MOBILE MAPPING IN
CHINA
SCP Model Analysis and
Future Prospects
Presenters
Time
1
Aiur & Olivia & Xiaofan
27/3/2014
AGENDA
•Background of Chinese mobile
mapping market
•Analysis of Chinese mapping
market in SCP Model
•Future Prospects
2
BACKGROUND OF
CHINESE MOBILE
MAPPING MARKET
3
DEFINITION OF MOBILE MAP
Mobile map is the application that uses
mobile phone or other mobile terminal to
view the map, po...
CHINESE MOBILE INTERNET USERS
5
3,104 3,503 10,049
20,514
28,819
43,137
56,120
65,895
74,896
82,462
2006 2007 2008 2009 20...
Mobile mapping has become a new
market darling
6
13.60%
18.20%
20.50%
22.70%
22.70%
25.00%
29.50%
31.80%
34.10%
52.30%
67....
USER SCALE OF CHINESE MOBILE
MAPPING
7
1.6
2.5
3.3
4
4.7
5.2
62.20%
32%
20.70%
16.90%
11.00%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7...
DEVELOPMENT IN CHINESE
MARKET
The first Internet map service was launched
Google map entered China and chose
Autonavi as t...
ANALYSIS IN S-C-P
MODEL
Structure
Conduct
Performance
9
STRUCTURE
C
P
10
‹#›
S 2 ENTRY BARRIERS
Governme
nt Policy
Only companies with qualifications
can provide mapping business.
Database
Provider
C...
S
CONDUCT
P
13
64.60%
20.20%
10.80%
4.40%
Are you willing to pay for the
mobile apps?
C 1 PRICING POLICIES
Most mobile map apps are free....
C 2 PRODUCT STRATEGY--
AutoNavi
Contend for the phone
entrance
map social platform
Integrate with third
parties
15
C 2 PRODUCT STRATEGY--
AutoNavi
The commercialization path of
AutoNavi
map-based O2O
business
ecosystem
high quality
serv...
C 2 PRODUCT STRATEGY—Baidu
Map
 Accelerate the conversion from the local
life entrance Baidu Map department → LBS busine...
C 2 PRODUCT STRATEGY—Baidu
Map
 Access to discount hotels
 Access to the daily discount hotel
inventory resources
 Ente...
C 3 REVENUE MODEL
19
The basic business model of mobile mapping
industry
Mapping
service
Users
Advertise
rs
C 3 REVENUE MODEL
Several characteristics
1. Advertising.
2. Location-targeted advertisements.
3. Mobile and Internet loc...
C 4 COMPETITION
It can integrate abundant resources
provided by Alibaba
It has strong user base from its signature
brand
B...
S
C
PERFORMANCE
22
P 1 Mobile mapping user are increasing
23
Sequential growth rate is 8
P 2 The status of the TOP 3 players is
more solid
24
FUTURE PROSPECTS
•Prediction of players
•3 trends that will drive the
future
25
PREDICTION OF PLAYERS--Leading
Players
 With the investment from Alibaba,
AutoNavi will be supplemented to a
great extend...
PREDICTION OF PLAYERS--
Innovative Players
 Good at innovation
 Short in finance and talent
 Making good use of Wechat
...
THREE FUTURE TRENDS
28
1. 3D Live Map 2. Indoor Navigation
3. Personalized Product
THANK YOU
29
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Mobile map final final final

  1. 1. MOBILE MAPPING IN CHINA SCP Model Analysis and Future Prospects Presenters Time 1 Aiur & Olivia & Xiaofan 27/3/2014
  2. 2. AGENDA •Background of Chinese mobile mapping market •Analysis of Chinese mapping market in SCP Model •Future Prospects 2
  3. 3. BACKGROUND OF CHINESE MOBILE MAPPING MARKET 3
  4. 4. DEFINITION OF MOBILE MAP Mobile map is the application that uses mobile phone or other mobile terminal to view the map, position, search the location, and plan the route through WAP or other software. Source: China Mobile Map Market Research Annual Report for 2013 4
  5. 5. CHINESE MOBILE INTERNET USERS 5 3,104 3,503 10,049 20,514 28,819 43,137 56,120 65,895 74,896 82,462 2006 2007 2008 2009 2010 2011 2012 2013(F) 2014(F) 2015(F) Prediction of Active user scale of China mobile internet Active users faster than global market
  6. 6. Mobile mapping has become a new market darling 6 13.60% 18.20% 20.50% 22.70% 22.70% 25.00% 29.50% 31.80% 34.10% 52.30% 67.10% Mobile ordering Book hotel Registration Mobile booking tickets Price parity Group-buying Mobile shopping Mobile payment Recommendation information Life service information Mobile mapping and navigation User's behaviors of mobile internet source: Chinese mobile internet market research for 2013 Life service applications are getting more and more attention from users.
  7. 7. USER SCALE OF CHINESE MOBILE MAPPING 7 1.6 2.5 3.3 4 4.7 5.2 62.20% 32% 20.70% 16.90% 11.00% 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0 1 2 3 4 5 6 2011 2012 2013 2014e 2015e 2016e User scale of mobile mapping and navigation(hundred million) Growth rate Source: Chinese mobile mapping and navigation market research report for 2012 User scale of mobile mapping and navigation(hundred million)
  8. 8. DEVELOPMENT IN CHINESE MARKET The first Internet map service was launched Google map entered China and chose Autonavi as their partner Mobile mapping service became homogenized. Competition became fiercer. Small companies died. Survivors began to focus on O2O business. 1999 2007 2008 2010 8
  9. 9. ANALYSIS IN S-C-P MODEL Structure Conduct Performance 9
  10. 10. STRUCTURE C P 10
  11. 11. ‹#›
  12. 12. S 2 ENTRY BARRIERS Governme nt Policy Only companies with qualifications can provide mapping business. Database Provider Chinese mapping industry is duopolistic AutoNavi & Navinfo 12
  13. 13. S CONDUCT P 13
  14. 14. 64.60% 20.20% 10.80% 4.40% Are you willing to pay for the mobile apps? C 1 PRICING POLICIES Most mobile map apps are free. Main reason : Users have less willingness to pay for mobile apps. 14 33.80% 66.20% Have you ever paid for the mobile apps? Yes No No Will buy if price is acceptable Maybe Will buy as long as I like the app
  15. 15. C 2 PRODUCT STRATEGY-- AutoNavi Contend for the phone entrance map social platform Integrate with third parties 15
  16. 16. C 2 PRODUCT STRATEGY-- AutoNavi The commercialization path of AutoNavi map-based O2O business ecosystem high quality services third parties Establish LBS business ecology16
  17. 17. C 2 PRODUCT STRATEGY—Baidu Map  Accelerate the conversion from the local life entrance Baidu Map department → LBS business department  Baidu side's Guid  Baidu tuan  Integrate with coupon and group buying information and access to their order  Introduction of indoor positioning and location sharing Location Sharing Services  Interior map  Cooperate with third-party applications 17
  18. 18. C 2 PRODUCT STRATEGY—Baidu Map  Access to discount hotels  Access to the daily discount hotel inventory resources  Enter to the discount hotels market "Tonight Hotel Deals" section 18
  19. 19. C 3 REVENUE MODEL 19 The basic business model of mobile mapping industry Mapping service Users Advertise rs
  20. 20. C 3 REVENUE MODEL Several characteristics 1. Advertising. 2. Location-targeted advertisements. 3. Mobile and Internet location-based solutions for enterprises. 4. Pre-installing navigation software cooperation with mobile phone manufacturers. 5. Charge users for application download and advanced service.However, in 2013, Baidu and AutoNavi Navigation started offering free service.  New business model needs to be established. 20
  21. 21. C 4 COMPETITION It can integrate abundant resources provided by Alibaba It has strong user base from its signature brand Baidu Search engine 21
  22. 22. S C PERFORMANCE 22
  23. 23. P 1 Mobile mapping user are increasing 23 Sequential growth rate is 8
  24. 24. P 2 The status of the TOP 3 players is more solid 24
  25. 25. FUTURE PROSPECTS •Prediction of players •3 trends that will drive the future 25
  26. 26. PREDICTION OF PLAYERS--Leading Players  With the investment from Alibaba, AutoNavi will be supplemented to a great extend in terms of financial and talent resources  Mapping gets higher strategic status.  After acquiring 91Assistant and Nuomi—more power in mobile distribution and business resources. 26
  27. 27. PREDICTION OF PLAYERS-- Innovative Players  Good at innovation  Short in finance and talent  Making good use of Wechat  Higher status & Great ambition  No better in usability  Lagging in O2O 27
  28. 28. THREE FUTURE TRENDS 28 1. 3D Live Map 2. Indoor Navigation 3. Personalized Product
  29. 29. THANK YOU 29

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