What is the hottest startup in China in 2014?

Ji Jiapeng newspaper reporter in Beijing

What is the hottest startup in China in 2014? There is no doubt that it is intelligent hardware.

According to a recent study by ON World, a market research firm, it is estimated that by 2018, smart watch sales worldwide will reach 330 million units, up from 4 million in 2013. The entire wearable devices, smart home and even the automotive field, the market will be even greater.

China's Internet companies naturally will not easily miss this huge market. Recently, Tencent WeChat, Jingdong and Alibaba have shot, introduced intelligent hardware platform to attract all developers access. Pre-arranged, the smart hardware industry is still in the cradle of pipe up, the ambitions of the giants have been clearly visible.

The value of the platform

With powerful e-commerce channels, Jingdong and Ali provide intelligent hardware platform basically covered from production to sales through-train service; and Baidu, millet is currently in the investment stage of the layout; and 360 play is still relatively uncertain, Only launched their own brand of intelligent hardware, some developers believe that as the amount of data increases, data security issues may be increasingly prominent, 360 may also be based on "safety" as the first attack on intelligent hardware.

One of the most watched platforms at the moment is WeChat. WeChat's approach is to let smart hardware through the public service number in the form of WeChat to synchronize, manage different smart hardware data, and these data and WeChat social relations get through, to provide users with friends to share and other functions. In addition to the public can replace the App to do data management, public number can be set from the information, data records analysis, and docking Jingdong channels.

Jingdong launched a smart hardware platform is quite similar, users simply use the application of a cloud can help manage all the access to the platform of intelligent hardware. This use of App Assembly developers approach, to some extent so that hardware entrepreneurs to reduce the cost of developing the App, more focused on hardware development, and users do not need to re-download and install other App.

Social relations provided by the platform to attract developers flock to when cloud co-founder Guo Hui said that social relations contribute to the formation of word-of-mouth communication products, coupled with the role of channels for hardware sales more space, and sales of hardware decisions The possibility of converting the latter part of the business model, at present they have access Jingdong and WeChat two platforms.

The purpose of many manufacturers access to intelligent hardware platform, there are funds, channels and supply chain aspects of the demand.

Illusion technology CEO Wang Hao accept 21st Century Business Herald reporter said in an interview, at present there is no one in the country dedicated to serving innovative channel products website, power suppliers need to stocking platform, there is a very high demand for cash flow. "Do a small thing, not millions of revolt." Wang Hao 21st Century Business Herald reporter said after the technology Giant Teng technology like Suning Gome and other channels, but carefully considered these funds are not a small number, did not Financing can not do it.

Jingdong and Alibaba in addition to providing support to entrepreneurs in the channel, but also the layout of the supply chain. Jingdong "smart cloud" has achieved a strategic cooperation with the three major WiFi chip providers in China and has also cooperated with Cogobuy core in Shenzhen chip e-commerce website. Historically, smart hardware entrepreneurs have been unable to communicate directly with traditional vendors because of the low demand for chips, while Cogobuy's e-commerce platform can unite entrepreneurs and supply chains to help entrepreneurs get Cheaper price. Ali provides entrepreneurs with the underlying chip solutions for their products.

In addition, Wang Hao said that raising the amount of exposure is the need for funds, the platform to join the giant will also play a marketing role. "A lot of people in the circle know what's going on, but ordinary folks find it hard to get information about these products."

Worries of entrepreneurs

At present, Internet giants provide all kinds of support for entrepreneurs in an attempt to establish an industry chain similar to the mobile game "developer-publisher-channel vendor." Giant's platform is similar to the publisher, providing developers with a variety of services and product distribution to various channels, the last three links of the industry chain revenue.

However, some intelligent hardware developers have disclosed that it is necessary to obtain support from the platform as an entrepreneur, but there are some concerns as well: "Often, this platform has become, to a certain extent, a" puppet "of this platform."

"If the giants' platforms are simply distributions, the point is that they also have a certain degree of control over the discourse in the software space, and we are worried that users will not need to open our App anymore," said the smart hardware developer.

Although on the face of it, the platform to enter the giants has many benefits, and many developers also need the support of the various conditions of the giant. But entering this smart hardware "entrance" has lost control of hardware to entrepreneurs, a deadly problem.

Many entrepreneurs, especially entrepreneurs in Beijing, have a majority of Internet-only backgrounds, no factories, and no core competencies in hardware design. In their eyes, how to make App experience better, how to better collect data and provide services based on data, is their strength, and even some developers can say that the experience of "cleanliness."

In addition, many platforms are now accessible to hardware developers through data access. He Gang, Chief Scientist of Jingdong Mall Group and Vice President of Cloud Platform, said earlier that Jingdong will open App data and provide support for the ecosystem and service providers in the back-end and back-end downstream. "We are hoping all the hardware will be able to come in, let everyone join together to get through the data, and ultimately to consumers benefit." He Gang told reporters.

Although the giants share the rationale for data sharing: Control all smart hardware with one App to avoid fragmentation of user data. But smart hardware developers say: "Consumers are not necessarily smart, they think it's a platform that makes things smart, not what the hardware does, not what I value." They think that with the Platform super App, developers easily become a hardware maker, plunged into a very low margin industry.

Right now, in addition to a wave of entrepreneurs are rushing to the influx of many large home appliance companies are also entering the smart hardware, hoping to transform the Internet. "If the platform to take away the data, the appliance manufacturers are still just a manufacturer, selling washing machines or washing machines, how to transition?" The developers told 21st Century Business Herald reporter said that many platforms approach is equivalent to let development The hardware control and data are directly to the platform, and once the data access to a platform, the so-called data sharing is limited to their own ecology, to achieve a truly shared effect.

Platform choice

In fact, for intelligent hardware entrepreneurs, all have a great dream: to form a closed-loop industry, and even become "the next apple." Data ownership and control of the smart hardware are not in their own hands, resulting in some developers have some fear of the platform.

Kay love care CEO Zhang Ming said they currently do not have the developer concerns. He believes that in the era of mobile Internet, more should be open enough gesture access platform.

"Core competencies should play a good part of their own, is the algorithm or data analysis in their own hands, and the platform is the relationship between the needs of each." Zhang Ming, 21st Century Business Herald reporter said the developer from WeChat to Access to user operations and customer convenience, if you want to get these two resources, we must collaborate with WeChat.

Zhang said that at present it seems that the major platforms are doing the basic level of service, and will not worry that they will use the core of the developer hardware and algorithms, and the data level should be both parallel state, it will not affect the developer data analysis.

"If you just want to do a closed-loop, you will put yourself in a circle, how to turn the platform into its own value, you need an objective view." Zhang Ming, 21st Century Business Herald reporter said, but if the giants really want to intervene, To do the same product, small companies can not resist, only openly accept themselves to do more.

Guo Hui 21st Century Business Herald reporter said that the more the more the platform to do the company will not go to the front of the hardware involved in the production of a large platform can only be breadth and depth in the shortcomings, and the platform if the front-end hardware The standard is not uniform, although the access to a lot of data, but the error of data analysis will be greater.

"Services provided by smart hardware require a complete operating system and the start-up team has enough funds to support the next phase of development." Guo said that if the platform is large enough, they can not go deeper in this area, and certainly not The platform itself to do the service, because they do not have enough energy.

"The main idea of ​​the platform lies in the control, but if the entrepreneur has its own professional services, then no worries about their app open." Guo Hui said that when the cloud medical and the United States a well-known medical laboratory for cooperation User changes in the personality to make relevant recommendations, which may be difficult to achieve a large platform.

"If my goal is to use a single product, the profit point comes from the hardware revenue, can rest assured that with the giant platform, but if I want to sell a series of products and make money from service, then the mode of cooperation with the giants There are some questions. "The developers of the platform against giants said.

Zhang believes that if the platform can provide resources to reduce their costs, may wish to try to cooperate to see if it can form, if the platform is limited, does not affect their own overall ideas and operations.

However, while entrepreneurs have different views of the platform, smaller platforms are also emerging. Such as Shenzhen appeared named time, Cogobuy core hard egg contest and other platforms. Wang Hao believes that the naming time of this type of small platform is relatively simple, simply by crowdfunding mode to get funding for entrepreneurs, if necessary, will provide distribution services.

It is understood that the beginning of this year was named a multi-million dollar A round of financing, and Cogobuy through the hard egg contest so that many developers have begun to use this component e-commerce. Cogobuy also announced on July 4 that it would make a public offering in Hong Kong on July 8 with a proposed IPO of 1.1 billion yuan to 1.54 billion yuan. The offer price is equivalent to 14.7 times the company's 2014 PE ratio of 20.6 times.

In fact, the current smart hardware products and mobile games similar to the success of all there is a certain chance of success, there have been some companies to avoid product risks, using their own resources to turn to distribution. 21st Century Business Herald reporter learned that there are already many small businesses are ready to start the hardware distributor of the road.