Goldman Sachs Meeting 2019410 Cofounder Kuobrothers Corp Mobix
Goldman Sachs Meeting 2019/4/10 Co-founder – Kuobrothers Corp/ Mobix Corp Andy Kuo (郭家齊)
Part 1: Our entrepreneurship journey
Started company with family (since 2007) Kelly(my wife) Cindy(Jerry’wi fe) Me Jerry
百萬網友 團購網 地圖日記 My Home & Garden 好菜網 Groupon Taiwan 名片網 好魚網 好吃市集 Photo 123 寵物日記 生活市集 敗衣網 百搭流行網 2007 2008 2009 2010 主廚嚴選 2011 寵物百貨 愛美123 松果購物 3 C市集 生鮮市集 大折扣 2012 2013 Project Y 2014 2015 Timeline for 21 websites 2016 2017 2019 2018
First Company - NTD$500, 000 to start the company in 2007. - First Product - 地圖日記 is a location-based social networking site. - At the best time, it was the 20 th largest site in Taiwan in terms of traffic, but it was not a profitable business.
In 2010, we launched a Groupon like service and was soon acquired by Groupon. In four months, we were acquired by Groupon and the service was rebranded to Groupon Taiwan.
Part 2: Kuobrothers Corp. (founded in 2012)
In Apr, 2012, we started our 2 nd company. - Rent the office and hired people before ideas came. Policy 1: we only do internet business Policy 2: we only do business that can generate revenue on day 1. Policy 3: we only do business that has been proven successful by other people in other markets.
We failed several times in the first year (2012)
In Dec 2012, we launched a successful seafood daily deal site - This business looks right on day one.
Soon Expanded to different verticals…. - The reason we do verticals. Seafood Meat Grocery Apparel Beauty & Clothing Home & living Electronics Pets meat
How this business model works - Selected Item site - >70% revenue from mobile All products In the world Icons Designed by Freepik Product Team Sales People Limited Space with SKU = 7000
IPO in Oct, 2016. - Focus on revenue growth in Taiwan market. employees: 185 Year 2013 revenue 0. 3 (revenue in NT Bn) 2014 1. 5 2015 2. 4 2016 3. 1 2017 3. 7 2018 5. 0
Part 3: New businesses for future growth.
In 2016, we started a startup Mobix Corp. - A totally separated team to try new business model. - In the beginning, it was 100% owned by Kuobrothers Corp. (53. 84% now) - Again, we built the team before knowing what service we were going to build.
Luckily it’s first service – 松果購物 is a hit. It is a new B 2 B 2 C model based on 2016’s technology and trend. How it differs from other B 2 B 2 C competitors? - For 3000 merchants on the platform. We don’t charge yearly fee, registration fee, paid media fee…, etc. We charge a certain percentage of sales for each transaction. There is no fixed cost for merchants. - It is a native mobile app. When we started the company in 2016, it’s clear App would be the future. Today about 80% of revenue is from mobile. - Because of business model and technology, we could build user central experiences.
GMV growth Chart - Mobix is profitable in 2018. This is unusual for Ecommerce in Taiwan. (because of Economies of Scale) - We plan to go IPO(上櫃) in 2020. (興櫃 in 2019)
New business to explore the opportunities in Food industry (Online Grocer) - A new company “Newec Corp” will be setup in April 2019. (100% owned by Kuobrothers Corp) - Again, a totally independent team in separated office space. - Plan to launch the service in July 2019. 新時代電商股份有限公司
Part 4: Technology is the core of our businesses.
Growing revenue without adding too many people Automation is the key.
How we automate product management process with rule-based algorithm. Step 1: sort all products by revenue generated in the last 6 months and use it as the original score. Step 2: If customer review score higher than 4. 5, multiply the score by 1. 5. Step 3: If it is rainy season, multiply raincoat, umbrella’s score by 1. 2. Step 4: For products with high return rate, multiply the score by 0. 7. … …… ………. . In the end, we have hundreds of rules.
Our very first AI project (in 2016) - We built model to identify users’ genders based on names. - It was very accurate, and soon made us believe AI could solve many problems. - Unfortunately, we didn’t make too much progress for months after that. 王建國 98%男 郭宇清 61%男 許美麗 99%女 李宜姍 91%女 陳典志 98%男 曾惠馨 81%女
The breakthrough happened when we built a Data Team in 2017. - Data scientists and data engineers started to accomplish big progress because their mindsets and the way to target the problems are different from those of software developers.
Story of an AI-based project – personal recommendation It took 6 months to pass the A/B testing to launch. It soon beat the rule-based algorithm dramatically.
Summary
- We are an asset-light company. - We invest in new technology and believe it is the future. - In the past 12 years, we always face competitors with much larger resources than us, but we can always find a way to survive and grow the company. - We believe concepts of “lean startup” and “growth hacking” and build the team’s core competence based on that. While we change services frequently, the core value of the team remains the same. - We focus on long term growth and not short term gain.
Q/A
- Slides: 27