Post on 30-Mar-2015
transcript
Mobile Internet in China: Opportunities for U.S. FirmsDavid Chao
DCM
Agenda
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DCM Introduction
Growth in China
Areas of Mobile Opportunity in China
Recommendations for U.S. Companies
What U.S. Companies Can Bring
DCM OverviewEstablished early stage venture capital firm with unique
access to the U.S., China and Japan – Golden Triangle
Leveraging “One Firm – One Fund” culture to deliver consistent high performance
Managing over US$2 billion across six funds from ouroffices in Silicon Valley, Beijing and Tokyo
Experienced team with deep sector expertise investing in TMT (Technology, Media, Telecom) and Cleantech
Backed industry pioneers and creators of paradigm shifts across the Golden Triangle: About.com, Foundry Networks, Sling Media, 51job, Dangdang and AllAboutJapan
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DCM China IPOs
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“Amazon” of China
Largest auto media
(NYSE: BITA)
(NYSE: DANG)
“Facebook” of China
(NYSE: RENN)
Leading packaging company in China
China Local Listing(SZSE: 002565)
“Monster.com” of China
(Nasdaq: JOBS)
Leading outsourcer in China
(NYSE: VIT)
Multimediasemiconductor
(Nasdaq: VIMC)
Semiconductor foundry
(NYSE: SMI)
1,282 2,484
4,100 5,900
7,900 10,000
-
5,000
10,000
15,000
2008 2009 2010E 2011E 2012E 2013E
China is Experiencing Phenomenal Growth in Mobile and Spending
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RMB Billion
China E-commerce Market Estimation(GMV)
Source: CCID, Source: Innovation Works / Umeng estimates
CAGR: ~150%
CAGR:50%
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000 33000000
11100000
7620000
3000000 2500000 1600000 1200000 585000 430000 50000 48000
China has the 2nd Largest Android App Store in the World
Source: Techcrunch, Cnet,, BGR, industry research
World’s Top Apps Stores (Daily Downloads)
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Wandoujia #2 in Android globally
OpportunityMobile Leaders in U.S.
Mobile Leaders in China
Application/content store
Social networking services
Storage
Browser / News browser
Advertising
POS Payment
Category Leader Parallels in Mobile Show Many Similar Opportunities
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Capabilities U.S. Companies Can Bring to Mobile in China Content and branding – recognized, branded
content and existing products (games, apps, etc.)
Product design and process – mature product development process, data-driven analysis, A/B testing, understanding virality etc.
Technology – mobile handset technology and design, cloud services technology
Business models – business model innovation to create new categories
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U.S. Partner China Partner Partnership
Develop and launch “Fruit Ninja” in China
PapayaMobile to help Kiloo deploy on Android and in China
Tom to help develop a Chinese gaming storefront for Glu (glu.cn)
Develop tablet computers and mobile phones
Many U.S. Companies Have Partnered Locally for Mobile in China
Source: Industry research
U.S. companies utilizing China partners for local distribution; going at it “alone” can be difficult
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U.S. Companies Who Want to Go to China Market Should Consider Partner with right distribution channel and go to
market partners
• Social networks
• Game developers and platforms
• Handset providers and carriers
Adapt product and monetization to local habits
• Virtual goods instead of just “paid apps”
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Summary Mobile in China is large and growing – mobile
smartphone usage, particularly in Android, is growing; China consumers have money to spend
Many opportunities – many mobile opportunities in the U.S. have parallels in China
U.S. resources – U.S. companies have existing content, products, and resources that can be helpful in China
Partner locally – U.S. companies should consider partnering locally to distribute and adapt their products and services for China
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global
connected
experienced
successful
Cloud and Mobile-Centric Apps Have Investment Traction Within China Cloud – cross-platform device usage increasing
cloud and syncing needs
App store
Storage
Mobile-centric apps – applications / services need mobile-feature centricity; China internet incumbents copy very quickly
Tablet-focused apps
Mobile advertising
LBS
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Internet /Digital Media Social and Gaming
Software & Services Components
Other
Cross Border
DCM China Portfolio
NYSE: RENN
NYSE: DANG
NYSE: BITA
SZSE: 002565
Nasdaq: FTNT
Nasdaq: JOBS
NYSE: VIT
NYSE: SMI Nasdaq: VIMC
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