China Mobile Internet's first share of Skye: Grassroots market positioning

December 10, 2010 U.S. local time, Skye Network Technology Co., Ltd. landed in the U.S. Nasdaq stock Exchange, China's first Nasdaq-listed mobile internet platform-oriented enterprises. The sky listing code for MOBI, underwriters for Citi, IPO pricing per US depository Shares (ADS) 8 U.S. dollars, the listing total issued 7.25 million ads, a total of 58 million U.S. dollars financing.

"In exchange for a stage with usury."

This week, it was the craziest week for Chinese companies to list in the US, with 5 of the 9 IPOs in the United States coming from mainland China, and another from Taiwan, a record number of Chinese companies listed in the U.S. in a single week. According to Bloomberg, Chinese companies have reached a record high of 39 IPOs in the US this year, more than 37 in 2007 years.

5 Chinese concept stocks in the U.S. capital market by the two-day treatment of ice, Youku when the time to hold the sky, the Bo na film, Skye and the joint extension was a cold shoulder.

On the day of the listing, Sky founder and CEO Songtao said that the financing is mainly used for mobile phone games and brand building; he will be listed in the United States as "in exchange for a stage with usury," before Skye will be a new round of entrepreneurship and challenges.

Market Orientation: Taking the grassroots route

Sky was founded in 2005, headquartered in Hangzhou, currently employs more than 500 people, in addition to the Hangzhou headquarters, in Shanghai, Shenzhen, Beijing, New Delhi and Jakarta have branches, business in more than 100 countries and regions around the world. Since its inception, Skye has always been focused on creating mobile Internet application platforms. In 2005, launched its own research and development of mobile phone software platform, and change the mobile phone software business model, coincides with the rapid development of domestic mobile phones in recent years, creating a series of Chinese characteristics of the mobile internet myth. The number of domestic users more than 400 million, overseas users broken 10 million, its self-developed bubble platform has become China's most mainstream mobile phone software platform, MRP become a domestic mobile phone software in fact the standard format.

As the first mobile apps platform to be listed on the Nasdaq, Skye has developed a different path over the past few years--when Apple's App store launches a wave of mobile internet orgasms, and when smartphones with Android operating systems come ashore, Skye since 2005 has been from the functional mobile phone layout, occupy the mobile phone software industry half.

Skye is able to stand out in many mobile software companies, and it is closely related to the precise positioning of the market in its early days. With many mobile phone development and application companies from the start to get high-end users to achieve high returns different, Skye positioning in the so-called domestic machine market, these "low education, low-income, low age" of domestic mobile phone users as the target customers, while the domestic machine manufacturers to establish a good relationship, which for Skye to win the market laid the foundation. The introduction of the sky bubble platform, so that only three hundred or four hundred yuan mobile phone to use the grassroots consumers can also enjoy the convenience of "smart machine", you can play a smooth game or even download the installation of a variety of Internet applications.

Two-year free promotion model successful

"Free Promotion" mode by the first in the domestic launch of Skye, indeed shouldering a great risk. In 2005, when the whole industry was in limbo, Skye was desperate. The beginning of the business is the SP Scenery Unlimited, but its entrepreneurial team has always adhered to focus on software technology and product experience, the most difficult time for 5 consecutive months without pay. After more than two years, the scale effect just began to show, at the end of 2007 month profit and loss balance.

After the introduction of Sequoia Investment in 2007, the team focused on the development perspective: where is Skye in 3, 5 years?

The company decided to gamble in the community. At that time, the company has only 50 people, but they still let CTO lead the best products and technical personnel more than 30 people set up a community-specific, finished is 3 years. At the beginning of 2010, the first client online online, the month to enter the industry three, the second month ahead of the peer.

In 2008, in an inadvertent WAP address comb, they found a large number of IP address is not from China, carefully checked, there are more than 70 countries. The management team agreed that this was a signal: globally, mobile phones, like other consumer goods, are more than 80% made in. In order to seize the initiative, Songtao simply from the channel, products, technology, more than 30 people to form the overseas division, and gave a two-year loss of 10 million of the business objectives. According to the latest information, they now each month's new users have more than 2008 years of new levels of domestic months, believe that overseas market more than the domestic market is within reach.

With the gradual development of China's mobile internet business, Skye's business is on track and thriving. Songtao said: "For Skye, landing on the Nasdaq is a big stage, the key is to use the performance and time to prove to the world: China will be the world's mobile internet leader." ”