The First and the Only Paper Published in Brazil, Regarding the New Retail Wave Undergoing in China

1. CEO, Baidu Brasil
President, CBIPA (China-Brazil Internet Promotion Agency)
President, ABRIA (Brazilian AI Association)
Yan Di
NEW RETAIL
THE NEW HORIZON

2. Internet in CHINA

3. You Only Know
Half of the Internet

4. Because
The
Other
Half
Is
In
China

5. CHINA –BIGGEST INTERNET MARKET
China’s Online Population = US + India With This Size, China’s Online Economy Has a
Presence in GDP Much Bigger than That of US

6. CHINA HAS 5 OF TOP10 COMPANIES OF INTERNET
& 6 OF TOP10 UNICORNS
World’s Top Unicorns of Internet
Ranking Company
Market Cap
（U$ Billion）
1 Google 815
2 Amazon 707
3 Tencent 558
4 Facebook 546
5 Alibaba 524
7 Netflix 118
6 Priceline 92
8 Baidu 85
9 JD 70
10 NetEase 42
* Date: 31-01-2018
World’s Top Companies of Internet*

7. CHINA – BIGGEST E-COMMERCE MARKET
40% of World’s E-commerce is in China
2017 GMV: U$750Bi
11.11.2017 (Chinese Black Friday) Single Day GMV:
U$40.3Bi = 3 Years of Brazilian E-Commerce

8. CHINA – BIGGEST MOBILE PAYMENT MARKET
China Transacts U$9 Trillion via Mobile Payment, 80x Bigger than the US
80X Bigger
than US!
166X Bigger
than US!

9. CHINA IS THE WORLD’S
BIGGEST VENTURE FUNDING POOL
China became the biggest venture funding pool
in the world raising over USD 100B in 2016
Year Asset Acquirer/Investor
Amount
（U$ Billion）
2016 Supercell Tencent 8.6
2016 Playtika Century River Cruises 4.477
2017 GrabTaxi Didi 2.5
2017 Ola Cabs Tencent 2
2017 Tesla Tencent 1.778
2016 Skyscanner Ctrip 1.77
2016 AppLovin East Willing 1.4
2017 Flipkart Tencent 1.4
2016 Opera GoldBrick Capital 1.259
2017 Go-Jek Tencent 1.2
Top 10 Overseas Investments/M&A
by Chinese Internet Players 2016-17

10. CHINA’S INTERNET EVOLVING SURPRISINGLY FAST
Driverless Car
KITTI vehicular recognition accuracy
rate: 90.13%, highest in the world.
Voice &
Facial Recognition
97% & 99.77%

11. CEO, Baidu Brasil
President, CBIPA (China-Brazil Internet Promotion Agency)
President, ABRIA (Brazilian AI Association)
Yan Di
NEW RETAIL
THE NEW HORIZON

12. YOU MAY HAVE BEEN IMPRESSED BY
CHINA – BIGGEST E-COMMERCE MARKET
40% of World’s E-commerce is in China
2017 GMV: U$750Bi
11.11.2017 (Chinese Black Friday) Single Day GMV:
U$40.3Bi = 3 Years of Brazilian E-Commerce

13. NOW IMAGINE A POINT OF SALES, BUT NOT LIKE ANY POS
Everything is Paid by App, Which
You Will Use to Order at Home
with More Frequency;
More Importantly, Their
ASPU (Average Sale per
Unit Area) is
4 Times Bigger
Than the Peers’
& Now ProfitableWith a Better Supermarket XP,
As They Cook For You
With a Better Restaurant XP,
As They Deliver For Free in 30Min
With a Better Logistics
Efficiency,
As They Use the Store for
Storage
All Logistics Data is
Synched Online with
Offline

14. WELCOME TO NEW RETAIL
A User-Centric & Data-Driven
Online-Merged with-Offline Retail Revolution

15. A FULL-SCALE WAR BEING WAGED ON NEW RETAIL
Alibaba’s Warfare in New Retail
JD’s Warfare in New Retail

16. NEW RETAIL
THE TIP OF UNKNOWN ICEBERG,
THAT WILL EVENTUALLY SINK YOUR TITANIC
Take it as warning: In the near
future, the biggest online & offline
retail player will be the same.
(Think WholeFoods)
Kevin Kelly
10%

17. WHY NOW:
THE RISE OF NEW CONSUMER

18. THE NEW GENERATION CONSUMERS DEMAND
MORE & SUPERIOR EXPERIENCE
BEFORENEW COSUMER
Product Demand
• Cost-effectiveness
• High Quality & Professional
• Personalization
Product Demand
• Cost-effectiveness
• Functionalities
• Durability
Experience Demand
• Service Delivery XP
• Targeted Discount
• Social Interaction
• Cultural Identity
Experience Demand
• Purchase XP
• After-sales XP

19. WHY NOW:
THE WAR ONLINE VS. OFFLINE

20. THE WIND OF CHANGE
INTO THE FACE OF OFFLINE
World’s Largest Store, Macy’s Closed 100 Stores & Laid Off 10,000 Staff

21. IS OFFLINE RETAIL'S FUTURE DOOMED?
Offline Retail Traffic Offline Retail Volume Offline Retail Cost Offline Retail Profit

22. ON THE OTHER HAND, CLICK IS EQUALLY EXPENSIVE AS BRICK
China’s Leading B2C E-Commerce Now has
Almost The Same Cost & Gross Margin
of Leading Offline Retail!
Online Cost of Traffic+Storage/Logistics
=
Offline Cost of Rental+Labor
Average Online CAC R$50-75!
Google CPC +36% Increase in 2017,
& CTR -13% (All Platform), -25% (Mobile)
ONLINE IS EXPENSIVE!

23. OFFLINE IS ABOUT EXPERIENCE,
LAST MILE CAN NEVER BE REPLACED
The Nature of Certain Goods Limits Further
Penetration of Online E-CommerceOffline is Always About Experience
FMCG – Fast Moving Consumer Goods (water, chewing
gum, juice, beer, softener…)

24. HOW IT WORKS

25. KINDLY REMIND YOU
The New Retail is To
Make Consumer
Willing to Pay the EXPERIENCE
Beyond Product Functionalities

26. NEW RETAIL KEY ELEMENT: PEOPLE
User Data Should be Omnipresent/Visualizable/Trackable/Optimizable,
Through All Elements “Lead, Purchase, User Loyalty, Feedback”
Blur Group Silhouette
• Location
• Gender
• Age
• Income Level
• ……
Holographic Segmentation
• Actress
• In Her 30’s
• Mother of 2 Sons
• Social Celebrity
• ……
Find Your Most-Valuable Users that Self-
Organize & Self-Produce Content/Products
NEW RETAILBEFORE

27. NEW RETAIL KEY ELEMENT: PLACE
Place Definition
Supermarket/Shopping Mall/Convenience Store/E-Commerce
Live Streaming/Event/Smart Devices/VR+AR…
Data Collection
Online (via App) + Offline (In-Store IoT)
Security
Real-time Customer Tracking
Layout Optimization
Based on User Segmentation
Real-time Promotion
Through Digital Tag & Based on User Behavior
Auto Checkout
Automatic Checkout (via Mobile Payment or Facial Recognition)
Stock Optimization
Real-time Stock & Logistics Management

28. NEW RETAIL KEY ELEMENT: PRODUCT
OEM/ODM BRAND WHOLESALE/RETAIL/CONSUMER
C2B: Consumption Leads Manufacture
Product Does Not Only Refer to Tangible Goods,
But Goods + Content + Service!
1
2 Smart Logistics

29. WHO LEADS THE NEW RETAIL REVOLUTION:
ONLINE OR OFFLINE?
• FINANCIAL RESOURCES (Alibaba Invested R$200MM in a Single Pilot
Project, More Than the Margin of Some Traditional Offline Retail
Players)
• TECHNOLOGY RESOURCES (Big Data, IoT, AI…)
In China It is Online that Leads Offline, But Taking into Consideration
that No Consolidated Leader in Brazilian Market & Possible
Technology Transfer from China, We Never Know.

30. CASES

31. CASE 1: HEMA SUPERMARKET
Highlights
Obligatory Use of App to Sync
Online & Offline Data Flow
Cultivate User Habit to Use App
to Order at Home of a Much
Higher Frequency (Free Within
the Range of 3Km in 30 Min)
User Experience
“Buy & Eat” via In-Store
Restaurant
Use App for Better Mobile
Payment
Logistics
Use Store for Storage for Unified Online & Offline
Stock Management
In-Store Pick-up by Staff & In-Store Conveyer Belt
Staff Equipped with Smart Device for Indoor
Navigation, Facilitated by RFID
Digital Tag to Update Real-time Price & Promotion

32. CASE 2: KIDSWANT MOTHER & BABY CHAIN STORES
Highlights
From Product to Value-Added Service Sale: 100 Stores with 10MM Active Service
Membership Sold to Drive Highest User Interactivity & Loyalty.
Aggregate Value through Services
Turn 50% of In-Store Staff to a Mix of Service
Specialists: Nutritionist, Nursing Personnel, Children
Growth Trainer
Besides Online Activities, +700 Offline Events
Organized per Year

33. CASE 4: 1919 WINE CHAIN STORES
Highlights
China’s Biggest Wine Direct Sale Platform, 100x Rev. Increase in 6 Years!
Transform Typical Costs of “Storage + Logistics + Rental + Labor” to Costs of
“Rental + Labor” Only
Logistics
Omnichannel of Online & Offline
Factory Direct Shipment to Stores
Build Store Density to Ease Logistics
Store Staff = Delivery Team, Turn Typical E-
Commerce Logistics Cost of 10% into a 0.5% Delivery
Commission

34. CASE 4: BINGOBOX, WORLD’S FRIST SCALABLE UNMANNED STORE
Wechat Bundled to
Understand User Preference;
RFID-Enabled Goods;
AI (Facial Recognition) for
Security;
Mobile Payment;
Cost-Effective Operation;
High Mobile/Close to You

35. GO EAST
START THE PILOT

36. 2017 Brazil Roadshow Beijing
THE ONLY INTERNET REPRESENTATIVE
ENTITY BETWEEN &

38. Contact Our Team
Felipe Zmoginski
Whatsapp: +11-972458059