Investor Presentaiton
If You Were To Start an Online Retail Platform, What Would it Look Like?
When launching an online marketplace in Southeast Asia, most likely you'd want it to have the following qualities:
Problem
Southeast Asia is Mobile-
oriented
Lack of Trust Buying
Online
Solution
Mobile-first Business Model
Shopee
Many Competitors
Need to Offer Wide
Selection of Products, With
Limited Capital
How Do You Offer Low
Prices, When You Don't
Control the Product?
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Focus on Cheap Categories (i.e. Fashion), where the purchase
decision is easier (if it's a fake, it's not a huge deal).
Build trust over time, as customers order more often.
Make the product addictive. Fashion is a category where
shopping is a form of entertainment, and has the highest order
frequencies.
Fashion marketplaces often have average engagement of >1
hour per day, and order rates of 3 - . 5x per month. This is
especially true in emerging economies, with fewer
entertainment options.
The longer customers browse your store,
they'll find something to buy.
C2C Marketplace model.
the more likely
This is the quickest way to offer a wide selection of products,
while remaining asset-light.
Promote a robust seller ecosystem. With enough sellers
competing against each other for the order, natural
competition will result in the lowest price at equilibrium.
Fashion is also a category where there's great diversity, and it's
unlikely multiple sellers will have the same exact product.
Small details design differences can justify pricing
differences.
HAYDEN CAPITAL
Fred Liu, CFA | [email protected]
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