1. Goldman Sachs Meeting 2019/4/10
Co-founder – Kuobrothers Corp/ Mobix Corp
Andy Kuo (郭家齊)

2. Part 1: Our entrepreneurship journey

3. Kelly(my wife) Cindy(Jerry’wife) Me Jerry
Started company with family (since 2007)
Kelly(my wife)
Cindy(Jerry’wife) Me
Jerry

4. Timeline for 21 websites 地圖日記 百萬網友團購網 好菜網 My Home & Garden 名片網
Groupon Taiwan
好魚網
好吃市集
Photo123
寵物百貨
寵物日記
生活市集
敗衣網
愛美123
松果購物
百搭流行網
2007
3C市集
生鮮市集
2010
主廚嚴選
2008
2011
大折扣
2012
2009
2013
Project Y
2014
2015
2016
2017
2019
Timeline for 21 websites
2018

5. 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 20th largest site in Taiwan in terms of traffic, but it was not a profitable business.

6. 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.

7. Part 2: Kuobrothers Corp. (founded in 2012)

8. In Apr, 2012, we started our 2nd 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.

9. We failed several times in the first year (2012)

10. In Dec 2012, we launched a successful seafood daily deal site
- This business looks right on day one.

11. Meat Grocery Apparel Seafood Home & living Electronics Pets meat
Soon Expanded to different verticals….
- The reason we do verticals.
Meat
Grocery
Apparel
Beauty & Clothing
Seafood
Home & living
Electronics
Pets
meat

12. How this business model works
Selected Item site
>70% revenue from mobile
All products
In the world
Product Team
Limited Space with SKU = 7000
Sales People
Icons Designed by Freepik

13. IPO in Oct, 2016. employees: 185 Year 2013 2014 2015 2016 2017 2018
Focus on revenue growth in Taiwan market.
employees: 185
Year
2013
2014
2015
2016
2017
2018
revenue
0.3
1.5
2.4
3.1
3.7
5.0
(revenue in NT Bn)

14. Part 3: New businesses for future growth.

15. 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.

16. Luckily it’s first service – 松果購物 is a hit.
It is a new B2B2C model based on 2016’s technology and trend.
How it differs from other B2B2C 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.

17. GMV growth Chart
Mobix is profitable in This is unusual for Ecommerce in Taiwan. (because of Economies of Scale)
We plan to go IPO(上櫃) in (興櫃 in 2019)

18. New business to explore the opportunities in Food industry (Online Grocer)
A new company “Newec Corp” will be setup in April (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

19. Part 4: Technology is the core of our businesses.

20. Growing revenue without adding too many people
Automation is the key.

21. How we automate product management process with rule-based algorithm.
Step1: sort all products by revenue generated in the last 6 months and use it as the original score.
Step2: 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.

22. 王建國 郭宇清 許美麗 李宜姍 陳典志 曾惠馨 98%男 61%男 99%女 91%女 98%男 81%女
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
郭宇清
98%男
61%男
許美麗
李宜姍
99%女
91%女
陳典志
曾惠馨
98%男
81%女

23. 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.

24. 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.

25. Summary

26. 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.

27. Q/A