from the dec 1 call, archived on mercado libre site (its 27 minutes of reasons to be bullish):
mercado libre is in top 50 worldwide for page views, is the leader in e-commerce in all of their 12 country, and will benefit from huge demographic tide- of the 550 million latin americans, 150 use internet now and of that only 10% use ecommerce; they see their users increasing from ~13 million now to 100 million in 3-5 years
Bz seen as main driver going forward, continuing on current rate of 42% increase in successful sales; Mexico potential big, their penetration there low relative to other countries
recent (8-9 weeks ago) rolling out of open payments in Arg going great, really driving penetration of PAGO, they're focused on rolling that out in other mkts, they envision extremely high PAGO penetration rates
New seller pricing options and ongoing tech investments in search, placement, and PAGO all paying off
classified ad revs 10% of mkt revs, seen as growing as fast as core mktplace
their new ad initiative revenues 'mercado clicks' small but early results good, they will be investing in it as a core strategic part of biz going forward
they will be launching "mercado shops" soon- gives parties who want their own ecommerce site a platform that will include mercado clicks and PAGO
they are confident of their position in the competitive landscape, with youtube, facebook and google the players they are focusing on. They don't foresee any initiatives with partners outside latin amercia. They are focused.
I have no idea why no mobile app yet, mobile wasn't mentioned in call when they were asked about future initiatives. But iphones are expensive in brasil and I can't find data on iphone sales volumes there, so maybe iphone penetration low? Plus a mobile app would be a new technology for MELI, so I speculate they are focused on building PAGO penetration on their internet mkt platform for now, using that to build awareness/users as baSE to grow PAGO payments on net outside platform, with mobile to come last.
Would be a nice XMAS 2010 present to have PAGO go mobile end of next year though
and as it relates to that partnering question that galperin ducked.... meli should strongly consider partnering with a social network in Brazil...social networking is huge in Brazil. Goog owns Orkut(facebook type company). Orkut is big in Brazil. They should strike some deal with Orkut to drive traffic to meli.
you rock yelyacs...and thanks for posting. I did listen too. But you missed some key points:
1) introducing free listings in ALL countries to kill a craiglist like company from gaining momentum. Still will collect a FV fee, so there is some risk of competitive traction.
2) they talked about their business as an ecosystem which is interesting. payments, ads, marketplace, clicks, shops etc. what is missing from this ecosystem is a goddamn mobile solution. Why they don't have an app on the iphone in brazil is beyond me. yelyacs...is the iphone available in Brazil??? i'll check. mobile will be a key part of the ecosystem. None of analysts on call asked about this, but the dopes should have.
But I presume meli is watching ebay closely and is aware of ebay's iphone app success. meli to follow.
3)500 million people in latam, 150 mil internet users, 10% online. yeah they want 100 million users, but why can't they get 200 million in time?
4) also like the concept of keeping pago competitors at bay by wrapping pago with marketplace...so any suitor who want's pago needs the marketplace biz too. goog chechout is a failure and they could buy meli for pago and marketplace and put ebay on its as$. punish ebay for its thumbsucking and dithering. i want someone to read art of war here and preempt ebay.
5)mexico GDP big and meli biz small relative to mexico GDP
my read dudes, with ads, pago, marketplace, cicks and now shops and with mobile to follow, meli will have the ecosystem to go global.
target int'l markets:
YES davO man I thought move to allow ads placed free will help prevent craigslist-like entity from emerging and should attract more sellers. Good stuff
Totally agreed on wish for PAGO to go mobile, of which call made no mention-cell phone penetration in Latin America is 80% and mobile payments are growing fast in Brazil (VISA and MAstercard both have mobile payment platforms there). But I'm guessing mobile internet penetration is low - VISA/MC systems doesn't require internet- so for PAGO to tap mobile big now would require a mobile app like paypal has like you say. That would be awesome. But they are going about growing PAGO sensibly- build penetration on the mkt platform and branch out from there.
This call reinforced my view that these guys are really cranking. Props to raggweed for bringing it to my attention