This document discusses strategies for companies looking to succeed in China or expand from China globally. It highlights the challenges like complex localization, regulations and competition from local giants. Case studies show the failures of eBay in China compared to Alibaba's success and Uber losing to Didi despite massive funding. To succeed, companies must think locally, have scale and bridge cultural differences. Partnering with Chinese companies can help non-Chinese firms understand the market. Both opportunities in gaining Chinese users and helping Chinese firms expand globally are enormous due to China's large and growing tech market.
15. Marketing
Spent hundreds of millions on
advertising on the internet.
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HR
German manager and American
CTO to lead China operation
HR
100% Locally staffed
Marketing
Spent on TV to target SMBs who
were less internet-savvy
Product
Stuck to its ‘global platform’ with
listing charges & complex
auction model
Product
Free for use, simple interface,
focused on selling vs. auctioning
Primary User Acquisition Channel
Internet (90M users at the time)
Primary User Acquisition Channel
Mobile (300M Cellphones)
18. Jan ‘13 Apr. ‘13 Aug ‘13 Feb ‘14 Sep ‘14 Dec ‘14 Feb ‘15 Jul‘15 Sep ‘15 Feb ‘16 May ‘16
Didi and Kuaidi fight each
other for market share,
showering subsidies +
incentives on drivers
Uber soft launches in
Shanghai
Uber takes a scouting trip to
china, planning to invest big in
the market.
Uber’s formal launch in China: introducing
luxury car services in Shanghai,
Guangzhou and Shenzhen
Uber expands offering to include a
cut-price service, People’s Uber
Didi and
Kuaidi Merge
1% Market Share
Uber has 3%
fraudulent rides a day $1B investment
from Baidu
$3B Round
$1B investment
from Apple
Uber report over a
$1B loss in Chinese
market
Aug ‘16
Sells for
20% in Di
Invests
$1B in
Uber
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K.O!
19. @ironSource
Massive capital ≠ guaranteed success
Thinking outside of the box
(if you can’t beat ‘em - join ‘em)
Moral of the Story
20. The Golden Opportunity
563M
Smartphone users in 2016
~28%
Of the global smartphone
market
$27.5B
Mobile Ad spend in 2016
30%
Global mobile ad spend in
2016
1st
In the world for iOS
Revenue as of Q3 2016
1st
In the world for global
gaming revenue
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22. "We must absolutely globalize...We will organize a global
team and adopt global thinking to manage the business,
and achieve the goal of 'global buy and global sell'."
- Daniel Zhang, Alibaba CEO
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23. The China Out Opportunity
Helping Chinese companies get “out” of China enables:
● Working with giants
● A mutual relationship - both supply and demand
● Long-term growth
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34. The right
chinese
partners can
help
A long
runway of
time and
money
China in or
out - choose
wisely
We don’t
really know -
be humble
The Checklist
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