1. MOBILE MAPPING IN
CHINA
SCP Model Analysis and
Future Prospects
Presenters
Time
1
Aiur & Olivia & Xiaofan
27/3/2014

2. AGENDA
•Background of Chinese mobile
mapping market
•Analysis of Chinese mapping
market in SCP Model
•Future Prospects
2

3. BACKGROUND OF
CHINESE MOBILE
MAPPING MARKET
3

4. DEFINITION OF MOBILE MAP
Mobile map is the application that uses
mobile phone or other mobile terminal to
view the map, position, search the location,
and plan the route through WAP or other
software.
Source: China Mobile Map Market Research Annual Report for 2013
4

5. CHINESE MOBILE INTERNET USERS
5
3,104 3,503 10,049
20,514
28,819
43,137
56,120
65,895
74,896
82,462
2006 2007 2008 2009 2010 2011 2012 2013(F) 2014(F) 2015(F)
Prediction of
Active user scale of China mobile internet
Active users
faster than global
market

6. Mobile mapping has become a new
market darling
6
13.60%
18.20%
20.50%
22.70%
22.70%
25.00%
29.50%
31.80%
34.10%
52.30%
67.10%
Mobile ordering
Book hotel
Registration
Mobile booking tickets
Price parity
Group-buying
Mobile shopping
Mobile payment
Recommendation information
Life service information
Mobile mapping and navigation
User's behaviors of mobile internet
source: Chinese mobile internet market research for 2013
Life service applications are getting more and more
attention from users.

7. USER SCALE OF CHINESE MOBILE
MAPPING
7
1.6
2.5
3.3
4
4.7
5.2
62.20%
32%
20.70%
16.90%
11.00%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0
1
2
3
4
5
6
2011 2012 2013 2014e 2015e 2016e
User scale of mobile mapping and navigation(hundred million) Growth rate
Source: Chinese mobile mapping and navigation market research report for 2012
User scale of mobile mapping and navigation(hundred
million)

8. DEVELOPMENT IN CHINESE
MARKET
The first Internet map service was launched
Google map entered China and chose
Autonavi as their partner
Mobile mapping service became
homogenized. Competition became fiercer.
Small companies died. Survivors began to
focus on O2O business.
1999
2007
2008
2010
8

9. ANALYSIS IN S-C-P
MODEL
Structure
Conduct
Performance
9

10. STRUCTURE
C
P
10

11. ‹#›

12. S 2 ENTRY BARRIERS
Governme
nt Policy
Only companies with qualifications
can provide mapping business.
Database
Provider
Chinese mapping industry is
duopolistic
AutoNavi & Navinfo
12

13. S
CONDUCT
P
13

14. 64.60%
20.20%
10.80%
4.40%
Are you willing to pay for the
mobile apps?
C 1 PRICING POLICIES
Most mobile map apps are free.
Main reason : Users have less willingness to pay for
mobile apps. 14
33.80%
66.20%
Have you ever paid for the
mobile apps?
Yes
No
No
Will buy if price
is acceptable
Maybe
Will buy as long
as I like the app

15. C 2 PRODUCT STRATEGY--
AutoNavi
Contend for the phone
entrance
map social platform
Integrate with third
parties
15

16. C 2 PRODUCT STRATEGY--
AutoNavi
The commercialization path of
AutoNavi
map-based O2O
business
ecosystem
high quality
services
third parties
Establish LBS
business ecology16

17. C 2 PRODUCT STRATEGY—Baidu
Map
 Accelerate the conversion from the local
life entrance Baidu Map department → LBS business
department
 Baidu side's Guid
 Baidu tuan
 Integrate with coupon and group buying
information and access to their order
 Introduction of indoor positioning and
location sharing Location Sharing Services
 Interior map
 Cooperate with third-party applications
17

18. C 2 PRODUCT STRATEGY—Baidu
Map
 Access to discount hotels
 Access to the daily discount hotel
inventory resources
 Enter to the discount hotels market
"Tonight Hotel Deals" section
18

19. C 3 REVENUE MODEL
19
The basic business model of mobile mapping
industry
Mapping
service
Users
Advertise
rs

20. C 3 REVENUE MODEL
Several characteristics
1. Advertising.
2. Location-targeted advertisements.
3. Mobile and Internet location-based solutions for enterprises.
4. Pre-installing navigation software cooperation with mobile
phone manufacturers.
5. Charge users for application download and advanced
service.However, in 2013, Baidu and AutoNavi Navigation started
offering free service.  New business model needs to be
established.
20

21. C 4 COMPETITION
It can integrate abundant resources
provided by Alibaba
It has strong user base from its signature
brand
Baidu Search engine
21

22. S
C
PERFORMANCE
22

23. P 1 Mobile mapping user are increasing
23
Sequential growth rate is 8

24. P 2 The status of the TOP 3 players is
more solid
24

25. FUTURE PROSPECTS
•Prediction of players
•3 trends that will drive the
future
25

26. PREDICTION OF PLAYERS--Leading
Players
 With the investment from Alibaba,
AutoNavi will be supplemented to a
great extend in terms of financial and
talent resources
 Mapping gets higher strategic status.
 After acquiring 91Assistant and
Nuomi—more power in mobile
distribution and business resources.
26

27. PREDICTION OF PLAYERS--
Innovative Players
 Good at innovation
 Short in finance and talent
 Making good use of Wechat
 Higher status & Great ambition
 No better in usability
 Lagging in O2O
27

28. THREE FUTURE TRENDS
28
1. 3D Live Map 2. Indoor Navigation
3. Personalized Product

29. THANK YOU
29