Download as PDF, PPTX
Uploaded byBenjamin Joffe
Digital Naturalism
The document discusses the landscape of digital innovation in China, emphasizing the unique ecosystems that foster both endemic and invasive digital species. It highlights significant companies like Tencent and their strategies for growth, as well as the challenges faced by startups in a rapidly evolving market. The presentation also examines historical contexts of innovation and the importance of adapting to local conditions for success.
More Related Content
Digital Naturalism
- 1. New and Improved Species from China Digital Naturalism @benjaminjoffe, ceo, +8* Media Evolu9on Conference | Malmö, Sweden | 2011.08
- 2.
- 3. My Voyage • 11 years in Asia (China, Japan, Korea) • Research on “Local Species” • Innova9on Arbitrage
- 4.
- 5. When was it invented?
- 6. Europe Gutenberg | 1450 Korea Metal | 1230 China Wooden | 1040
- 7. What does it tell us? 1. Things can be “invented” more than once 2. Ideas have no na;onality 3. Time gap can be bridged Imagine!
- 8.
- 9. China’s Internet in the Western Mind Censorship Ac9vists 485m users Cyber-‐AZacks Internet Stocks Source: Top Google News on “China Internet”, 2011.08.16
- 10. What is missing? Innova9on Users New concepts Startups
- 11. #1 Challenge: Preconcep;ons China Innova9on Success
- 12.
- 13.
- 14. Digital species are IDEAS Cute ideas visit people everywhere
- 15. Understanding Digital Species • NATIVE driaed “naturally” – ENDEMIC 1 loca9on – INDIGENOUS >1 loca9on • INTRODUCED not naturally • INVASIVE widespread
- 16. Quick Look at Ecosystems USA • Large popula9on • High GDP/capita • Experienced entrepreneurs • High development costs • Vast investments resources • Clear regula9ons RICH ECOSYSTEM
- 17. Quick Look at Ecosystems CHINA • Very large popula9on • Low GDP/capita • Inexperienced entrepreneurs • Low development costs • Popular investment spot • “In-‐progress” regula9ons TOUGH ECOSYSTEM
- 18. Copy is the “natural” way
- 19.
- 20. 5C’s of Innova9on™ 1. Copy 2. Constraints 3. Combina9on 4. Compe99on 5. Context
- 21. Compe99on? Service No. Local Services Tencent (QZone, Pengyou) Facebook 5 Renren (IPO), Kaixin001, 51.com 1G: (dead) TwiZer 3 2G: Sina (IPO), QQ, Sohu (IPO) 1G: Wealink, Tianji LinkedIn 4 2G: Ushi, Hengzhi YouTube 3 Youku (IPO), Tudou (IPO), QQ Yahoo 3 Sina, Sohu, QQ Groupon 1,000+ Lashou, Taobao, etc.
- 22. Endemic TENCENT (Galapagos Penguin)
- 24. Tencent & QQ • 1998: Chinese “ICQ” • Survival: Virtual goods in Avatars, Games (Korea) • Today: social networks, microblog, e-‐commerce, search, interna9onal…
- 25. Tencent Usage • IM ac9ve accounts 702 mln • Qzone SNS 530 mln • Pengyou SNS 130 mln • Microblog 233 mln
- 26. Tencent Results (1H2011) • Revenue 2 bln USD – More than Facebook! – Games 55% – Ads 8% • Net profit 42% • Paying users 11% Photo: Tencent’s new Headquarters in Shenzhen
- 27. Endemic JIAYUAN (flightless cormorant)
- 28. Jiayuan | #1 Matchmaking site • 40 mln members • Revenue 18 MEUR (loss) • 5 mln ac9ve • IPO in May 2011 (“DATE”)
- 29. Jiayuan | #1 Matchmaking site • Starving with ads • 100’s of events • Sells “stamps” (0.2 EUR) – Either sender or recipient must buy it
- 30. Endemic ZHENAI (Lonesome George)
- 31. Zhenai | #2 Matchmaking site
- 32. Zhenai | #2 Matchmaking site • 28M members • VIP service • “Dates manager” • Feedback channel • 300 EUR/6 months
- 33. Endemic VANCL (swallow-‐tailed gull)
- 34. Vancl | #1 Online Apparel Store • Original brand “Vancl” • “Online-‐to-‐Offline” (O2O) • Started as online shirts • 200 MUSD in 2010 • Expanded to apparel • $5 bln Valua9on
- 35. Vancl | #1 Online Apparel Store • “Vancl Stars” show their styling ideas • 10% commission on sales from personal page
- 36. Invasive & Indigenous ONLINE GAMES (marine iguana)
- 37. >10 Online Game Giants! • No game soaware market • Inspira9on from Korea • All online! • Online games = $5bln vs. $2bln in USA
- 38. Market Cap $53.5B 8 Unit: billion US$ 7 6.2 6 5 5 4.5 4 3 2.4 2 1.7 1.7 1.1 1 0.764 0.29 0.1 0.165 0 Tencent Shanda Shanda Netease Perfect Changyou Giant Kingsoa NetDragon CDC The9 Renren Game World Interac9ve Source: Companies, 2011.04 except Renren, 2011.05
- 39.
- 40. Invasive & Indigenous SHANZHAI (“Bandit”) (Lava Cactus)
- 41. Apple Store in Kumming
- 42. Apple Store in Kumming • Real products! • Customer service • (Some) staff think it’s an official store!
- 43.
- 44. PHOTO: MOBILE PHONE, BEIJING, APRIL 2010 © Benjamin Joffe / Plus Eight Star Ltd.
- 45. PHOTO: MOBILE PHONE, BEIJING, APRIL 2010 © Benjamin Joffe / Plus Eight Star Ltd.
- 46. Did you no9ce that? PHOTO: MOBILE PHONE, BEIJING, APRIL 2010 © Benjamin Joffe / Plus Eight Star Ltd.
- 47. This is a “FarmVille” bu3on There is a link to check your QQ Farm PHOTO: MOBILE PHONE, BEIJING, APRIL 2010 © Benjamin Joffe / Plus Eight Star Ltd.
- 48.
- 49.
- 50. “Shanzhai” Phones: Mass Customiza9on • 4F’s of Shanzhai™ – Fun – Flashy – Fast – (almost) Free!
- 51. “Invasive” Commodi9za9on? World’s Fastest Android CPU (1.5G) by Xiaomi Tech (220 EUR)
- 52. “Invasive” Commodi9za9on? HaiPad Android 2.2, Dual camera by Haier (100 EUR)
- 53. “Invasive” Commodi9za9on? World’s First Android 3.2 Tablet by Huawei
- 54. Introduced Species (dogs or goats?)
- 55. ALL successful ones mutated • Yahoo! Invested in Alibaba (40%) • Google Failed • Android Free! • Angry Birds
- 56. Groupon War • Hundreds of players • Single digit margins • No clear leader • $110m funding for Lashou • Hard 9me for Groupon US
- 57. One more thing! Cmune (new hybrid)
- 58. Made From China Uberstrike by Cmune: Top 3D Game on Facebook
- 59. The Future of Digital Species • Study Ecosystems • Discover new species • Mutate • Survive • Thrive! Gymnadenia Runei (Indigenous Swedish flower)
- 60. Tack sså mycket! Tack å m ycket! @benjaminjoffe benjamin@plus8star.com www.slideshare.net/plus8star