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!
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#china20 China 2.0
Wednesday, April 13, 2011