By
GoGoody Inc.
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Inc.
Confidential | Investment Memorandum
Executive Summary
GoGoody Inc.
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PAG E - 0 1
Confidential | Investment Memorandum
The Opportunity in Mobile eCommerce What is happening? A few companies still in high double-digit growth
US Mau Growth Q416 - Q217
PDD’s QoQ Growth Curve, Mar 17 - Mar 18, $20B valuation within 9years
GoGoody Inc.
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GMV growth% QoQ
ff
Mar- 18
Ca r
GMV (USD billions) Active User growth% QoQ
Dec- 17
tg o
Sep- 17
O
Jun- 17
k
0% Mar- 17
Le
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0% -10%
ar
20%
20% 10%
m
40%
New Entrants Large Retailers Brand Names
is h
60%
sh
80%
W
30
50% 40% 30%
Po
100%
10
90% 80% 70% 60%
40
20
110% 100%
PAG E - 0 2
Confidential | Investment Memorandum
The Opportunity: Trend of Mobile eCommerce
(source: KPCB’s Mary Meeker, ”Queen of the Internet”, Internet Trends Report 2018) E-Commerce = Acceleration Continues @ +16% vs. +14% Y/Y, USA
E-Commerce as % of retail Sales
E-Commerce Sales + Y/Y Growth
16%
12%
8%
4%
0% 2007
2008
2009
2010
2012
Source: Internet Trends Report 2018
2011
2013
2014
2015
2016
2017
E-Commerce Share, USA
E-Commerce Share, USA
E-Commerce vs. Physical Retail = Share gains Continue @ 13% of Retail
$500B
20%
$400B
16%
$300B
12%
$200B
8%
$100B
4%
$0
2010
2011
2012
2013
E-Commerce Sales
2014
2015
2016
2017
0%
Y/Y Growth
Source: Internet Trends Report 2018
GoGoody Inc.
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PAG E - 0 3
Confidential | Investment Memorandum
The Opportunity: Trend of Mobile eCommerce
(source: KPCB’s Mary Meeker, ”Queen of the Internet”, Internet Trends Report 2018)
Mobile Shopping Usage = Sessions Growing Fast Mobile Shopping App Sessions - Growth Y/Y Average = 6% Shopping
54%
Music / Media / Entertainment
43%
Business / Finance
33%
Utilities / Productivity
20%
News / Magazine
20%
Sports
-8%
Photography
-8%
Personalization
-8%
Games Lifestyle
-16% -40%
-60%
-40%
-20%
0%
20%
40%
60%
Session Groth Y/Y (Global, 2017 vs. 2016) GoGoody Inc.
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PAG E - 0 4
Confidential | Investment Memorandum
The Opportunity: Trend of Mobile eCommerce
world-wide: mobile eCommerce is estimated to grow 100% in the next 3 years Mobile retail e-commerce sales in the United States
Mobile E-Commerce is up and Poised for Further Growth Estimated mobile e-commerce sales worldwide
2013-2021 (billions)
Mobile as share of total e-commerce 500
52.4%
58.9%
63.5%
67.2%
70.4%
72.9%
420.17
Total mobile e-commerce sales (in trillion U.S. dollars)
3.56
2.91 2.32
0.97
1.36
1.80
Revenue in billion U.S. dollars
400 336.98 300
267.47
206.51 200 156.28 115.92 100
2016
2017
2018
2019
2020
2021
80.94 41.71
0
41.71
56.67
41.71
2016
2017
2018*
2019*
2020*
2021*
Source: eMarketer
GoGoody Inc.
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PAG E - 0 5
Confidential | Investment Memorandum
Regional difference in mobile eCommerce Conversion rate of online shoppers in the United States as of 4th quarter 2017, by device
Mobile eCommerce as a percentage of total eCommerce sales
6% 80%
4.76%
70%
5%
4.01%
Conversion rate
60% 50% 40% 30% 20%
4%
3%
1.62%
2%
10% 1%
0% Asia - Pacific
Western Europe
USA
0.24%
Global 0% Traditional
Tablet
Smartphone
Other
Source: Statista and eMerketer
GoGoody Inc.
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PAG E - 0 6
Confidential | Investment Memorandum
Why mobile eCommerce sales% in US/ES is lower? Why
?
Conversion rate low – same traffic inflow, lower sales
Why
?
Shopping cart abandonment rate higher in mobile
Why
?
Payment, Account creation, Surprised by extra costs
Why
?
GoGoody Inc.
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PAG E - 0 7
Confidential | Investment Memorandum
PROBLEM:
Fragmentation is high in the US: 500+ influential e-retailers. OK in web era, not good for mobile era... anyone downloaded 500+ apps? Dept/General stores Dept/General stores
Dept/General stores Electronics & home
Dept/General stores Clothing
Dept/General stores Beauty & personal
Source: Statista and eMerketer GoGoody Inc.
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PAG E - 0 8
Confidential | Investment Memorandum
PROBLEM: Shopping on Mobile Phones is Hard Screen too small: ~10% screen size vs laptop
Browsing items in a small screen is hard
Entering Credit Card with small small keyboard is a lot of frustration
Conversion rate of online shoppers in the United States as of 4th quarter 2017, by device 6%
4.76% 5%
Conversion rate
4.01% 4%
3%
Onl
y 1.6
%C onv ersi
on o
2%
n Sm
1%
artp
1.62%
hon
es!
0.24%
0% Traditional
GoGoody Inc.
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Tablet
Smartphone
Other
PAG E - 0 9
Confidential | Investment Memorandum
Meet
GoGoody Inc.
your mobile shopping assistant
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PAG E - 1 0
Confidential | Investment Memorandum
Jona Offers Many Compelling Consumer Advantages
PERSONALIZED PRODUCT DISCOVERY
GoGoody Inc.
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EASY DISCOUNT AND CURATED DEALS
HASSLE-FREE ONE-CLICK CHECKOUT FOR ANY WEB STORES
PERSONAL DATA STORED ON THE PERSONAL DEVICES
PAG E - 1 1
Confidential | Investment Memorandum
Provides Consumers With
E-tailers With
01
Easy discovery of products;
01
Higher conversion rates
02
Easy checkout experience;
02
Additional customer stream
03
Discounts;
03
Lower-cost transaction
04
No mobile development costs
GoGoody Inc.
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PAG E - 1 2
Confidential | Investment Memorandum
Patent-pending technology User-centric one-click checkout (2018) vs. Amazon’s one-click (1997)
01
Fast checkout process
02
Can be used on any smart devices
03
Enables revenue capabilities others cannot use; provide 1-click checkout on any web site Other barriers go up over time
GoGoody Inc.
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PAG E - 1 3
Confidential | Investment Memorandum
Light Model = No inventory, logistics or fulfillment costs Light-model high margin
2017 Global Light-model e-Commerce Sales
$100 Billon
Alibaba cash margin: 43%
Heavy model lower margin
Others
JD’s cash margin: 5% to 14%
GoGoody Inc.
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PAG E - 1 4
Confidential | Investment Memorandum
Go To Market Strategy
Addressable market size Total Consumers
Avg purchases
Why?
GoGoody Inc.
Year 1
Year 2
Year 3 or TBD
1. New/Early mothers
2. All married women: Beauty, Home, Kitchen & Garden
Wedding/ Bridal
160 millions
30 billions
TBD
3.5M new births/years = 3.5 million new moms in US
126 million households
2.5 million weddings/year
$1,000 baby products X 3.5M = 3.5 billion
TBD
Avg. spend $35K for weddings. Annual wedding sales total $53 billions
Targetable, time constrained, compelled spending; easily influenced by friends/influencers to persuade with their purchase via Social Selling
126 million households
2.5 million weddings/year
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PAG E - 1 5
Confidential | Investment Memorandum
Marketing Plan Key assumptions: 4 Year Growth Projection
Benchmark for each download: $1.50 20% one-year retention; average of $200 - $400 in annual purchases 5% - 10% commission Co-branded marketing campaigns via Strategic Partnerships to drive user acquisition PR / Press Release to get media coverage to targeted consumer segments
Beta Q3 2018
Year 1
Year 2
Downloads
GoGoody Inc.
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Year 3
Act. Users
Year 4 Sales (1,000s)
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Confidential | Investment Memorandum
Product Roadmap – 3 Years AI technologies
Pricing strategies
Payment channel
Categories
GoGoody Inc.
Beta Q3 2018
Launch Q4 2018
Text-based
Voice and image
More advanced
Multiple-language support
Coupons
Customized deals
Social deals
Cross-boundary sales
Credit card
Apple Pay, PayPal
Our own payment gateway
International payments
Baby, toys, home, kitchen and garden
Beauty and Personal care
apparels & electronics
All categories
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2019
2020
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Confidential | Investment Memorandum
Rollout Goals – 5 Years Supported retailers
SKUs
Marketing Cost (excluding overheads) Active Customers @ 20% retention Annual Revenue @ $10-$40/year/user
BetaQ3 2018
Launch Q4 2018
Q3 2019
Q3 2020
EOY 2021
EOY 2022
20
100
300
1000
2,000+
5,000+
10,000
50,000
150,000
250,000
500,000
1,000,000
$10K
$0.5M
$2M
$25M
$50M
$125M
2,000
100,000
400,000
5M
10M
25M
$20K
$1M
$8M
$100M
$200M
$1B
Many sites that use standard shopping carts like Spotify, Magento and others can be used without configuration. Products with Amazon @ 400 million but lower priority/visibility unless Amazon pays good commission.
GoGoody Inc.
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Confidential | Investment Memorandum
Differentiated Product Competitive Landscape (feature)
Product Feature
Presonalized Recommendation
Deal
Producty review
Price comparison
Curatred GoGoody Inc.
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Community UGC
Al genrated Page - 19
Confidential | Investment Memorandum
Competitive landscape
Aim to sell domestic product to domestic market, not exposed to cross-country trade tensions Geographic Footprints
Countries
Others
China
USA & E.U.
Curatred GoGoody Inc.
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Community UGC
Al genrated PAG E - 2 0
Confidential | Investment Memorandum
INVESTMENT TAKEAWAYS
MARKET
PRODUCT
COMPETITIVE ADVANTAGE
Big market with high growth, excellent margins
Targeting user base with high data monetization potentials
Four innovative technologies in 4 months, Patent barriers, strategic alliance with brands
GoGoody Inc.
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Confidential | Investment Memorandum
团队 介绍
Roman Chen
Executive director
15+ year engineering experience in ads, recommendation, and search
GoGoody Inc.
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Liang Chiu
18+ year experience in Business development and marketing.
Zhaohui Zheng
Advisor, Co-Founder & CEO: Particle Media Cofounder: YiDian Inc
Robert Norton
Consultant of Business Strategies 26 years as CEO and entrepreneur; Ex-CTO of Thomson-Reuters
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Confidential | Investment Memorandum
Future plans
Company Development Milestones
iOS listing Version 0.1 Recruitment & Market Research
2018.7 2018.3
Initial business plan
2018.1 2017.10
Planning
2016.6
GoGoody Inc.
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