Zhang Speech: Product internationalization, direct access to the core

In Zhang's view, he believes that the internationalization of micro-credit strategy is actually a problem discuz! and Tencent Cloud jointly hosted the 2014 China Internet Entrepreneur Conference, the founder of the state digital Zhang at the meeting, entitled "Internationalization of Internet Enterprises" keynote speech, and in which introduced the go Launcher is the representative of the products in the international market, especially the United States and other core markets achieved market results.

In his speech, Zhang the mistakes that Chinese companies often make in internationalizing expansion, and in traditional companies, often strategic beliefs are greater than product beliefs. But the product-focused Internet business often goes into two myths:

Misunderstanding one, these companies will try to replicate the success of the Chinese market to other markets.

This approach is usually difficult to achieve, because the success of the Chinese market does not mean that the product can be successful in other markets.

Misunderstanding two, vainly "the countryside surrounds the city"

Zhang that this is influenced by some military thought pernicious. Some internet companies in the internationalization of products also want to first open to the impact of Chinese culture and radiation of the Southeast Asian market, and then Latin America and Asia market. Want to play "the countryside surrounds the city".

Unfortunately, this kind of thinking is always difficult to obtain results. Zhang Dam and downstream examples:

Some companies have gained more than 30% market share in some markets in Southeast Asia, starting to leap. Thought that the river is covered with leaves, that is to occupy the market. But the caveat: that is because the high dam (the US and other core markets) has not yet opened the floodgates. Once the dam opens the floodgates (the dominance of the US market has emerged) upstream floods will easily erase your original share.

Zhang is actually in Tencent's home euphemism criticized Tencent micro-letter (WeChat) to Southeast Asia, Latin America as a breach of the international route. Zhang's point is that the core must be taken straight!

If you think the Zhang hint is not clear enough, then Zhang tells about a collision of ideas with Zhangxiaolong on internationalization:

"Once we and the Internet leader, micro-letter founder Little Dragon Chat, we talk about internationalization, Dragons said they recently found a new tactical play feel good, ask me what I think of it." It is the development of users in Mexico, so that Mexican users with micro-letter transmission to the United States, we know that Mexico and the United States are very close to the location, and a large number of blacks, Mexicans will run to the United States to live. So my advice to him is, I think it's very interesting, but I don't think this is going to be a change in the internationalization of the micro-letter, why, because I think Mexicans are not the mainstream user group in the United States, he is relatively marginal. Although this method has a little effect, but it does not bring the overall change, so I think it can not be relied on. ”

Zhang VS Zhangxiaolong: Dislocation comparisons

Three major representations of internationalization: mobile products, bias tools, Android

Over the past three years, with the rise of mobile Internet, the global distribution platform of Google play and Apple App Store has been established, and companies have a more seamless national distribution platform. Finnish company Rovio (Angry birds Developer), Vietnamese personal developer Nanhadon (Flappy Bird developer) can create miracles.

China has three large companies in the past three years achieved remarkable international achievements: State Digital, UCweb, and Cheetah Mobile (Jinshan network).

We have observed the products of these three companies, go desktop, UC Browser, clean master cleaning masters, which have the following characteristics:

1, Mobile Products

Only mobile products can be distributed on a large scale through the world's common application stores.

2, biased tool properties

The go desktop and the cleaning master are tools. UC Browser Bias Tool (why is the bias tool, detailed below).

3, with Android's global expansion

Three products and Android platforms are much tighter than iOS. To some extent, they are addressing the pain points of the Android system's global users. Their international success is also closely linked to the rise in Android's global device numbers.

Because it is a tool, it does not have geographical differences, so it is not necessary to consider cultural background issues. Because it is to solve the user general pain point, so have a "direct core", to win the ability of North American users pro-Lai.

Zhang criticized the countryside surrounding the city's misunderstanding, in fact, UCWeb in making this mistake. UC a lot of international users, is the world's rural, third countries, mainly distributed in Vietnam, India, Indonesia. UC once achieved a brilliant market performance in Iran (its provincial traffic is a proxy mechanism, can be used to visit the country is not allowed to visit the site, the Chinese mobile phone users have benefited from the early Opera mini), but UC has been blocked by Iran. Last year, UC announced the development of PAD version and enter the United States, but the effect is not significant. This year UC has shifted its focus to mobile search. Zhang diagnosed the UC internationalization problem, but did not diagnose the micro-letter as the question.

Micro-letter Three characteristics: social, cultural attributes and geographical differences, platform support:

1, strong social

It weaves a chain of relationships. The chain of social relations is a deep moat, it is hard to imagine that enterprises can use the same products in the PC era of the Chinese market to challenge QQ, in the mobile era of China market challenges micro-letter. Would Facebook and WhatsApp agree to "go straight to North America"?

2, social about people, with strong cultural attributes

Social products are related to people, and people from different regions have strong cultural attributes and geographical differences. The cultural differences it faces are more difficult than the go desktop.

3, Tencent-style social networking is a platform

Tencent's product, the essence is not only social communication, but platform. Platform derived from a large number of products is the focus of profitability. "Direct North America" sounds domineering, but Tencent-related products have not been established in these markets, and the lone micro-letter is untenable.

Zhangxiaolong's so-called infiltration of the American market by Mexican descent is a helpless way to get the U.S. market straight. It is certainly worthwhile to draw a question mark. But Zhang's "direct core" strategy is suitable for tool products and may not be suitable for social platform products.

Zhang advocates internationalization because state makes money by internationalization of Chinese products

Tool products and social products in the internationalization of production, the editor you can think, Zhang do not know?

I don't believe it.

Why is he so mad about internationalization?

Interested friends might as well read the Nasdaq-listed company's long state digital earnings. Most of the marketing revenue from Go desktop comes from overseas promotion by Chinese mobile internet developers.

The success of the cheetah Moving clean master is related to the help of the go desktop.

Therefore, Zhang should vigorously promote the internationalization of Chinese products, state digital to rely on this to make money!

The tool product is easy to internationalize, but it is not easy to change. This is a common problem facing state and cheetahs. As Zhang said, user internationalization, revenue internationalization and brand International is three steps, state is still taking the second step. State do application distribution, go Desktop is not an application store after all, need to use Chao Jin rather than brute force. This is also the problem that Zhang needs to face.

The future of micro-letters in the domestic new model, internationalization has nothing to do with success

With the state digital advocacy of international differences, micro-credit internationalization success or failure, in fact, is irrelevant. Recently Zhangxiaolong as Tencent Micro-credit group president, in the letter sent to all of them, he did not write a word to internationalize.

The micro-trust group will be responsible for the development of a micro-letter based Internet social, open and O2O platform, to provide users with instant messaging and online entertainment, life and commercialization of integrated services to create more value.

Social, open, O2O, communication, entertainment, life and business. All this is in China's 500 million users, rather than the "rural siege of the city," the 100 million overseas users.

The revelation of Zhang to Tencent

Perhaps Zhang to the east to take the core strategy is not suitable for micro-letter, but it still can bring enlightenment to Tencent, that is, internationalization of investment and mergers and acquisitions.

And Tencent is doing it. Over the past two years, Tencent's investments abroad have soared, especially in the US. If our own products are not fit to penetrate the U.S. market, the hot products that invest in the US market (such as Snapchat) are also a "core" strategy. This is another metaphor for Zhang's use of the three bodies: "Send the brain straight".

Finally attach Zhang speech record "Internationalization of Internet enterprises"

Mobile internet companies do internationalization, have a natural advantage. There are app stores, whether it's an apple or an Android phone. Store mode makes mobile internet people have the characteristic of internationalization naturally.

The misunderstanding of internationalization

The first myth: we are eager to take advantage of the success in the Chinese market to confront people in the international market. Baidu, for example, is wishful thinking if it wants to succeed in the U.S. search market. Due to cultural differences and the differences in user choice, China and other countries have an insurmountable gap.

The second myth: the rural Siege of the city, this strategy in the global market, can it work? There are many Chinese products, in the international market, the first choice of small countries in Southeast Asia, when these markets accounted for 30% of the time, began to leap. But to be reminded, the high dam over there has not yet opened the floodgates. When the dam is opened, the upstream flood will wipe out the original share easily.

How to internationalize?

Products of course to do well, there is no doubt.

In addition, to take a scalpel to combat, direct core, must be in the developed countries, in the most upstream, most influential countries occupy positions, access to users.

For mobile internet companies, entrepreneurs should find a niche in the market and occupy it and occupy that position in order to succeed. The entrepreneur needs some small incision, because the big incision already has the person who checks.

The following is a transcript of Zhang speech:

Zhang: Just now I believe that we should all be inspired by the speech of the Fat Man. As an internet entrepreneur, I see that both words will feel and I began to choose entrepreneurship more than 10 years ago as the way of my life and the choice of things, those two words equally excited, is freedom. Now is the Internet's most important characteristics and essence, Luo teacher's words are very wonderful, we also have a word, is that I am free.

What I'm sharing with you today is that the Internet, especially the mobile Internet, is another thing that is internationalization. Let me first introduce our company in the internationalization of this three years to do a little bit of success. State now three pieces of business, in China we did ten years ago the 3G portal is our China business, the international business is part of our go desktop, we are now in the global coverage. I want to share with you mainly the following two points, the first on the mobile internet, internationalization is a natural advantage, we know that your mobile phones, whether it is Apple and Android phones have shops, store mode makes the mobile Internet nature has an international characteristics. In the earliest state choice, we stumbled, we found suddenly our users in different countries, and overseas users grew more than the Chinese users. The topic of internationalization is many people have said, we have heard a lot of fierce words, such as Ins, we need to occupy the commanding heights of the world. But we are natural to the global process, three years ago our application on board (English), but today our products in the global rankings are the same level of products first.

Sometimes I wonder if it's too easy for us to go, and the traditional companies are thinking about strategy, they want us to have a global layout, but the globalization of mobile Internet involves natural direction, it's like a tree growing, and today I'm interacting with different countries ' developers, We find that they are very concerned about their products in the local market, especially for the tool type products. Internet companies must have faith in products, not strategic beliefs, and you pay a lot more for your strategic beliefs.

Today we and entrepreneurs in the General Assembly of Tencent and you exchange, we are willing to share with you two, our products in the process of internationalization, we found some misunderstandings. The first myth is what we aspire to in the mainstream market in China to confront people in the international marketplace. For example, search, I and Baidu friends in private chat, I always say, nouns are very frankly said, not afraid to offend people said, Baidu if you want to in the search engine in the U.S. market success, I think it is wishful thinking. Because search engines are in mainstream countries around the world, developed countries, there are already mainstream products firmly occupied by the market share, today you still want to use a although in the world's largest market has been established, but you also want to be in another country in another market success, I think this possibility is almost zero. and the cultural differences, the user's attitude towards the product choice, China and other countries is a gap that can not be crossed.

The second question, what is the easy way for Chinese products or Chinese developers to go in, is that we are poisoned by very traditional ideas, we are easy to talk about the countryside surrounding the city, which I believe in many enterprises in China have been mentioned. However, now in the global market, this strategy works, we know that there are many Chinese products, in the international market, the first choice is a discourse culture-covered, Singapore, Southeast Asia, Vietnam and so on some of the surrounding small countries. So when we get 30% of the market, we're leap, but I would like to remind them that it is because the high dam has not yet opened the floodgates, you like the leaves of the water covered in this area of the idea is naïve, when the dam opened, upstream floods will be easy to wipe out the original share.

So it's just a waste of energy and resources to share in a market where we're familiar, or more easily covered. How to occupy a little advantage in the international market and find new opportunities for it. I put internationalization, we first clear ourselves internationalization, internationalization of our company divided into three levels, the first level is the internationalization of users, we believe that the user's coverage must be in the global mainstream market share, to obtain coverage, that is the internationalization of users. And the internationalization of the user is the first step of a company internationalization, or the first step of a mobile internet company. What is the second step, the second step internationalization is your income internationalization, if your user coverage of the world, but the income is only from China, I think such internationalization will also be an illusion. The third step internationalization, that is truly reached the level of internationalization, that is the internationalization of the brand. You have won the respect of consumers around the world, won their trust in you, you are not a product of success, is a brand success, because it is your product, they will choose you. Your product innovation, or cover to other areas, people will still choose you, trust you, that is a real branding of the establishment, and even they do not care what country you come from, this is the real internationalization.

We spent a few years to get our users around the world, and one of the five Android phones is our user, and our revenue today is 80% of the income from outside China. However, our income scale is still relatively small, I always say a product, quarter time to billion dollars for the time, that is the real success of the business model, go desktop application, is now in billion to calculate, but the scale is still very small. We hope that in the next 3-5 years, through the global layout, so that we can become the real China in the mobile internet inside the first international brand, we hope we can do this.

How internationalization? How to internationalize? Products of course to do well, there is no doubt. Our own 1th, to the scalpel, direct core, must be in the developed countries, the most upstream influence in the country to occupy their own position, access to users. Once we and the Internet leader, micro-letter founder Little Dragon Chat, we talk about internationalization, Dragons said they recently found a new tactical play feel very good, asked what I think of it. It is the development of users in Mexico, so that Mexican users with micro-letter transmission to the United States, we know that Mexico and the United States are very close to the location, and a large number of blacks, Mexicans will run to the United States to live. So my advice to him is, I think it's very interesting, but I don't think this is going to be a change in the internationalization of the micro-letter, why, because I think Mexicans are not the mainstream user group in the United States, he is relatively marginal. Although this method has a little effect, but it does not bring the overall change, so I think it can not be relied on. So really want to play an effect, directly take the core of the way, your products are accepted by the mainstream culture, do not detours.

Another way is what, I use a word is only send the brain. Continue to use the example of Tencent analogy, I think in the past few years Tencent has a success and micro-letter is the same as Tencent's investment. For these enterprises in China, for the giant enterprises, I think not the product is the largest overseas, and more importantly, with their own funds in the market booth. For mobile internet companies, what entrepreneurs should do, you should find a niche in the market, lack the position of the mainstream product, occupy it, occupy that position to be successful. We need some small incisions, because some of the big cuts have already been done by the gatekeeper. Today, Chinese mobile internet entrepreneurs have to think about how to thrashed to another more developed society to help us occupy the world.

Help me with this video. We have a small product theme, called Hi World, which is praised by many people on Facebook. What I'm trying to say is, internationalization, or for the whole world of curiosity is that every program circle should have, we use this product to show curiosity, but also want to say, truly to the global enterprise, or an entrepreneur, he has a little heart to feel, no matter what a tiny corner of the world, My heart should be filled with the whole world, this is what I share with you today, thank you.