China's sea route: overseas reeling economy

Recently, Facebook rented over 800 flat office space in the Beijing CBD news of concern. According to Forbes, the entry strategy for Facebook and LINE will go global, using domestic local servers.

Overseas Internet companies in the internationalization process, the business model will be copied to the Chinese market never tired. Although most acclimatized, but still not diminished.

Looking at the global technology industry, it is not unusual for overseas models to come in, but the Chinese model is going to be quite fresh. Although domestic technology companies lag far behind Silicon Valley in absolute innovation, there are also models with a unique perspective and quite Chinese characteristics.

Today, some cross-border capitals have begun to pay attention to the export and utilization of the China model overseas with a focus on exploring the reeling market abroad.

So what kind of Chinese model can be landing overseas? What is the difference between Chinese and foreign venture capital environment? In the domestic eight years of venture capital work, foreign 16-year director of Ji-Yuan Capital, Tong Shenghao Hans, has his own opinion.

Reeling economy

In Tongshao's view, the Chinese model that can be exported abroad mainly grasps the connotation of the reeling economy, finds out the target users, and brings the domestically good business model serving the group to foreign countries.

As an early investor in millet, he had long been optimistic about the Lei Jun, but today the market also proved the value of reeling economy. He is also looking forward to the internationalization of millet and believes that millet could be rebuilt if the progress is smooth.

"Basically, the entire Internet in China is mainly reeling economy and the fan economy." Tong Shihao said: "The global reeling market is about three or four times that of China. If you understand internationalization, the Chinese model is actually a market overseas "

He believes that the United States also owns a large number of reeling people. In the United States, reeling economy has not yet risen, is still an exploration stage. However, the service format for such users in China is complete and its business model is clear. The Chinese model, which landed in the United States, could be implemented by a local team while drawing on the Chinese-style innovation and development model.

So, reeling economy in the United States how much market can have? Tongshao Hao lives in the United States for many years, well aware of the situation in the United States market. He pointed out that with a population of about 270 million in the United States and a degree of urbanization of 60%, the population in the cities in 2345 lines is at least half the population of the United States.

Reeling here, refers to the 234 cities and the large number of ordinary income working-class and low-income people.

Half a year after joining GGV Ji Yuan Capital, the kiddie cast five projects, three in the United States and two in China. Among them, the cross-border e-commerce application Wish in San Francisco, USA, is a recommended product for overseas reeling users, which is displayed in the form of a waterfall stream based on the user's purchase behavior on Wish through its own recommendation algorithm. More than 10,000 online merchants mainly come from Ebay, Taobao.

He believes that for mobile e-commerce applications, reeling users are those with a strong willingness to pay and pay for the user - because of the time, often flip on the phone to see, in a lot of fragmented time, as long as your product to do Well, lower commodity prices, it is easy to have impulsive consumption, mainly to see if the product is attractive enough, and accurate enough.

Three opportunities

As he has witnessed, the domestic Internet has been fiercely competitive in the past eight years and some unique Internet models were born, which did not occur in other countries. He summed up three Chinese models that are suitable for landing overseas.

First, tools products, mostly browsers, anti-virus software, such as 360, UCWeb, Cheetah, 3G portal. He believes that the reason why the choice of tools products, because foreign companies like to study simple applications, but the country will find a breakthrough point.

"From tools to platforms, tools to find traffic, and then into a browser, or to guide other consumer, whether entertainment or electricity supplier, this cut from the tool is that many European and American companies have no way of thinking." Tong Shihao explained Road.

Second, cross-border electricity providers, such as listed Lanting set potential. The opportunities in origin from China is a big manufacturing country, getting goods is stronger, and foreign capital markets on the e-commerce is far less concerned about the domestic heat - "American e-commerce only Amazon and Zulily 10 years listed, zappos were sold, like Gilt Groupe, fab and flatsail are not done. "

As for the expansion of cross-border e-commerce in overseas markets, he evaluated that he had done a good job of collecting electricity. However, he believes the Chinese team as a whole needs more understanding of overseas markets and more local talent. "If more overseas talents are involved, this will be even greater."

Third, virtual products, such as props in entertainment products, similar to this virtual currency model. "This model is very rare overseas, only Korea, Japan, China, and ZYNGA has proved that this model also has the opportunity in the United States market, I think this will be a great opportunity in the future."

Tong Shihao emphasize how to make virtual products impress users online to buy virtual products, then offline entertainment consumption, this opportunity is actually exist in other markets. Just to know how to impress the minds of local users, so that they are willing to spend money, which challenges the localization of a higher, more difficult than the first. (If Han)