The presentation we made for GMIC2010, Global Mobile Internet Conference, May27-28, Beijing

1. WHY LOOK AT ASIA?
May 27, Beijing Keynote at Global Mobile Internet Conference

2. 薄益群
BO Yiqun

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

8. “Obama” Endorses Chinese
“BlockBerry”
 “BlockBerry” made by HAFF-COMM
Source: The Wall Street Journal Blogs, Jun 2009

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

10. Thanks to MTK
Chip set maker from Taiwan

11. WANG Jianzhou
CEO, China Mobile
2009 WEF, Davos

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)

17. Large
Profitable
Potential
Advanced

18. All the Asian companies
mentioned in this presentation
are present at GMIC2010

19. Contact us
www.thegreatwallclub.com
www.gmic2010.com
yiqun@thegreatwallclub.com
boyiqun
www.linkedin.com/in/boyiqun
http://www.slideshare.net/greatwallclub