February 2016 reidefine OUR VISION To create the worlds leading - PowerPoint PPT Presentation

APP presentation February 2016

reidefine OUR VISION To create the world’s leading entertainment driven eCommerce platform on mobile “Shop what you watch and love” - seamlessly, integrated, all on mobile 2

reidefine OUR FOUNDERS A founding team with over 30 years experience in the integration of business, media and technology Ben Reid Ben Griffith CEO & Founder Chief Technology Officer & Co-founder “The Hustler” “The Hacker” Business + Sales + Strategy Technology + R&D + Strategy http://au.linkedin.com/in/benmreid http://au.linkedin.com/in/bengriffo 3

reidefine REIDEFINE TEAM 150+ years experience in the integration of business, media and technology; 50+ years experience in China Managemen Design Technology China t Ben Reid Oliver Weidlich Ben Griffith Jenny Zhang CEO, Founder UX Strategic Partner Chief Technology Officer, Co-founder Head of Business Development, China Michael Gralopp Ray Velez Simon Litchfield Michael Baltaks Senn Anderson Advisor UX designer Head of Data Engineering Head of Platforms Head of Format Development, China Ian Davis Jessica Koncz Jordan Koncz Aron Bury Ky Yang Advisor Digital Marketing Manager Software Engineering Manager Head of Applications China Engineering Manager 4

reidefine OLD VS NEW WORLD Entertainment value chain Creatives Production Creatives Networks Distribution Devices Audiences Companies Specialised High cost Limited programmers & Controlled by Single, shared device Low attention 2000 inventory infrastructure owners competition Generalised Lower costs Programmer abundance, The internet Many personalised Massive attention 2016 unlimited inventory devices competition 5

reidefine THE DISRUPTION OPPORTUNITY The video ecosystem is ripe for disruption Poor content ROI Rise of networks 2.0 Mobile largely untapped Tier 1 vs the rest Attention economy Mobile as an afterthought Low on-demand ARPU FB and Instagram New format, not new screen Declining advertising Influencers & decentralised curation 6

reidefine OUR SOLUTION Reidefine is building a platform to capitalise on this disruption opportunity Poor content ROI Rise of networks 2.0 Mobile largely untapped eCommerce Social and contextual Designed for mobile from eCommerce platform day 1 7

reidefine HOW WE REACH THE CONSUMER: THROUGH OUR MOBILE APP Our WeLiveIt APP v1.0: a beautifully designed APP for connecting mobile video and eCommerce together. Built in Q3/Q4 2015 and live to our trial base. Watch Shop 360 o Discover Select 8

reidefine IN BETA TESTING NOW: WELIVEIT V2.0 WeLiveIt v2.0: channel curation, shoppable images, social sharing 9

reidefine WHY MOBILE VIDEO? REIDEFINES LAW. Reidefines law: all media will converge towards mobile video. A pervasive device meets brain processing efficiency 60,000 The number of times the brain processes images faster than text 10

reidefine WE SEE THIS ALREADY HAPPENING WITH FACEBOOK The future of Facebook is all about mobile video 75% Of FB video views are on mobile in 2016 Sources: eMarketer, PC World 11

reidefine WHY MOBILE ECOMMERCE? LOOK TO CHINA. In 2018 China will be 50% of the worlds $3 Trillion USD eCommerce market, with 60%+ of spend happening on mobile. eCommerce market share eCommerce market size (% market in 2018) ($B USD in 2018) World China China mobile 24% eCommerce 50% 3,000 26% 1,500 900 China Next 8 USA 12

THIS IS ECOMMERCE BUT NOT JUST ANY COMMERCE - ENTERTAINMENT DRIVEN reidefine ECOMMERCE Entertainment drives the audience and emotion, platform connects it to eCommerce ENTERTAINMENT Entertainment driven eCommerce formats Drive audience Create desire PLATFORM eCommerce A global platform to connect Strategically planned retail entertainment and Enable retail spend products and retail fulfilment eCommerce together 13

reidefine MARKET OPPORTUNITY Movie & TV merchandise, sports merchandise and online video influencers represent big market opportunities for entertainment driven retail Movie&TV Sports Influencer Merchandise Merchandise eCommerce $100B $20B $10B OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES Higher revenue from Asia which Higher revenue from Asia which New markets in Asia for using today represents <10% of market today represents <10% of market influencers to drive eCommerce Higher volume across all markets Higher volume across all markets New revenue stream in through the use of eCommerce. through the use of eCommerce. eCommerce which offers 20X+ Target 10% uplift for existing Target 10% uplift for existing better returns than advertising for franchises franchises influencers Better margins through Better margins through Volume and scale offered eCommerce, reduction in fakes eCommerce, reduction in fakes through the long tail of video and in-house products (longer and in-house products (longer influencers (10K+ across 14 term). term). Youtube and Youku)

reidefine MARKET OPPORTUNITY: MOVIE AND TV MERCHANDISE, ASIA Today movie and TV merchandising is a $100B+ USD business, with huge Asia upside Product licensing revenue for movie and TV entertainment (2014, $USD) Global Asia Only making 10% from Asia today with counterfeits a big issue; 11B 107B USD potential to grow 10X in USD next 2 years given eCommerce trends. 15 Sources: International Licensing Industry Merchandisers' Association (LIMA)

reidefine MOVIE MERCHANDISE FRANCHISES Merchandise has created some of the biggest franchises of all time (Merchandise revenue as of 2014, $USD) Star Wars - $20 billion Cars - $10 billion Simpsons - $5 billion Frozen - $5 billion Transformers - $3 billion Toy Story - $2.4 billion 16

reidefine CARS CASE STUDY Cars generated 50X more revenue in merchandise than their US Box Office (Numbers as of 2014, $USD) Global merchandising - $10 billion US Box Office - $191 million 17

reidefine WHAT IF? You were the company that provided 10% revenue uplift to just these 6 franchises ($USD) Revenue uplift +4.5B +10% Base revenue 45B 18

reidefine MARKET OPPORTUNITY: SPORTS MERCHANDISE, ASIA Today sports merchandising is a $20B+ USD business, with huge Asia upside Product licensing revenue for sports (2014, $USD) Global Asia Only making 10% from Asia today with counterfeits a big issue; 2B 20B USD potential to grow 10X in USD next 2 years given eCommerce trends. 19 Sources: PWC, AT Kearney

reidefine US SPORTS FRANCHISES US sports are the mega franchises in sports with $13B in merchandise revenue Product licensing revenue for sports - $13B (2014, $USD) China already #2 market 20

reidefine MARKET OPPORTUNITY: ONLINE VIDEO INFLUENCER DRIVEN ECOMMERCE eCommerce can generate 20X+ greater returns than advertising for online video influencers Advertising vs eCommerce Income per M views ($USD) Youtube Video eCommerce $2.5 $50K K *Projected based on: 21 Youtube: $3-5 CPM with 45% revenue share to Youtube Reidefine: 1% conversion, $100 transaction size, 5% margins

reidefine MARKET OPPORTUNITY: THE SCALE OF ONLINE VIDEO INFLUENCERS Youtube channels in the bottom 5,000 of influencers are getting 500K+ subscribers and 200M+ views Influence rank Subscribers Views 22 Source: Socialblade

reidefine WHAT IF? You could convert video influencers to a video eCommerce model? A Youtube influencer in the top 5,000 could generate $1M income / year Based on: 40M views, 50% share of EBITDA 23

reidefine INFLUENCE DRIVEN ECOMMERCE Zhang Xinyu and the lavender bear $20M revenue … lost 24

reidefine THREE COMPONENTS OF THE MODEL The business opportunity lies in the integration of content, eCommerce and platform 1 2 3 Content Retail Platform Creation and execution Sourcing retail, setting A mobile APP and cloud of “entertainment driven up retail fulfilment based platform to bring retail formats” the content and retail together In-house production In-house selection, drop Mobile only, Australia Prove model and support shipping Content partnerships Retail partnerships, 3PL Mobile and web, global Scale system 25

reidefine OUR CONTENT STRATEGY Content partnerships for longer term combined with content that can get us live quickly 2015 2016 2017 Now 18-36 months lead time Movies 3-6 months lead time Television 1-3 months lead time Influencers 26

reidefine CURRENT CONTENT PARTNERSHIP DISCUSSIONS Current content partnership discussions FILM AND TELEVISION VIDEO INFLUENCERS Late stage discussions for 1-3 LOI to roll home shopping v2.0 5+ influencers lined up in China trial projects across 2 national TV networks with first signed; 5+ internationally Influencers from: In discussions on use of our 12 month partnership in video Detailed discussions with COO mobile platform for the AirSickness eCommerce and smart education and digital team Project 27