Lazada announced that their orders delivered per day in the first quarter of 2014 are around 8000.
Text of Lazada kinnevik rocket cmd 2014
22 May 2014 Kinnevik Rocket Capital Markets Day
Disclaimer 2 The information contained in this presentation is public information only, but it does not necessarily represent all information related to the issues discussed or presented herein, or all views of the company. The information has been researched by the company with due care and all and any evaluations or assessments stated herein represent the companys opinions. We advise you that some of the available information has been independently verified and may be based on statements by third persons, but no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein. Certain statements contained herein may be statements of future expectations and other forward-looking statements that are based on our current personal views and assumptions and involve known and unknown risks and uncertainties that may cause actual results, performance or events to differ materially from those expressed or implied in such statements. None of our team shall assume any liability whatsoever (in negligence or otherwise) for any loss or unrealized profit whatsoever arising from any use of this presentation or the statements contained herein as regards unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained in the presentation, or otherwise made in connection with this presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any investment and neither this presentation nor any part of it shall form the basis of or be relied upon in connection with the entering into any commitment or contract whatsoever, and is solely intended to communicate information regarding the company, its business track-records and team members. No one should base their investment decisions on this presentation but should form their personal opinions on the basis of further available information and evaluations and assumptions. In addition, any prospective investor should consult its own attorney and business advisor as to the legal, business, and tax and related matters concerning any investment decision.
Marketplace C2C Payment B2C Lazada Group is aiming to control the Southeast Asian eCommerce ecosystem as Alibaba does in China Operating Model Similar Players Fulfilment 3 Launched Benefits Spring 2013 Control supply chain Build strong customer satisfaction, reputation and trust May 2013 Expand assortment and reduce inventory risk Improve economics August 2013 Bring smaller sellers online Seller split between MP / C2C Sell refurbished and second-hand products Spring 2014 Offer customers trustworthy and reliable payment options Reduce costs for sellers Spring 2014 Offer marketplace / C2C merchants and 3rd parties eCommerce logistic services Further drive operational efficiency
Adaption of online department store model (Amazon and Tmall) in Southeast Asia Project launch in February 2012 with all sites live during March Targeting more than 500m consumers across 5 fast growing economies HQ in Singapore with independently operating country offices Singapore operations ready to be launched in May 2014 More than 1,700 FTEs across the region Backed by leading sector specialists and investors: Lazada was launched early 2012 to target >500m consumers Lazada Thailand Bangkok Pop: 68m March 28, 2012 Lazada Philippines Manila Pop: 108m March 31, 2012 Lazada Indonesia Jakarta Pop: 254m March 26, 2012 Lazada Malaysia Kuala Lumpur Pop: 30m March 27, 2012 Lazada Vietnam HCMC Pop: 93m March 28, 2012 4 Lazada Singapore Singapore Pop: 6m Launching soon Source: CIA World Factbook, July 2014 estimates HK/Shenzhen Sourcing hub Jan 1, 2013
aiming at monetizing several converging mega trends Strong GDP growth with ASEAN-10 GDP expected to grow at ~5% p.a. in the coming 4 years Over 145m people expected to achieve a disposable income greater than 3k USD by 2015 Young and growing population 60% of the worlds youth population in Asia Pacific eCommerce sales currently at ~1% of total retail sales but will rapidly catch up with China, were online shopping represented 7.9% of total consumption in 2013 Internet savvy population with over 145m Facebook users Rapid adoption of low-cost mobile phones and tablets is accelerating shift to online Mobile as online access point is driving faster adoption of mCommerce where always connected customers typically are more loyal and valuable 5 Booming macro environment Mobile to leapfrog infrastructure barriers Rising adoption of online shopping Lack of offline alternatives outside big cities Lack of shopping malls in rural areas and tier 3/4 cities positions online as the only real alternative Studies on China demonstrate how the average online shopper outside big cities has a higher share of wallet directed to online spending Souce: Industry research, Lazada Group estimates
56 79 Q1 '13 Q1 '14 1 2 Already the #1 eCommerce player in all 5 markets 0.50.71.0 1.3 1.8 2.6 3.3 3.8 4.1 126.96.36.199.188.8.131.52.0 6.76.9 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 3.8% 0.5% 6 Wide reach with rapid growth in visits (m) Brand popularity1 outgrowing competition Highly engaged2 interactions with targeted customers Growth in Facebook fans (m) a testament of popularity Source: Company Data, Facebook, Google Trends; Note: All numbers exclude Lamido 1 Volume of Google brand searches in Indonesia, indexed; 2 Facebook engagement ratio in Apr. 2014 = Number of engagements / Number of fans +41% Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 lazada blibli bhinneka rakuten tokopedia
252 387 527 723 967 121 144 176 246 333 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Active Customers (k) New Customers (k) with a rapidly growing base of active customers 7 Rapidly growing new and active1 customers Growing unique visitors base (m) Expanding share of mobile traffic2 Accelerating growth in ordersdelivered (m) Source: Company Data; Note: All numbers exclude Lamido 1 Number of customers placing at least one transaction (pre-return) within 12 months before period end; 2 Includes visits from Mobile, Mobile Apps and Tablets 11% 14% 22% 27% 35% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 26 33 30 37 41 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 0.2 0.3 0.3 0.5 0.7 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14
89% 86% 78% 73% 65% 57% 50% 6% 6% 6% 6% 7% 7% 9% 3% 4% 8% 11% 14% 5% 8% 13% 16% 20% 24% 27% Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Apr-14 Apr-14 WE Desktop Tablet App Mobile 8 Evolution of traffic mix Market leading mobile platform a key driver of growth Source: Company Data; Note: All numbers exclude Lamido Overview Android app with >1m downloads launched in June 2013 - Ranked among Top4 shopping applications in Google Play across all markets iOS app with >1/2m downloads launched in January 2014 - Featured as Best New App by Apple Dedicated mobile site for optimized user experience Official eCommerce partner with key mobile players such as LINE, WeChat, etc.
9 Marketplace is ~40% of NMV Marketplace reaching more than 40% of NMV Source: Company Data for 1-20 May 2014; Note: All numbers exclude Lamido Overview More than 2,000 active sellers driving strong assortment growth and enabling multi-source price competition Launch of cross-border marketplace out of Hong Kong - Expansion of global market place model to China, Japan, Korea and RoW Shop-in-shop for major brands across all categories Multiple additional revenue streams - Payments, delivery, warehousing, etc. - Onsite advertising and other marketing services - BI and analytics Marketplace ~40% Retail ~60%
10 Non-electronics already representing >60% of sales Overview Share of items sold by category Electronics 38% Lifestyle 39% Health & Beauty 14% Fashion 7% Other 2% 1 2 3 4 Source: Company Data as of April 2014; Note: All numbers exclude Lamido 1 Includes Cameras, Computers & Laptops, Consumer Electronics, and Mobiles & Tablets; 2 Includes Home Appliances, Home & Living, Toys, Kids & Babies, Sports & Outdoors, and Travel & Luggage; 3 Includes Fashion and Watches; 4 Includes Automotive & Gadgets and Media, Games & Music Lifestyle outgrowing other categories driven by assortment growth, partnerships and merchandising Continued growth of Electronics fuelled by price competitiveness and brand partnerships - Leveraging dynamics of marketplace to achieve price leadership without harming economics Fashion share expected to grow rapidly in Q3 2014 following official launch - Development of private label LZD and central purchasing of fast fashion brands Strong Health & Beauty footprint thanks to assortment expansion and close partnership with key brands
Thailand 11Main WH Fleet hub 2014Fleet hub today Vietnam Indonesia Philippines 5k sqm 2nd generation WH in Bangkok ~100% COD coverage5k sqm 2nd generation WH in Jakarta ~70% COD coverage Share of customers ~55% Rural ~45% Urban Wide reach supporting a large and diversified group of loyal customers especially in rural areas Malaysia Source: Company Data as of April 2014 8k sq