What about entering the largest market in the world?
In recent years, China has become the largest and one of the most innovative markets, with nearly 700 million smartphone users and home of some of the largest tech companies in the world such as Alibaba, Tencent or Xiaomi. China is closing the gap with US in terms of R&D spending and is already home to over a thousand R&D firms.
Even if it is the largest market in the world, it is still an unknown market.
During this 45 min. workshop, Max Peiro will present you this unique innovative market and how the combination of a massive early-adoption consumer base and a large demand for innovation triggered by tech companies and government initiatives alike can bring solid opportunities for Western start-ups.
Max is the Co-founder and CEO of Sanpei Ventures, a venture investment holding based in Shanghai. Max have been living in China for over 8 years, helping Western tech start-ups to set foot and accelerate their growth in Chinese market.
15. 668 M 594 M
574 M
270 M
276 M
196 M
74 M
ACTIVE INTERNET
USERS
MOBILE INTERNET
USERS
89%
97%
46%
45%
MOBILE SOCIAL
MEDIA USERS
MOBILE PAYMENT
USERS
M-COMMERCE USERS
O2O USERS
M2M CONNECTIONS
20. 1998: B2B portal to connect Chinese
suppliers to overseas buyers
2003: C2C marketplace for Chinese
market. War on eBay
2004: Escrow payment method
2008: B2C marketplace, reshaping
online buyers behavior
2015: Largest Tech IPO in history
21. ✓ From B2B to C2C to B2C
✓ Adapt and conquer: Taobao vs ebay
✓ Localization leads to innovation: Alipay
✓ Education and evolution based on customers’ changing
needs
✓ Growth: functionality and engagement
22. E-COMMERCE and B2C VERTICALS
group buying
flash sales
car-hailing
online travel
financial services
health services
37. CAN UBER WIN THIS BATTLE?
✓ Cultural differences
✓ David vs Goliat
✓ Multiple focus vs single focus
✓ Built from scratch vs leverage massive user base
40. CAN APPLE PAY WIN THIS BATTLE?
✓ NFC technology faster
✓ backed by BANKS and UNIONPAY
✓ Consolidated market
✓ Functionality
✓ Massive existing user base
42. AI & Deep
learning
AR & VR Smart Cities &
IoT
Med Tech &
Health
Ad Tech &
Digital
Marketing
Big Data &
BI
CHINA = EARLY ADOPTION + SCALABILITY
43. Fast growing M&A activity in China
• BAT expected spending 2016 USD 90B
• It’s not all about BAT
Internet Plus
• Innovation top priority for Chinese government
• Improve production through new technologies
• Favorable policies to foster innovation
45. • From copycat to innovation
• Execution is king
• Think twice about your business model
• Ecosystems and functionality
• Early adoption and scalability
• Local partners to reinforce your position
• Understand cultural differences and regulations