The Impulso Podcast

Welcome back to another weekly recap episode of the Impulso Podcast. This week we dive into big news in the e-commerce landscape in Southeast Asia. We invited the authors of a newly released “The TikTok Shop Playbook” to talk about recent developments.

In the dynamic landscape of e-commerce, the market is shifting rapidly. Just a year ago, Shopee reigned as the dominant player. However, the game has since changed, with the emergence of TikTok Shop and its aggressive and ambitious strategy, alongside Temu.

Pinduoduo has recently published their results Q2 results, which was greeted warmly with a 20% share price increase. But what exactly does their P&L unravel about their cost efficiency? Pinduoduo is particularly known for its operational efficiency. Which measures do they resort to to achieve it?

Temi shot down all rumors of entering Southeast Asia with a quiet yet quick launch in the Philippines. The big question on everyone's mind is: Why the Philippines? What could be the factors that contributed to such speed? And what might be their next destination in Southeast Asia?

What about TikTok Shop? Recently they announced an impressive goal of hitting US$20 billion GMV. But how is their consignment model doing? What do suppliers say?

Delving into customer behavior in Southeast Asia, it's a captivating realm. How are consumers shaping the e-commerce landscape in this region? These are some of the intriguing topics we'll be exploring in this episode.

 

Featured this week: 

Pinduoduo has enough $$$ to fund Temu’s Southeast Asia expansion, and more - The Low Down - Momentum Works, Who is Temu? | Momentum Works

 

Temu has entered Southeast Asia, challenging Shopee, Lazada & TikTok Shop - The Low Down - Momentum Works

 

Behind TikTok’s consignment ecommerce model: Progressing amidst chaos and disorder? - The Low Down - Momentum Works

If you haven't heard part one of this in-depth recap, go back to E25 and check it out now!

After a very brief hiatus, the team is back in the studio to recap their recent trip to China. Hear about the companies they visited, where you can pick up a coffee with a machine washable teddy bear attached to it, and what a flying taxi is. 

Learn what it is like to participate in a China Digital Leadership immersion. Details can be found here:

https://www.momentum.academy/innovative-immersions/china-digital-leadership-immersion

and a short description follows below.

 

China is back in business. The country’s consumer businesses, already infused with tech and innovation before the pandemic, have evolved to be more innovative and competitive. When the economy matures and natural growth slows down, tech platforms and other businesses are innovating even faster to stay competitive.

 

Bring your leaders on this practical and experiential immersion journey into China with Momentum Academy, where you will learn the latest technological and innovation trends, converse with industry leaders and practitioners to understand the logic behind, and bring such learnings back to your business.

 

The immersion programme covers a selected spectrum of key topics in innovation, including business models, products, operations, and platform ecosystems (see all our modules below) . We will curate the experience based on your leader’s priorities.

 

The Momentum Academy curriculum facilitate discussions to provide relevant background knowledge, context and behind-the-scene stories. These will ensure the learnings can resonate directly with your unique business landscape.

Welcome back to the Impulso Podcast, we know you've missed us!

After a very brief hiatus, the team is back in the studio to recap their recent trip to China. Hear about the companies they visited, where you can pick up a coffee with a machine washable teddy bear attached to it, and what a flying taxi is. 

In part one of this two-part in-depth recap, learn what it is like to participate in a China Digital Leadership immersion. Details can be found here:

https://www.momentum.academy/innovative-immersions/china-digital-leadership-immersion

and a short description follows below.

 

China is back in business. The country’s consumer businesses, already infused with tech and innovation before the pandemic, have evolved to be more innovative and competitive. When the economy matures and natural growth slows down, tech platforms and other businesses are innovating even faster to stay competitive.

 

Bring your leaders on this practical and experiential immersion journey into China with Momentum Academy, where you will learn the latest technological and innovation trends, converse with industry leaders and practitioners to understand the logic behind, and bring such learnings back to your business.

 

The immersion programme covers a selected spectrum of key topics in innovation, including business models, products, operations, and platform ecosystems (see all our modules below) . We will curate the experience based on your leader’s priorities.

 

The Momentum Academy curriculum facilitate discussions to provide relevant background knowledge, context and behind-the-scene stories. These will ensure the learnings can resonate directly with your unique business landscape.

Welcome back to our weekly in-depth episodes of the Impulso podcast. This week, we dive deeper into food delivery platforms, and the market landscape as a whole. Momentum Works publishes an annual report on the state of food delivery in Southeast Asia, which is always extremely well received. Hear directly from one of the authors of that report about what has happened in the half a year since our last report was published.

 

Zomato recently became the third large food delivery company to become profitable in Asia. How exactly did this happen when their customer base is just over 1% of that of the country they operate in population? And, why is Meituan so efficient? Or, rather, how? What further sets their customer success apart?

 

Singapore is a comparatively small country when we are also assessing China, India and Thailand, so how are delivery times and fees here so much higher than in other markets, and what role do transport regulations play in this? 

 

Many food delivery platforms have been acquired or forming partnerships. Some of these partnerships are resulting in rapid growth that is mutually beneficial, and cultural norms in various countries play a role in this. Consumers across China and Singapore have very different mindsets, with superapps being the norm in China and consumers in Singapore more likely to cross reference every platform for the best price before making a decision.

 

But, at the end of the day, profitability is top of mind for almost every food delivery platform. Almost is the key word here. Learn what methods these platforms could employ to achieve this goal sooner, or why some platforms might not be as concerned with this target.

 

Mentioned in this episode:

 

Food delivery platforms in Southeast Asia 2023

 

https://momentum.asia/product/food-delivery-platforms-in-southeast-asia-2023/

 

Food delivery platforms in Southeast Asia 2022

 

https://momentum.asia/product/food-delivery-platforms-in-southeast-asia-2022/

For the second week in a row, there isn’t too much explosive news for us to dissect, but that’s not to say that the world of tech, business and innovation has been quiet by any standard. Join us as we dissect ride hailing and e-commerce giant GoTo’s decision to launch a standalone GoPay app in Indonesia, Tiktok Shop’s recent developments, and cross border tensions as the US imposes a ban on tech investment in China.

 

How do WeChat and AliPay differ? One is a social app with payment, and the other is a payment app with other functions. GoTo is tapping into a middle ground here with the creation of their standalone GoPay app which will operate as an e-wallet on its own, potentially allowing for consumers to engage in payment outside of the GoTo ecosystem. This app will take up less space than Gojek and Tokopedia do, and aims to tap into the customer base that may not have ride hailing, food delivery or e-commerce needs per se, but still have interest in an e-wallet.

 

Next, we take another look at TikTok Shop. A couple weeks ago we did an in-depth look at TikTok Shop, and today we have some updates and new perspectives for you. How are brands viewing TikTok Shop in comparison to traditional e-commerce platforms like Shopee? Should TikTok invest in their own logistics set up, or continue to rely on third party solutions? Find out this and more on today’s episode.

 

To end on a light note (pure sarcasm here), we take a brief look at US-China relations, and how they are developing in light of the White House signaling a ban or severe restriction on tech investment going into China from the US. While the motives appear to be security related, the knock on effect is yet to be seen, as are any retaliatory measures that will be imposed by Beijing.

 

Stay tuned for Wednesday’s in-depth episode on food delivery platforms!

In this episode of the Impulso Podcast, go on a journey with us through Meituan’s evolution. From the founders’ failed previous entrepreneurial adventures, to the company’s initial founding as a Group Buy company in China. 

 

Learn how Meituan remained strong through the group buy battle and Alibaba’s clear dominance of the market share by doubling down on their service offerings. After building a successful movie ticket purchasing platform, as well as a one and no star hotel booking platform, Wang Xing finally came up with the idea to move into food delivery. At the time, Alibaba’s ele.me was the only real option around, but as it focused largely on universities and students, a large segment of the population was left to tap into as demand for food delivery increased.

 

Once again, Alibaba and Meituan faced off; Meituan’s years of honing its operational efficiencies came in handy as they slowly acquired their now extremely extensive user base. But this all happened almost a decade ago. What is Meituan up to now?

 

Learn about the AI company founded by an ex-founder of Meituan itself, Wang Huiwen, and the company’s acquisition of this tech company. Is Meituan entering China’s AI race? They also recently launched in Hong Kong, bringing their signature speed and efficiency guarantees to KeeTa (aptly named after the word “cheetah”) to compete with the likes of Deliveroo and FoodPanda in this new market. 

 

There is clearly a lot to be learnt from this immensely successful company. 

 

Read the full report here:

 

https://momentum.asia/product/meituan_finding_business_clarity/

Join us for this weekly recap, where we discuss the relatively slow week that has just passed, and gracefully given us a break from tech turmoil. But, not entirely.

 

We kick off by talking about Elon Musk’s latest fine to pay; this time for putting up a flashing X sign at the former Twitter headquarters in San Francisco. Once again, this overhaul in branding seems to not be totally thought through as the company failed to acquire the appropriate permits and permissions to hoist the new logo, bringing back echoes of the “er” that remained up after the removal of “Twitter” was interrupted last week for the exact same reason, halting after “Twitt” had already been taken down.

 

Next, we explore China’s proposed curfew and limitation of the internet for children under 18. A few years ago, the country imposed a similar curfew on gaming, which has apparently been held up relatively well. This time around, the focus lies on the internet, but more specifically on social media, with the agency leading the cause citing concerns for children’s health and safety. Is it a little futile, given the many ways around parental controls? We’ll have to wait and see.

 

AI recruitment might be taking over, especially for blue collar workers. A woman was faced with two glitches carried out by two different chatbots while seeking a fast food job in the US recently. Cost cutting is all well and good, but has the technology come far enough for us to rely on it so entirely?

 

Referenced in this episode:

Elon Musk to be billed for unauthorised flashing X sign

https://www.bbc.com/news/technology-66371435

 

Twitter Blue subscribers can now hide their blue checks

https://www.theverge.com/2023/8/2/23816924/twitter-x-blue-subscribers-hide-blue-check-option

In this episode, we explore the rise of Shein, the Chinese fast fashion retailer that has taken the world by storm. We'll discuss the company's founding, its unique supply chain, and its recent developments, including its recent restructuring. We'll also talk about why people should be interested in Shein, and whether or not its business practices are sustainable.

Shein was founded in 2008 by Chris Xu, a Chinese entrepreneur. The company started out as an online retailer of wedding dresses, but it quickly expanded into other categories, such as women's clothing, men's clothing, and children's clothing.

Shein's supply chain is one of the things that sets it apart from other fast fashion retailers. The company uses a quick reorder model, which means that it doesn't actually own much of its inventory. Instead, it partners with factories around the world to produce products on demand. This allows Shein to keep its prices low and to respond quickly to trends.

In recent years, Shein has come under fire for a number of reasons. Despite these controversies, Shein remains one of the most popular online retailers in the world. The company has over 100 million active users and it's estimated to be worth over $100 billion.

So why should people be interested in Shein? The company's prices are certainly attractive, and its selection of products is vast. However, it's important to be aware of the company's business practices before you make a purchase. In this episode, we'll discuss all of these things and more. We'll also talk about the future of Shein and whether or not the company can continue to grow at its current pace.

This episode is heavily based on our July 2022 report "Who is SHEIN?" which can be found in its entirety here:

https://momentum.asia/product/who-is-shein/

Elon Musk, the visionary entrepreneur, stunned the tech world with Twitter's rapid rebranding into "X," marking the beginning of the platform's ambitious transformation into an "everything app." Aligning with Musk's vision for an all-encompassing superapp like China's WeChat, Twitter's transition to X has sparked curiosity and skepticism due to its apparent lack of planning and surprising speed. However, as the platform undergoes this metamorphosis, we explore the potential implications for language and culture, considering the legacy of Twitter's iconic influence. 

Next, we turn our focus to Temu, the rising star in the e-commerce realm, now boasting a presence in an astounding 27 countries, including its latest venture into South Korea. As we unpack Temu's rapid growth and strategic expansion, we ponder the possibilities of the company venturing into Southeast Asia (SEA), potentially challenging established players like Shopee, Lazada, AliExpress, and TikTok Shop. We explore the factors fueling Temu's success, the potential impact on SEA's e-commerce landscape, and how this enterprising company is poised to transform the global e-commerce market.

In the realm of ride-hailing, Grab has made a significant move by acquiring Trans-cab, Singapore's third-largest licensed taxi operator. With the aim of addressing supply-demand dynamics, Grab's strategic acquisition signals a departure from the traditional ride-hailing model. We analyze the implications of Grab's ownership of a taxi fleet, potential strategies in other Southeast Asian markets, and the implications for ride-hailing consumers and drivers alike.

Shifting gears to Indonesia's electric vehicle (EV) market, we explore the rise of Maka Motors, a homegrown EV maker founded by GoJek executives. With a recent seed funding of $37.6 million, Maka Motors is set to play a pivotal role in Indonesia's electrification journey. As projections indicate a booming EV market in Indonesia, we discuss the potential impact on the automotive landscape and how Maka Motors aims to drive innovation and sustainability in the region.

Referenced in this episode:

Who is Temu?

https://momentum.asia/product/who-is-temu/

Temu enters South Korea

https://thelowdown.momentum.asia/temu-enters-south-korea/

In this in-depth episode, we delve into the captivating journey of Luckin Coffee, exploring their strategic evolution from the voucher stage to becoming a coffee sensation in China. 

Luckin initially focused on selling coffee culture but quickly realized the key to their success lay in meeting Chinese consumers' demands for authentic coffee flavors. Notably, their coconut latte emerged as the most popular drink, catapulting their popularity to new heights. However, amidst their success, Luckin faced a setback due to a fraud issue, leading to a lawsuit and the eventual removal of their original founder. Yet, his entrepreneurial spirit didn't wane, as the same founder went on to launch another venture - Cotti Coffee.

Meanwhile, Starbucks, a giant in the global coffee industry, stood as a formidable competitor with its unique selling point of offering more than just coffee; it provided an unparalleled experience and ambience synonymous with meeting for coffee. The customer experience at Starbucks and Luckin differs significantly, as the spaces each company creates cater to distinct preferences and moods.

Explore the fascinating details of how ordering from these coffee titans differs; with Luckin, it's an app-exclusive process with no cashiers involved, ensuring swift order-to-delivery service. Furthermore, we question whether customers genuinely prioritize coffee taste or if other factors take precedence in their choices.

Unearth the pricing dynamics between Starbucks and Luckin in Singapore, where the price point is quite similar, albeit Starbucks may marginally outprice Luckin. However, Luckin competes with a plethora of vouchers to entice customers. Interestingly, Luckin's semi-machine customization contrasts Starbucks' more flexible approach. Discover the strategic locations of these coffee powerhouses; while Starbucks enjoys the flexibility of choosing various locations, Luckin positions itself in central and convenient spots for maximum visibility and accessibility.

For more on what we’ve discussed today, refer to “Sip, Innovate, Repeat” below.

 

Referenced in this episode:

“Disgraced” Luckin founder started a new coffee chain in China

https://thelowdown.momentum.asia/disgraced-luckin-founder-started-a-new-coffee-chain-in-china/

 

Luckin Coffee sold more than 2000 cups on its opening day

https://thelowdown.momentum.asia/luckin-coffee-sold-more-than-2000-cups-on-its-opening-day/

 

Sip, Innovate, Repeat - Lessons on Innovation

https://www.momentum.academy/workshops-simulations-1/sip%2C-innovate%2C-repeat---lessons-on-innovation-