving supplyMarketing: SEM, off-line. Driving demandSurge pricing (Uber style), driving supply where demand ask for focusAggregated demand & offer (vs. call center)15
KeyChallenges
GROWINGTAKEAWAYINTROSTARTING
KPI
RetentionFulfillment
What we doFulfillment rate: set high objectives (ex: minimum for us: 90%)Retention on both sides: based on quality, make sure the people you provided with your service will return.16
KeyChallenges
GROWINGTAKEAWAYINTROSTARTINGFacingcompetition
ConceptTraditional: single user, distribution center, sorting center, no route optimization
What we doLast mile represents average 28%Last mile players fragmented market opportunityGogovan: compete on quality
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KeyChallenges
GROWINGTAKEAWAYINTROSTARTINGFindingPartners
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KeyOpportunities
GROWINGTAKEAWAYINTROSTARTINGTraditional vs. Tech
APIReal time poolingNetwork effectNot assets
ConceptTraditional: single user, distribution center, sorting center, no route optimization
What we do- Not assets- Real time pooling- Network effect thanks to tech19
KeyOpportunities
GROWINGTAKEAWAYINTROSTARTINGUnder utilizedcapacity &fragmentation
ConceptValue is being lost in traditional processDrivers lose the opportunity to use their transportation capacityUsers face supply problem
What we doRoute optimizationOn-demand, gathering huge data base
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How To MakeMoney
GROWINGTAKEAWAYINTROSTARTINGDemandSupply
Concept:Where do I take a cut?
What we do:Driving revenue from supply or demand? Amazon inventory, commissions / cut, advertising, insurance for high value goods, partnerships
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Growing your market place3
B R E A D T HDEPTH
Tactics
TAKEAWAYINTROSTARTINGGROWINGBreadth vs. Depth
Concept - Breadth: offering a wide range of products under 1 roof, cost more in HR / IT / OPS ressources- Depth: specialized in a service offer, 1 specific product or pricing, 1 geographic presence (single marketing mix)
What we doBoth, depending on geographic expansion
SEAGoing deep into each market, focusing on cities growth for each countryProduct: tailor building product for different projects (Google in HK, McDonald in SG)Developing a targeted marketing strategyMain objective: long term retention strategy, stickiness
CHINAExpansion key strategy Develop as fast as possible as many cities as we can Heavy sales (off-line) approach
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Core Values &Assets
TAKEAWAYINTROSTARTINGGROWINGSpeed
Execution
Replication
Localization
Concept- Speed- Execution- Replication- Localization
What we do- Speed: 2 years and 12 cities- Execution: think fast, act fast. Example:- Replication: standardize without losing flexibility and creativity - Localization: standardization can go against localization. Build strong foundation to make fine-tuning and small changes easy.
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Objectives &Stages
TAKEAWAYINTROSTARTINGGROWINGCAC
Cash flow
Network effect
Critical mass
Concept:Cash flow: anticipate cash burn when scaling.Network effect: what effect one user of you service has on the value of your service to other people? Critical mass: estimate the number of users / revenue generated that will allow you to scale, grow and develop your product.
What we do- Customer acquisition costCash flow: burn cash when scalingNetwork effect: we rely on the value we bring up to the market, by shortcutting the traditional way. We believe respectively both supply and demand can increase their revenues and find flexibility and simplicity with our platformCritical mass: KPI? Number of orders? FF rate?
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Objectives &Stages
TAKEAWAYINTROSTARTINGGROWINGCohort
Lifetime Value
ConceptCohortLife time valueProfitability
What we doCohort WHYThe cohort provides a grid for us to view retention on both the demand and supply sides. We are able to see and track the lifetime values and usages of all of our users, including business users. The cohort presents an easy way to view this information, showing both percentages and absolute numbers. Currently we update the cohort every month; however, we may eventually create a weekly cohort as our users become more sticky.
Cohort WHATWe use the cohort to analyze how well we retain our users and drivers. We can also see the percentages of drivers who become verified in a month and also take an order. This allows us to see if we are doing a good job with our driver training and recruitment. On the demand side, we can see the user retention and see if our new and existing users are staying with our platform overtime. In the event that there is a fall-off, we can easily follow up with the users in that cohort and see what happened.
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Do You KnowWho You Are?Before you scale,know who you serveand who you are
TAKEAWAYINTROSTARTINGGROWING
Premature scaling can kill a company
Who is your core market and what do they valueConsumerSpeedAccessEngaging BusinessRobustnessService LevelReliabilityCost
Shift in Strategy (Chart showing Breakdown of Consumer vs. Bus Trend) (image)Old Graphics vs. New (app or marketing materials) Single vs. Multi Product
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How Do I Prepare To Scale
TAKEAWAYINTROSTARTINGGROWING
Image of a foundation
Areas process is very helpfulHRFinanceTech
If you are tech, use tech for as many functions as possible (many great 3rd party services)28
What Are TheyKey DecisionsI Need To Evaluate?
TAKEAWAYINTROSTARTINGGROWING
How to build a scalable platform while remaining relevant at a local levelConsiderationsLanguage, features, payment, registration, marketingVisual- China vs. SEA (fragmented countries)2 tech teams; overall team size and sales strategyKeep similar wherever possible, small changes Build things that can be applied universally firstPick markets that are more similar (HK was very different, made it difficult for us)
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So ShouldI Expand ToChina?
TAKEAWAYINTROSTARTINGGROWING
-market sizeAdvantages / challengesYour teams capabilitiesYour understanding of techCapital availableIf you have a good model, it will be competitive 30
Where ToInvest Next?
No right answer
Individual and personal opinions on investors
TAKEAWAYINTROSTARTINGGROWING
When to invest in existing markets and when to expandNo right answerEveryone has their own opinion particularly investorsEasy Taxi vs Grab Taxi (Breadth vs Depth)Easier to do breadth in China as city by differences are smaller; tech platform is more universal
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Takeaways4
Your start
INTROSTARTINGGROWINGTAKEAWAYWhat is particularly transformative about the service?
Why now?
Why hasnt this been done already?
What could the service ultimately become and how does that change the market opportunity?
UberOn Demand10
http://mp.weixin.qq.com/s?__biz=MzI1ODAzMTgyMw==&mid=400110565&idx=1&sn=455c591022f6dd3203691aca049f1e02&scene=2&srcid=1023erDYE5yUxePv4aSbkvf9&from=timeline&isappinstalled=0#rd33
Your market
INTROSTARTINGGROWINGTAKEAWAYBy tackling a particular problem in a more narrowly defined market, a start-up can become the new standard in that market.
UberOn Demand10
http://mp.weixin.qq.com/s?__biz=MzI1ODAzMTgyMw==&mid=400110565&idx=1&sn=455c591022f6dd3203691aca049f1e02&scene=2&srcid=1023erDYE5yUxePv4aSbkvf9&from=timeline&isappinstalled=0#rd34
Acquisition
INTROSTARTINGGROWINGTAKEAWAYVs.CreativePAID
AcquisitionBuild great contentSharable Consistent branding Example: Durex campaign35
Supply side
INTROSTARTINGGROWINGTAKEAWAY
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INTROSTARTINGGROWINGTAKEAWAYDemonstrateEfficiencyFromTechnology
Dont fall into the rush of expansion Don t scarify tech scalability and capacity in the name of expansion37
"10 things I wish I had known before I started Easyvan
Shing Chow, Founder & CEO
You need a great body to build a great company
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You need to surround yourself with talents
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You need to think bigger
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You need to do a lot of sales
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You will almost go to the brink of depression sometimes
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You will be on cloud nine on some days
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5 and 6 will happen on the same day
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Ideas matter, but matter only 1%
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You need to be tough on yourself, but also tough on others
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It is very very very tough and it is not for most people
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Thank You
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