http://techsylvania.co

1. CHINA TELEMATICS SITUATION & THINKING
Manfred
Fu(GM
of
Telenav
Shanghai)
May
2015

2. 2
Video:
1st
China_short

3. 3
Baidu
Tencent
Alibaba
Xiaomi
Huawei

4. BAIDU—SEARCH ENGINE GIANT
4
• Market
Cap:
$69.33
B
• F2015Q1
revenue:
$2.053
B
• In
2014,
Baidu’s
mobile
revenue
surpassed
PC
in
December
• In 2013, Baidu owned a map data vendor—长地万方Ritu

5. CARLIFE– BAIDU SOLUTION IN CAR
5
Baidu
map(app)
• APP
is
free
to
use
• Map/navigaRon
APIs
are
open/free
to
developers
• Market
share:
65.2%
• User:
370m(2014/9/3)
• Day
request:
>10B
CompaRbility
• Phone:
iPhone,
Android
• Car:
Linux,
QNX,
Android,
WinCE
• ConnecRon(phone
&
car):
USB
or
WIFI
OEM
level
HMI
&
UE
• Sensors
with
car
• Voice
control
• CooperaRng
with
OEMs
&
Tier1s

6. TENCENT—SOCIAL NETWORK GIANT
6
• Market
Cap:
$206.2
B(2015/4/13)
• F2015Q1
revenue:
$3.618
B
• Top
2
popular
app:
QQ,
WeChat(from
mobile
&
PC)
• Most
revenue
from
game(TBD)
• User
of
WeChat:
>500m(by
2014)
• In 2014, Tencent spent $187 million in Navinfo to
became later’s 2nd large stakeholder.
• Navinfo is one of top two map data vendor in China

7. 7
2014-­‐04-­‐21,
21:11:00

8. TENCENT OBD SOLUTION—LUBAO(2013)
• BT connection to phone
• Car diagnostic
• Interact with Tencent mobile
navigation
8

9. WEDRIVE—TENCENT ALL-IN ONE SOLUTION IN CAR
9
Feature
scope:
• NavigaRon
• Social
life
• News
• Music
• Stock
• Online
video
• Call
center
service
• Restaurant
recommend
Summary
• Strong
in
“infotainment”
• Not
enough
integraRon
with
HW
• No
deep
cooperaRon
with
car
makers

10. ALIBABA—E-COMMERCE GIANT
10
• Market
Cap:
$213.6
B(2015/5/7)
• March
quarter
2015
revenue:
$2.81
B
• GMV
(Gross
Merchandise
Volume)
in
F2015Q4:
$97
B
• In 2014, Alibaba fully acquired AutoNavi, total of
USD 1.38 billion, later is one of top two map data
vendor in China

11. 11
Invest
1
billion
yuan
($160
million)
to
develop
Internet-­‐connected
vehicles

12. BUILDING THE FOREST AROUND CAR & DRIVER
12
Used
car
replacement
AucRon
Premium
used
car
Smart
device
&
OBD
Lease
Designated
driver
Car
SPA
New
car
booking
Car
finance
Car
E-­‐shopping
Car
insurance
Car
fikng
4S
maintain
O2O
service
Fuel,
violaRon,
etc
CerRfied
accessories
Shopping
service
Local
service
Used
car
New
car

13. COMPARISON TO GLOBAL GIANTS
13
latest
quarter
(by
May
2015)
Baidu
Google
Tencent
Facebook
Alibaba
Amazon
Market
Cap
($
billion)
69.33
363.07
206.2
222.22
213.6
199.78
Revenue
($
billion)
2.053
17.26
3.618
3.54
2.81
22.72

14. SUMMARY– BAT WITH LBS
All of them:
– Own or invest map vendors
– Own navigation engine
– Cooperate with HW partners
– Cooperate with Auto makers to host HU screen
– Trying to understand all details around driver & car
14

15. In
2014,
Xiaomi
invested
$14
million
to
own
Careland,
later
is
map
content
vendor
and
No.1
navigaRon
SW
market
share
in
beforemarket
car
navigaRon
XIAOMI
—WORLD'S THIRD LARGEST SMARTPHONE VENDOR
15

16. HUAWEI
—LEADING GLOBAL INFORMATION & COMMUNICATIONS
TECHNOLOGY (ICT) SOLUTIONS PROVIDER.
AND A TOP SMART DEVICE
16
In
2014,
overall
Group
revenue
reached
$46.5
billion,
up
32.7%
year
on
year

17. 17
Revenue
from
oversea
is
higher
than
it
from
China
37.8%(from
China)
vs
62.2%(from
oversea)

18. WHY THESE GIANTS SUCCESSFUL IN CHINA-1
Same/unified origin:
– One large nationality, total 1.226 billion Chinese are
the Han nationality
– One language, Mandarin is popular and accepted by
most Chinese
– One currency, Renminbi(RMB)
– Unified policy
18
Demographic
Dividend

19. WHY THESE GIANTS SUCCESSFUL IN CHINA-2
User habits:
– User experience: Simple
– Willing to accept new things
– Like free software, few people paid
– Half of Chinese living in city
– With University (college) education level: 8.73%
– China's GDP per capita(by 2014): $ 7,485
19

20. WHY THESE GIANTS SUCCESSFUL IN CHINA-3
• Originally, foreign players inspired them
20

21. WHY THESE GIANTS SUCCESSFUL IN CHINA-4
But soon, they did better:
• In 1998, ICQ is the No.1 IM(instant message) SW in China. In 1999, QQ(Tencent’s
IM) was established and only two employees(two founders), one year later(year
2000), QQ became the No.1 IM SW in China, easier to use and free, better UE than
MSN
• When Taobao(Alibaba’s) launched his first E-commerce platform in 2003, Ebay is the
E-commerce giant in China. But in 2006, Ebay closed his server in Mainland, was
quickly beat by Taobao in China. Taobao’s platform is more open and free.
• Similar story for Baidu, in 2000 Baidu set up and at that time Google is search engine
giant in China. But in 2003, Baidu’s market share in China surpassed Google.
21

22. WHY THESE GIANTS SUCCESSFUL IN CHINA-5
• More open platform
• Free to end user, making profit from Ads and 3rd party
• Quickly update
• More respect for Chinese users, more attention on detail
improvements
22
Xiaomi's key to smartphone success:
'Be friends with our fans'

23. 23
Create
saYsfacYon
Create
loyalty
Create
evangelism
THEY ARE CHANGING TO KEEP LEADING POSITION,
FROM MEET MOST PEOPLE TO MEET YOU

24. 24
PASSENGER CAR SALES—CN(2011-2019)
14.47
15.50
17.99
19.71
21.09
22.57
24.37
26.32
28.43
0.00
5.00
10.00
15.00
20.00
25.00
30.00
2011
2012
2013
2014
2015
2016
2017
2018
2019
Passenger
Car
Sales(2011-­‐2019)(M)
Notes:
Data
from
CAAM

25. 40+ LOCAL PASSENGER CAR BRANDS

26. CHINA BEFORE MARKET NAV RATE(2011-2019)
26
7.08%
7.52%
9.28%
12.70%
14.12%
16.54%
18.96%
21.38%
23.80%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2011
2012
2013
2014
2015
2016
2017
2018
2019
Notes:
Data
from
CAAM

27. EUROPEAN OEM’S NAVIGATION IN CHINA
• Connected HU(call center, cloud search,
infotainment, etc)
• Knob + some hot buttons to operate HMI
• Rich functions but w/ normal UE
• Chinese search UE is poor
27

28. JAPANESE OEM’S NAVIGATION IN CHINA
• Performance is amazing
• Traditional step by step HMI design
• Rich functions with many detail settings
• Chinese search UE is poor
28

29. US OEM’S NAVIGATION IN CHINA
• Relatively simple HMI design style
• Connected solution focus on safety and Remote
control, lack of interaction with driver
• Lack of enough localization
• Chinese search UE is poor
• Whole system UE is normal
29

30. CHINA AFTER MARKET NAV RATE(2009-2014)
30
169.5
342.7
510.4
662.4
704.2
75.30%
102.20%
48.90%
29.80%
6.30%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
0
100
200
300
400
500
600
700
800
2009
2010
2011
2012
2013
volume
growth

31. SMARTPHONE PROJECTION
DRIVING COMMODITIZATION
§ No differentiation between vehicle segments
§ Same experience in every vehicle
§ No head unit upgrade potential
§ No control of UX & innovation
31

32. CONNECTED NAVIGATION
LEVERAGE THE ENTIRE CANVAS & CAR DATA
The car can surpass smartphone UX
§ Instantly on
§ Immediately helpful
§ Surpass current expectation through
customization and integrated experience
32

33. UNLOCKING THE DATA POTENTIAL
TO DELIVER A SUPERIOR EXPERIENCE
PERSONAL DATA
VEHICLE DATA
ENVIRONMENT DATA
33

34. OUR INTEGRATED SOLUTION
SMART CLOUD
MOBILE SDK LIVING MAP &
BEST-IN-CLASS
CONTENT
AUTO HMI & SDK
34

35. WHAT WE LEARN FROM THEM
35
Chemical
ReacYon
Physical
ReacYon
Internet
+
+
Internet

36. 36
Win-­‐Win:
In
Car,
Forget
the
Phone

37. THANK
YOU
Manfred
Fu
傅杰伟