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Gport GMIC Roadshow USA Report -EN

Gport GMIC Roadshow USA Report -EN






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    Gport GMIC Roadshow USA Report -EN Gport GMIC Roadshow USA Report -EN Presentation Transcript

    •           GMIC  2012  ROADSHOW  USA           China’s  Tech  Leaders  On  Tour       GMIC  2012  ROADSHOW  USA  |  Company  Visits      November  5th-­‐11th,  2011     
    • Outline  1.  Event  IntroducDon  2.  United  States  Market  Review  3.  Companies  Visited  4.  Conclusion  5.  GMIC  2012   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • Event  IntroducDon  Ø     About  GMIC  2012  Ø     GMIC  ROADSHOW  Ø     DelegaMon  Members  Ø     IMnerary   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • EVENT  INTRODUCTION|  GMIC  2012  Global  Mobile  Internet  Conference   May 9th – 11th 2012 Beijing, ChinaAsia’s  largest  mobile  internet  conference   §  5000  aPendees   §  61%  CxO  and  VP  level   §  Elite  Speakers   §  G20  Summit  closed  door  leaders  meeMng   §  Startup  and  developer  tracks:  G-­‐Startup  and  AppSpace  gmic.greatwallclub.com   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • EVENT  INTRODUCTION|  GMIC  ROADSHOW     GMIC  ROADSHOW  is  one  of  the  Great  Wall  Club’s  (GWC)  events   as  well  as  an  overseas  promoMon  for  the  Global  Mobile  Internet   Conference  (GMIC).  This  event  is  designed  to  show  GMIC  as  a   communicaMon  link  between  Asia,  especially  China,  and  overseas   markets  to  global  industry  leaders  and  entrepreneurs.     。   5   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • EVENT  INTRODUCTION  |  DELEGATION  MEMBERS  LEI  JUN   LIN  BIN   Wang  Jian   CEO,  Xiaomi  President,  Xiaomi  CTO,  Alibaba  Michael  Song     Wang  Yong   WANG  QIANGYU   CEO,  Skymobi  CEO,  DeNA  China  CEO,  Duanqu  文厨   BO  YIQUN   BARRETT  PARKMAN   CEO,  GWC  President,  GWC  VP,  GWC 6   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • EVENT  INTRODUCTION  |  ITINERARY  NOVEMBER  5 -­‐13 ,  2011:  HIGHLIGHTS  REVIEW  TH TH §  Glu  Mobile  |  One  of  the  top  3  mobile  game   development  and  publishing  companies  in  the  world.   Square  |  A  payment  giant  with  an  annual  transacMon   Company   §  volume  of  more  than  $2  billion.   Visits   §  SV  Angel  |  A  legendary  angel  investment  agency  that   11/7  -­‐    invested  in  Google,  Facebook,  TwiPer,  and  Groupon.    §  RocketSpace  |  A  startup  company  incubator.   §  Zynga  |  A  leading  social  game  developer.  §  GMIC  Roadshow  San  Francisco   Events  §  VIP  Dinner   Company   §  eBay  |  The  worlds  largest  e-­‐commerce  plaeorm.   Visits   §  Paypal  |The  worlds  largest  payment  soluMon  provider.  11/8  -­‐      §  Venture  Capitalist  Dinner     Events  §  Boundless  Mobile  InnovaMon   §  CEO  Dinner  7   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • EVENT  INTRODUCTION  |  ITINERARY  NOVEMBER  5 -­‐13 ,  2011:  HIGHLIGHTS  REVIEW  TH TH §  Sequoia  Capital  |  The  world’s  largest  venture   Company   capital  firm.   11/9  -­‐   Visits   §  Google  Android  |  The  development  team  for  the    most  popular  mobile  operaMng  system.   Events  §  SVCW  CEO  Dinner   §  Evernote  |The  world’s  No.  1  cross-­‐plaeorm   Company   note-­‐taking  sohware  /  cloud  storage  plaeorm.   11/10  -­‐   Visits   §  Mozilla  |  The  world’s  3rd  largest  browser   provider.   8   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • USA  Market  Review    Ø  From  Horizontal  to  VerMcal Ø  Three  Important  Trends  of  the  VerMcal  Market Ø  Social-­‐Local-­‐Mobile  Ø     Other  Noteworthy  Segments  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • MOBILE  MARKET  IN  THE  UNITED  STATES  AND  IN  GENERAL     From  Horizontal  to  VerDcal  »  With  the  introducMon  of  cloud  networking  and  increased  bandwidth,  the  market   for  Mobile  Services  stands  to  increase  significantly.  One  of  the  important  trends  is   that  market  entrance  shihs  from  horizontal  products  and  services  to  verMcal   business  soluMons,  which  is  exemplified  by  Square  (see  the  company  visits  page)   »  Two  Major  Classes  of  Services  in  the  Future  Mobile  Market   §  Horizontal  -­‐  Services  and  products  that  meet  user  needs.   §  VerMcal    -­‐  Services  and  soluMons  that  meet  the  market  segments  needs.  »  Three  Major  Reasons     §  Users’  core  needs  have  been  met  in  general.  SubstanMal  innovaMon  in  a  single   market  is  difficult.   §  Technological  development  makes  it  possible  for  package  soluMons  to  be   applied  in  market  segments.   §  Hot  segments  and  products  are  cooling  down.  Making  revenue  from  a  single   product  or  service  hot  spot  is  becoming  difficult.  Product  integraMon  and   added-­‐value  services  that  meet  the  systemaMc  needs  are  becoming  popular.  10   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • MOBILE  MARKET  IN  THE  UNITED  STATES  AND  IN  GENERAL     Three  Important  Trends  of  the  VerMcal  Market   1.  Connected  devices  could  reach  50  billion  devices  by  2020  (There  were  roughly   12.5  billion  as  of  2010).    §  Two  Types:  Single  Use  (eReaders,  Health  Monitors)  and  MulM-­‐purpose  devices   (smartphones,  tablets).  §  Major  technological  refinements  and  adjustments  are  going  to  need  to  take  place  to   handle  this  increase  in  data  transfer.  2.  Healthcare  oriented  services  via  mobile  will  surge.  §  Healthcare  will  account  for  20%  of  the  U.S.  GDP  soon.  §  The  aging  populaMon  of  the  U.S.  and  the  world  will  act  as  the  accelerant  that  pushes   this  market  into  overdrive.  3.  Ongoing  Development  of  Mobile  Search  Engines  §  Constraints  of  mobile  devices  demand  simpler  ways  to  search  for  things  than   tradiMonal  “Google-­‐like”  search  engines.  §  New  search  methods,  such  as  “voice  command”  searches  like  Siri  that  are  capable  of   doing  one  or  two  word  searches  with  reasonable  accuracy,  are  the  future.  §  The  winner  in  this  market  will  be  the  new  Google  for  the  next  10  years. 11   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • MOBILE  MARKET  IN  THE  UNITED  STATES  AND  IN  GENERAL  Social-­‐Local-­‐Mobile  (So-­‐Lo-­‐Mo)  »  So-­‐Lo-­‐Mo  will  conDnue  to  develop  and  have  a  deepening   impact.  §  SoLoMo  will  provide  the  informaMon  that  will  allow  businesses  to  target  and   influence  customers  in  ways  never  before  possible.  §  Dataming  and  controlling  opinions  will  make  or  break  companies  in  the   future.  §  34%  of  TwiPer  users  share  a  link  about  a  product  more  than  once  a  day.    This   means  that  push  noMficaMon  between  users  has  become  a  reality  in  a  sense. 12   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • MOBILE  MARKET  IN  THE  UNITED  STATES  AND  IN  GENERAL  Other  Noteworthy  Segments  1.  Mobile  Payment  §  Global  Mobile  Payments  will  exceed  $750  billion  by  2015.  §  NFC  transacMons  will  make  up  75%  of  these  transacMons.  §  SMS  payments  and  mobile  web  payments  will  stagnate.  §  From  July  2009  to  July  2010,  $1  billion  of  goods  were  purchased  from  Amazon  via  mobile   payment.  2.  Mobile  AdverMsing  §  Of  the  $33  billion  spent  on  digital  adverMsing  in  the  U.S.,  $1  billion  was  mobile.  §  Only  35%  of  U.S.  mobile  subscribers  are  currently  using  smartphones.    As  this  grows   exponenMally,  so  will  the  mobile  adverMsing  market.   §  Targeted  adverMsing  through  SoLoMo  will  make  mobile  markeMng  more  effecMve  and  thus   more  aPracMve.  3.  Mobile  VoIP  §  Mobile  VoIP  is  expected  to  jump  from  15  billion  minutes  in  2010  to  over  470  billion  by  2015.  §  This  growth  will  kill  the  revenue  generated  from  tradiMonal  voice  and  SMS  services.  §  This  will  be  a  baPleground  for  the  coming  years  as  carriers  fight  to  find  new  ways  to  balance   their  loss  of  profits  from  tradiMonal  services.  VoIP  services  need  a  way  to  moneMze  their   product.   13   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • Companies  Visited  Ø     Glu  Mobile   Ø     Sequoia  Capital  Ø     Square   Ø     Google  Android  Ø     SV  Angel     Ø     Evernote  Ø     Zynga   Ø     Mozilla  Ø     eBay  Ø     Paypal   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  GLU  MOBILE »  Company  IntroducDon   §  One  of  the  top  3  mobile  game  development  and  publishing  companies  in  the   world.  §  Founded  in  2001,  Glu  is  based  in  San  Francisco  and  has  a  branch  in  Beijing.   §  Listed  on  the  NASDAQ  in  2007.  (NASDAQ:  GLUU)   §  Beijing  branch  employs  about  150  people.   Contract  Killer Super  KO  Boxing Big  Time  Gangsta Guitar  Hero Deer  Hunter StarBlitz15   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  GLU  MOBILE »  OperaDng  condiDons   §  More  than  70  million  users   §  22,090  acMve  users  per  month     §  2,103  acMve  users  per  day   §  34%  are  Android  users;  66%  are  iOS   users  »  Financial  PosiDon   §  Market  Value:  $197.06M     §  Total  Revenue  in  the  Last  12  Months:   $66.65M   §  Gross  Profit  in  the  last  12  Months:   $47.69M   §  Net  Profit  in  the  Last  12  Months:                   -­‐$16.02M  16   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  GLU  MOBILE »  Business  Model   Free  +  Premium   §  Micro-­‐TransacMons-­‐-­‐75%  of  Total   Revenue   §  Display  Ads  (CPM)-­‐-­‐5%  of  Total   Revenue   §  Incented  Ads  (CPX)-­‐-­‐20%  of  Total   Revenue  »  Product  Strategy   ü  Seek  “Word  of  Mouth”  and  Social   CommunicaMon   ü  Give  the  Full  Game  to  the  Customer     ü  Free  +  Premium  +  Maximized   Product  Value  (Fully  Develop  the   Commercial  Value  of  Each  Game)  17   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  GLU  MOBILE »  Keys  to  Glu’s  Success   1.  Free  +  Premium  (Freemium)  Business  Model   2.  Great  cross-­‐plaeorm  porMng  capability:  Dedicated  teams  responsible  for  the   adaptaMon  of  all  aspects  in  the  Android  ecosystem  to  ensure  that  each  game   can  be  run  in  a  variety  of  hardware  and  sohware  environments.   3.  Industrial  chain  coverage:  From  the  proposal  of  game  concepts  to  the  release   and  promoMon  of  it  -­‐  cooperaMon  with  chip  makers,  handset  manufacturers,   most  of  the  SNS  plaeorms  and  almost  all  retail  stores.  4.  Tremendous  advantages  on  heavy  client  games,  especially  3D  game   development.   5.  Make  business  strategies  based  on  its  own  advantages.  Instead  of  following   the  trends  of  social  games  or  the  socializaMon  of  games,  it  sMcks  to  the  player-­‐ oriented  strategy  to  add  social  elements  at  the  premise  of  gameplay  and   players  experience  (As  social  as  relevant).  »  The  Future  of  the  Game  Market  from  Glu’s  PerspecDve   1.  Three  Major  Trends:  Mobile,  Freemium,  and  Social  Games   2.  Two  DirecMons  for  the  Development:  CompaMbility  (browser-­‐oriented)  or  user  18   experience  (local  resource-­‐oriented)     research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  SQUARE »  Company  IntroducDon     §  A  payment  giant  with  annual  transacMon  volume  of  more  than  $  2  billion.   §  Co-­‐founded  in  February  2009  by  TwiPer  founder  Jack  Dorsey.    It  is   headquartered  in  San  Francisco,  United  States.   §  By    October  the  company  has  raised  over  170  million  U.S.  dollars. »  OperaDng    CondiDons   §  Nearly  20,000  acMve  users  per  day.  More  than  900,000  actual  users.   §  More  than  9,000  sales  outlets  in  the  United  States.  Nearly  one  million  card  readers  have   been  distributed.   §  More  than  100,000  new  businesses  per  month.  Total  number  of  businesses  has  reached   10%  of  that  of  Visa  or  MasterCard.   §  Usage  by  mobile  device:    iPad(21%),  iPhone(45%)                    iPod(3%),  Android(31%)  »  Financial  PosiDons   §  Over  $11M  in  daily  transacMons   §  Over  $2B  in  annual  transacMons   §  Company  valuated  at  $2B  19   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  SQUARE »  Business  Model   Current:  Cost  Per  TransacDon   §  Cost  Per  Swipe  –  2.75%  of  the  transacMon  volume.    No  extra  charge.   §  Cost  Per  Keyed-­‐in  -­‐-­‐  2.75%  of  the  transacMon  volume.  No  extra  charge.   Future:  product  recommendaMons  +  adverMsing,  and  may  become  a  e-­‐ commerce  plaeorm  as  well  as  a  portal 20   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANIES  VISITS  |  SQUARE »  Keys  To  Square’s  Success   1.  Reasonable  Commercial  PosiDoning:    Believe  in  the  concept  of  "new   technologies  will  not  just  improve  the  tradiMonal  payment  methods  but   completely  change  the  payment  industry"  and  posiMon  the  company  as  a  "one-­‐ stop  payment  soluMon  provider"  rather  than  a  mere  "mobile  payment"   company.   2.  Simple  Business  Model:    Do  everything  possible  to  simplify  the  user  payment   process.  Cancelled  the  $0.15  extra  charge  early  in  this  year.   3.  Product  for  Niche  Market:    TradiMonal  payment  system  could  not  meet  the   needs  of  small  businesses  and  individuals,  and  it  is  by  paying  aPenMon  to  their   needs  that  helped  Square  accumulate  core  users  in  its  early  stage.   4.  Customer  Experience-­‐Oriented  Product  InnovaDon:  Instead  of  using  new   technologies  (e.g.,  NFC)  sequaciously,  Square  set  its  target  as  "to  support  every   payment  method  available  to  customers"  and  "to  help  businesses  complete   every  possible  transacMon.”     5.  Cost:  Efficient  strategies  for  markeMng  and  core  user  accumulaMon  :  1)  add   word-­‐of-­‐mouth  and  popular  elements  to  the  product  so  that  it  is  sought  aher   by  users;  2)  distribute  product  trials  to  different  target  groups;  3)  use  social  21   communicaMon  plaeorms.  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  SV  ANGEL »  Fund  InformaDon     1.  Founded  in  2005  by  Ron  Conway,  a  legendary  angel  investor  in  Silicon  Valley   who  has  invested  in  Google,  Facebook,  TwiPer,  and  Zynga.   2.  Headquartered  in  Silicon  Valley,  the  $60  million  fund  mainly  conducts  small   investments  to  start-­‐up  companies  during  their  early  stage.   3.  Only  one  General  Partner  (David  Lee),  others  including  Ron  Conway  are  LPs.   4.  As  of  November  15,  2011,  SV  ANGEL  has  invested  in  more  than  220  business   projects,  including  TwiPer,  Foursquare,  Groupon,  Dropbox,  Square,  Filpboard   and  AirBnB.  More  than  half  of  the  companies  have  received  Series  A   financing,  and  25%  of  them  received  investments  from  Top  10  venture  capital   investors。   5.  The  average  investment  amount  is  around  $  150,000  (about  1%  to  5%  of  the   equity),  while  that  of  key  projects  vary  from  $  500,000  to  1,000,000.   6.  Give  priority  to  projects  with  long-­‐term  impacts,  and  put  parMcular  emphasis   on  establishing  long-­‐term  relaMonships  with  excellent  entrepreneurs  as  well   as  on  future  investment  possibiliMes. 22   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  SV  ANGEL »  SV  Angel’s  Views:   1.  Two  key  market  drivers:    MobilizaMon  and  GlobalizaMon   2.  Three  future  market  direcMons:   §  New  Media  Channel,  Real  Time  Data  ConsumpMon   §  O2O  Commerce   §  CollaboraMve  ConsumpMons   3.  A  technology  update  cycle  usually  lasts  about  20  to  25  years,  and  now   everything  is  only  in  the  early  stage  of  the  cycle,  so  the  industry  is  sMll  far   from  being  a  bubble.  SV  Angel  will  conMnue  its  current  momentum  of   investment  for  at  least  another  five  years.   4.  SV  Angel  has  never  been  so  opMmisMc  for  this  industry  and  does  not  think   there  are  signs  of  slowdown.   5.  The  next  Google  and  Facebook  will  come  from  Y  Combinator.  23   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  ZYNGA »  Company  IntroducDon   §  Worlds  No.1  social  gaming  company   §  Founded  in  June  2007,  it  began  to  profit  in  the  fall  the  same  year.   §  Headquartered  in  San  Francisco,  USA.  Employs  more  than  2,000  people.   Maintains  a  branch  in  Beijing.   §  Core  team:  Mark  Pincus  (CEO)  Cadir  Lee  (CTO)  Dave  Wehner  (CFO)        research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  ZYNGA »  OperaDng  CondiDons   §  Over  148  million  unique  users  per  month  (average)  spread  over  166  countries.   §  232  million  acMve  users  per  month  (average).   §  Over  the  past  year:   §  More  than  60  million  users  logged  on  at  least  one  Zynga  game  plaeorm  every  day.  2   billion  minutes  were  spent  in  Zyngas  games  per  day.   §  Zynga  sold  38,000  virtual  goods  per  second  and  the  annual  revenue  from  virtual   goods  reached  $  575  million.   §  Zynga  gained  only  $  22.8  million  from  adverMsing,  a  figure  decreased  by  36%   compared  to  2009.  »  Financial  PosiDon   §  Annual  Revenue:  $598M,  an  391%  increase  compared  with  122  million  in  2009   §  Q1  revenue:  $235M,  133%  more  than  last  year   §  Annual  profit:  $90M   §  Q1  profit  :  $11.8M,  84%  more  than  last  year   §  Current  disposable  cash  :  $1  billion   §  The  total  cost  of  markeMng  in  2010  was  more  than  $114  million   §  R  &  D  costs  in  the  first  quarter  reached  $71.8  million,  158%  more  than  last  year  25   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • 企业拜访 |  ZYNGA »  Business  Model     Virtual  Commodity  Trading  +  AdverMsing   §  3%  to  5%  of  the  users  pay  for  virtual  goods.   §  Online  and  offline  purchase  channels,  with  a  variety  of  payment  methods.   §  Virtual  commodity  trading  accounts  for  90%  of  total  revenue,  while   adverMsing  revenue  takes  an  increasingly  small  proporMon.   §  TransacMons  conducted  via  Facebook  are  charged  for  30%  of  the  volume.   §  AdverMsing  services  are  via  1)  graphics  display  of  the  adverMsers  brand  ,  2)   implanted  adverMsements  in  the  game  interface.  26   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  ZYNGA »  CooperaDon  and  CompeDDon  Netween  Zynga  and  Facebook  1.  CooperaDon   §  Facebook  is  the  largest  channel  plaeorm  for  Zynga   §  Zynga  games  bring  Facebook  new  users   2.  Facebook  Banned  “NoDficaDon”   §  In  May  2010  Facebook  stopped  social  games  from  using  the   "noMficaMon"  funcMon  to  promote   3.  Facebook  Introduced  Credit   §  In  September  2010,  Facebook  introduced  the  Facebook  credit   §  StarMng  from  July  1,  2011,  the  Facebook  credit  has  become  the   only  currency  on  the  plaeorm,  and  Facebook  charges  30%  of  the   trading  volume   4.  Zynga  Built  Its  Plahorm  Itself   §  Zynga  built  a  plaeorm  itself  in  reacMon  to  Facebooks  method,   and  started  to  launch  new  promoMon  and  revenue  channels  27   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • 企业拜访 |  ZYNGA »  Why  Zynga  succeeded?  1.  Started  on  the  shoulders  of  Facebook   §  Take  full  advantage  of  Facebooks  dominance  at  the  desktop  market,  and  seize  the   market  quickly  through  strong  channels.   2.  Copy  successful  games  ASAP   §  Copy  popular  games  in  a  short  period  of  Mme,  and  accumulate  large  numbers  of   users  through  large-­‐scale  adverMsing  (which  cost  10%  to  20%  of  its  total  annual   income)  and  cross-­‐promoMon  between  users   3.  AjenDon  to  the  data  decision   §  Allocate  significant  resources  to  data  centers,    and  build  data  models  for  each   game.  Zynga  invested  hundreds  of  millions  of  dollars  over  the  past  three  years  on   recruiMng  engineers  and  purchasing  servers   §  Product  development  relies  on  its  strong  technological  system  and  data  analysis   teams  (mostly  from  Oracle).  The  company  make  decisions  based  on  mass  data  and   rigorous  analysis  rather  than  experience   4.  Adjust  channel  strategies  according  to  the  situaDon   §  In  the  desktop  market,  Zynga  introduced  new  promoMon  and  moneMzaMon   channels  such  as  embedded  adverMsing  and  offline  payment   §  In  the  mobile  market,  it  remains  a  loose  cooperaMon  with  Facebook  and  at  the   same  Mme  open  up  other  channels  as  well  28   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  EBAY »  Company  IntroducMon   §  Worlds  largest  e-­‐commerce  plaeorm.   §  Founded  on  September  4,  1995;  listed  on  NASDAQ  on  September  24,   1998  (NASDAQ:  EBAY)  .   §  Headquartered  in  San  Jose,  California;  17,700  employees.   §  Core  team:  Pierre  Omidyar  (founder  and  Chairman),  John  Donahoe  (CEO),   Bob  Swan  (CFO).  29   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • 企业拜访 |  EBAY »  OperaDng  CondiDons   »  Financial  PosiDon   §  More  than  100  million  acMve  users   §  Market  value:  $37.43B     §  More  than  1.6  billion  page  views  per   §  Total  revenue  in  last  12  months:   day   $10.77B   §  $  1,877  worth  of  transacMons  per   §  Gross  profit  in  last  12  months:   second   $7.64B   §  2011  Q2  transacMon  totaled  more  than   §  Net  profit  in  last  12  months:  $1.81B   $14.6  billion    30   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  EBAY »  Business  Model   C2C  online  Trading  Plaeorm   1.  Online  aucMon  /  fixed  price   transacMons   §  eBay  inserMon  fee   §  eBay  final  value  fee   2.  PayPal  transacMon  fee  income   3.  AdverMsing  /  classificaMon  services   revenue    31   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • 企业拜访 |  PAYPAL »  Company  IntroducDon   §  Worlds  largest  payment  soluMon  provider.   §  eBay  was  founded  in  December  1998  and  is  headquartered  in  San  Jose,   California.  It  was  acquired  by  eBay  in  2002,  and  now  is  an  eBay  company.     §  Paypal  can  be  used  in  194  countries  and  regions  worldwide  and  supports   more  than  20  currencies.   §  Core  Team:  ScoP  Thompson  (President), Patrick  Dupuis  (CFO)    32   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  PAYPAL »  OperaDng  CondiDons   §  More  than  90%  of  the  sellers  and  more   than  85%  of  buyers  use  PayPal  in   internaMonal  online  transacMons.     §  More  than  100  million  acMve  users,  and   about  1  million  new  users  per  month.   §  More  than  $315  million  of  daily   transacMon  volume,  which  means   $3,650  per  second.   §  In  2011  the  total  transacMon  volume   will  exceed  $120  billion.  »  Financial  PosiDon   §  Total  revenue  in  2010:  $3.4  billion,  in   which  internaMonal  business  accounted   for  47%   §  Gross  profit  in  2010:  about  $1  billion   §  2011  Q3  revenue  was  $1.1  billion,  an   32%  growth  over  the  same  period  last   year.  33   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  PAYPAL »  Business  Model  Core  payment  methods   1)  Banking  system  recharge  2)  operator  billing  3)  Paypal  Credit  Card   Core  profit  model  -­‐-­‐  Account  TransacMon  Fees   §  Monthly  trading  volume  less  than  $  3,000  -­‐  $  0.30  per  transacMon  +  3.9%  of  turnover;   §  Monthly  trading  volume  from  $  3,000  to  $10,000  -­‐  $  0.30  per  transacMon  +  3.4%  of   turnover;   §  Monthly  trading  volume  from  $  10,000  to  $100,000  -­‐  $  0.30  per  transacMon  +  3.2%  of   turnover;   §  Monthly  trading  volume  more  than  $  100,000  -­‐  $  0.30  per  transacMon  +  2.9%  of   turnover.    34   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  PAYPAL »  eBay  and  the  Mobile  Internet   1.  By  October,  eBay  mobile  client  has   been  downloaded  for  more  than  57   million  Mmes.   2.  Last  year  eBay  mobile  client   contributed  more  than  5  billion  worth   of  transacMon  volume.   3.   Each  week  2600  automobiles  are  sold   via  eBay  mobile  clients.   4.  It  is  expected  that  within  three  years,   50%  of  eBay  customers  will  use  mobile   devices  for  Internet  communicaMons  .   5.  Aher  acquiring  RedLaser,  eBay  began   to  implement  new  mobile  strategies  -­‐   to  find  and  develop  mobile   applicaMons  that  support  voice  and   video  recogniMon  technologies.  »  Paypal  and  the  mobile  Internet   1.  In  2011  Paypals  mobile  payment   totaled  $  3.5  billion  ($  10  million  per   day  or  more  than  $  10,000  per   minute.   2.  Aquired  the  mobile  payment   company  Zong  for  $  240  million. 35   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  SEQUOIA    CAPITAL »  Fund  introducDon   1.  Worlds  largest  venture  capital  firm.   2.  Founded  in  1972,  Sequoia  Capital  owns  nearly  30  funds  and  $10  billion   managed  capital  in  total.   3.  Sequoia  Capital  has  invested  in  a  total  of  more  than  500  companies  -­‐  more   than  130  of  which  have  been  successfully  listed.  The  companies  they  invested   in  take  up  10%  of  the  total  NASDAQ  value.   4.  Sequoia  Capital  has  invested  in  a  number  of  prominent  companies  such  as   Apple,  Cisco,  Oracle,  Yahoo  and  Google.  For  more  than  30  years,  Sequoia   Capital  has  powered  many  of  the  well-­‐known  companies  in  the  United  States.   5.  Sequoia  Capital  China  Fund  currently  manages  seven  funds  with  a  worth  of  2   billion  US  dollars  and  4  billion  yuan  in  total  for  investments  in  Chinas  high-­‐ growth  companies.  36   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  SEQUOIA    CAPITAL »  Sequoia  Capitals  Views   1.  Look  for  sparks  that  can  start  prairie  fires:   §  New  technological  and  innovaMve  projects   §  Projects  with  superior  customer  values  and  fast  distribuMon  plaeorms   2.  Investment  strategy  should  not  change  with  market  condiMons,  for  at  any   stage  of  the  economic  cycle  there  will  be  good  businesses.   3.  One  of  the  standards  to  measure  whether  an  industry  is  overheated  is  the   difficulty  and  cost  for  start-­‐ups  to  recruit  people.   4.  Sequoia  sees  itself  not  as  an  investor  but  a  business  partner  with  the   companies.  Do  not  pursue  "in-­‐and-­‐out"  profits,  but  look  for  products  that   change  the  world.   5.  Prefer  projects  with  long-­‐term  and  extensive  values  to  delicate  small   business.   6.  According  to  Sequoias  observaMon,  Chinese  e-­‐commerce  companies  spend  a   lot  on  markeMng  but  the  customer  conversion  rate  and  product  gross  margin   are  far  below  the  average  of  their  U.S.  counterparts  (Amazon  enjoys  25%  to   30%  gross  margin  rate,  which  is  the  lowest  in  the  US).  37   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  GOOGLE  ANDROID »  Company  IntroducDon   §  The  most  popular  mobile  operaMng  system  in  the  world.   §  Google  officially  unveiled  the  Android  operaMng  system  in  November  5th,   2007.   §  It  was  founded  by  Andy  Rubin  and  only  supported  phones  at  first.  In  2005,   only  22  months  since  its  founding,  Android  was  acquired  by  Google,  who   later  invited  a  number  of  manufacturers  to  form  the  Open  Handset   Alliance.  The  system  was  gradually  ported  to  Tablet  PCs  and  other   devices.   §  In  the  first  quarter  of  2011,  Android  surpassed  Nokias  Symbian  which  had   been  dominaMng  for  more  than  10  years  and  became  the  worlds  No.1. 38   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  GOOGLE  ANDROID »  OperaDng  CondiDons   §  By  August  2011,  Android  has  been  the  No.1  in  35  countries,  with  an  average   48%  market  share.   §  By  November  2011,  Android  has  taken  over  52.5%  of  the  global  smart  phone   market  share.  In  China  the  number  was  58%.   §  November  18,  Google  reported  that  more  than  200  million  Android  devices   have  been  acMvated  via  Google  servers,  and  55  million  new  acMvaMons  each   day.  To  be  noted,  this  is  only  the  acMvaMons  via  Google  servers.     research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  GOOGLE  ANDROID »  Views  from  the  Android  Team   1.  Compared  with  iOS,  which  only  covers  high-­‐end  users,  Android  ecosystem  boasts  a  wider  range.  iOS   developers  make  simple,  but  not  necessarily  more,  profits.  There  will  be  more  innovaMons  and  bePer   opportuniMes  in  the  profit  model  for  Android  users.   2.  Rovio,  the  developer  of  Angry  Birds,  makes  almost  the  same  amount  of  profit  from  in-­‐app  adverMsing  on   Android  plaeorm  than  in  AppStore.   3.  Android  has  not  devote  resources  on  the  profitability  of  this  plaeorm,  but  this  will  be  one  of  the  main   tasks  for  the  Android  team.   4.  Android  plaeorm  is  flexible  enough  to  adapt  to  a  variety  of  market  characterisMcs  in  different  regions.   5.  Revenue  generated  from  Android  plaeorm  in  Japan  surpassed  that  of  iOS.   6.  Google  is  prepared  for  long-­‐lasMng,  all-­‐round  compeMMon.    What  we  see  now  is  just  the  beginning.   Googles  killer  app  will  be  the  coordinaMon  between  various  products  and  services.   7.  Any  innovaMons  on  the  plaeorm-­‐level  face  compaMbility  issues.   8.  One  of  the  purposes  for  Androids  open  strategy  is  to  use  many  distribuMon  channels  to  maximize  the   market  share,  so  that    customers  have  easier  access  to  the  product.   9.  Current  revenue  of  Android  is  mainly  from  adverMsing  on  search  engines.  Android,  as  one  of  the  major   markeMng  channels  for  Google  search,  has  brought  nearly  1  /  3  of  their  users.  40   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  EVERNOTE »  Company  IntroducDon   §  Worlds  No.  1  cross-­‐plaeorm  note  sohware  /  cloud  storage  plaeorm.   §  Founded  in  2007,  and  headquartered  in  Mountain  View,  California.   §  Core  team:  Stepan  Pachikov  (founder),  Phil  Libin  (CEO),  Dave  Engberg  (CTO)   §  66  days  aher  the  product  launch,  the  number  of  users  reached  100  million;   222  days,  200  million;  133  days;  300  million;  1084  days,  400  million;  83  days;   reach  500  million;  52  days,  600  million.  41   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  EVERNOTE »  OperaDng  CondiDons   §  By  Oct  2011  there  have  been  16  million   users,  2/3  of  which  internaMonal  users.   §  Registered  users  grow  by  100  million   every  month.   §  By  the  end  of  2010  the  total  number  of   unique  users  had  reached  2,089,705.   Paying  customers  grew  at  470%   annually,  exceeding  that  of  free  users  »  Financial  PosiDon   §  Total  revenue  in  last  12  months:   $16M   §  Average  monthly  income:  more  than   $  1.2M.  Revenue  growth  rate:  more   than  300%   §  Last  valuaMon:  $  1  B  42   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  EVERNOTE »  Business  Model  Free  +  Premium   1.  Accumulate  core  users  with  free   services  (The  easiest  way  to  have  1   million  paid  users  is  to  have  1  billion   free  users.  -­‐  Evernote  CEO  Phil  Libin)   2.  By  providing  amazing  free  products,   improving  the  user  experience   gradually,  and  constantly  updaMng  its   high-­‐quality  value-­‐added  services,   Evernote  switches  acMve  users  into   paying  users  and  keep  the  conversion   above  1%  (Phil  Libin  assumed  that  1%   is  enough  be  profitable,  whereas  the   actual  conversion  rate  is  more  than   5%).   3.  Ensure  the  gross  margin  in  the  whole  43   process  with  effecMve  cost  control.   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS|  EVERNOTE »  InspiraDons  from  Evernote   1.  The  core  of  free  +  premium  business  model  lies  in    superior  product   experience,  stable  conversion  rate  from  acMve  to  paid  users,  and  the   extraordinary  cost  control.   2.  One  of  the  benefits  that  large  groups  of  free  users  bring  is  the  user   ecosystem.   §  Large  number  of  free  users  actually  become  the  most  dynamic  product   development  team,  and  their  understanding  of  user  needs  and  acMve   creaMon  are  qualiMes  that  even  professional  teams  do  not  have.   §  Its  huge  number  of  users  influences  device  manufacturers,  such  as  HTC,   so  that  they  build  in  Evernote  products  as  their  default  back-­‐end  service   plaeorm  as  well  as  take  the  iniMaMve  to  integrate  their  products.   3.  Sharing  is  informaMon  addiMon;  search  is  subtracMon.  For  most  users,  search   has  more  pracMcal  significance  than  sharing.   4.  The  vision  of  Evernote  is  not  to  make  cross-­‐plaeorm  applicaMons,  but  a   universal  memory  plaeorm  for  all  mankind.  For  any  plaeorm  services,   building  data  centers  is  of  great  importance.  Evernote  has  clearly  taken  this   into  account  when  distribuMng  the  ecosystem  in  overseas  markets.   5.  Pure  promoMon  and  markeMng  is  much  less  effecMve  than  the  integraMon  of   industrial  chain.  Evernote  tends  to  rely  on  their  own  strength  of  the  44   ecosystem  to  extend  its  services  at  all  levels.   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  MOZILLA »  Company  IntroducDon   §  Mozilla  Fund  (referred  to  as  Mozilla)  is  a  non-­‐profit  organizaMon  to  support   and  lead  the  open-­‐sourced  Mozilla  project,  and  is  the  provider  for  worlds   third-­‐largest  browser  Firefox  (the  top  two  being  IE  and  Chrome).   §  Mozilla  OrganizaMon  was  founded  in  February  1998  by  Netscape  staff   internally,  while  the  Fund  was  formally  established  in  July  2003.  It  is   headquartered  in  Mountain  View,  California,  USA   §  Mozilla  Fund  describes  itself  as  "a  public  service  organizaMon  commiPed  to   the  provision  of  a  variety  of  Internet  opMons  and  innovaMons",  and  its   project  includes  Firefox,  Thunderbird,  Drumbeat,  Mozilla  Labs.   §  Core  team:  Gary  Kovacs  (CEO),  Mitchell  Baker  (Chairman),  Brendan  Eich   (CTO),  Chris  Beard  (CIO),  Jim  Cook  (CFO)  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  MOZILLA »  OperaDng  CondiDons   §  There  are  about  500  million  Firefox  users   §  More  than  140  million  daily  acMve  users   §  Over  25%  of  market  share,  ranking  3rd   §  Its  market  share  in  China  has  been   declining  since  2008,  and  is  only  3.32%   now   §  40%  of  the  updates  are  from  volunteers  »  Financial  PosiDon   §  Throughout  2010,  Mozilla  (including   the  Fund  and  its  subsidiaries)  gained   more  than  $  123  million  of  total   revenue,  a  18%  growth  compared  to   2009.  46   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • COMPANY  VISITS  |  MOZILLA »  Views  from  Mozilla   1.  Browser  developers  need  innovaMons  in  business  models.  In  the  mobile   Internet  era,  a  third-­‐party  browser  will  no  longer  suffice.  "One  more  choice"   is  no  longer  the  primary  user  need.   2.  The  next  objecMve  for  Firefox  will  be  deep  customizaMon  and  integraMon  of   the  browser  and  the  user.   3.  Firefox  will  try  a  HTML5  applicaMon-­‐centric,  open  Web-­‐Based,  cross-­‐ plaeorm  appstore.  The  first  step  will  be  a  developer  Beta  in  the  forth   quarter.   4.  One  of  the  purposes  of  Firefoxs  open  appstore  is  to  verify  the  feasibility   and  pracMcality  of  the  Web  as  an  applicaMon  plaeorm.   5.  HTML5  developers  should  have  more  paMence  -­‐  due  to  technical  limits,   most  of  the  apps  cannot  run  on  HTML5  smoothly  for  now.  However,  the   HTML5  trend  is  set,  so  the  advent  of  large-­‐scale,  cross-­‐plaeorm   compaMbility  is  only  a  maPer  of  Mme.   6.  Firefox  add-­‐on  is  the  largest  exisMng  Web-­‐based  appstore.  With  this  Firefox   accumulated  a  lot  of  experience  and    developers.  This  a  unique  advantage   that  other  plaeorms  do  not  have.  47   research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • Conclusion  Ø   Freemium  Ø   HTML5  Ø   Ecosystem  Ø   On  New  Technologies  and  Business  Models Ø  On  the  Mobile  Internet  Boom  Ø   On  the  Investment  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • KEYWORDS »  Keyword  -­‐  Freemium   Although  it  has  a  long  history,  Freemium  only  has  gained  its  popularity  recently.    It  is  a  free  +  premium  business   model;  companies  provide  main  features  of  the  products  or  services  for  free  to  acquire  a  large  number  of  high-­‐ quality  core  users,  and  then  charge  them  with  value-­‐added  services  or  an  advanced  versions.  China  is  one  of  the   early  markets  where  Freemium  has  succeeded.  Tencent,  now  a  industrial  giant,  started  with  this  model.    Some   companies  we  visited  in  GMIC  Roadshow,  such  as  Zynga,  Glu  and  Evernote,  are  also  typical  Freemium  players.   Basic  Elements  of  Freemium:   §  “IrresisMble”  Free  Products:Inferior  products  will  not  aPract  users,  even  free  of  charge.  Successful   Freemium  products  are  amazing  because  they  provide  full-­‐funcMon  versions  (instead  of  crippled  ones)  to   users  for  free.   §  A  Large  AcMve  User  Base:AcMve  users  means  product  retenMon,  and  retained  users  have  the   possibility  to  be  paid  users.  As  Evernote  CEO  Phil  Libin  says  –  “The  easiest  way  to  have  1  million  paid  users   is  to  have  1  billion  free  users.”   §  Extraordinary  Cost  Control:Venture  capitals  do  not  ensure  the  long-­‐term  success  of  Freemium   companies;  only  great  cost  control  abiliMes  do.   §  User  Data  Analysis  and  Mining:The  user  value  needs  to  be  exploited.  The  massive  number  of  users   requires  strong  data  teams  to  support  the  decision  making  for  products  and  services.  Only  by  knowing   who  will  pay  and  how  much  they  will  pay  can  Freemium  companies  succeed.   §  InnovaMons  in  Value-­‐Added  Services:From  the  services  themselves  to  the  moneMzaMon  model,   Freemium  requires  constant  innovaMons.  With  the  cost  set,  how  to  maximize  the  value  of  the  product  in  a   way  that  users  accept?  How  to  improve  the  conversion  rate  from  free  users  to  paid  ones?  These  will   always  be  frequently  asked  quesMons.  49  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • KEYWORDS »  Keyword  -­‐  Freemium   Why  is  Freemium  so  Popular?   §  Users  are  easier  aPracted  by  free  products.    It  is  the  "easily-­‐aPracted  users"  that  are   the  premise  of  Freemium.     §  Free  products  with  greater  user  retenMon  cause  higher  transfer  cost  to  users.    The   fundamental  advantage  of  Freemium  is  the  accumulaMon  and  retenMon  of  core  users,   because  no  maPer  how  good  the  moneMzaMon  model  is,  it  cannot  make  profits   without  stable  user  groups.   §  The  marginal  cost  advantage  of  sohware  and  Internet  products.  It  was  difficult  for   Freemium  to  succeed  before  the  Internet  era.  The  reason  why  it  prevails  now  is  that   most  IT  products  have  almost  zero  marginal  cost.   §  Another  reason  for  the  popularity  of  Freemium  is  its  advantages  in  markeMng.    Before   there  were  social  media,  “word-­‐of-­‐mouth”  markeMng  was  difficult,  whereas  now   various  social  media  plaeorms  amplify  its  effecMveness.   §  Core  users  aPracted  by  free  products  contribute  more  to  the  formaMon  of  the   ecosystem.  As  Evernote  CEO  said,  a  major  part  of  the  development  of  Freemium   products  comes  from  users.    Free  users  are  more  willing  to  contribute  their  efforts  to   improve  the  user  experience.  Numerous  user-­‐developed  products  will,    in  a  short  Mme,   form  a  ecosystem  that  is  difficult  for  compeMtors  to  replicate.  50  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • KEYWORDS »  Keywords  -­‐  HTML5   Cu~ng-­‐Edge  PracMMoners‘  Views   1.  Webstore  -­‐  cross-­‐plaeorm  compaMbility  is  undoubtedly  the  primary   significance  of  HTML5.  Web-­‐based  apps  is  not  only  a  technical  soluMon,  but   also  opens  up  different  market  segments  for  more  opportuniMes  in  business   model  innovaMon.  Microsoh,  Mozilla  and  Google  have  started  their  own   browser-­‐related  strategies.   2.  The  80/20  rule  of  HTML5  -­‐  due  to  technical  limits  at  this  stage,  only  about   20%  of  all  apps  are  suitable  to  run  on  HTML5  plaeorm,  and  the  rest  80%  are   not  for  they  require  higher  performance.  But  the  trend  is  set.  This  80%   represents  potenMal  rather  than  obstacle.  3.  Games  that  are  larger  than  100m  currently  cannot  run  in  the  browser  -­‐   although  HTML5  reduces  the  cost  of  porMng,  the  response  Mme  and  gaming   experience  greatly  limited  so  that  hard-­‐core  gamers  will  not  be  saMsfied.   4.  HTML5  is  hard  to  promote  -­‐  on  the  one  hand,  HTML5  is  being  pushed  more   because  of  strategic  needs  from  companies  than  by  urgent  needs  from  users;   the  other  hand,  its  high  requirements  for  hardware  and  bandwidth  are  also   constraints.  51  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • KEYWORDS »  Key  word  -­‐  Ecosystem   InspiraMons  from  great  Silicon  Valley  business   1.  APenMon  to  their  own  posiMon  in  the  ecosystem  and  to  the  industry  chain  integraMon  capabiliMes.   No  maPer  who  is  speaking,  Glu,  Zynga,  or  Google  Android,  the  construcMon  and  development  of   ecosystem  have  become  an  important  part  of  their  long-­‐term  strategy.   §  Androids  success  comes  from  the  rapid  formaMon  of  a  large  ecosystem,  thanks  to  Googles   efforts.  In  terms  of  scale  it  is  even  larger  than  that  of  Apple.  Googles  core  strengths  in  the   future  also  lie  in  the  synergy  between  various  parts  of  its  ecosystem.   §  Glu  has  dedicated  teams  responsible  for  the  adaptaMon  of  all  aspects  of  the  Android   ecosystem.  It  also  cooperates  with  the  industrial  chain  covering  chip  makers,  handset   manufacturers,  SNS  plaeorms,  and  a  variety  of  retail  stores.   §  Evernote  believes  that  pure  markeMng  is  much  less  effecMve  than  integraMng  the  industrial   chain,  therefore  it  always  adheres  to  the  construcMon  of  ecological  system,  with  which  to   promote  and  extend  its  own  business.   2.  Drive  product  development  and  markeMng  by  customer  needs  to  accelerate  the  formaMon  of   ecosystems.  This  is  parMcularly  evident  in  development  of  companies  like  Evernote  and  Mozilla,   whose  large  number  of  free  users  and  volunteers  actually  become  the  most  dynamic  product   development  team,  and  their  understanding  of  user  needs  and  acMve  creaMon  are  qualiMes  that   even  professional  teams  do  not  have.   3.  Lead  or  parMcipate  in  the  construcMon  of  a  business  ecosystem  so  that  companies  have  resources   beyond  their  own  borders  and  beyond  the  local  market.  During  the  enMre  trip  this  is  the  theme  of   all  China-­‐related  topics.  Glu  and  Mozilla  are  acMvely  seeking  cooperaMon  with  OEMs  and   operators;  Zynga  formed  an  alliance  with  Tencent;  Evernote  began  trying  to  build  data  centers  in   China;  Google,  although  quiet  in  the  Chinese  market,  conMnues  to  envolve  Chinese  developers  into   its  own  ecosystem.  52  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • CONCLUSION »  On  New  Technologies  and  Business  Models  -­‐  InspiraDons  from  Square   and  Evernote   §  Whether  it  is  HTML5  or  NFC,  new  technologies  tend  to  be  over-­‐sought  or   idolized.  But  we  also  see  such  entrepreneurs  as  Jack  Dorsey  who  set  up   companies  in  a  quite  different  way:  From  the  beginning,  the  idea  was  not  to   mobilize  the  payment  method.  It  was  the  overall  development  of   technologies  to  make  a  whole  new  model  that  completely  changes  tradiMonal   methods  or  even  the  way  of  life.    As  Jack  Dorsey  said,  “First  of  all,  Square  is   not  a  mobile  payment  company;  secondly  it  is  not  even  a  payment  company.”   §  What  Square  pursues  is  "make  the  payment  itself  no  longer  a  hindrance"  -­‐     "to  support  every  payment  method  available  to  customers"  and  "to  help   businesses  complete  every  possible  transacMon".    They  will  support  NFC  as   long  as  customers  need  them  to.  While  most  companies  focus  solely  on  new   technologies,  Square  sees  the  bigger  picture  and  emphasizes  on  how  these   technologies  can  be  applied  to  the  business  model  and  ecosystem.  This   difference  in  perspecMve  differenMate  this  companies  from  ordinary  ones.   §  In  Evernote  we  also  heard  them  say  "to  be  a  universal  memory  plaeorm  of   mankind".  We  cant  help  thinking  about  the  words  Mr.  Lei  Jun  said  to  Tencent   employees  in  a  recent  GWC  mobitalk:  "It  is  Mme  for  Tencent,  as  a  giant  with   $40  billion  of  market  value,  to  change  the  world."  A  great  company  from   China  is  something  we  all  look  forward  to.  53  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • CONCLUSION »  On  the  Mobile  Internet  boom  -­‐  trend  or  trick  ?   §  Throughout  the  GMIC  Roadshow,  we  heard  more  than  once  American  colleagues   amazement:  The  startup-­‐boom  in  Beijing  is  quite  similar  to  that  in  Silicon  Valley  some  Mme   ago.  Angel  investors  and  VCs  have  different  views  due  to  their  business  backgrounds.  For   example,  SV  Angel,  from  the  perspecMve  of  science  and  technology  update  cycle,  believes   that  mobile  Internet  is  sMll  only  at  the  early  stage  and  far  from  a  bubble,  not  to  menMon   slowing  down;  Sequoia  capital  measures  whether  there  is  overheaMng  based  on  "the   difficulty  and  cost  for  start-­‐ups  to  recruit  people."  They  thinks  that  "at  any  stage  of  the   economic  cycle  there  will  be  good  businesses,"  and  invest  in  projects  and  entrepreneurs   with  long-­‐term  and  extensive  values  for  in-­‐and-­‐out  returns.  »  On  the  direcMon  of  investment  -­‐  angel  investment  vs  venture  capital.   ü  SV  Angels  focuses   §  New  media  channels,  real-­‐Mme  content  consumpMon   §  O2O  Business   §  Collaborated  consumpMon     ü  Basic  investment  philosophy  of  Sequoia  Capital  :  find  a  spark  can  start  a  prairie  fire:   §  New  technological  and  innovaMve  projects   §  Projects  with  superior  customer  values  and  fast  distribuMon  plaeorms  54  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • PICTURES    |  EVENTS Churchill  Club  Top  Tier  VC  Dinner  alley GMIC  Roadshow  Monday  Dinner,  Silicon  V research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • PICTURES  |  COMPANY  VISITS Square Mozilla  Fund  eBay  bator  Evernote  Google  Android  RocketS pace  Incu research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • PICTURES    |  COMPANY  VISITS Do nahoe    TwiPer  Founder  -­‐  Jack  Dor eBay  CEO  -­‐  John   sey  Aliyun  President,  Wang   ice  President  of  Mobile  Bus iness,    David  Marcus   Jian  -­‐  GMIC  Roadshow Paypal  V research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • ABOUT  GWC:  WHO  WE  ARE enable’s its members and clients to: Develop trusted relationships Learn market leading strategies Promote their initiativesConnecting the   mobile internetecosystem of China to that of the world’sen.greatwallclub.com research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.    
    • If  you  have  any  comments  on  this  report  or  want  more  informaMon  about  GWC  and  the   Global  Mobile  Internet  Conference,  please  contact  us  at  research@greatwallclub.com  SHAWN  MICHAEL  CUI    |    MARKET  RESEARCH  AND  CONSULTING  PROJECTS,  SENIOR  MANAGER   »  Email:  shawn@greatwallclub.com   »  www.linkedin.com/in/shawnmichael                                              CommiPed  to  building  a  world-­‐leading  mobile   Internet   business   plaeorm.   We   help   our   members   and   clients   establish   business   relaMonships   based   on   mutual   trust,   learn   strategies   and   innovaMve   market-­‐leading   business   model,   and   promote   their   development   major  This  report  is  an  internal  publicaMon  of  Great  Wall  Club  and  is  intended  for  its  members.   strategic  markets  both  in  China  and  the  world. Unauthorized   publicaMon   and/or   use   of   communicaMons   are   prohibited   without  permission  from  the  copyright  owners.  research@greatwallclub.com  |  Copyright  2011.  All  rights  reserved.