6. Most consumers do not care about brand, although more and more people are starting to have brand awareness.

7. The consumer market is still very fragmentedfor most product / service categories.

8. Top tier cities (e.g. Beijing, Shanghai, etc.) are already becoming expensive and very competitive. The ‘new’ potential is in 2nd and 3rd tier cities.

9. Emerging middle class has only just started to pay attention to diet, fitness, and a healthy lifestyle.

10. Women have recently started to buy accessories, cosmetics, fancy lingerie, etc. in order to enhance their sense of well-being and self-respect.

11. “Newly rich” social class phenomena.

15. Local team not empowered;

16. Inflexible;

17. Insufficient attention to local market needs:

18. “Global” product mentality;

20. eBay: entry in 2003, Eachnet acquisition (nearly 100% market share), “sold” <5%domestic business in 2006

21. MSN: entry in 2004, distant #2 (~10% share) in instant messaging, not in top 5 inportal & search

22. AOL: JV with Lenovo in 2001, FM 365 portal, shut down in 2004, entered again in2008 & shut down in 2009

23. Amazon: entry in 2005 by acquiring #2 player Joyo, which has been unprofitableand losing share

24. Myspace: entry in 2006 as local company with minority ownership by News Corp. Going nowhere.

25. Youtube: sporadically blocked (<5% share), blocked in 2008 (0% share)

26. Facebook: <5% share, blocked in 2009

27. Twitter: blocked in 2010

32. Logistics problems also solved

33. Youth becoming avid online spenders

34. Taobao = 50% of packages shipped

35. C2C is currently nearly 90% of E-Commerce

39. 1, 2, 6 best shows strength of Internet above and most suitable for technology e-commerce companies

40. B2C companies need tools & platforms to build site & acquire customers (enabling traditional players)

41. Higher-margin opportunities may emerging in social/entertainment shopping & new Internet brands

45. CUTC (WCDMA)

47. Ecosystem needs devices, bandwidth, applications to create a virtuous cycle

48. Challenges:

49. Smart phones are too expensive (US$600 – $1000)

50. 3G bandwidth is still too expensive

51. Yet users are younger (83% of Mobile Internet users are below 30) and not rich

54. Must focus on aspiring young users before “3-low” users

55. Aspiring Young users are existing Internet users

72. Current crisis will slow down but will it greatly hurt the VC market in China? The fundamentals of the Chinese economy are still strong - investment opportunities are still here.

75. Traditional industries still account for almost 50% (!) of the VC money invested in China.

76. In the U.S. Series A and B rounds typically account for over 45% of total funds invested.

80. However, the stock markets in Shanghai and in Shenzhen continue to rapidly improveespecially in terms of shortening post-IPO lock up, transparency, etc.

81. Government also launched a genuine (?) Growth Enterprises Board (GEB), termed as “China’s NASDAQ”.

86. Angel Investor of UCWeb, Vancl, and many other start-ups.

87. In last three years, he has helped several companies get more than $150 million in total in follow-up capital.