4. #1 market in terms of users
Source: Plus Eight Star
5. We are making money
• 5 SNS listed in stock market
• 4 in Asia
• 3 in Japan
• 2 nearly pure mobile
6. High potential
Internet penetration 25.5% 73%
(%) (Jun 2009) (2008)
Mobile penetration 50% 90%
(%) (Jun 2009) (2008)
Over 50% additional
users from rural market
= Actively expanded
“Blue Ocean”
Source: MIIT, CIA World, GWC
7. Low cost of handset making
Low price
Short time-
to-market
125~142 USD
Over 90% of
functions are
directly onto
the MTK chip
Source: an e-commerce site, Jan 2010
9. Low cost creates variety
Shaver phone
Cigarette case shaped
Barbie dressing case phone
PSP shaped, popular
games preinstalled
Watch phone
Car shaped
Solar power
Super lens attachable
rechargeable handset
12. Tencent vs Facebook
Year 2009
Subscribers +300 mln +400 mln actives
Revenue ~635 mln USD 1,800 mln USD 270 mln USD
from mobile
Net profit Loosing money 40%
#3 in the
Market Cap ~35 bln USD ~40 bln USD
world, after
Google and
Amazon
Source: Tencent, Inside Facebook
13. Tencent
#1 online community
Market cap: 39.4 bln USD
Is it #3 Internet company, after Google and Amazon, in the
world?
Tencent
5 years comparison
Google
NASDAQ
Composite
Source: Yahoo! Finance, Jan 2010
14. B2C instead of B2B
Virtual goods: 77%
Wireless: 15% 97% revenue from Ads
Ads :8%
92% of 1.8 bln USD in 2009
were directly from users
15. Online payment popular in a
country with low-trust
Low trust E-commerce booming
Few credit card Taobao
>145 mln online shopping registers
2.3% of Chinese own credit
GMV: 29.3 bln USD in 2009
card
Bad credit system Alipay
230 mln registered 3rd party
Huge population payment users
Unbalanced economic Over 147 mln USD transaction per
development day
Alipay’s (brother company of Taobao) online escrow system helps both buyer and
seller build trust between each other, and largely accelerated online shopping market.
16. Japan's mobile commerce, twice the
mobile content market
Beginning from 2004, Japan's mobile commerce sales exceeds that of content. In
2008, MC is about twice as much as CP.
Mobile
MC market
Commerce
(MC) 8.7 bln USD
Individual
Users 2008
Mobile
CP market
Content
4.8 bln USD
(CP)
Advertis Advertis Mobile Ad
ers ers market 2007
620 mln USD
Source: 总务省 (Japan), MCF (Japan)