The Way Forward for US Internet Companies & Investors in China
Total Page:16
File Type:pdf, Size:1020Kb
Life After Google - The Way Forward for US Internet Companies & Investors in China Stanford University, April 13th 2011 Duncan Clark, Visiting Scholar, SPRIE & Chairman, BDA China Highlights for distribution [email protected] http://sprie.stanford.edu Wednesday, April 13, 2011 China 2.0 is an ongoing research initiative of SPRIE at Stanford University focused on the drivers & global implications of growth in Chinaʼs Internet. • How are entrepreneurship & innovation fueling the rise of Chinese Internet firms? • How do these firms differ from their US peers? • Is Chinaʼs experience relevant for other emerging markets? • Is there a future for US Internet players in China? • How will Chinese Internet firms fare overseas? Inaugural China 2.0 event Victor Koo (CEO, Youku) keynoting China Stanford, May 2010 2.0 Beijing, October 2010 Ongoing speaker series through May 2011. Next China 2.0 conference Fall 2011 at Stanford http://sprie.stanford.edu Wednesday, April 13, 2011 Keep connected to China 2.0 #china20 China 2.0 http://sprie.stanford.edu Wednesday, April 13, 2011 Source: ITU, BDA Forecast Wednesday, April 13, 2011 5 of the top 20 websites in the world by traffic are in China 1. 11. 2. 12. .co.jp 3. 13. .co.in 4. 14. 5. 15. 6. 16. 7. 17. .de 8. 18. .com.hk 9. 19. 10. 20. .co.uk Source: Alexa Wednesday, April 13, 2011 .com.hk Source: Alexa Wednesday, April 13, 2011 Google & Amazon remain the worldʼs most valuable listed Internet companies. Baidu is #3 followed by Tencent & eBay. Taobao & Facebook have yet to list. Market Cap Comparison (USD Million) *Market Cap on April 12th 2011 Exchange rate: 1 USD=7.77 HKD Wednesday, April 13, 2011 Google & Amazon remain the worldʼs most valuable listed Internet companies. Baidu is #3 followed by Tencent & eBay. Taobao & Facebook have yet to list. Market Cap Comparison (USD Million) 200,000 150,000 100,000 50,000 0 *Market Cap on April 12th 2011 Exchange rate: 1 USD=7.77 HKD Wednesday, April 13, 2011 Is it fair to talk about ʻafter Googleʼ in China? May 1897 January 2010 RIP 1835 - 1910 Wednesday, April 13, 2011 Googleʼs “New Approach” to China January 12th 2010 March 22nd 2010 Wednesday, April 13, 2011 New approach Wednesday, April 13, 2011 Baidu vs Google China: Market Share Revenues Baidu Google RMB Billions Source: iResearch, Company information Wednesday, April 13, 2011 Baidu vs Google China: Market Share Revenues Baidu Google RMB Billions 7.9 90% 8 68% 6 4.4 45% 4 3.2 23% 1.7 0.9 2 2004 2005 2006 2007 0% 2008 2009 2010 2006 2007 2008 2009 0 2010 Source: iResearch, Company information Wednesday, April 13, 2011 The World* - Chinaʼs above it all (new middle kingdom?) Facebook global map * Not available in all States. Use only as directed. Wednesday, April 13, 2011 Role Model for Strategic Investment Wednesday, April 13, 2011 Now is the Winter (and Spring, Summer, Autumn, Winter, Spring, Summer & Autumn..?) of our Discontent Tahrir Square Jasmine Inflation a Real Non-Event Concern (so far) Wednesday, April 13, 2011 Leadership transition Fall 2012 Hu Jintao Wen Jiabao Xi Jinping Li Keqiang Wednesday, April 13, 2011 Can US Internet companies gain more from being in China than they lose from scrutiny at home? Wednesday, April 13, 2011 Can US Internet companies gain more from being in China than they lose from scrutiny at home? 800 600 400 200 2010 20112012 2013 0 2014 2015 Wednesday, April 13, 2011 Supermarkets like Taobao vs. niche operators Selected China eCommerce verticals 3C Books Clothing Cigarettes Computers Audio-Visual Alcohol Communications Tea Consumer Electronics Cosmetics Food & Beverage Footwear Healthcare Products Supermarkets Luxury Jewelry Travel Source: BDA research Wednesday, April 13, 2011 Is China just about cloning? Twitter can learn a thing or two from Sinaʼs Weibo Sina Weibo www.weibo.com Source: Penn Olson Wednesday, April 13, 2011 Competition spillover: China <-> US Wednesday, April 13, 2011 Are we at the centre of the PowerPoint? Wednesday, April 13, 2011 Send us your feedback! [email protected] [email protected] #china20 China 2.0 Wednesday, April 13, 2011.