International Marketing Rocket Internet and digital revolution. Silvia Rita Sedita

Transcription

1 International Marketing Rocket Internet and digital revolution Silvia Rita Sedita

2 Elaborated from Winiarski (2014), How to rock the Internet, presentation given at my Advanced Marketing course, December 2014.

3 Mission: To Become the World s Largest Internet Platform Outside the United States and China

4 Market Opportunity Internet is going further and faster into daily life than anyone imagined 5.4 bn Potential customers 74% Global mobile users

5 Born in Berlin Founded in 2007 Incubated over 100+ companies 20+ business models Target over 5 bn people world-wide 25,000+ people on the ground

6 Stylized facts Rocket Internet started in Berlin in 2007 with just four employees and two consumer brands and an initial investment of EUR 0.5 million. Since then, Rocket has evolved into a unique platform that systematizes and accelerates the process of identifying, building and scaling proven Internet models with predictable, consistent and repeatable output in complex markets. As of December 2014, Rocket Internet and its companies were active in more than 110 countries with more than 30,000 people. Rocket Internet was listed on the Frankfurt Stock Exchange on October 2, 2014, and, as of December 31, 2014 had a market capitalization of EUR 7.9 billion.

7 Rocket Internet keeps growing The company will relocate its headquarters to the GSW building in Charlottenstraße 4 in Berlin s Kreuzberg district with a view to the former Checkpoint Charlie. Named the Rocket Tower, Europe s largest startup campus will emerge in two interconnected buildings.

8 Shareholder Structure 1 ¹ This figure includes shares that are held by affiliates of Global Founders GmbH.

9 Management Board Oliver Samwer CEO Peter Kimpel CFO Alexander Kudlich Group Managing Director Oliver Samwer is a serial entrepreneur with a proven track record in some of Germany s most successful internet companies. Graduated from WHU, he founded Rocket in 2007 and serves as its CEO since From 1992 to 2014, Peter Kimpel held various management positions at Goldman Sachs in the United States, Frankfurt and London at last as a partner in London. Peter Kimpel joined Rocket in 2014 as CFO. Before joining Rocket as Group Managing Director in 2012, Alexander Kudlich was Assistant of the Chairman and CEO of Axel Springer and Regional Managing Director with zanox, one of its group companies. Alexander graduated from HSG, UCL and ESMT.

10 Source: Global Insights, WCIS, Planet Retail, United Nations, Euromonitor, World Population Prospects (UN, 2009) 4 Megatrends that Drive Growth 1) Smartphone Ubiquitous 2) Reversed Population Pyramid in Emerging Compared to Developed Markets Smartphone Users Growth ( E) [VALORE] Elderly (Aged 65 and Over), as a Percent of the Population, % 10% 5% [VALOR E]% 7% USA & China India Mexico Brazil US 3) Rising Middle Classes 4) Leapfrogging Physical Retail Size (MM) of Middle Class in USA Size (MM) of Middle Class in Indonesia 2014E People Per Retail Outlet 31% 34% 33% 1% 6% 16% , , E 2022E E 2022E US Africa % Middle Class of Total Population

11 The Home Screen Of The World Rocket Internet helps people use their smartphones to get what they need, any place, any time, offering the same world-class user experience in all markets.

12 Concept Close Market Monitoring Identification of Potential Proven Business Models Concept Evaluation Capital Top-Tier Investors Team Set up High Profile Team Execution Support Experts in all Categories International Talents

13 We Are Not Investors. We Are Builders. We identify proven business models that focus on basic needs. We quickly build companies for these business models using highly standardized and optimized processes and then scale these companies to a leading position in our markets. 1. Identify We continuously monitor customer behavior in our markets. 2. Build Our functional experts from IT, SEM, SEO, BI, CRM etc. build companies from scratch. 3. Scale We roll out companies to >100 markets and aim to scale them to #1 positions. Global Network of Companies

14 More than People on the Ground 2,800+ 3,000+ 5,800+ 2,100+ 6,300+

15 Focus On Online Business Models Across 4 Sectors

16 4 Sectors: the companies ecommerce Marketplaces Financial Technology Travel

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18 Company classification

19 Regional Internet Groups - Africa

20 Regional Internet Groups Asia Pacific

21 Regional Internet Groups Latin America

22 Regional Internet Groups Middle East

23 The Rocket Platform: a winning business model Infrastructure Rocket Network Highly structured / best practices Centralized IP with regional execution Repeatable and scalable Founding 10 new companies p.a. on average Consistent returns across network of companies Processes Highly structured / best practices Centralized IP with regional execution Repeatable and scalable Technology Proprietary technology platforms allowing rapid global deployment Comprehensive KPI analytics driving continuous optimization Provision of shared services to jump start new businesses at low cost

24 LOCAL CENTRAL Standardized Master Launch Process KICKOFF Set Up Rocket Best Practices LAUNCH Reporting & Optimization INDEPENDENCE Day 0 Day 100 Day 200 Product & UX Design Website & Apps Landing Pages, Onsite Search, Onsite Sorting, Personalization, Multivariate Testing Engineering MVP web & apps Iteration of Product, Agile Development Focusing on Stability, Security and Speed Marketing Marketing channels Targeting, Creative, Bidding, with Maximum Granularity (eg Keyword Level) and Optimization of CAC vs. CLV CRM CRM tools Segmentation, Lifecycle Management, Content, Automatization Business Intelligence Data-Warehouse Daily, Weekly and Monthly KPI Reporting for Marketing, CRM, Sales, Customer Care, Ops etc. Legal & Finance Legal Entities, Brand & Domains, Accounting Financial Reporting & Controlling, Compliance HR Continuous Recruiting of Central and Local Founders, 2 nd Level Management Talent and Functional Experts Operations Rocket Operations Management Systems Improving Efficiency in Operations Sales Sales and Business Development processes Focusing on Daily Management of Sales and Business Development Funnel in SalesForce Customer Care Call center and local support Increasing Net Promoter Scores Capability to Launch a New Venture in <100 Days Ventures Operationally Independent in <200 Days

25 Data mining Best Practices shared in Real-time Reporting Input: Key Metrics Pulled Automatically From Company And Third Party Systems Data Warehouse For Each Company Output: Automated KPI Reporting And Benchmarking Across All Companies And Functions Backend Systems Marketing Tools Onsite Analytics Orders New Customers Impressions & Clicks Costs Visits With Origin Onsite conversions... Reports Daily Weekly Monthly Marketing Onsite CRM Sales Tools CRM Tools Biz Dev Data & Funnel Supplier Base Contacts With Origin Costs Mobile Apps SEO Other Data Sources App Downloads Operations, ERP etc.

26 Three Proprietary Technology Platforms Alice Alice Rocket ecommerce Platform Powering Rocket s ecommerce companies Omni-channel: desktop, mobile web & mobile apps for ios & Android Highly scalable, can handle very high volume and multiple countries >40 Websites & Apps Nico Rocket Marketplace Platform Powering Rocket s marketplace companies Omni-channel: desktop, mobile web and mobile apps for ios & Android Enables all relevant transaction mechanics (auction, sale, lead etc.) >70 Websites & Apps Yoda Rocket FinTech Platform Powering Rocket s financial technology companies Scoring APIs: integrated connectors to international scoring providers High security architecture adaptable to arbitrary regulatory environments >8 Websites & Apps

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35 The secrets of the business Minimize Risk Alice Capture Founder Economics Scale Globally Low Customer Adoption Risk Low Competition Risk Low Execution Risk Deploying Proven Models, With 15 Years Execution Track Record % Ownership Repeatable Success in Geographical Roll-Out

36 Key achievement 2014

37 Global Fashion Group "The creation of GFG brings together five powerful digital brands led by a unique group of highly talented founders and managers. By operating as a single entity, Dafiti, Jabong, Lamoda, Namshi and Zalora will be even more effective in expanding their leadership positions in their respective marketplaces. Lorenzo Grabau, CEO of Kinnevik

38 Global Fashion Group "GFG will be focused on capturing the massive growth opportunity of fashion e-commerce in emerging markets. Each of the business units will be able to build on the original Rocket platform and continue to leverage knowledge and expertise gained across 27 countries. I look forward to working with our founders in accelerating GFG's growth profile and development even further. Oliver Samwer, co-founder and CEO of Rocket

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40 Rocket Internet identifies Food and Groceries as the next frontier of e-commerce

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42 Choice of sectors

43 ZALANDO

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