This year China Moving the internet into the deepwater

November 13 News, "2013 Mobile Developers Conference • China" at the Beijing National Convention Center, NetEase Technology in the live report.

Hua: I remember from 2009, when we started our innovation workshop, the year began, and every year I probably had to go to various occasions to call on the mobile internet. The first year said that mobile internet this matter how good, this matter next year, what will be. At that time people were still skeptical and thought it was something.

But in recent years, our predictions about mobile internet were more accurately realized, from millions of, to now 500 million devices. Looking back, 1 billion of mobile phone users will be switched to smartphones. We were doing only tens of thousands of users, to millions of, to the last tens of millions of users, the best two projects already have hundreds of millions of users, the best companies one months have tens of millions of profit. In less than four years the process has changed.

We're wondering if it's too late to get into the mobile internet, and the people who are already thinking, what are we going to do next?

In my opinion, the development of mobile Internet in the first four years is just beginning, this is a market education process. The real change I think is really starting next year. We stand in the real doorway of a huge change, mobile internet although already has 500 million devices, 5, 600 million users, mobile internet in the national economy and the real influence of society is relatively small. Over the past few years the Internet, we have always thought that the internet is very big, very very important. But the actual situation, in the past few years, until last year, the Internet in many many industries actually did not touch, in many internet-touched industries, doing better industries, such as tourism, E-commerce and so on, the Internet actually only accounted for less than 10% of the transaction volume. Those giants, such as Bat (Baidu, Ali, Tencent), their tens of billions of revenue, and traditional enterprises, such as PetroChina, real estate, etc., are relatively small numbers. So far the Internet accounts for less than 10% per cent of the national economy.

Mobile Internet to now, if from the impact of trade, decision-making, many industries real economic impact, is currently only one-tenth of the Internet, mobile Internet development to now, really from the economic transaction, business point of view, is only 1% of the national economy.

But the internet will reach 10% a year, and the mobile Internet seems to me to be a far higher level than the Internet. Because the mobile Internet, whether from the application scenarios, data collection, or for a variety of entities to grasp and control, in fact, is far greater than the Internet. The recent popularity of many applications is an example. Can the Internet age allow every driver to trade with mobile Internet? The traditional Internet cannot set foot in the application industry, the mobile Internet can be applied to the transaction decision-making process.

Before the Internet set foot, but the impact of the industry, mobile Internet will let it turn 5 to 6 times times the growth. In the next 5, 6 years, the mobile Internet will affect the entire national economy, not the Internet's 10%, is 50%,60%, or even more. We mobile internet devices, including mobile phones, tablets, all kinds of hardware, like the matrix, it will make a small circle, into the control of the entire Chinese economy.

In the mobile Internet spread to all areas of the process, the mobile Internet in every industry, will be a complete restructuring of the industry, will change the entire industry's ecological environment.

In the previous period of time, in the mobile phone manufacturing, or the recent various applications, such as tick-tock taxi, mobile internet no matter which industry to enter, will bring about a fundamental change in that industry. We are now standing at the door of great change, we developers, just mobile developers, in the next few years, we are not just mobile developers, we will jump to the Chinese real economy in all walks of life, we will be China's economic industry reform and innovation of the real movers.

Speaking of this year, the mobile internet this year from platform-level opportunities, the giant is very strong, Ali bought more than 10 companies, our innovation workshop dozens of companies, almost every one received the giant's acquisition offer. Over the past four years, in many vertical areas, dozens of tens of millions of or billions of apps or platform companies have been born. The overall feeling is that the mobile Internet is becoming more and more crowded, with large platform-level portals, user platforms, social platforms, and infrastructure, where companies are standing, and people have already done it.

What am I supposed to do now? What do we do as a start-up, or as a developer, or as a new technology mobile industry? In fact, this problem seems to me completely not a problem, because of this problem, when we internet era, 2005, 06, 07, when the Internet people have the same confusion, a bunch of portals did the portal, we are joking, what is Tencent can not do? There was nothing to do about internet entrepreneurship at that time.

In the last six months we listed companies, or upcoming companies, such as 58 city, where to go, these companies are new to do, and they have created a high value. If you see a platform-level opportunity, or the general-level opportunity has become very crowded, from a bad point of view, will force all of our mobile developers, really to the mobile internet deepwater area will be pushed forward, deeper, more offline, better place to push, and these areas are the platform companies do not really get involved, These areas have proved to be more than 10 or more 1 billion dollars in the internet age. And to the mobile Internet, because the mobile Internet can enter more industries, more fields, mobile Internet in the vertical and deep waters, can create more than 10 1 billion companies, or even more.

From a good point of view, it is precisely because the previous companies and those giants, has put a good number of platforms, social platform is very good, infrastructure, all kinds of things are good, but for us to enter the deep waters to play a very good foundation.

Listed companies their founders, I and they are good friends, what are their common characteristics? For example, these listed companies they start and start with a very dependent search engine, if there is no search engine they can do this? No way. For all mobile entrepreneurs, it is the biggest good, because they have put all the things well, because they have put the market education well, because they have to solve all kinds of problems, we can be very relaxed, very easy to settle on this, Build a really good business that earns money.

Looking back from this year, what more can we do in the mobile internet? Vertical tools, vertical communities, O2O, and that's what I think is a very, very good opportunity to get into the mobile internet over the next two or three years.

Vertical includes two parts, part of the vertical population, part of the identity of vertical demand. Although these platform companies are strong, but they are specific to specific groups of people, such as children, teenagers, students, business people, or even a little more, such as enthusiasts, homosexuals, you can think of all kinds of people, their true inner needs have not been well served. From the point of view of segmenting demand, I cite four examples of internet companies listing, that is, to do vertical subdivision of the needs of the example, eat, drink, tourism, education, cars, real estate and so on demand, so far still is very very blank. If you want to do this, you can find the path. A good Internet company, there are several key points:

The first, of course, is to jump to a vertical inside to really clear the needs.

Second, you can make good, let the user feedback back, have high viscosity products.

Third, you have to play very much to transfer the entire mobile Internet system. When the Internet that set of practices, you fix a user needs, then I made a product according to their needs, I get the search engine, I particularly will do the portal, I put users from the big platform to the vertical platform, I put the user to keep, let them generate transactions, generate revenue, this is the Internet do vertical practice.

In the mobile internet, although a lot of things have changed, such as traffic platform, is not a search engine can be obtained, traffic platform may become the application store, micro-trust these vertical platform, but essentially these practices have not changed.

The real rise of all vertical companies, starting from 2005 and 2006, is the beginning of the maturity and foundation of these mass traffic platforms. So it's the best time to start doing this thing.

To see O2O, mobile phones can penetrate to a variety of small businesses. From the other end, a lot of consumer groups, the previous internet can not cover, mobile Internet is also very easy to cover, the consumer end can be completed to form a closed loop or to form a transaction.

O2O is a huge opportunity in mobile internet. How to do it? There are two points:

The first platform model, using mobile Internet, put very fragmented suppliers, mobile internet through mobile phones, for them a mobile phone, a data package, can be integrated into your platform, through your software and platform, standardize their processes, standardize services, and then receive a very large flow platform to promote efficiency. This has been done in the past year by ticking a taxi. In fact, far more than these models, any individual, or a small and medium service provider, will be able to organize them in the same way, directly to the user. Although you organize a bunch of drivers, you organize a bunch of photographers, you directly provide services, bypassing the intermediate links, such as those studio, dispatch center, in fact, are not needed. O2O companies can through them directly to the personal service providers and consumers directly through. In this field, in addition to these three examples, the next dozens of, or even hundreds, whether large or small areas can be done.

The second is the business model, where you integrate your services, organize your businesses, and find suppliers to deliver your own stuff. than the first, I only do intermediary platform, this inside you have to do more things. You want to put a variety of real estate, tourism projects, various tickets into a very good (English), through the mobile internet to sell it to all end-users, their important business is to do short-distance, within two or three days of the surrounding tour, such as near the market. This is a platform to do more things, you have to integrate the resources, their own packaging, and then provide to users, but can provide a higher quality of service, enterprises can also achieve higher gross margin.

The company in a short span of a year, from total no sales, to the current annual sales can be billions, or even on a few billion scale, this development rate for the traditional travel, is an incredible development speed.

Another opportunity is the application of enterprise, especially of small and medium-sized enterprises. Actually speaking of SME services, in the internet age has been a very difficult problem. The cost of sales is particularly high, the level of knowledge is particularly high, the money is not back, in addition to selling software there is no greater room for rise. All the problems are different in the age of mobile internet.

The biggest difference is the cheap network and cheap equipment, an Android phone hundreds of dollars, a data package dozens of dollars, for business users this is an unprecedented cheap equipment. Such cheap mobile devices and networks are actually the biggest differences.

2nd, these devices, these networks are particularly simple to use, Internet services, SaaS services, remote support, these things can even be simple to you do not need to send sales staff, customers can find you, install you, you can run it. This causes a lot of things to be revolutionary, easy to operate, low-cost and so on together, will make the SME service into a very very big market.

We have invested in several companies, in the fast sales, insurance, the field of medicine to do the management of mobile sales personnel, or training, in the real estate intermediary to provide solutions, there are small and medium-sized stores, ultra to do system solutions, even in the absence of sales personnel, the completion of tens of thousands of goods covered, for effective merchants, Even hundreds of thousands of of sales people use it. And behind this, in addition to their fees and potential future prospects, in addition to direct to collect service fees and software fees, or monthly pay, they also integrate a large number of data, they can do a higher level of service, not only to receive software services.

We have a lot of home and software companies, such as the medical field, we have sugar nurses, can measure blood sugar. I personally feel that if it is a start-up company doing hardware, or do a small and beautiful market, is very very high gross margin, such as the unit price can reach thousands of yuan, or to do a huge market, the market is very mature, and even have hundreds of millions of sales, do not do between the two things, neither to make money, Quantity is not very big thing.

In the specific implementation process there are several recommendations:

First, I suggest that no matter what you do with the software, the foundation or the hardware. I've seen too many teams, in combination of hardware and software, that is, in fact, too underestimated--looking for a design team that can be solved, in fact, is not the case;

Software combination must think good hardware these things are actually very important. You do software combination, the hardware team must be strong.

Second, it's best not to be Iron Man. You can not do triathlon, you do a good job on the line, the other two can solve, can use resources to use resources.

Third, although the hardware is the basis, but the start-up companies do not use too cutting-edge things. Whether your combination of soft and hard, your innovation is not to be embodied in the real hardware innovation, not in a fully mature market, such as glasses such as the market, in the endurance, operating systems are not guaranteed in the circumstances, to do. In fact, startups are not the right thing to do. Like Apple, they are integrating the most mature hardware, the most mature technology, doing some innovation in the soft aspect, and then hitting it into a mature consumer market.

Four, software combination, small and beautiful. The hardware itself must make money, enlarge the market, the hardware itself to play flat. Do not be fooled by their own, I software can make a lot of money, Apple and millet money is also hardware, hardware to compensate money is bottomless.

Moving the cloud is needless to say, the biggest piece is the mobile game. Last year just started mobile games almost everyone bullish. So far the cell phone game is hot. Now the developer thinks the mobile phone game traffic is very difficult to take, how to do? The field is far from real maturity, the mobile game has a good, new people can always come out. When we were in 10, we say this market is a tens of billions of dollars in the market, and now away from that point is very far, now the market has not really appeared hundreds of millions of yuan products, so from various angles, this thing can also do, but we do not copy the current success of the game.

We are now a generation of young people who grew up in the age of the Internet, who are mentally dependent on the Internet. In Japan and South Korea there is a group of people called herbivorous men who do not buy luxuries now, also do not buy a car, do not buy a house, even girlfriend and no interest, their monthly interest is 30% of income are spent on a variety of spiritual satisfaction, games, anime, a variety of payment services, paid services, virtual goods purchase, Is their one-third income, the game is the mobile phone anytime and anywhere the spirit of the first wave of satisfaction.

In today's internet age, in addition to games, mobile internet can do, far more than the game, far more than 91 and 58.

Mobile Internet to enter the deep waters, this will be with a lot of vertical, traditional, offline combination. There are two possibilities, one possibility for internet people to do this, and the other for offline people to do it. I prefer an Internet person to do the traditional things, to make these things, rather than the traditional people to learn the Internet.

But the internet people want to do this thing, the biggest difficulty is that before everyone on the internet is too light, too virtual. It might have taken two people to sit in the office and finish the job. But to really get into the deep waters, such light things are not enough, you have to jump in and really jump into the industry to forget about the things you used to do on the internet, to really make the traditional things clear, and then recall that you're doing the internet, and then think about how you can reshape this thing.

Finally, our innovation workshop, our innovative workshop investment characteristics, first, we focus on early investment, from seed wheel, Angel wheel and a round, from millions of RMB to millions of U.S. dollars project. We invest in projects that are not only in the early stages, we will continue to support this project. For example, we now have a project, is already hundreds of millions of U.S. dollars valuation, or even tens of millions of we will continue to follow, regardless of money, personnel, strategy, we will give us investment companies.

Second, we are very focused, we invest in the industrial chain, we cast a field, we will be in the middle and downstream are cast, so we invest in the company, will form a very good family. We have so far, mobile internet projects, we have invested more than 50 companies, has more than 10 tens, 2, 3 to reach the billion-level users. All of our cooperation is very, very close. If we only vote for a company, he's not just getting a company, he's joined a big family.

Our economy is also large enough, we now have three funds, Waller fund scale together more than 500 million U.S. dollars, 3 billion yuan, this can support us to really put a field, an industry cast deep, this can also really support, if a company we invest, really get the industry chain level of support. Thank you.

Innovation Workshop co-founder Hua the theme of "2013 China Mobile internet access to deep waters". Hua said that the mobile internet in the national economy accounted for far more than the internet! At the same time, mobile Internet will transform the traditional industry from the process.

(Responsible editor: Lu Guang)