10X Opportunities for 2020 and Beyond
by Nikki Yu, @facelesstrader
There are 5.5 billion people on earth, 5 billion of which have a phone, of which 4 billion have a smart phone. We connected everyone. This has huge fundamental implications on how businesses have changed forever. With instant connection, we have enabled the following giants—Apple, Amazon, Facebook, Microsoft, Huawei, Samsung, Tencent, Alibaba and Google—to monopolize and effectively corner people into their daily lives.
Don’t miss out on the 10X Opportunities for the new decade and beyond: Ecommerce, Streaming Platforms – New Entertainment, eSports Industry, Mobile Payments, Social Media and New Forms of Digital Advertising; Enterprise Software, Cloud Computing, 5G, D2C, Food Delivery, Ride Hailing, Millennials and Generation Z: Screenagers and Instagrannies; Robotics, AI and Automation; O-M-O; Online Merge Offline Education; Work from Home; Alternative Meat; International Expansion; Globalization; Athleisure and Vanity; Self Driving Cars; Clean Renewable Energy; Crazy Rich Asians—China, India and Southeast Asia.
E-commerce continues to grow >30 percent
US ecommerce sales is so big, hitting over 500 billion dollars from less than 5B dollars just 20 years ago. However, this is still just 15% of the total addressable retail market of 3.6 trillion dollars even in year 2019. More importantly, if we took a look at the ecommerce penetration rates in China and the UK or even in South Korea, their penetration rates are ahead of America, but still all of them are less than 25%. Brazil and India have largely been left untapped with only 5% penetration rates. Southeast Asia is even lower at 1% penetration rate.
While we’ve expanded the definition of retail from books and commodities to anything online, we’ve learned to rely on several platforms in order to sell things from Shopify powered marketplaces to Instagram, Etsy and Mercado Libre. The list goes on. Applications have varied from auction places such as Ebay to OLX, targeting different markets for different geographies. Pinterest attracts plenty of women who are looking for makeup, cookies, recipes, home decor and so forth.
Direct to Consumers (D2C)
In fact, there’s a D2C explosion where brands target your individual preferences and market a product straight to you while you’re browsing for a birthday gift or whatever you’re searching for at that specific time. There are a variety of brands to watch from baby care and parenting, to beauty, to beer, wine, alcohol beverages, to a flurry of wellness and fitness brands that are all niche-driven, vying for your customized and artisan taste buds.
Independent ecommerce is so big that it has enabled Shopify’s market cap to balloon to $60B in just five years. Stripe, which allows for ease of mobile payments, has blossomed to $35B market cap. Instagram and Youtube dominate with 20 billion dollars of ad revenue, supporting several influencers and brands in selling products online. What’s more important is that Amazon continues to grow at 30% annually despite starting from less than a billion dollars of sales in 1995 to as high as 250B dollars of sales in 2019.
These direct assaults to department stores has not gone unnoticed. The omni-channel approach of online and offline retail has become so important. Take note though that shipping fees and logistics have directly blossomed in correlation to the rise of ecommerce. The industry of packages grew from 1 billion to 70 billion packages in the last 7 years, thanks to ecommerce.
Connected TV (CTV) aka “cord cutting trend” or “streaming revolution”
And while the world shopped online, the phone has become congruent to replacing the television. Youtube was born in 2004. A decade later, television subscriptions or the cord cutting revolution started, and this has become not only stronger but fiercer. We have at least 30 million Roku TV households spending billions of hours watching thousands of streamed channels.
Youtube and Netflix are defacto the largest entertainment channels, but this can change with the addition of Disney. We have at least 180 million households paying for Netflix subscriptions monthly. Aggregators exist for a reason and Roku is wonderful in that domain.
HBO Max and Peacock and more streaming channels that used to be in our television sets are now available on our mobile phone, our notebooks or our desktops, thanks to fast 5G infrastructure and LTE for some countries. Entertainment is vastly changing such that celebrityhood has also evolved. Ryan’s Toy Review earns at least 20 million dollars annually from sponsorship and ads through his Youtube—a 6-year-old beating others.
Nonetheless, the long tail has enriched millions of creators from gamers to farmers. As long as there’s a viewer, it has become ubiquitous to make money online either by creating vlogs, tiktok videos or whatever that captures the attention of a large number of people enough for programmatic advertising to kick in. Teens and Generation Zs have their own platforms.
There’s Twitch for Americans, NimoTV for Southeast Asians, AfreecaTV for Koreans. The list goes on.
Offline Merge Online (OMO) Education
There are newer forms of video emerging every single day, enriching the content creators and transforming platforms from entertainment into educational resources. Gone are the days when teachers had to succumb to low wages. We now have 8 million dollars of annual earnings for the best teachers as evident in Korea.
Frozen’s Anna and Elsa are now Physics teachers, teaching children temperature lessons like hot and cold using Byju’s education app. Chinese children are learning how to speak English through the power of education technology. Parents are working more remotely as talent is now a global thing, and they can be hired by a global firm without having to reside where the headquarters of the company is. It wasn’t coronavirus that triggered the trend for working remotely; it was simply the expensive cost of rent and the long hours spent on traffic as well as geographical barriers that got smashed in the advent of 5G technology. This enabled Zoom video communications to become a constant go-to app for any business conducted online.
eSports industry is so huge. The video game market will more than double to become a $300B industry by 2025 with CAGR growing more than 13% in the next 5 years. Beneficiaries range from video game publishers, related consoles, streaming services. Mobile gaming is also a major driver of video game growth as there’s increased maturity of cloud gaming technology supported by 5G, driving the expansion of this market to over 100B dollars in the next 3 to 5 years. Millions of viewers watched the final championship of League of Legends, larger than the viewership of Superbowl that year. League of Legends, Overwatch, Call of Duty are household brands. CDProjekt went from a garage studio developer to a streamer and seller of massive hits such as Witcher Series and Cyberpunk 2077 featuring Keanu Reeves.
Honor of Kings made 2.2B RMB in a day of sales during the corona virus outbreak as reported by Tencent Holdings. eSports will be an official sport in the 2022 Asian games. eSports is so popular worldwide that Korea’s eSports scene is reminiscent of Germany’s soccer culture with grassroots talents nurtured from a young age, making their way to amateur leagues and professional teams. Korean schools are offering professional eSports courses where students could spend all night playing games with a PC Bang inside the school as long as they studied regular subjects in the morning. Faker, the top player of SK Telecom team won League of legends at the age of 21 with a prize money of 1.2M dollars. The prize pools have been skyrocketing which have also contributed to the growth of players and fans.
With everyone doing everything online these days, even dating and love had to change. This marks the advent of dating and hookup apps that flourished in the decade and continuing further. From almost 0% of people meeting their future partners online in 1995, this has grown to 40% in 2019. This enabled Match group (owner of Tinder) to grow subscription revenues to 500M dollars. Even Sharon Stone had to be in Bumble!
Cloud Computing is the New Oil
We know software has invaded our lives, but how much? Consider these facts. The largest billionaires 100 years ago was the oil baron John Rockefeller and steel baron Andrew Carnegie because they enabled transportation of goods and services and railroads. This marked the Industrial Age. However, today’s information age is powered by cloud computing.
Amazon Web Services corners 40% marketshare. Microsoft grew their revenues in Azure from 1B to 50B in the last 6 years, earning a coveted 20% market share. Google’s Cloud business has grown to 10B annually in the last 6 years. Once you’re selling anything online, indirectly you’re using data and the cloud to which you’re paying a small leasing fee of hosting to these giants. From software to automation to workflow tools, to Linkedin, Tinder, Facebook and everyone’s lives, we are connected by the cloud.
Software as a Service (SAAS)
Take note though that every software as a service business grew in the age of the software as you can conduct telemedicine, health checkups with your doctor in the comfort of your home. We have automated tax accounting and payroll systems. We have enabled automation for the mundane tasks of recording inventory and expenses and knowing everything about our customers thru the help of Salesforce, Oracle, Workday, Paycom Software, Five9, Avalara. We have sent our signatures and signed it electronically through Docusign. We’ve created our PDFs and creative templates and edited our videos through Adobe’s creative Suite while others used Canva. For accountants and bookkeepers, Intuit’s QuickBooks Live provides the opportunity to earn extra money with the flexibility of working remotely and setting their own hours.
We’ve enabled shopping through our cashless payment devices by swiping our credit cards with Visa and Mastercard or using Paypal Venmo accounts, Square CashApp, Stripe, Wechat, Alipay, Applepay, Mercado Pago, Stoneco and Pagseguro.
Total payment volume has been soaring quarterly and annually for all these companies. Consider the fact that Alipay and WeChat processed 36 trillion dollars worth of payments last 2019 versus the 14 trillion dollars processed by Visa and Mastercard combined. Longterm investors should consider payment processing gateways.
With global retail sales projected to keep growing 4 to 5% annually and a majority of that will be processed by payment firms handling non-cash payment adoption, Square, Paypal and all these companies will consistently grow their market shares in this pie. With consumers pivoting to non-cash payments via their card and smartphones, all these companies have built an ecosystem of non cash payments serving multiple years of high margin point of sale business solutions.
Self-Driving Electric Cars
The world has changed tremendously. We’ve gone from fossil fuels to self-driving cars where lithium ion is in high sharp demand because of the battery storage that can last us a million miles or approximately 78 years. Beijing’s Apollo Taxis powered by Baidu’s Artificial Intelligence has officially hailed passengers around the city.
Tesla year to date deliveries were 112,000 for 4Q19 and has delivered 368,000 units in 2019. They’re building Gigafactories in Texas and Shanghai to increase output for a million cars annually. BYD Electric cars and Toyota have partnered to bring electric cars. They are using Xilinx chips. Demand for these semiconductors has grown because of their advanced driver assistance systems (ADAS). The ADAS market is expected to grow 19% through 2025 as more of these cars hit the road.
Disruption is the New Normal
The world is sharply innovating through time and we’d like you to take a look at your future while investing in the companies creating and benefiting from that realm. Sustainable energy, sustainable food through vertical farms and plant-based alternatives flourish as well as cell-based burgers. Robotic surgeons powered by data analytics and artificial intelligence will help machines interpret your health conditions better than a human doctor. While this sounds too far out in the future, many companies such as ISRG have proven this to be the case.
Burger King for instance highlighted to millennials that they don’t use artificial preservatives in a direct attack against McDonald’s. The concept of fast food has been upended by the likes of Shake Shack that offer better burgers. They introduced gourmet burgers the same way that Chipotle introduced the power of healthier Mexican burritos. Did we fail to mention that you can also have these delivered right at your doorsteps? More and more restaurants are embracing ghost kitchens where they do mobile-delivery first with less and less of retail dining experiences as they’ve seen how sales have grown without needing to pay expensive real estate.
Luckin Coffee has effectively taught the master of coffee, Starbucks, the benefits of the takeout delivery system. The masters are also learning to change and adapt to new ways of doing business.
How to Globally Invest in 10X Trends
Learn the steps on how to open, fund and actually make money investing in the best companies in the world such as Shake Shack, Pinterest, Alphabet, Tencent, Sony, Square, Paypal, Pinduoduo, Beyond Meat, Luckin Coffee and more.
Target Audience: First Time Investors, Business Minded Individuals, People Looking to Capitalize on 10X Trends
Why Invest in 10X+ Trends now in the area of: E-Commerce, 5G, Self-Driving Cars, Automation, Alternative Meat, Mobile Payments.
9.00 – 10.00 am : Global 10X Trends (you are missing right now in 2020)
10.00 – 10.30 am : Awesome 10X System on global investing (mindset, system, methodology)
10.30-10.45 am : Break
10.45-11.30 am : Investment Portfolio Analysis
11.30-11.45 am : How to set up Interactive Broker and Start to Invest Globally
11.45-12.00 nn : Questions & Answers
Training Dates: Feb. 29, Saturday 9am-12 nn (Pilot session)
Nikki Yu, CMT
Skilled Finance Professional, Chartered Market Technician and Philippine Chapter’s chair for Chartered Market Technicians Association (www.cmtassociation.org) with more than 10 years of industry experience advising portfolios of retail clients. Currently serving as financial and sales advisor for Wealth Securities Inc., providing timely market information, independent qualitative and quantitative research to help clients make good decisions. Prior industry experience with several firms such as ING Private bank and COL financial as research assistant, marketing assistant, technical analyst, proprietary trader and sales broker.
Venue: Meeting Room, SMX Convention Center Aura
Training Fee: ₱2,500/session
Group Rate: Buy 4 + 1 free
Early Bird Rate: ₱2,000/session
• Free first month membership to Awesome 10X Educational Mastermind
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Register here: http://bit.ly/globalinvestingclass
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