Digital Startup Transformation in China.

1. The Integration of
National Media in
Global Communication Landscape
Opportunities and Challenges

2. 1. Baidu Success Stories
o Company Background and Business Growth
o Baidu Entering Global Market
o Baidu Product In Indonesia Market
o Grow Local, Go Global Program
2. China Transformation to Most Innovative
Technology Country
o How China Leading in Technology
o Insight of China Technology Company
o China Government Support Tech Industry
3. Experience Sharing
o Challenge In Digital Economic Era
o Internet Plus

3. Baidu Success Stories

4. Company
Background
And
Business
Growth
Baidu processes billions of unique queries every day
We were the first Chinese Company
included in the NASDAQ 100 Index
Baidu has over
50,000 employees
Total Revenues: USD 10.248 Billion (2015)
Annual Revenue Growth: 35.3%
Success Story

5. Company
Background
And
Business
Growth
 Baidu was founded in 2000 by Robin Li
 No.1 Chinese search engine in the world with more than 6
billion search request everyday
 The BIGGEST search engine in China with over 79.84% of
search engine and mobile market share in China
 Baidu also leading in advanced technology such as : Artificial
Intelligence (AI), Map, O2O, Big Data Analytics, Deep
Learning and Cloud Computing.
Success Story

6. Company
Background
And
Business
Growth
50 Smartest Company in the World 2016
1. Amazon 2. Baidu 3. Illumina 4. Tesla Motors
1. Baidu was top 2 – World Smartest Companies 2016 (MIT Tech Smartest Review)
2. Baidu was rank 29 most innovative companies in the world (Forbes, 2016)
Success Story

7. Baidu
Entering
Global
Market We have our global business office in :
Indonesia, Brazil, Egypt, India, Thailand and Japan
We are exploring opportunities in :
Latin America, South East Asia, MENA, North America and Europe
Success Story

8. Baidu
Product
In
Indonesia
Market
DU Battery Saver
is a FREE battery
saving app that
makes your
battery last longer
DU Speed Booster
and Cleaner is the
only all-in-one
speed booster,
trash cleaner and
antivirus
DU Browser is a
simple and
convenient mobile
browser with ultra-
fast browsing
MoboMarket –
No 1 third party
App-store for
Android
smartphone with
localize concept
DU Battery Saver DU Speed Booster DU Browser MoboMarket
Baidu Focus in Indonesia Market as Mobile First Country
Success Story

9. Grow
Local
Go
Global
Baidu Indonesia Ecosystem Development Program
Product
Localized
Bring global
technology to local
market with
localization process to
support local player
growing together in
this industry
Bring global
technology to local
market with
localization process to
support local player
growing together in
this industry
Open
Access
Assisted communities
and startup with
strategic planning and
economic growth to
develop
entrepreneurial
business ecosystem
Develop
Ecosystem
Success Story

10. Success Story
Baidu BEKRAF Tech Startup Acceleration Program
BEKRAF Funding
Online – Offline Campaign
8 cities roadshow
Product
Bootcamp
Mentoring
Demo day
BAIDU
6 months
program
execution
Scouting
Marketing
Engineer Fund Raising
Grow
Local
Go
Global

11. Wonderful
Indonesia
Indonesia to
10 Million China
Traveler
Success Story
Channels
Find & Get
“New Customer”
Influence Decision
Making
Develop Loyal
Fans and Long
term Spreading
Baidu Affiliate Marketing
Baidu Search Marketing
Baidu Search Marketing
Baidu Travel
Baidu Travel

12. China Transformation to
Most Innovative
Technology Country

13. How
China
Leading In
Technology
Labor force is no longer growing
Aging is expected to reduce the working
age population by 16% by 2020
It takes more than 60% more capital to
generate a unit of GDP than did from 1990
to 2010
Return of fixed investment is declining
Push Factor of Transformation
Innovation
Technology
Sustain 5.5% - 6.5%
growth rates until 2025
to contribute 50% GDP
growth
China Transformation
China’s Internet
economy is already
larger than those of
the United States,
France, and Germany
as a share of GDP
iGDP, 2013
2013 average : 4.0
2010
2013
iGDP, 2013 Internet-related expenditures as % of respective country GDP

14. China
Tech
Company
Keep
Increasing
Since 2014 – 2016, China Technology Company
surpass US Company in-term of IPO numbers and valuation
US technology
IPOs since Q2
2014 52
Companies with
total raised
USD 15.31 Billion
China technology
IPOs since Q2 2014
72 Companies with
total raised USD
32.78 Billion
China Transformation

15. The BAT
Contribution
to China
Internet
Growth
China Transformation
Baidu – Alibaba – Tencent
Three most of dominant players of China
internet, mobile and e-commerce have
important contribution to China Internet Growth
Combined Market
Value
USD $473 BNCombined annual
revenue
USD $20BN

16. China Transformation
Market
Understanding
Is a Key
To
Success
 China is Big, Unique and Scale market
 Localize and Understanding the market is important and key to
Success.
 Localize not only mean in language, but also Behavior and
Culture
Transportation
CommerceNavigation
Example : China user prefer one apps can handle all things
Baidu Maps integrate all services into one platform

17. China
Start-up
Unicorn
Rapidly
Increase
China Transformation
 4 from 7 world ten billion USD private company are China Headquartered
 Their total Valuation USD 103 Billion
 US & China have most startup with highest valuation
China startup and US startup
was leading in the world

18. China Transformation
China New Era
Tech
Company
In
Vertical
Industry
Lufax
Online Internet finance
marketplace in China
headquartered in Shanghai.
Lufax is most valuable financial
technology (FINTECH) startup
for peer to peer lending (P2P).
DJI
a Chinese technology
company headquartered
in Shenzhen, Guangdong.
It manufactures drone with
more than 70% world-wide
market share.
China Technology Company Lead Innovation In
Vertical Industry

19. How
China
Government
Support
Tech
Industry
780
Number of
Government
Funds
1,600
Number of
Government
Tech Incubators
State Ventures
China’s Government
support the startup sector
$218Bn
State venture capital 2015
Funding
Government Support USD 218 BN to funding the startup through state VC and
Incubators. (780 number of government funds & 1600 number of government
tech incubators).
Tax Incentive
Tax cut up to 15% to key companies in the creative industry. Personal income tax
on investors in high-tech research and development. On 2015 the total tax
benefits being extend to start-ups is estimated USD 9.93Bn for the first half of
2015 alone.
Co-working Space
Co-working spaces are a recent apparitions in China. The phenomenon
took off in 2015 and more than 500 were created in the past 18 months
(2016) with government support.
China Transformation

20. Government support more than $1.5Bn on
Silicon Valley of China “Zhong Guan Cun” for Co-Working Space
 450,000 meters square
 Subsidized by Government
(government backed)
 9+ co-working space with
accelerator
 More than 300 startup.
China
Silicon
Valley
China Transformation

21. Experience Sharing

22. Challenge
In Digital
Economic
Era
2025
Employee
baseline
Potential job
losses due
productivity
gain
2025
employee
with internet
impact
Potential new employee from incremental demand
Potential new employee from improve allocation capital
Potential new employee from market creation
Experience Sharing
 Workforce - Risk of job losses due productivity gain but meanwhile in the
same time there are opportunity for new job creation
 Ease of doing Business – there are 7 new company in every minutes in
China, half of them is startup. It will trigger more competition.
Numbers in Million

23. Internet
PLUS
Concept
Boost
Traditional
Industry
Experience Sharing
Internet Plus
 Concept of Utilization Internet in boost traditional Industries and other sector :
 Strengthen traditional business and efficiency
 Increase traditional business competitiveness
 Create new innovative business model
 More than US$ 14.6 billion Internet Investment Fund to support Internet Plus