SlideShare ist ein Scribd-Unternehmen logo
1 von 53
JAN 11, 2019
Decoding the Chinese Internet 2.0:
Get Ready for the Next Chapter
Chinese Internet Economy White Paper 2.0
1
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
What to expect: the winning recipe and challenges in the next
chapter of Chinese Internet
The business model: a unique platform model
The drivers: growing roles of Chinese Internet companies
China’s unique digitalization path: consumer Internet is
driving the development of industrial Internet
Foreword: new trends in the Chinese Internet market
2
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
What to expect: the winning recipe and challenges in the next
chapter of Chinese Internet
The business model: a unique platform model
The drivers: growing roles of Chinese Internet companies
China’s unique digitalization path: consumer Internet is
driving the development of industrial Internet
Foreword: new trends in the Chinese Internet market
3
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Chinese Internet Economy White Paper 1.0: In 2017, we discussed what makes
the Chinese Internet unique and the reasons for its unique characteristics
Download the Chinese Internet Economy White Paper 1.0:
Chinese Internet Economy White Paper 1.0 - CHN: https://www.bcg.com/zh-cn/perspectives/170394
Chinese Internet Economy White Paper 1.0 – ENG: https://www.slideshare.net/TheBostonConsultingGroup/decoding-the-chinese-internet
Key questions in white paper 1.0
• China and the U.S. are the dual
engines driving the global Internet
economy. However, these two
markets are vastly different. What
makes the Chinese Internet unique?
• Why has the Chinese Internet grown
so fast for so long? What are the
reasons for the uniqueness of the
Chinese Internet?
• How can players win in this unique
but explosively growing market?
4
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
The increasing trend: China's Internet players are moving offline Key questions in this report
Focus of this report: the increasing trend of China's Internet players moving offline
and its impact on China's unique digitalization path
1. Calculated based on closing price of HKD 72.65 and exchange rate of 1USD=7.83HKD on its IPO date of Sep 20th, 2018
Sources: company websites, prospectus, company financial reports, BCG analysis
• What unique digitalization
path has China taken,
characterized by a trend from
online to offline?
• What are the roles of Chinese
Internet players in China’s
digitalization path?
• What is the unique business
model as a result of this
unique China’s digitalization
path?
• What is the winning recipe and
what are the challenges to win
in the "new chapter" of the
Chinese Internet?
Jan 2018
Luckin Coffee founded. Leveraging effective online customer acquisition, it has opened
~1,700 physical stores in just 11 months since its establishment, second only to Starbucks
in China by size. The founder, Qian Zhiya, said “our target is to replace Starbucks in China”
Baidu launched Apollo 3.0. Apollo is the first open platform for autonomous driving
technology in the world with ~130 partners globally
Alibaba announced the ET Medical Brain 2.0 R&D program. Alibaba has already become a
key player in the industrial Internet since 2017, providing digital and smart solutions for
city operations, manufacturing, healthcare and agriculture etc.
Meituan Dianping achieved a $51 Bn valuation for its IPO1 . Didi closed a new round of
financing in Jul 2018. With integrated online/offline capabilities, Meituan Dianping and Didi
have grown into the new giants of the Chinese Internet market
Tencent announced that it starts a systematic org restructuring. Tencent is striving to
enhance B2B capabilities and move to the industrial Internet; Pony Ma, the founder, said
“this initiative marks a new start of Tencent for the next 2 decades”
China's Internet giants are actively digitalizing mom-and-pop grocery stores. Alibaba
alone has covered over 1Mn mom-and-pop grocery stores, around one sixth of the national
total
Jul 2018
Sep 2018
Jul-Sep, 2018
Sep 2018
Dec 2018
5
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
What to expect: the winning recipe and challenges in the next
chapter of Chinese Internet
The business model: a unique platform model
The drivers: growing roles of Chinese Internet companies
China’s unique digitalization path: consumer Internet is
driving the development of industrial Internet
Foreword: new trends in the Chinese Internet market
6
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Driving effect:
• Foster digital behaviors
among consumers
• Drive effective synergy across
industry value chain
Enablement effect:
• Leverage massive amount of
consumption data
• Provide digital tools and
applications
China’s unique
digitalization path
Downstream Upstream
Consumer
Internet
Clothing
Food
Housing
Transport-
ation
Industrial
Internet
Supply
Product
Design
Logistics
Mfg.
…
Smart
Connectivity
Data
Integration
Smart
Decision
making
Human-robot
Collaboration
Drives
Work
Entertain
-ment
Study
Life
…
7
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Sources: BCG Chinese Consumer Survey Database 2015, BCG analysis
Top e-commerce
Shelf display/ads
KOL SNS
In-store sales & services
Brand's official website
WOM
Other apps/sites
UGC SNS
Other e-commerce
Traditional media
SNS
Brand’s social media
Discount e-commerce
Retailer & e-commerce SNS
SMS
Top e-commerce
Brand's official website
Product packaging & trial
Promotions
WeChat
In-store sales & services
Social network
Price comparison/rating sites
WOM
Other retailers
Other online shopping events
Discount e-commerce
Apps and other mobile search
Shopping malls
Other brick-and-mortar stores
Domestic integrated e-commerce
Department stores
Online official store
Domestic fashion e-commerce
Hypermarket
Daigou (overseas shopper)
Travel
Offline payment with
cash/credit card
Digital payment for online
shopping
Digital payment for
off-line shopping
Online payment with credit card
Pay on delivery
Offline payment with
coupons/membership card...
Offline pickup
Online delivery
Offline delivery
Online pickup
N/A
Online WOM
Membership points
Offline WOM
Coupons...
Online return & exchange
Offline return & exchange
OnlineOffline Online to online Offline to offline Online & offline hybrid
Discovery Research Purchase Payment Delivery Aftersales
In the downstream, Chinese consumers are highly digitalized, with increasingly integrated
online and offline behaviors, thanks to the fast growth of the Chinese consumer Internet
BCG Chinese
Consumer Survey
(n=200 households)
• Along the consumer
journey, increasing
number of touch
points with Chinese
consumers
• Increasing
integration of
online and offline
touch points, and
more frequent
switches between
them
Consumer journey
Downstream
8
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
30
3
18
1. The minimum volume per order can be as small as 50
Sources: CEIBS, BCG analysis
• ~300 independent small product teams with full P&L
responsibility to provide fast changing apparel products
tailored to the needs of smaller customer segments
• Effective operation with 95% sell-through rate driven by data
based product life cycle mgmt
• Agile manufacturing1 supported by a centralized digital supply
chain platform
~1.5x
An online fashion apparel player with fast product iteration1
New digital business model and org. structure Faster product iteration than global peers
Digitalized operation platform (e.g. product mgmt., supply chain, logistics,
customer service, etc.)
Product
team
Product
team
Product
team
Product
team
Product
team
Product
team…
Aplatformorganization
basedondigitalization
Average # of styles launched annually
Unit:1k
Traditional
brands
(average)
Downstream: clothing
ZARA
HSTYLE
Almost every element of everyday life in China is highly digitalized —
E.g. clothing: new digital business models have enabled fast iteration of products
HSTYLE
9
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Source: company website
Picture source:BCG pictures
Digital players in China are actively
digitalizing restaurants
# of cities
covered
200+
# of digitalized
restaurants
~600K
Chinese consumers’ dine-in experience transformed by digitization
Downstream: catering
2D Fire
Meituan
Dianping
Meiweibu
yongdeng
Alibaba
local
service
2018
Food: Chinese consumers’ dine-in experience has been fully digitalized,
with around 600k digital-enabled restaurants across over 200 cities as of 2018
No need to line up at
restaurant, shorten
waiting time
Place order
through
mobile app
Personalized
marketing
Dish preview on
e-menu, with
comments and
rating
Direct connection of
front counter to kitchen
to shorten waiting time
Targeted
coupon push to
trigger
repurchase
No manual
checkout, no lines;
seamless dining
experience
Mobile
payment
Electronic
order assigning
Scan QR code
in mobile app
to line up
10
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Sales volume of smart speakers in China surged,
reaching 1/3 of global share in one year since launch
Smart home1 penetration in China's tier 1&2 cities is close
to that of the US, the most advanced smart home market
Smart speakers: China’s sales volume share
Products launched
by Chinese players3
Smart home penetration (%), 2018
20%
99%
80%
65%35%
93%
1%
2017Q4
2017Q3
7%
2018Q1
2018Q2
China Other
27%
~20%
Tier 1&2 cities
in China2
US avg.
Downstream: home
1. Smart home market constitutes the sale of networked devices and related services that enable home automation for private end users; 2. The number of households using smart
speakers in tier 1&2 cities is an approximate estimation based on sales volume of smart appliances in tier 1&2 cities; 3. Incl. TmallGenie from Alibaba, Mi AI Speaker from Xiaomi,
DuSmart Speaker from Baidu, and other smart speaker products.
Sources: company annual reports, Canalys Smart Speaker Analysis, BCG analysis
Housing: smart home market in China has witnessed explosive growth
11
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Innovation: Internet companies partner
with auto OEMs to grow connected vehicle business
Scale: China's e-hailing services
top the world by market scale
20
15
# of daily orders, Mn2017
Downstream: mobility
DiDi
Uber
Source: Company website, Forward Industry Research Institute, BCG analysis
China
Worldwide
16
18
2016 2017
9
2014 2015
13
Scale of connected vehicles, Mn
Alibaba partners with SAIC
MOTOR to found Banma,
which offers end to end
connected vehicle
solutions
• Provided Internet
solutions to ~500k
vehicles
• Partnered with 3rd-
party OEMs, incl.
BMW, Dongfeng, etc.
25%
Banma
Transportation: China has surpassed other countries in the scale of shared
mobility services, and China has been actively adopting new business models
12
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Time to grow to
1,500 stores
10 years
2005-2015
10 months
Jan – Nov 2018
Unique business model
• Online customer acquisition
– Leverage online traffic instead
of traditional high-cost offline
consumer acquisition
• Low-cost stores used also as
distribution hub
– Mostly with lower rent &
smaller space
– 2 km maximum delivery range
A new retail coffee shop chain
~70%
~6%
# of stores in China
Unit: 1k
Likely to surpass Starbucks1 and become the largest coffee shop
chain in China by 2019 Q2 if it can maintain its current growth rate
Assuming growth
can be sustained
Compound
quarterly growth
rate 2018
A coffee shop chain with
online/offline integrated
operations
• Founded in Jan. 2018
• Opened 1,700 stores across
21 cities by the end of Nov.
2018
Luckin
Coffee
Starbucks
Luckin
Coffee
Downstream
1. 2017Q4, 2018Q3 and Q4 Starbucks store numbers are actual numbers, 2018 Q1 and Q2 store numbers for Starbucks are estimated by assuming linear growth from 2017 Q4 to 2018 Q3
Note: BCG takes a neutral attitude towards the future of Luckin Coffee. Discussions on Luckin Coffee hereof is based solely on up-to-date observations
Sources: company website, expert interviews, BCG analysis
2.9 3.1 3.3 3.4 3.6
0.4 0.7
1.1
2.0
5.8
’18Q417Q4 ’18Q1 ’18Q2 ’18Q3 ’19Q2E
3.9
Starbucks China
Luckin
New business model innovations have been flourishing in China's consumer
Internet — Luckin Coffee case study
13
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Unmanned stores to provide 24x7 shopping experience Fast expansion1 in first 2 years
• Box-shaped convenience stores in public areas to deliver self-
service shopping experience
• No staff, no manual checkout — enabled by QR codes, RFID
and biometric recognition technologies
Select
goods
E-payment &
settlement
Scan code to
open doors
Image
recognition
& recording
Walk out
500+# of stores
40+
# of cities
covered
2,000
RMB
Average sales
per store per day
1. As of Aug 2018
Sources: Lit research, BCG analysis
Downstream
Bingo
Box
New business model innovations have been flourishing in China’s consumer
Internet — Bingo Box case study
Consumer Shopping journey
14
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
46%
54%
54%
38%
16%21%
35%
25%
Digital factories
in planning
11%No plan to
build digital factories
Digital factories
established
+21%
+29%
2017 (N>1,000)
Upstream
Sources: Capgemini's Digital Transformation Institute (DTI), Smart Factories: How can manufacturers realize the potential of digital industrial revolution;
the survey interviewed ~1,000 executives from manufacturing companies with revenue above $1 Bn, among whom 40% are from the US, 10% from China and
9% from Germany; BCG analysis
However, in the upstream: China’s industrial Internet still lags behind developed markets;
for example, China is highly willing to digitalize its manufacturing, but still has to catch up
Survey of digital factories: China only has half the penetration of digital factories as developed markets
15
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Image source: eyeem.com, keyword “digital factory”, “digital manufacture”
Sources: desk research, BCG analysis
Smart decision making: optimize mfg.
equipment & process via algorithms and
distributed analytics & decision-making
systems
Key gap: still catching up in terms of
data analytical capabilities
C
Human–robot collaboration: Smart
machines work with humans to
undertake heavy and repetitive mfg.
tasks
Key gap: adoption of advanced mfg.
technology to be increased
D
Smart connectivity: inter-connected
machines, equipment, sensors and
personnel
Key gap: more equipment to become
smarter
A
Data integration: all data/information
integrated across systems to reproduce the
real manufacturing process digitally
Key gap: lags behind developed countries in
industrial IT adoption
B
Upstream
More specifically, China still lags behind the global leaders in each of the four
core aspects of digital manufacturing
16
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
~5%
~12%
Penetration1 of smart sensors2 in
industrial sensor market
~40%
Investment in industrial sensors
~3
~4
~75%
2016
USD Bn
A Upstream: smart connectivity
1. Penetration data is based on market share by sales value; 2. Smart sensors: sensor modules integrated with sensing, processing and wireless communication features
Sources: Askci, CAICT, Global Market Insights, Desktop Research, BCG analysis
Smart connectivity: taking sensors as an example, China lags behind in
penetration of smart sensors, which define the level of smart connectivity
17
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
60~70%1
55%
30~40%
45%
Key mfg. processes
with digital control1
Key mfg. processes
w/o digital control
100%
Increase digitalization, e.g.
digitalize more key manufacturing processes
2017
1.5x
Further integrate data, e.g.
improve cloud adoption rate
Cloud adoption rate (%) among enterprises
2018
~30%
~80%2
Upstream: data integration
1. According to Guanyantianxia, around 60-70% of key processes in US are digitally-controlled; 2. Different source having different data for cloud adoption
rate in the US, most of ranging from 70% to 90%
Sources: National Bureau of Statistics, Ministry of Industry and Information Technology, China Info100, Guanyantianxia, Chinese Institute of Electronics,
Evolve IP, RightScale, BCG analysis
Data integration: China needs to increase digitalization and further integrate
data
B
18
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
China vs. US in distribution of Industry 4.0 patents, 2007-2018
Smart data
analytics &
decision-making
patents % (count)
in China
10% (993)
vs.
34% (5,203)
Smart data
analytics &
decision-making
patents % (count)
in US
15,303 patents9,927 patents
Factory-
wide
control
system
Programed
control
system
Industrial
wireless
communications
network
Digital info.
processing
algorithms
Production data
cleansing and
analysis
3D
printing
equipm
ent
Program
controlled
robots/me
chanical
arms
Industrial
energy
mgmt.
Factory
monitoring
system &
equipment
Fundamental
information technology
59%
Smart
data
analytics
&
decision-
making
10%
Sophistic
ated
industria
l sensors
Digital
control
system
Factory
energy
consum
ption
optimiz
ation
Image
communica
tion system
Mixed-
signal
control
system
Industrial
big data
analytics &
algorithms
Data-driven
decision
making &
forecast
Automated
monitoring
& mgmt.
Smart multi-
functional robots
3D
printing
Additive
manufactur
ing process
Smart data analytics &
decision-making
34%
Fundam
ental
info.
technol
ogy
29%
In-factory
location &
navigation
Advanced
mfg.
equipment
Advanced mfg.
technology
37%
Advanced mfg.
technology
31%
Upstream: data-based decision
Note: 'Peaks' and 'troughs' represent the density of patents, Light-colored 'peaks' mean a high density of patents, green 'troughs' mean fewer patents and less similarity
Sources: BCG ROVER, a patent search & analysis tool, BCG analysis
Smart decision making: according to BCG’s patent analysis tool ROVER®, China is
significantly behind global leaders in smart data analytics & decision-making
C
19
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Penetration1 of industrial robots in China
(units/10k manufacturing workers)
2016
68
309
189
4.5x
Increasing share of China’s
industrial robot sales volume
Global
share
Sales
volume of
industrial
robot in
China
1,000 units
Upstream: human-machine collaboration
1. Penetration = industrial robot inventory / # of employees in the manufacturing industry
Sources: IFR, WIND, BCG analysis
201720142013
37
2015 2016
57
69
87
138
Human-machine collaboration: China has adopted industrial robots on a large scale but
still falls short on their penetration rate in the manufacturing industry
D
36%30%27%26%21%
20
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Mfg. value added as % of total mfg. turnover
2017
Penetration of key industrial software
2017
21%
37%
Upstream
1. Estimated based on US manufacturing industrial software sales and # of manufacturers
Sources: US BEA, China NBS, Guanyan Tianxia, ITIF, Onshape, Lisa Picarille CRM World Domination, BCG analysis
Estimated average penetration1 of
key industrial software in the US
50~60%
34 %
41 %
CRMSCMPDM/PLM
33 %
Root cause: digitization of upstream manufacturing is highly dependent on the
overall development of manufacturing industry…
China needs to develop
high-end manufacturing further…
…and improve its industrial information technology
(penetration of industrial SW as an example)
21
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Avg 64%
-4%
15%
Production optimizationExpansion of product portfolio Better customer service
Avg 43%
24%
7%
Avg 43%
8%
-5%
Survey of 148 manufacturing industry experts in 6 countries — “What do you think are the commercial opportunities
of Industry 4.0?”
Downstream: consumer side Upstream: production side
Avg % among
respondents
Above/below
avg
Above/below
avg
Upstream
Source: Acatech Industry 4.0 in a Global Context
…In addition, Chinese companies have a tendency to focus more on the downstream
consumer side, resulting in slow digitalization of the upstream production side
22
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
# of autonomous driving
start-ups
As of July 2017
# of start-ups with valuation of
>$100 Mn
Total funding1 acquired by
autonomous driving start-ups
As of July 2017
USD Bn
Autonomous driving
talent pipeline
As of July 2017
# of autonomous driving talents2 (k)
9
10 1.6
1.1 1.0
1.4
Upstream
1. Calculated based on average exchange rate of 1USD = 6.74CNY in 2017; 2. Total number of employee for autonomous driving startups
Sources: Tencent Research Institute "A Comprehensive Study on Development of Artificial Intelligence Industry in US and China", IT Juzi, www.iyiou.com,
CCID Consulting, LinkedIn, desktop research, BCG analysis
However, China has the potential to make a big leap in some emerging
technology fields, e.g. autonomous driving
23
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
0.97
UAV
Computer
vision
NLP
0.20
Robotics
Voice
recognition
0.29
1.09
2.00
0.46
0.84
2.35
1.82
0.46
2017
USD Bn
Total amount of VC investment in emerging technologies1
1. Calculated based on average exchange rate of 1USD = 6.74CNY in 2017
Sources: Tencent Research Institute "A Comprehensive Study on Development of Artificial Intelligence Industry in US and China", IT Juzi, CCID Consulting, BCG analysis
Upstream
Large amount of capital is flowing into emerging technology fields;
total VC investment is on a par with or exceeds US in some fields
24
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
12k+
developers
130+
partners1
Apollo is the world's first open
autonomous driving platform
Creates a diverse autonomous
driving ecosystem
Large scale production of
autonomous cars becomes feasible
Cloud
service
platforms
• High definition maps
• Virtual simulation
• Information security
Open SW
platform
• In-vehicle OS
• Route planning & vehicle
control
• Location & LBS
Example
HWs
• Sensors (e.g. radar)
• Location devices (e.g. GPS)
• Computing units (e.g. GPU)
Example
vehicles
• Drive-by-wire vehicles
Examples
1. Partners include OEMs, part suppliers, Internet and tech companies in China and abroad
Sources: Baidu Development Research Center, BCG analysis
2018
Achieved large scale production
of world's 1st L4 autonomous
driving bus
2019
# of autonomous cars powered
by Apollo platform
Upstream
King
Long
JAC
BAIC
motor
BYDChery
Hongqi
New business models and ecosystems are emerging around these technologies,
e.g. Baidu's Apollo
>10K
25
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
30K
10mth
200%
20Mn
HSTYLE
Luckin Coffee
'18Q1-'18Q2
DiDi China
3K
10yr
50%
15Mn
Traditional
offline brands
Starbucks China
'18Q1-'18Q2
Uber Global
Clothing
Food
Housing
Transportation
Number of
styles
launched
per year
Time to
reach 1,500
stores
Qtly. comp.
growth rate
of smart
speakers
Daily orders
of shared
mobility
Example
Data
integration
Smart
Connectivity
Human
robot
Collaboration
Penetration
of industrial
robots
Penetration
of smart
sensors
Cloud
adoption
rate among
enterprises
Example
68Units/10k
workers
(2016)
~5%
~30%
2018
2016
189Units/10k
workers
(2016)
~12%
~80%
2018
2016
Smart
decision making
Patents on
smart
analytics and
decision-
making
933
2007-18
5,203
2007-18
Summary: the development of downstream consumer Internet and upstream
industrial Internet in China
Downstream consumer
Internet is highly digitalized
Upstream industrial Internet
digitization still developing
26
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Consumer behavior data
• Based on aggregated and
anonymous 600 Mn consumers
• Provides digital user survey
tools
Reshape product design and
development
• More precise product design &
incubation
• More efficient new product
development, shortened dev.
cycle from 18 months to 6
months
Tmall Innovation Center worked in-depth with
premium brands on product design and incubation
How consumer Internet
drives industrial Internet
Sources: Desktop research, BCG analysis
Driving
Driving Effect: downstream consumer Internet is driving upstream industrial
Internet — Case study: Tmall Innovation Center
FMCG Food
Special shampoo
designed for China
market
• 15 mn bottles sold
within the 1st
month after launch
• Top 3 best-selling
shampoos on Tmall
Special DOVE
chocolate package
for China
• Sold out 5,000
limited edition in
12 hours
Covers 600+ premium brands
Incubated 300+ new products
P&G MARS
27
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Driving
2003 - 2015
Largely invested in consumer Internet,
business model became heavier
since 2016
Expanded to supply side digital transformation
and became a value chain player
F&B review1 Food supply
chain solution
Catering ERP
system
SC financing
Downstream: develop consumer side Upstream: upgrade supply side
Meituan Dianping's milestones in Food & Beverage business
F&B group-
buying
F&B delivery
Note: Dianping was founded in 2003 with F&B review site business and mergerd with Meituan in 2015
Sources: Meituan Dianping’s IPO prospectus, Desktop analysis, BCG analysis
Infoexchange
Transaction
matching
Product/service
delivery
2003 2010 2013 2016 first half 2016 second half
• # of annual transactions reached 2.1 Bn while active
users reached 206 Mn in 2015
• Active merchants reached 500k in 2015
• As of October 2018, 21 provinces & 38 cities covered
by its SC solution
…
Driving Effect: downstream consumer Internet is driving upstream industrial
Internet — Case study: digitization of the F&B industry in China
28
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
What to expect: the winning recipe and challenges in the next
chapter of Chinese Internet
The business model: a unique platform model
The drivers: growing roles of Chinese Internet companies
China’s unique digitalization path: consumer Internet is
driving the development of industrial Internet
Foreword: new trends in the Chinese Internet market
29
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
As example, Alibaba alone has covered ~1/6 of mom-and-pop shops in China
30
50
2018.92016.12
100+
2017.8
# of mom-and-shop shops covered
Unit:10k
Digitization achieved through:
• Digital supply chain1
• Digital logistics
• Digital payment
~1/6
of
national
total
~67%
~33%
Traditional
model2
Modern
model2
2017 Offline retail sales
(grocery as an example)
1. Build direct access to brands and dealers to enrich assortment; 2. Traditional grocery model includes mon-and-pop, etc.; Modern grocery model includes hypermarkets, supermarkets, etc.
Sources: CCFA, company websites, company financial reports, desktop research, EuroMonitor, BCG analysis
China’s Internet players have played a vital role in driving the industrial Internet: as an example,
in the offline traditional grocery model, they are actively digitalizing mom-and-pop shops…
30
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Alibaba’s investment in offline retailers JD & Tencent’s investment in offline retailers2
Target companies, '15-'18 Top 100 ranking3 Top 100 ranking3Target companies, '15-'18
Internet players have focused investment on top 100 chain retailers
Aug 2015 1Suning
Nov 2016 89Sanjiang
Jan 2017 25Yintai
May 2017 8LianHua
Feb 2018 NAEasyhome
Sep 2017 43NHD
Nov 2017 4Sun Art
Aug 2015 6Yonghui
Jan 2018 10Carrefour
Feb 2018 14
BBG
Better Life
1. Traditional grocery model includes mon-and-pop, etc.; Modern grocery model includes hypermarkets, supermarkets, etc.; 2. Brand owners are excluded, e.g., HLA and Cosmo Lady
investments; JD acquired YHD.com with Series A stocks rather than make direct investment in Walmart and therefore excluded; 3. Based on CCFA“2017 Top 100 retailers"
Sources: CCFA, company websites, company financial reports, desktop research, EuroMonitor, BCG analysis
Oct 2017 NAOriental Group
Oct 2018 NABianlifengNov 2018 NAC-store
Sep 2018 NAMiniso
…In the offline modern grocery model, China's Internet giants are actively
investing in offline retailers
~33%
Traditional
model1
~67%
Modern
model2
2017 Offline retail sales
(grocery as an example)
31
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
# of offline retailers invested
2015 - 2018
Bn USD
2017
15
1
101
16
6.3x
1. Share of the online retail sales by top 5 online e-commerce players: China: 83.4%, US:64.8%; brand owners are not included; 2. Calculated based on average exchange rate of
1USD = 6.74CNY in 2017
Sources: eMarketer, Thomson One, Pintu 2018 Insights on Investments and Innovations in New Retail in China, CCFA, Stores.org "STORES Top Retailers", company websites,
BCG analysis
Investments
in non-US
offline
retailers are
not included
15x
Compared to their US counterparts, Chinese Internet giants are moving offline
more proactively and investing more in offline retailers
# of domestic offline retailers invested
by top 5 Internet e-commerce players1…
…total retail sales2 of invested
domestic offline retailers
32
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
% of top 100 offline retailers who built their own in-house
e-com brand2 , 2017
Share (%) of retail sales among top 100 offline retailers1
2017
99.2%
28%
72%
0.8%
In China,
online to
offline
investment
In US,
offline to
online
investment
67%
88%
33%
12%
No e-com or sell
on 3rd party
e-com platform
In-house
e-com brand
1. Based on CCFA “2017 Top 100 retailers"; 2. In-house e-com is defined as branded e-com website that supports the full online shopping journey, e.g., browsing, payment and
delivery; excludes mobile e-commerce since sites offered through multiple operating systems (IOS, Andriod, etc.) could be double counted; if included in, China is 59% vs US 90%
Sources: eMarketer, Thomson One, Pintu, CCFA, Stores.org, company websites, BCG analysis
Invested by
Internet
companies
Not invested
by Internet
companies
Looking at the top 100 retailers, Chinese Internet players have more influence over offline
retailers, while U.S. offline retailers are actively building their own e-commerce brands
Chinese Internet players are more
powerful to influence offline retailers
Most leading offline retailers in U.S. choose
to build their own e-commerce brands
33
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Growth of Chinese Internet users slowing
YoY growth in no. of Internet users
%
201720112007 2009
28.9%
2013
53.3%
2015
12.2%
9.5%
6.1% 5.6%
Source: CNNIC
Why are Chinese Internet players actively moving into the industrial Internet?
Reason #1: need to find new growth engines given the slowdown in online user growth
34
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
China’s online traffic is more concentrated Different leaders in different sectors in US
1. E-commerce share determined by GMV (gross merchandise volume) while social networking, video, news and search market shares are determined by traffic volume %
Sources: PwC, eMarketer, StatCounter, Sensor Tower, BCG analysis
sm.cn
Tencent
iQiyi
Others
Alibaba
Weibo
Others
JD.com
Baidu
Others
Youku & Tudou
Tencent Video
Others
Google
Others
Amazon
Netflix
ebay
Others
Facebook
Pinterest
Twitter
Youtube
(Google)
Hulu
Others
Microsoft
Others
Why are Chinese Internet players actively moving into the industrial Internet?
Reason #2: online resource is more concentrated, therefore it is easier to move offline
100%
Horizontal axis does not reflect actual distribution of online traffic
100%
Example
sectors:
Horizontal axis does not reflect actual distribution of online traffic
E-commerce
Social
Networking
Video Search E-commerce
Social
Networking
Video Search
Market
share1
based on
GMV or
traffic
volume (%)
Market
share1
based on
GMV or
traffic
volume (%)
Tencent
Ecosystem
Alibaba
Ecosystem
Baidu
Ecosystem
35
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Average sales2 of top 100 offline retailers1
USD Bn, 2017
Market share of top 100 offline retailers1
%, 2017
1. Based on CCFA “2017 Top 100 retailers"; 2. Calculated based on average exchange rate of 1USD = 6.74CNY in 2017
Sources: National Bureau of Statistics of China, US Department of Commerce, CCFA, Stores.org, Annual Reports, BCG analysis
3.2
20.2
6.6x
7.5%
45%
Why are Chinese Internet players actively moving into the industrial Internet?
Reason #3: China’s offline retail market is more fragmented, harder for offline retailers to go digital by themselves
Offline retail market in China is
much more fragmented than the US market
On average China’s offline
retailers are smaller
36
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
What to expect: the winning recipe and challenges in the next
chapter of Chinese Internet
The business model: a unique platform model
The drivers: growing roles of Chinese Internet companies
China’s unique digitalization path: consumer Internet is
driving the development of industrial Internet
Foreword: new trends in the Chinese Internet market
37
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
There are over 150 industrial
Internet platforms across the
globe according to IoT Analytics
— China Alliance of Industrial Internet
China has over 50 industrial
Internet platforms1 with
established influence
Illustration, not comprehensive
Internet
companies
Industrial companies Tech companies
Yonyou Industrial
Internet
Sysware
ProudThink
Alibaba ET
Brain
Tencent
Cloud
Baidu IoT
OceanConnect
IoT
Inspur Industrial
Internet
NeuSeer
Gizwits IoT
Yonyou
Huawei
Sysware
Pround
smart
Inspur
Neu
Cloud
Gizwits
Haier
Mei
Cloud
Holly
Sys
Bao
Sight
Sany
iSESOL
PCITC
CASI
Cloud
XCMG
Foxconn
COSMOPlat iSESOL
MeiCloud ProMACE
HiaCloud INDICS
BaoSight Xrea
Genyun FiiBeacon
1. Companies dedicated to providing IoT solutions to industry/manufacturing sectors
Sources: Press release on Guidelines for the Construction and Promotion of Industrial Internet Platforms and the Measures for the Evaluation of Industrial Internet
Platforms by the China Alliance of Industrial Internet, Industrial Internet Platform White Paper developed by the China Alliance of Industrial Internet
Platform business model is prevalent in China; platforms are an important force
enabling Chinese SMEs to go digital (industrial Internet platform example)
Chinese companies are keen
to build industrial Internet platforms
A large portion of
platforms are in China
38
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Source: provided by Baidu
• Baidu Brain has the world’s largest deep neural
network, supporting hundreds of billions of
samples and feature training
• AI technologies such as voice technology, image
technology, natural language processing and
user portrait have reached world-class level
150+
Core AI
capabilities
• Intelligent monitoring of crop
diseases and pests using AI
• Reduced pesticide use by 50% with
precise applicationAgriculture
• Detect material defects with image
recognition
• 99.98% Accuracy
Manufacturing
• Using Baidu AI to analyze diabetic
retinopathy
• Misdiagnosis rate <5% (both type I
and II errors)Health Care
Although there are technology-driven enablement platforms in China…
E.g. Baidu's AI open platform
400Bn+
Daily use of core
capabilities
800k+
Developers
Baidu opened up multiple AI
technologies through its AI platform…
…to improve operational
efficiency in various industries
39
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Analysis of global leading
industrial Internet platforms
selected by CAII2 and IoT ONE
21
23
China
US & EU
Focus of platforms1
Data
• Manufacturing equipment data
collection
• Data analytics & processing tools
• Industrial mechanism modeling
Apps
• Digital industrial applications
• Resource matching
Tech.
• Software development platform
• Other digital technologies
% of platforms with certain focus >50% 25%-50% <25%
Leading industrial Internet
platforms selected by CAII
Leading industrial Internet
platforms selected by IoT ONE
1. Each platform may have more than 1 core focus; 2. China Alliance of Industrial Internet
Sources: China Alliance of Industrial Internet, IoT one, company websites, BCG analysis
…most of China’s industrial Internet platforms focus primarily on applications rather
than data and technology development, compared to platforms in the US and EU
40
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Within applications, China’s platforms focus more on enabling SMEs through
resource matching
Case study #2: Haier's industrial Internet platform
Sources: company websites, expert interviews, BCG analysis
Application
• Mindsphere doesn't focus
on applications
• Focuses on industrial
applications, such as
large-scale customization
manufacturing
• Opens up its own
resources
Data&Technology
• Covers 10+ industrial
data analytical models for
the whole flow
• Owns data analysis models
for only a few industries
• Relies on its own
equipment data collection
& control modules (data
points collected for one
single company > 20K)
• Mainly relies on 3rd party
equipment data collection
& control modules (data
points collected for one
single company < 10K)
Focus of the platform
Haier has opened up its own industrial resources to enable
3rd parties
Supplychain
resources
• Opens up Haier’s supplier resources for
home appliance modules
– Home appliance and peripheral
sectors' procurement needs
– Joint procurement of Haier's
suppliers
Logistics
resources
• Opens up Haier's warehousing, logistics
and delivery resources
– Meets enterprises' logistics needs and
covers home appliances, furniture,
fitness equipment, sanitation
industry etc.
~30k
suppliers
~50%
orders by non-
Haier clients
Haier
COSMOPlat
Siemens
MindSphere
Haida
yuan
Riri
Shun
Focusing on Data and
Tech Platform
Focusing on Applications
to drive quick wins
41
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Industry concentration rate (CR4)1
2016, 2017
Manufacturing industry in China is less concentrated than that in US (selective sub-segments as examples)
1. CR4: market share of the 4 biggest companies in this segment; 2. Apparel is calculated based on sales revenue by brand. Both China and US data are based on EuroMonitor; 3. Auto is
calculated based on passenger vehicle sales volume by manufacturers. China number is based on Wind, CAAM and Haitong Security, and US number is based on Autodata Corporation; 4.
Chemical products are calculated based on sales revenue in paint & coating segment. China number is based on Huatai Securities, and US number is based on United States Census Bureau;
5. Machinery manufacturing is calculated based on sales revenue of food product machinery. China number is based on Guanyan Tianxia, and US number is based on United States Census
Bureau; 6. Steel is calculated based on crude steel production volume. China number is based on China Metallurgy News and World Steel Association, and US number is based on World Steel
Association; 7. Cement is calculated based on production volume. China number is based on Wind, dcement.com and Haitong Security, and US number is based on dcement.com
Source: EuroMonitor, Huatai Securities, World Steel Association, Wind, CAAM, Autodata Corporation, Guanyan Tianxia 2018 Chinese food machinery market analysis report, China Metallurgy
News, Haitong Security, dcement.com, United States Census Bureau, BCG analysis
32%
Steel
(Crude steel)6
Apparel
(by brand)2
Auto
(passenger
vehicle
manufacturer)3
Chemical
products
(paint &
coating)4
Machinery
manufacturing
(food product
machinery)5
Cement7
4%
11% 9%
22%
44%
58%65%
9%
20%
29%
59%
Prevalence of the platform model in China is driven by enablement needs of SMEs; China has
more SMEs than the US because the manufacturing industry in China is more fragmented
42
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
2.9
7.0
12.0
Avg. life span of SMEs1
(number of years)
Funding
pressure
• Capital gap: SMEs contribute ~60% of GDP but
account for only 25% of the total bank loan balance
Less adaptive
to economic
environment
• Low profit margin: avg. profit margin of 3-5% among
small and medium manufacturers in China
• Sensitive to taxation & supporting policies: tax-to-
profit ratio remains high
Business
environment
to be
improved
• Services provided to SMEs to be improved: For
example, only 21.4% of Chinese enterprises have
credit info. records
~4x
1. According to The Ecology of Chinese Private Enterprise
Sources: The Ecology of Chinese Private Enterprise, the World Bank, China HRKey, BCG analysis
Chinese SMEs have a shorter life span, as they face many challenges...
Shorter life span of Chinese SMEs Challenges faced by Chinese SMEs
43
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Avg. annual salary1 in manufacturing sector
(USD 000')
China's labor costs have increased dramatically, exceeding many developing nations incl. Vietnam & Mexico
1. Calculated based on year-end exchange rate from 2007 to 2017
Sources: National Bureau of Statistics of China, Trading Economics, IHS, SourceToday, BCG analysis
Vietnam Mexico
2007
7.6
2.9
5.8
3.9
9.9
20132009 2011
8.5
2015 2017
4.8
2017
7.9
2017
13.2%
2x
13%
…especially rapidly increasing labor costs, which have put pressure on Chinese
SEMs
44
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Sources: AliResearch Status and Development Strategy of Small and Medium Enterprise , BCG analysis
36%
Macroeconomy
57%Policy support (e.g. finance, tax)
45%
Product innovation
Recruitment
30%
22%Company mgmt system
18%Mgmt. concept & vision of company owner
16%New tech. & models (incl. digitization)
7%Others
Survey of SME owners (annual revenue <300 Mn RMB) –
“What do you think are the bottlenecks impeding the growth of your business?”
(2017, N=~4,000)
Therefore, Chinese SME owners, who generally do not see investing in digitization as a priority,
prefer resource-matching platforms, which enable them to go digital and deliver quick wins
45
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
What to expect: the winning recipe and challenges in the next
chapter of Chinese Internet
The business model: a unique platform model
The drivers: growing roles of Chinese Internet companies
China’s unique digitalization path: consumer Internet is
driving the development of industrial Internet
Foreword: new trends in the Chinese Internet market
46
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Go deep in vertical
industries: break down the
boundary to drive deep
integration of online
/offline capabilities
Launch enablement
platforms: operate based
on digital technology and
resources to enable others
……
1
2
1. Emerging leaders are defined as Chinese Internet companies that had initial public stock offerings in the 18 months prior to the end of 2018 and China's
top 10 Internet companies with pre-IPO valuations of $1 billion or more as of November 2018.
Source: BCG analysis
Finance Medical &
Education
Auto &
Transportation
Logistics
Industrial AI platform Autonomous driving
open platform
Alibaba ET
brain
Baidu Apollo
Ant
Financial
Manufacturing
Examples
WeBank
Lufax
JD
Finance
Ping An
Health
DiDi Cainiao DJI
NIOPu-Xin
BEST Foxconn
Winning recipe in the next chapter of Chinese Internet: going deep into
vertical industries and building enablement platforms
Existing giants and emerging leaders1 are either going deep
into vertical industries or launching enablement platforms
Examples
47
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Digital platform
operations
Vertical industry
know-how
Restructuring B2B
organization
Disruptive industry
ecosystem
Source: BCG analysis
• How to establish B2B business organizations, how to transform
from B2C genes to an effective B2B organization
• How to select and build partnership with appropriate players in
different vertical industries; whether the existing industry
ecosystem can be disrupted
• How to integrate digital capabilities with vertical industry
know-how to enable traditional players and drive digital
transformation in vertical industries
• How to further leverage Internet companies' digital advantage
to build strong digital platforms and play a vital role in vertical
industries
Potential
challenges
Challenges for Chinese Internet players in the next chapter of Chinese Internet
48
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Digital organization
and operations
Relationships with
Internet companies
Handling disruptive
industry ecosystem
Digital
transformation
• How to adjust current partnerships and develop new
partnerships in order to be better positioned for a potential
disruption of the industry ecosystem
• How to effectively promote digital transformation for the
current business and establish competitive advantage in the
digital era
• Whether to compete with or collaborate with Internet
companies; if the latter is chosen, how can companies build
strong partnerships?
• How to learn from Internet best practices and leverage
digital technologies to transform the organization and
internal operations to become more agile
Potential
challenges
Source: BCG analysis
Challenges for Chinese players in traditional industries in the next chapter of
Chinese Internet
49
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Localize China
operations
Revisit China strategy
Ride on the tide of
Chinese Industrial
Internet
Build new
partnerships with
Chinese digital giants
• How to actively participate in the development of the
Chinese industrial Internet; what opportunities to pursue and
how to win
• What value proposition and partnership to adopt to establish
partnerships with Chinese digital giants
• How to reposition in China given the competition from digital
players; how to change the China business strategy
• Facing strong competition from local digital players, how
should MNCs adjust their operational model in China and
become more localized?
Potential
challenges
Source: BCG analysis
Challenges for MNCs in China in the next chapter of Chinese Internet
50
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Authors
Francois Candelon Boston Consulting Group Senior Partner and Managing Director candelon.francois@bcg.com
Chen'ao Yu Boston Consulting Group Principal yu.chenao@bcg.com
Jun Wang Boston Consulting Group Consultant
Yi Zhu Boston Consulting Group Consultant
Ping Xiao AliResearch Researcher xiaopeng.axp@alibaba-inc.com
Xin Cheng AliResearch Senior Expert
Linli Huang Baidu Development Research Center Director huanglinli@baidu.com
Qiang Wang Baidu Development Research Center Deputy Director
Experts
Xinmin Gao Internet Society of China Vice Chairman, member of Advisory Committee for
State Informatization
Benfu Lv University of China Academy of Science,
School of Economics and Management
Professor, Director of Research Center for Cyber-
Economy and Knowledge Management
Steering Committee
Derek Kennedy Boston Consulting Group Senior Partner and Managing Director
Jean Francois Van Kerckhove Boston Consulting Group Partner and Managing Director
Hongbing Gao Alibaba Group Vice President, Director of AliResearch
Cheng Zhao Baidu Vice President, Chief Editor
Authors and Steering Committee
51
Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved.
Acknowledgments
Liqi Peng Alibaba Group Vice President
Tianqi Song Alibaba Group User Research Expert of Tmall Innovation Center
Li Guo Alibaba Group Senior Expert of New Retail Engineering Department
Wei Pang Alibaba Group
Senior Expert of Foreign and Domestic Trade Experience-
driven Center
Shuquan Liu Alibaba Cloud General Manager of Computing Technology
Zhao Liu Alibaba Cloud Technology Director of Data Intelligence
Chen Su Alibaba Cloud Senior Strategy Expert
Feng Tian Alibaba Cloud Director of Research Center
Jiaqi Feng Ant Financial Senior Expert of Research Institute
Jiali Pan Cainiao Network Head of Corporate Social Responsibility
Xianchun Xu Tsinghua University Director of China Data Center
Lianfeng Wu IDC China Vice President
Jianfei Han CCID Institute of Industrial Economics Deputy Director
Yifei Zhang Baidu Technical Expert at AI Planning Management Department
Gaosi Chu Baidu Senior Business Analyst of Group Strategy BU
Fei Xie Baidu Development Research Center Deputy Director
Xinyu Wen Baidu Development Research Center Senior Researcher
Wenyi Cui Baidu Development Research Center Senior Researcher
Chengli Lou Baidu Development Research Center Researcher
Shengcheng Zhao Boston Consulting Group Consultant
bcg.com

Weitere ähnliche Inhalte

Was ist angesagt?

IBOR transition: Opportunities and challenges for the asset management industry
IBOR transition: Opportunities and challenges for the asset management industryIBOR transition: Opportunities and challenges for the asset management industry
IBOR transition: Opportunities and challenges for the asset management industryEY
 
Private Sector Opportunity to Improve Well-Being
Private Sector Opportunity to Improve Well-Being Private Sector Opportunity to Improve Well-Being
Private Sector Opportunity to Improve Well-Being Boston Consulting Group
 
Five keys to marketing's "new golden age"
Five keys to marketing's "new golden age"Five keys to marketing's "new golden age"
Five keys to marketing's "new golden age"McKinsey & Company
 
Shifting Trade Rules and the Future for North America’s Auto Industry
Shifting Trade Rules and the Future for North America’s Auto IndustryShifting Trade Rules and the Future for North America’s Auto Industry
Shifting Trade Rules and the Future for North America’s Auto IndustryBoston Consulting Group
 
e-Conomy SEA 2020
e-Conomy SEA 2020e-Conomy SEA 2020
e-Conomy SEA 2020Peerasak C.
 
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...Smart City
 
The Great Mobility Tech Race: Winning the battle for future profits
The Great Mobility Tech Race: Winning the battle for future profitsThe Great Mobility Tech Race: Winning the battle for future profits
The Great Mobility Tech Race: Winning the battle for future profitsBoston Consulting Group
 
#BainWebinar Next Generation Industrial Performance Post COVID-19
#BainWebinar Next Generation Industrial Performance Post COVID-19#BainWebinar Next Generation Industrial Performance Post COVID-19
#BainWebinar Next Generation Industrial Performance Post COVID-19Bain & Company Brasil
 
Retail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey FindingsRetail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey FindingsBoston Consulting Group
 
Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening Boston Consulting Group
 
Argentina's Consumer Pulse Update - August 2020
Argentina's Consumer Pulse Update - August 2020Argentina's Consumer Pulse Update - August 2020
Argentina's Consumer Pulse Update - August 2020Bain & Company Brasil
 
Cloud value in cash management
Cloud value in cash managementCloud value in cash management
Cloud value in cash managementMcKinsey & Company
 
When, Where & How AI Will Boost Federal Workforce Productivity
When, Where & How AI Will Boost Federal Workforce ProductivityWhen, Where & How AI Will Boost Federal Workforce Productivity
When, Where & How AI Will Boost Federal Workforce Productivityaccenture
 
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19Boston Consulting Group
 
Accelerating hybrid-cloud adoption in banking and securities
Accelerating hybrid-cloud adoption in banking and securitiesAccelerating hybrid-cloud adoption in banking and securities
Accelerating hybrid-cloud adoption in banking and securitiesMcKinsey & Company
 
Addressing Homelessness in King County
Addressing Homelessness in King CountyAddressing Homelessness in King County
Addressing Homelessness in King CountyMcKinsey & Company
 
e-Conomy SEA 2021: Kỷ nguyên số của Đông Nam Á
e-Conomy SEA 2021: Kỷ nguyên số của Đông Nam Áe-Conomy SEA 2021: Kỷ nguyên số của Đông Nam Á
e-Conomy SEA 2021: Kỷ nguyên số của Đông Nam ÁMarketingTrips
 
Matthueu Lamiaux-Enfermedades transmitidas por vectores
Matthueu Lamiaux-Enfermedades transmitidas por vectoresMatthueu Lamiaux-Enfermedades transmitidas por vectores
Matthueu Lamiaux-Enfermedades transmitidas por vectoresFundación Ramón Areces
 

Was ist angesagt? (20)

IBOR transition: Opportunities and challenges for the asset management industry
IBOR transition: Opportunities and challenges for the asset management industryIBOR transition: Opportunities and challenges for the asset management industry
IBOR transition: Opportunities and challenges for the asset management industry
 
Private Sector Opportunity to Improve Well-Being
Private Sector Opportunity to Improve Well-Being Private Sector Opportunity to Improve Well-Being
Private Sector Opportunity to Improve Well-Being
 
Five keys to marketing's "new golden age"
Five keys to marketing's "new golden age"Five keys to marketing's "new golden age"
Five keys to marketing's "new golden age"
 
Shifting Trade Rules and the Future for North America’s Auto Industry
Shifting Trade Rules and the Future for North America’s Auto IndustryShifting Trade Rules and the Future for North America’s Auto Industry
Shifting Trade Rules and the Future for North America’s Auto Industry
 
e-Conomy SEA 2020
e-Conomy SEA 2020e-Conomy SEA 2020
e-Conomy SEA 2020
 
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
Digital and Innovation Strategies for the Infrastructure Industry: Tim McManu...
 
The Great Mobility Tech Race: Winning the battle for future profits
The Great Mobility Tech Race: Winning the battle for future profitsThe Great Mobility Tech Race: Winning the battle for future profits
The Great Mobility Tech Race: Winning the battle for future profits
 
#BainWebinar Next Generation Industrial Performance Post COVID-19
#BainWebinar Next Generation Industrial Performance Post COVID-19#BainWebinar Next Generation Industrial Performance Post COVID-19
#BainWebinar Next Generation Industrial Performance Post COVID-19
 
Retail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey FindingsRetail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey Findings
 
Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening
 
Argentina's Consumer Pulse Update - August 2020
Argentina's Consumer Pulse Update - August 2020Argentina's Consumer Pulse Update - August 2020
Argentina's Consumer Pulse Update - August 2020
 
Cloud value in cash management
Cloud value in cash managementCloud value in cash management
Cloud value in cash management
 
When, Where & How AI Will Boost Federal Workforce Productivity
When, Where & How AI Will Boost Federal Workforce ProductivityWhen, Where & How AI Will Boost Federal Workforce Productivity
When, Where & How AI Will Boost Federal Workforce Productivity
 
COVID-19 Therapies and Vaccines
COVID-19 Therapies and VaccinesCOVID-19 Therapies and Vaccines
COVID-19 Therapies and Vaccines
 
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
 
Accelerating hybrid-cloud adoption in banking and securities
Accelerating hybrid-cloud adoption in banking and securitiesAccelerating hybrid-cloud adoption in banking and securities
Accelerating hybrid-cloud adoption in banking and securities
 
Addressing Homelessness in King County
Addressing Homelessness in King CountyAddressing Homelessness in King County
Addressing Homelessness in King County
 
e-Conomy SEA 2021: Kỷ nguyên số của Đông Nam Á
e-Conomy SEA 2021: Kỷ nguyên số của Đông Nam Áe-Conomy SEA 2021: Kỷ nguyên số của Đông Nam Á
e-Conomy SEA 2021: Kỷ nguyên số của Đông Nam Á
 
Driving Change in Racial Equity
Driving Change in Racial Equity Driving Change in Racial Equity
Driving Change in Racial Equity
 
Matthueu Lamiaux-Enfermedades transmitidas por vectores
Matthueu Lamiaux-Enfermedades transmitidas por vectoresMatthueu Lamiaux-Enfermedades transmitidas por vectores
Matthueu Lamiaux-Enfermedades transmitidas por vectores
 

Ähnlich wie Chinese Internet Economy White Paper 2.0 - Decoding the Chinese Internet 2.0: Get Ready for the Next Chapter

REPORT_Adding_to_Cart (2)
REPORT_Adding_to_Cart (2)REPORT_Adding_to_Cart (2)
REPORT_Adding_to_Cart (2)Google
 
Report adding to_cart
Report adding to_cartReport adding to_cart
Report adding to_cartGaurav Mangla
 
Deep Dive into VC Funding in China- Click Ventures
Deep Dive into VC Funding in China- Click VenturesDeep Dive into VC Funding in China- Click Ventures
Deep Dive into VC Funding in China- Click VenturesFrederick Ng
 
Digital Marketing in China: The Middle Kingdom, The Digital Kingdom
Digital Marketing in China: The Middle Kingdom, The Digital KingdomDigital Marketing in China: The Middle Kingdom, The Digital Kingdom
Digital Marketing in China: The Middle Kingdom, The Digital KingdomIn Marketing We Trust
 
PBA _ Studying the growth of E-Commerce during Covid-19 in India.pptx
PBA _ Studying the growth of E-Commerce during Covid-19 in India.pptxPBA _ Studying the growth of E-Commerce during Covid-19 in India.pptx
PBA _ Studying the growth of E-Commerce during Covid-19 in India.pptxjustinjoy41
 
Baidu Presentation - Hari Pers Nasional Indonesia 2017
Baidu Presentation - Hari Pers Nasional Indonesia 2017Baidu Presentation - Hari Pers Nasional Indonesia 2017
Baidu Presentation - Hari Pers Nasional Indonesia 2017Baidu Indonesia
 
The Worlds next e-Commerce Superpower
The Worlds next e-Commerce SuperpowerThe Worlds next e-Commerce Superpower
The Worlds next e-Commerce SuperpowerMarinet Ltd
 
PROJECT REPORT ON “E-COMMERCE”
PROJECT REPORT ON “E-COMMERCE”PROJECT REPORT ON “E-COMMERCE”
PROJECT REPORT ON “E-COMMERCE”Amrendra Kumar Anand
 
The10 smartest payment &amp; card solution providers 2019
The10 smartest payment &amp; card solution providers 2019The10 smartest payment &amp; card solution providers 2019
The10 smartest payment &amp; card solution providers 2019Mirror Review
 
Chinese digital market 2018
Chinese digital market 2018Chinese digital market 2018
Chinese digital market 2018Yang Huang
 
Propelling india-towards-global-leadership-in-e-commerce
Propelling india-towards-global-leadership-in-e-commercePropelling india-towards-global-leadership-in-e-commerce
Propelling india-towards-global-leadership-in-e-commerceLuisa Munaretto
 
CUSTOMER PERCEPTION TOWARDS INTERNET MARKETING
CUSTOMER PERCEPTION TOWARDS INTERNET MARKETINGCUSTOMER PERCEPTION TOWARDS INTERNET MARKETING
CUSTOMER PERCEPTION TOWARDS INTERNET MARKETINGChitra Dwivedy
 

Ähnlich wie Chinese Internet Economy White Paper 2.0 - Decoding the Chinese Internet 2.0: Get Ready for the Next Chapter (20)

REPORT_Adding_to_Cart (2)
REPORT_Adding_to_Cart (2)REPORT_Adding_to_Cart (2)
REPORT_Adding_to_Cart (2)
 
Report adding to_cart
Report adding to_cartReport adding to_cart
Report adding to_cart
 
China eCommerce PoV
China eCommerce PoVChina eCommerce PoV
China eCommerce PoV
 
Deep Dive into VC Funding in China- Click Ventures
Deep Dive into VC Funding in China- Click VenturesDeep Dive into VC Funding in China- Click Ventures
Deep Dive into VC Funding in China- Click Ventures
 
Digital Marketing in China: The Middle Kingdom, The Digital Kingdom
Digital Marketing in China: The Middle Kingdom, The Digital KingdomDigital Marketing in China: The Middle Kingdom, The Digital Kingdom
Digital Marketing in China: The Middle Kingdom, The Digital Kingdom
 
PBA _ Studying the growth of E-Commerce during Covid-19 in India.pptx
PBA _ Studying the growth of E-Commerce during Covid-19 in India.pptxPBA _ Studying the growth of E-Commerce during Covid-19 in India.pptx
PBA _ Studying the growth of E-Commerce during Covid-19 in India.pptx
 
Ecommerce Sector Report September 2017
Ecommerce Sector Report September 2017Ecommerce Sector Report September 2017
Ecommerce Sector Report September 2017
 
Ecommerce Sector Report - July 2018
Ecommerce Sector Report - July 2018Ecommerce Sector Report - July 2018
Ecommerce Sector Report - July 2018
 
Baidu Presentation - Hari Pers Nasional Indonesia 2017
Baidu Presentation - Hari Pers Nasional Indonesia 2017Baidu Presentation - Hari Pers Nasional Indonesia 2017
Baidu Presentation - Hari Pers Nasional Indonesia 2017
 
The Worlds next e-Commerce Superpower
The Worlds next e-Commerce SuperpowerThe Worlds next e-Commerce Superpower
The Worlds next e-Commerce Superpower
 
PROJECT REPORT ON “E-COMMERCE”
PROJECT REPORT ON “E-COMMERCE”PROJECT REPORT ON “E-COMMERCE”
PROJECT REPORT ON “E-COMMERCE”
 
The10 smartest payment &amp; card solution providers 2019
The10 smartest payment &amp; card solution providers 2019The10 smartest payment &amp; card solution providers 2019
The10 smartest payment &amp; card solution providers 2019
 
Ecommerce Sector Report December 2017
Ecommerce Sector Report December 2017Ecommerce Sector Report December 2017
Ecommerce Sector Report December 2017
 
Chinese digital market 2018
Chinese digital market 2018Chinese digital market 2018
Chinese digital market 2018
 
Propelling india-towards-global-leadership-in-e-commerce
Propelling india-towards-global-leadership-in-e-commercePropelling india-towards-global-leadership-in-e-commerce
Propelling india-towards-global-leadership-in-e-commerce
 
Ecommerce Sector Report October 2017
Ecommerce Sector Report October 2017Ecommerce Sector Report October 2017
Ecommerce Sector Report October 2017
 
CUSTOMER PERCEPTION TOWARDS INTERNET MARKETING
CUSTOMER PERCEPTION TOWARDS INTERNET MARKETINGCUSTOMER PERCEPTION TOWARDS INTERNET MARKETING
CUSTOMER PERCEPTION TOWARDS INTERNET MARKETING
 
Ecommerce Sector Report June 2018
Ecommerce Sector Report June 2018Ecommerce Sector Report June 2018
Ecommerce Sector Report June 2018
 
Digital China 2015
Digital China 2015Digital China 2015
Digital China 2015
 
Ecommerce Sector Report January 2018
Ecommerce Sector Report January 2018Ecommerce Sector Report January 2018
Ecommerce Sector Report January 2018
 

Mehr von Boston Consulting Group

Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management Boston Consulting Group
 
What’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive ProductionWhat’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive ProductionBoston Consulting Group
 
Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19Boston Consulting Group
 
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?Boston Consulting Group
 
Unlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesUnlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesBoston Consulting Group
 
Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20 Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20 Boston Consulting Group
 
COVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis ChecklistCOVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis ChecklistBoston Consulting Group
 
Covid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationCovid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationBoston Consulting Group
 
COVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for NonprofitsCOVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for NonprofitsBoston Consulting Group
 
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...Boston Consulting Group
 
Adapting Compliance Projects and Operating Models for COVID-19
Adapting Compliance Projects and Operating Models for COVID-19Adapting Compliance Projects and Operating Models for COVID-19
Adapting Compliance Projects and Operating Models for COVID-19Boston Consulting Group
 
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...Boston Consulting Group
 
How Should Financial Institutions Navigate the COVID-19 Crisis?
How Should Financial Institutions Navigate the COVID-19 Crisis?How Should Financial Institutions Navigate the COVID-19 Crisis?
How Should Financial Institutions Navigate the COVID-19 Crisis?Boston Consulting Group
 
What's Keeping Women out of Data Science? (press deck)
What's Keeping Women out of Data Science? (press deck)What's Keeping Women out of Data Science? (press deck)
What's Keeping Women out of Data Science? (press deck)Boston Consulting Group
 
Retail Banking Growth Challenges and Creative Solutions
Retail Banking Growth Challenges and Creative SolutionsRetail Banking Growth Challenges and Creative Solutions
Retail Banking Growth Challenges and Creative SolutionsBoston Consulting Group
 

Mehr von Boston Consulting Group (20)

Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management
 
Reinvent M
Reinvent MReinvent M
Reinvent M
 
BCG Telco Sustainability Index
BCG Telco Sustainability IndexBCG Telco Sustainability Index
BCG Telco Sustainability Index
 
BCG Telco Sustainability Index
BCG Telco Sustainability IndexBCG Telco Sustainability Index
BCG Telco Sustainability Index
 
What’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive ProductionWhat’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive Production
 
Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19
 
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
 
Unlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesUnlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities Services
 
Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20 Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20
 
Navigating the COVID-19 Crisis V1
Navigating the COVID-19 Crisis V1Navigating the COVID-19 Crisis V1
Navigating the COVID-19 Crisis V1
 
COVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis ChecklistCOVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis Checklist
 
Covid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationCovid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
 
COVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for NonprofitsCOVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for Nonprofits
 
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
 
Adapting Compliance Projects and Operating Models for COVID-19
Adapting Compliance Projects and Operating Models for COVID-19Adapting Compliance Projects and Operating Models for COVID-19
Adapting Compliance Projects and Operating Models for COVID-19
 
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...
COVID-19: Sustaining Business in All Scenarios: A New Lens on Bank Credit Ris...
 
How Should Financial Institutions Navigate the COVID-19 Crisis?
How Should Financial Institutions Navigate the COVID-19 Crisis?How Should Financial Institutions Navigate the COVID-19 Crisis?
How Should Financial Institutions Navigate the COVID-19 Crisis?
 
What's Keeping Women out of Data Science? (press deck)
What's Keeping Women out of Data Science? (press deck)What's Keeping Women out of Data Science? (press deck)
What's Keeping Women out of Data Science? (press deck)
 
Decoding the Human
Decoding the HumanDecoding the Human
Decoding the Human
 
Retail Banking Growth Challenges and Creative Solutions
Retail Banking Growth Challenges and Creative SolutionsRetail Banking Growth Challenges and Creative Solutions
Retail Banking Growth Challenges and Creative Solutions
 

Kürzlich hochgeladen

Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1DianaGray10
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024SkyPlanner
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopBachir Benyammi
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfDaniel Santiago Silva Capera
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaborationbruanjhuli
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URLRuncy Oommen
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UbiTrack UK
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8DianaGray10
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1DianaGray10
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-pyJamie (Taka) Wang
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDELiveplex
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.YounusS2
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IES VE
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Adtran
 
UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPathCommunity
 
Computer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsComputer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsSeth Reyes
 
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...DianaGray10
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsSafe Software
 

Kürzlich hochgeladen (20)

Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1Secure your environment with UiPath and CyberArk technologies - Session 1
Secure your environment with UiPath and CyberArk technologies - Session 1
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024
 
201610817 - edge part1
201610817 - edge part1201610817 - edge part1
201610817 - edge part1
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 Workshop
 
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
 
20150722 - AGV
20150722 - AGV20150722 - AGV
20150722 - AGV
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URL
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8
 
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1UiPath Platform: The Backend Engine Powering Your Automation - Session 1
UiPath Platform: The Backend Engine Powering Your Automation - Session 1
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-py
 
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDEADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
ADOPTING WEB 3 FOR YOUR BUSINESS: A STEP-BY-STEP GUIDE
 
Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.Basic Building Blocks of Internet of Things.
Basic Building Blocks of Internet of Things.
 
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
IESVE Software for Florida Code Compliance Using ASHRAE 90.1-2019
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™
 
UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation Developers
 
Computer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsComputer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and Hazards
 
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
 

Chinese Internet Economy White Paper 2.0 - Decoding the Chinese Internet 2.0: Get Ready for the Next Chapter

  • 1. JAN 11, 2019 Decoding the Chinese Internet 2.0: Get Ready for the Next Chapter Chinese Internet Economy White Paper 2.0
  • 2. 1 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. What to expect: the winning recipe and challenges in the next chapter of Chinese Internet The business model: a unique platform model The drivers: growing roles of Chinese Internet companies China’s unique digitalization path: consumer Internet is driving the development of industrial Internet Foreword: new trends in the Chinese Internet market
  • 3. 2 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. What to expect: the winning recipe and challenges in the next chapter of Chinese Internet The business model: a unique platform model The drivers: growing roles of Chinese Internet companies China’s unique digitalization path: consumer Internet is driving the development of industrial Internet Foreword: new trends in the Chinese Internet market
  • 4. 3 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Chinese Internet Economy White Paper 1.0: In 2017, we discussed what makes the Chinese Internet unique and the reasons for its unique characteristics Download the Chinese Internet Economy White Paper 1.0: Chinese Internet Economy White Paper 1.0 - CHN: https://www.bcg.com/zh-cn/perspectives/170394 Chinese Internet Economy White Paper 1.0 – ENG: https://www.slideshare.net/TheBostonConsultingGroup/decoding-the-chinese-internet Key questions in white paper 1.0 • China and the U.S. are the dual engines driving the global Internet economy. However, these two markets are vastly different. What makes the Chinese Internet unique? • Why has the Chinese Internet grown so fast for so long? What are the reasons for the uniqueness of the Chinese Internet? • How can players win in this unique but explosively growing market?
  • 5. 4 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. The increasing trend: China's Internet players are moving offline Key questions in this report Focus of this report: the increasing trend of China's Internet players moving offline and its impact on China's unique digitalization path 1. Calculated based on closing price of HKD 72.65 and exchange rate of 1USD=7.83HKD on its IPO date of Sep 20th, 2018 Sources: company websites, prospectus, company financial reports, BCG analysis • What unique digitalization path has China taken, characterized by a trend from online to offline? • What are the roles of Chinese Internet players in China’s digitalization path? • What is the unique business model as a result of this unique China’s digitalization path? • What is the winning recipe and what are the challenges to win in the "new chapter" of the Chinese Internet? Jan 2018 Luckin Coffee founded. Leveraging effective online customer acquisition, it has opened ~1,700 physical stores in just 11 months since its establishment, second only to Starbucks in China by size. The founder, Qian Zhiya, said “our target is to replace Starbucks in China” Baidu launched Apollo 3.0. Apollo is the first open platform for autonomous driving technology in the world with ~130 partners globally Alibaba announced the ET Medical Brain 2.0 R&D program. Alibaba has already become a key player in the industrial Internet since 2017, providing digital and smart solutions for city operations, manufacturing, healthcare and agriculture etc. Meituan Dianping achieved a $51 Bn valuation for its IPO1 . Didi closed a new round of financing in Jul 2018. With integrated online/offline capabilities, Meituan Dianping and Didi have grown into the new giants of the Chinese Internet market Tencent announced that it starts a systematic org restructuring. Tencent is striving to enhance B2B capabilities and move to the industrial Internet; Pony Ma, the founder, said “this initiative marks a new start of Tencent for the next 2 decades” China's Internet giants are actively digitalizing mom-and-pop grocery stores. Alibaba alone has covered over 1Mn mom-and-pop grocery stores, around one sixth of the national total Jul 2018 Sep 2018 Jul-Sep, 2018 Sep 2018 Dec 2018
  • 6. 5 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. What to expect: the winning recipe and challenges in the next chapter of Chinese Internet The business model: a unique platform model The drivers: growing roles of Chinese Internet companies China’s unique digitalization path: consumer Internet is driving the development of industrial Internet Foreword: new trends in the Chinese Internet market
  • 7. 6 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Driving effect: • Foster digital behaviors among consumers • Drive effective synergy across industry value chain Enablement effect: • Leverage massive amount of consumption data • Provide digital tools and applications China’s unique digitalization path Downstream Upstream Consumer Internet Clothing Food Housing Transport- ation Industrial Internet Supply Product Design Logistics Mfg. … Smart Connectivity Data Integration Smart Decision making Human-robot Collaboration Drives Work Entertain -ment Study Life …
  • 8. 7 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Sources: BCG Chinese Consumer Survey Database 2015, BCG analysis Top e-commerce Shelf display/ads KOL SNS In-store sales & services Brand's official website WOM Other apps/sites UGC SNS Other e-commerce Traditional media SNS Brand’s social media Discount e-commerce Retailer & e-commerce SNS SMS Top e-commerce Brand's official website Product packaging & trial Promotions WeChat In-store sales & services Social network Price comparison/rating sites WOM Other retailers Other online shopping events Discount e-commerce Apps and other mobile search Shopping malls Other brick-and-mortar stores Domestic integrated e-commerce Department stores Online official store Domestic fashion e-commerce Hypermarket Daigou (overseas shopper) Travel Offline payment with cash/credit card Digital payment for online shopping Digital payment for off-line shopping Online payment with credit card Pay on delivery Offline payment with coupons/membership card... Offline pickup Online delivery Offline delivery Online pickup N/A Online WOM Membership points Offline WOM Coupons... Online return & exchange Offline return & exchange OnlineOffline Online to online Offline to offline Online & offline hybrid Discovery Research Purchase Payment Delivery Aftersales In the downstream, Chinese consumers are highly digitalized, with increasingly integrated online and offline behaviors, thanks to the fast growth of the Chinese consumer Internet BCG Chinese Consumer Survey (n=200 households) • Along the consumer journey, increasing number of touch points with Chinese consumers • Increasing integration of online and offline touch points, and more frequent switches between them Consumer journey Downstream
  • 9. 8 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. 30 3 18 1. The minimum volume per order can be as small as 50 Sources: CEIBS, BCG analysis • ~300 independent small product teams with full P&L responsibility to provide fast changing apparel products tailored to the needs of smaller customer segments • Effective operation with 95% sell-through rate driven by data based product life cycle mgmt • Agile manufacturing1 supported by a centralized digital supply chain platform ~1.5x An online fashion apparel player with fast product iteration1 New digital business model and org. structure Faster product iteration than global peers Digitalized operation platform (e.g. product mgmt., supply chain, logistics, customer service, etc.) Product team Product team Product team Product team Product team Product team… Aplatformorganization basedondigitalization Average # of styles launched annually Unit:1k Traditional brands (average) Downstream: clothing ZARA HSTYLE Almost every element of everyday life in China is highly digitalized — E.g. clothing: new digital business models have enabled fast iteration of products HSTYLE
  • 10. 9 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Source: company website Picture source:BCG pictures Digital players in China are actively digitalizing restaurants # of cities covered 200+ # of digitalized restaurants ~600K Chinese consumers’ dine-in experience transformed by digitization Downstream: catering 2D Fire Meituan Dianping Meiweibu yongdeng Alibaba local service 2018 Food: Chinese consumers’ dine-in experience has been fully digitalized, with around 600k digital-enabled restaurants across over 200 cities as of 2018 No need to line up at restaurant, shorten waiting time Place order through mobile app Personalized marketing Dish preview on e-menu, with comments and rating Direct connection of front counter to kitchen to shorten waiting time Targeted coupon push to trigger repurchase No manual checkout, no lines; seamless dining experience Mobile payment Electronic order assigning Scan QR code in mobile app to line up
  • 11. 10 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Sales volume of smart speakers in China surged, reaching 1/3 of global share in one year since launch Smart home1 penetration in China's tier 1&2 cities is close to that of the US, the most advanced smart home market Smart speakers: China’s sales volume share Products launched by Chinese players3 Smart home penetration (%), 2018 20% 99% 80% 65%35% 93% 1% 2017Q4 2017Q3 7% 2018Q1 2018Q2 China Other 27% ~20% Tier 1&2 cities in China2 US avg. Downstream: home 1. Smart home market constitutes the sale of networked devices and related services that enable home automation for private end users; 2. The number of households using smart speakers in tier 1&2 cities is an approximate estimation based on sales volume of smart appliances in tier 1&2 cities; 3. Incl. TmallGenie from Alibaba, Mi AI Speaker from Xiaomi, DuSmart Speaker from Baidu, and other smart speaker products. Sources: company annual reports, Canalys Smart Speaker Analysis, BCG analysis Housing: smart home market in China has witnessed explosive growth
  • 12. 11 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Innovation: Internet companies partner with auto OEMs to grow connected vehicle business Scale: China's e-hailing services top the world by market scale 20 15 # of daily orders, Mn2017 Downstream: mobility DiDi Uber Source: Company website, Forward Industry Research Institute, BCG analysis China Worldwide 16 18 2016 2017 9 2014 2015 13 Scale of connected vehicles, Mn Alibaba partners with SAIC MOTOR to found Banma, which offers end to end connected vehicle solutions • Provided Internet solutions to ~500k vehicles • Partnered with 3rd- party OEMs, incl. BMW, Dongfeng, etc. 25% Banma Transportation: China has surpassed other countries in the scale of shared mobility services, and China has been actively adopting new business models
  • 13. 12 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Time to grow to 1,500 stores 10 years 2005-2015 10 months Jan – Nov 2018 Unique business model • Online customer acquisition – Leverage online traffic instead of traditional high-cost offline consumer acquisition • Low-cost stores used also as distribution hub – Mostly with lower rent & smaller space – 2 km maximum delivery range A new retail coffee shop chain ~70% ~6% # of stores in China Unit: 1k Likely to surpass Starbucks1 and become the largest coffee shop chain in China by 2019 Q2 if it can maintain its current growth rate Assuming growth can be sustained Compound quarterly growth rate 2018 A coffee shop chain with online/offline integrated operations • Founded in Jan. 2018 • Opened 1,700 stores across 21 cities by the end of Nov. 2018 Luckin Coffee Starbucks Luckin Coffee Downstream 1. 2017Q4, 2018Q3 and Q4 Starbucks store numbers are actual numbers, 2018 Q1 and Q2 store numbers for Starbucks are estimated by assuming linear growth from 2017 Q4 to 2018 Q3 Note: BCG takes a neutral attitude towards the future of Luckin Coffee. Discussions on Luckin Coffee hereof is based solely on up-to-date observations Sources: company website, expert interviews, BCG analysis 2.9 3.1 3.3 3.4 3.6 0.4 0.7 1.1 2.0 5.8 ’18Q417Q4 ’18Q1 ’18Q2 ’18Q3 ’19Q2E 3.9 Starbucks China Luckin New business model innovations have been flourishing in China's consumer Internet — Luckin Coffee case study
  • 14. 13 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Unmanned stores to provide 24x7 shopping experience Fast expansion1 in first 2 years • Box-shaped convenience stores in public areas to deliver self- service shopping experience • No staff, no manual checkout — enabled by QR codes, RFID and biometric recognition technologies Select goods E-payment & settlement Scan code to open doors Image recognition & recording Walk out 500+# of stores 40+ # of cities covered 2,000 RMB Average sales per store per day 1. As of Aug 2018 Sources: Lit research, BCG analysis Downstream Bingo Box New business model innovations have been flourishing in China’s consumer Internet — Bingo Box case study Consumer Shopping journey
  • 15. 14 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. 46% 54% 54% 38% 16%21% 35% 25% Digital factories in planning 11%No plan to build digital factories Digital factories established +21% +29% 2017 (N>1,000) Upstream Sources: Capgemini's Digital Transformation Institute (DTI), Smart Factories: How can manufacturers realize the potential of digital industrial revolution; the survey interviewed ~1,000 executives from manufacturing companies with revenue above $1 Bn, among whom 40% are from the US, 10% from China and 9% from Germany; BCG analysis However, in the upstream: China’s industrial Internet still lags behind developed markets; for example, China is highly willing to digitalize its manufacturing, but still has to catch up Survey of digital factories: China only has half the penetration of digital factories as developed markets
  • 16. 15 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Image source: eyeem.com, keyword “digital factory”, “digital manufacture” Sources: desk research, BCG analysis Smart decision making: optimize mfg. equipment & process via algorithms and distributed analytics & decision-making systems Key gap: still catching up in terms of data analytical capabilities C Human–robot collaboration: Smart machines work with humans to undertake heavy and repetitive mfg. tasks Key gap: adoption of advanced mfg. technology to be increased D Smart connectivity: inter-connected machines, equipment, sensors and personnel Key gap: more equipment to become smarter A Data integration: all data/information integrated across systems to reproduce the real manufacturing process digitally Key gap: lags behind developed countries in industrial IT adoption B Upstream More specifically, China still lags behind the global leaders in each of the four core aspects of digital manufacturing
  • 17. 16 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. ~5% ~12% Penetration1 of smart sensors2 in industrial sensor market ~40% Investment in industrial sensors ~3 ~4 ~75% 2016 USD Bn A Upstream: smart connectivity 1. Penetration data is based on market share by sales value; 2. Smart sensors: sensor modules integrated with sensing, processing and wireless communication features Sources: Askci, CAICT, Global Market Insights, Desktop Research, BCG analysis Smart connectivity: taking sensors as an example, China lags behind in penetration of smart sensors, which define the level of smart connectivity
  • 18. 17 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. 60~70%1 55% 30~40% 45% Key mfg. processes with digital control1 Key mfg. processes w/o digital control 100% Increase digitalization, e.g. digitalize more key manufacturing processes 2017 1.5x Further integrate data, e.g. improve cloud adoption rate Cloud adoption rate (%) among enterprises 2018 ~30% ~80%2 Upstream: data integration 1. According to Guanyantianxia, around 60-70% of key processes in US are digitally-controlled; 2. Different source having different data for cloud adoption rate in the US, most of ranging from 70% to 90% Sources: National Bureau of Statistics, Ministry of Industry and Information Technology, China Info100, Guanyantianxia, Chinese Institute of Electronics, Evolve IP, RightScale, BCG analysis Data integration: China needs to increase digitalization and further integrate data B
  • 19. 18 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. China vs. US in distribution of Industry 4.0 patents, 2007-2018 Smart data analytics & decision-making patents % (count) in China 10% (993) vs. 34% (5,203) Smart data analytics & decision-making patents % (count) in US 15,303 patents9,927 patents Factory- wide control system Programed control system Industrial wireless communications network Digital info. processing algorithms Production data cleansing and analysis 3D printing equipm ent Program controlled robots/me chanical arms Industrial energy mgmt. Factory monitoring system & equipment Fundamental information technology 59% Smart data analytics & decision- making 10% Sophistic ated industria l sensors Digital control system Factory energy consum ption optimiz ation Image communica tion system Mixed- signal control system Industrial big data analytics & algorithms Data-driven decision making & forecast Automated monitoring & mgmt. Smart multi- functional robots 3D printing Additive manufactur ing process Smart data analytics & decision-making 34% Fundam ental info. technol ogy 29% In-factory location & navigation Advanced mfg. equipment Advanced mfg. technology 37% Advanced mfg. technology 31% Upstream: data-based decision Note: 'Peaks' and 'troughs' represent the density of patents, Light-colored 'peaks' mean a high density of patents, green 'troughs' mean fewer patents and less similarity Sources: BCG ROVER, a patent search & analysis tool, BCG analysis Smart decision making: according to BCG’s patent analysis tool ROVER®, China is significantly behind global leaders in smart data analytics & decision-making C
  • 20. 19 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Penetration1 of industrial robots in China (units/10k manufacturing workers) 2016 68 309 189 4.5x Increasing share of China’s industrial robot sales volume Global share Sales volume of industrial robot in China 1,000 units Upstream: human-machine collaboration 1. Penetration = industrial robot inventory / # of employees in the manufacturing industry Sources: IFR, WIND, BCG analysis 201720142013 37 2015 2016 57 69 87 138 Human-machine collaboration: China has adopted industrial robots on a large scale but still falls short on their penetration rate in the manufacturing industry D 36%30%27%26%21%
  • 21. 20 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Mfg. value added as % of total mfg. turnover 2017 Penetration of key industrial software 2017 21% 37% Upstream 1. Estimated based on US manufacturing industrial software sales and # of manufacturers Sources: US BEA, China NBS, Guanyan Tianxia, ITIF, Onshape, Lisa Picarille CRM World Domination, BCG analysis Estimated average penetration1 of key industrial software in the US 50~60% 34 % 41 % CRMSCMPDM/PLM 33 % Root cause: digitization of upstream manufacturing is highly dependent on the overall development of manufacturing industry… China needs to develop high-end manufacturing further… …and improve its industrial information technology (penetration of industrial SW as an example)
  • 22. 21 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Avg 64% -4% 15% Production optimizationExpansion of product portfolio Better customer service Avg 43% 24% 7% Avg 43% 8% -5% Survey of 148 manufacturing industry experts in 6 countries — “What do you think are the commercial opportunities of Industry 4.0?” Downstream: consumer side Upstream: production side Avg % among respondents Above/below avg Above/below avg Upstream Source: Acatech Industry 4.0 in a Global Context …In addition, Chinese companies have a tendency to focus more on the downstream consumer side, resulting in slow digitalization of the upstream production side
  • 23. 22 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. # of autonomous driving start-ups As of July 2017 # of start-ups with valuation of >$100 Mn Total funding1 acquired by autonomous driving start-ups As of July 2017 USD Bn Autonomous driving talent pipeline As of July 2017 # of autonomous driving talents2 (k) 9 10 1.6 1.1 1.0 1.4 Upstream 1. Calculated based on average exchange rate of 1USD = 6.74CNY in 2017; 2. Total number of employee for autonomous driving startups Sources: Tencent Research Institute "A Comprehensive Study on Development of Artificial Intelligence Industry in US and China", IT Juzi, www.iyiou.com, CCID Consulting, LinkedIn, desktop research, BCG analysis However, China has the potential to make a big leap in some emerging technology fields, e.g. autonomous driving
  • 24. 23 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. 0.97 UAV Computer vision NLP 0.20 Robotics Voice recognition 0.29 1.09 2.00 0.46 0.84 2.35 1.82 0.46 2017 USD Bn Total amount of VC investment in emerging technologies1 1. Calculated based on average exchange rate of 1USD = 6.74CNY in 2017 Sources: Tencent Research Institute "A Comprehensive Study on Development of Artificial Intelligence Industry in US and China", IT Juzi, CCID Consulting, BCG analysis Upstream Large amount of capital is flowing into emerging technology fields; total VC investment is on a par with or exceeds US in some fields
  • 25. 24 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. 12k+ developers 130+ partners1 Apollo is the world's first open autonomous driving platform Creates a diverse autonomous driving ecosystem Large scale production of autonomous cars becomes feasible Cloud service platforms • High definition maps • Virtual simulation • Information security Open SW platform • In-vehicle OS • Route planning & vehicle control • Location & LBS Example HWs • Sensors (e.g. radar) • Location devices (e.g. GPS) • Computing units (e.g. GPU) Example vehicles • Drive-by-wire vehicles Examples 1. Partners include OEMs, part suppliers, Internet and tech companies in China and abroad Sources: Baidu Development Research Center, BCG analysis 2018 Achieved large scale production of world's 1st L4 autonomous driving bus 2019 # of autonomous cars powered by Apollo platform Upstream King Long JAC BAIC motor BYDChery Hongqi New business models and ecosystems are emerging around these technologies, e.g. Baidu's Apollo >10K
  • 26. 25 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. 30K 10mth 200% 20Mn HSTYLE Luckin Coffee '18Q1-'18Q2 DiDi China 3K 10yr 50% 15Mn Traditional offline brands Starbucks China '18Q1-'18Q2 Uber Global Clothing Food Housing Transportation Number of styles launched per year Time to reach 1,500 stores Qtly. comp. growth rate of smart speakers Daily orders of shared mobility Example Data integration Smart Connectivity Human robot Collaboration Penetration of industrial robots Penetration of smart sensors Cloud adoption rate among enterprises Example 68Units/10k workers (2016) ~5% ~30% 2018 2016 189Units/10k workers (2016) ~12% ~80% 2018 2016 Smart decision making Patents on smart analytics and decision- making 933 2007-18 5,203 2007-18 Summary: the development of downstream consumer Internet and upstream industrial Internet in China Downstream consumer Internet is highly digitalized Upstream industrial Internet digitization still developing
  • 27. 26 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Consumer behavior data • Based on aggregated and anonymous 600 Mn consumers • Provides digital user survey tools Reshape product design and development • More precise product design & incubation • More efficient new product development, shortened dev. cycle from 18 months to 6 months Tmall Innovation Center worked in-depth with premium brands on product design and incubation How consumer Internet drives industrial Internet Sources: Desktop research, BCG analysis Driving Driving Effect: downstream consumer Internet is driving upstream industrial Internet — Case study: Tmall Innovation Center FMCG Food Special shampoo designed for China market • 15 mn bottles sold within the 1st month after launch • Top 3 best-selling shampoos on Tmall Special DOVE chocolate package for China • Sold out 5,000 limited edition in 12 hours Covers 600+ premium brands Incubated 300+ new products P&G MARS
  • 28. 27 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Driving 2003 - 2015 Largely invested in consumer Internet, business model became heavier since 2016 Expanded to supply side digital transformation and became a value chain player F&B review1 Food supply chain solution Catering ERP system SC financing Downstream: develop consumer side Upstream: upgrade supply side Meituan Dianping's milestones in Food & Beverage business F&B group- buying F&B delivery Note: Dianping was founded in 2003 with F&B review site business and mergerd with Meituan in 2015 Sources: Meituan Dianping’s IPO prospectus, Desktop analysis, BCG analysis Infoexchange Transaction matching Product/service delivery 2003 2010 2013 2016 first half 2016 second half • # of annual transactions reached 2.1 Bn while active users reached 206 Mn in 2015 • Active merchants reached 500k in 2015 • As of October 2018, 21 provinces & 38 cities covered by its SC solution … Driving Effect: downstream consumer Internet is driving upstream industrial Internet — Case study: digitization of the F&B industry in China
  • 29. 28 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. What to expect: the winning recipe and challenges in the next chapter of Chinese Internet The business model: a unique platform model The drivers: growing roles of Chinese Internet companies China’s unique digitalization path: consumer Internet is driving the development of industrial Internet Foreword: new trends in the Chinese Internet market
  • 30. 29 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. As example, Alibaba alone has covered ~1/6 of mom-and-pop shops in China 30 50 2018.92016.12 100+ 2017.8 # of mom-and-shop shops covered Unit:10k Digitization achieved through: • Digital supply chain1 • Digital logistics • Digital payment ~1/6 of national total ~67% ~33% Traditional model2 Modern model2 2017 Offline retail sales (grocery as an example) 1. Build direct access to brands and dealers to enrich assortment; 2. Traditional grocery model includes mon-and-pop, etc.; Modern grocery model includes hypermarkets, supermarkets, etc. Sources: CCFA, company websites, company financial reports, desktop research, EuroMonitor, BCG analysis China’s Internet players have played a vital role in driving the industrial Internet: as an example, in the offline traditional grocery model, they are actively digitalizing mom-and-pop shops…
  • 31. 30 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Alibaba’s investment in offline retailers JD & Tencent’s investment in offline retailers2 Target companies, '15-'18 Top 100 ranking3 Top 100 ranking3Target companies, '15-'18 Internet players have focused investment on top 100 chain retailers Aug 2015 1Suning Nov 2016 89Sanjiang Jan 2017 25Yintai May 2017 8LianHua Feb 2018 NAEasyhome Sep 2017 43NHD Nov 2017 4Sun Art Aug 2015 6Yonghui Jan 2018 10Carrefour Feb 2018 14 BBG Better Life 1. Traditional grocery model includes mon-and-pop, etc.; Modern grocery model includes hypermarkets, supermarkets, etc.; 2. Brand owners are excluded, e.g., HLA and Cosmo Lady investments; JD acquired YHD.com with Series A stocks rather than make direct investment in Walmart and therefore excluded; 3. Based on CCFA“2017 Top 100 retailers" Sources: CCFA, company websites, company financial reports, desktop research, EuroMonitor, BCG analysis Oct 2017 NAOriental Group Oct 2018 NABianlifengNov 2018 NAC-store Sep 2018 NAMiniso …In the offline modern grocery model, China's Internet giants are actively investing in offline retailers ~33% Traditional model1 ~67% Modern model2 2017 Offline retail sales (grocery as an example)
  • 32. 31 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. # of offline retailers invested 2015 - 2018 Bn USD 2017 15 1 101 16 6.3x 1. Share of the online retail sales by top 5 online e-commerce players: China: 83.4%, US:64.8%; brand owners are not included; 2. Calculated based on average exchange rate of 1USD = 6.74CNY in 2017 Sources: eMarketer, Thomson One, Pintu 2018 Insights on Investments and Innovations in New Retail in China, CCFA, Stores.org "STORES Top Retailers", company websites, BCG analysis Investments in non-US offline retailers are not included 15x Compared to their US counterparts, Chinese Internet giants are moving offline more proactively and investing more in offline retailers # of domestic offline retailers invested by top 5 Internet e-commerce players1… …total retail sales2 of invested domestic offline retailers
  • 33. 32 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. % of top 100 offline retailers who built their own in-house e-com brand2 , 2017 Share (%) of retail sales among top 100 offline retailers1 2017 99.2% 28% 72% 0.8% In China, online to offline investment In US, offline to online investment 67% 88% 33% 12% No e-com or sell on 3rd party e-com platform In-house e-com brand 1. Based on CCFA “2017 Top 100 retailers"; 2. In-house e-com is defined as branded e-com website that supports the full online shopping journey, e.g., browsing, payment and delivery; excludes mobile e-commerce since sites offered through multiple operating systems (IOS, Andriod, etc.) could be double counted; if included in, China is 59% vs US 90% Sources: eMarketer, Thomson One, Pintu, CCFA, Stores.org, company websites, BCG analysis Invested by Internet companies Not invested by Internet companies Looking at the top 100 retailers, Chinese Internet players have more influence over offline retailers, while U.S. offline retailers are actively building their own e-commerce brands Chinese Internet players are more powerful to influence offline retailers Most leading offline retailers in U.S. choose to build their own e-commerce brands
  • 34. 33 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Growth of Chinese Internet users slowing YoY growth in no. of Internet users % 201720112007 2009 28.9% 2013 53.3% 2015 12.2% 9.5% 6.1% 5.6% Source: CNNIC Why are Chinese Internet players actively moving into the industrial Internet? Reason #1: need to find new growth engines given the slowdown in online user growth
  • 35. 34 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. China’s online traffic is more concentrated Different leaders in different sectors in US 1. E-commerce share determined by GMV (gross merchandise volume) while social networking, video, news and search market shares are determined by traffic volume % Sources: PwC, eMarketer, StatCounter, Sensor Tower, BCG analysis sm.cn Tencent iQiyi Others Alibaba Weibo Others JD.com Baidu Others Youku & Tudou Tencent Video Others Google Others Amazon Netflix ebay Others Facebook Pinterest Twitter Youtube (Google) Hulu Others Microsoft Others Why are Chinese Internet players actively moving into the industrial Internet? Reason #2: online resource is more concentrated, therefore it is easier to move offline 100% Horizontal axis does not reflect actual distribution of online traffic 100% Example sectors: Horizontal axis does not reflect actual distribution of online traffic E-commerce Social Networking Video Search E-commerce Social Networking Video Search Market share1 based on GMV or traffic volume (%) Market share1 based on GMV or traffic volume (%) Tencent Ecosystem Alibaba Ecosystem Baidu Ecosystem
  • 36. 35 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Average sales2 of top 100 offline retailers1 USD Bn, 2017 Market share of top 100 offline retailers1 %, 2017 1. Based on CCFA “2017 Top 100 retailers"; 2. Calculated based on average exchange rate of 1USD = 6.74CNY in 2017 Sources: National Bureau of Statistics of China, US Department of Commerce, CCFA, Stores.org, Annual Reports, BCG analysis 3.2 20.2 6.6x 7.5% 45% Why are Chinese Internet players actively moving into the industrial Internet? Reason #3: China’s offline retail market is more fragmented, harder for offline retailers to go digital by themselves Offline retail market in China is much more fragmented than the US market On average China’s offline retailers are smaller
  • 37. 36 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. What to expect: the winning recipe and challenges in the next chapter of Chinese Internet The business model: a unique platform model The drivers: growing roles of Chinese Internet companies China’s unique digitalization path: consumer Internet is driving the development of industrial Internet Foreword: new trends in the Chinese Internet market
  • 38. 37 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. There are over 150 industrial Internet platforms across the globe according to IoT Analytics — China Alliance of Industrial Internet China has over 50 industrial Internet platforms1 with established influence Illustration, not comprehensive Internet companies Industrial companies Tech companies Yonyou Industrial Internet Sysware ProudThink Alibaba ET Brain Tencent Cloud Baidu IoT OceanConnect IoT Inspur Industrial Internet NeuSeer Gizwits IoT Yonyou Huawei Sysware Pround smart Inspur Neu Cloud Gizwits Haier Mei Cloud Holly Sys Bao Sight Sany iSESOL PCITC CASI Cloud XCMG Foxconn COSMOPlat iSESOL MeiCloud ProMACE HiaCloud INDICS BaoSight Xrea Genyun FiiBeacon 1. Companies dedicated to providing IoT solutions to industry/manufacturing sectors Sources: Press release on Guidelines for the Construction and Promotion of Industrial Internet Platforms and the Measures for the Evaluation of Industrial Internet Platforms by the China Alliance of Industrial Internet, Industrial Internet Platform White Paper developed by the China Alliance of Industrial Internet Platform business model is prevalent in China; platforms are an important force enabling Chinese SMEs to go digital (industrial Internet platform example) Chinese companies are keen to build industrial Internet platforms A large portion of platforms are in China
  • 39. 38 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Source: provided by Baidu • Baidu Brain has the world’s largest deep neural network, supporting hundreds of billions of samples and feature training • AI technologies such as voice technology, image technology, natural language processing and user portrait have reached world-class level 150+ Core AI capabilities • Intelligent monitoring of crop diseases and pests using AI • Reduced pesticide use by 50% with precise applicationAgriculture • Detect material defects with image recognition • 99.98% Accuracy Manufacturing • Using Baidu AI to analyze diabetic retinopathy • Misdiagnosis rate <5% (both type I and II errors)Health Care Although there are technology-driven enablement platforms in China… E.g. Baidu's AI open platform 400Bn+ Daily use of core capabilities 800k+ Developers Baidu opened up multiple AI technologies through its AI platform… …to improve operational efficiency in various industries
  • 40. 39 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Analysis of global leading industrial Internet platforms selected by CAII2 and IoT ONE 21 23 China US & EU Focus of platforms1 Data • Manufacturing equipment data collection • Data analytics & processing tools • Industrial mechanism modeling Apps • Digital industrial applications • Resource matching Tech. • Software development platform • Other digital technologies % of platforms with certain focus >50% 25%-50% <25% Leading industrial Internet platforms selected by CAII Leading industrial Internet platforms selected by IoT ONE 1. Each platform may have more than 1 core focus; 2. China Alliance of Industrial Internet Sources: China Alliance of Industrial Internet, IoT one, company websites, BCG analysis …most of China’s industrial Internet platforms focus primarily on applications rather than data and technology development, compared to platforms in the US and EU
  • 41. 40 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Within applications, China’s platforms focus more on enabling SMEs through resource matching Case study #2: Haier's industrial Internet platform Sources: company websites, expert interviews, BCG analysis Application • Mindsphere doesn't focus on applications • Focuses on industrial applications, such as large-scale customization manufacturing • Opens up its own resources Data&Technology • Covers 10+ industrial data analytical models for the whole flow • Owns data analysis models for only a few industries • Relies on its own equipment data collection & control modules (data points collected for one single company > 20K) • Mainly relies on 3rd party equipment data collection & control modules (data points collected for one single company < 10K) Focus of the platform Haier has opened up its own industrial resources to enable 3rd parties Supplychain resources • Opens up Haier’s supplier resources for home appliance modules – Home appliance and peripheral sectors' procurement needs – Joint procurement of Haier's suppliers Logistics resources • Opens up Haier's warehousing, logistics and delivery resources – Meets enterprises' logistics needs and covers home appliances, furniture, fitness equipment, sanitation industry etc. ~30k suppliers ~50% orders by non- Haier clients Haier COSMOPlat Siemens MindSphere Haida yuan Riri Shun Focusing on Data and Tech Platform Focusing on Applications to drive quick wins
  • 42. 41 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Industry concentration rate (CR4)1 2016, 2017 Manufacturing industry in China is less concentrated than that in US (selective sub-segments as examples) 1. CR4: market share of the 4 biggest companies in this segment; 2. Apparel is calculated based on sales revenue by brand. Both China and US data are based on EuroMonitor; 3. Auto is calculated based on passenger vehicle sales volume by manufacturers. China number is based on Wind, CAAM and Haitong Security, and US number is based on Autodata Corporation; 4. Chemical products are calculated based on sales revenue in paint & coating segment. China number is based on Huatai Securities, and US number is based on United States Census Bureau; 5. Machinery manufacturing is calculated based on sales revenue of food product machinery. China number is based on Guanyan Tianxia, and US number is based on United States Census Bureau; 6. Steel is calculated based on crude steel production volume. China number is based on China Metallurgy News and World Steel Association, and US number is based on World Steel Association; 7. Cement is calculated based on production volume. China number is based on Wind, dcement.com and Haitong Security, and US number is based on dcement.com Source: EuroMonitor, Huatai Securities, World Steel Association, Wind, CAAM, Autodata Corporation, Guanyan Tianxia 2018 Chinese food machinery market analysis report, China Metallurgy News, Haitong Security, dcement.com, United States Census Bureau, BCG analysis 32% Steel (Crude steel)6 Apparel (by brand)2 Auto (passenger vehicle manufacturer)3 Chemical products (paint & coating)4 Machinery manufacturing (food product machinery)5 Cement7 4% 11% 9% 22% 44% 58%65% 9% 20% 29% 59% Prevalence of the platform model in China is driven by enablement needs of SMEs; China has more SMEs than the US because the manufacturing industry in China is more fragmented
  • 43. 42 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. 2.9 7.0 12.0 Avg. life span of SMEs1 (number of years) Funding pressure • Capital gap: SMEs contribute ~60% of GDP but account for only 25% of the total bank loan balance Less adaptive to economic environment • Low profit margin: avg. profit margin of 3-5% among small and medium manufacturers in China • Sensitive to taxation & supporting policies: tax-to- profit ratio remains high Business environment to be improved • Services provided to SMEs to be improved: For example, only 21.4% of Chinese enterprises have credit info. records ~4x 1. According to The Ecology of Chinese Private Enterprise Sources: The Ecology of Chinese Private Enterprise, the World Bank, China HRKey, BCG analysis Chinese SMEs have a shorter life span, as they face many challenges... Shorter life span of Chinese SMEs Challenges faced by Chinese SMEs
  • 44. 43 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Avg. annual salary1 in manufacturing sector (USD 000') China's labor costs have increased dramatically, exceeding many developing nations incl. Vietnam & Mexico 1. Calculated based on year-end exchange rate from 2007 to 2017 Sources: National Bureau of Statistics of China, Trading Economics, IHS, SourceToday, BCG analysis Vietnam Mexico 2007 7.6 2.9 5.8 3.9 9.9 20132009 2011 8.5 2015 2017 4.8 2017 7.9 2017 13.2% 2x 13% …especially rapidly increasing labor costs, which have put pressure on Chinese SEMs
  • 45. 44 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Sources: AliResearch Status and Development Strategy of Small and Medium Enterprise , BCG analysis 36% Macroeconomy 57%Policy support (e.g. finance, tax) 45% Product innovation Recruitment 30% 22%Company mgmt system 18%Mgmt. concept & vision of company owner 16%New tech. & models (incl. digitization) 7%Others Survey of SME owners (annual revenue <300 Mn RMB) – “What do you think are the bottlenecks impeding the growth of your business?” (2017, N=~4,000) Therefore, Chinese SME owners, who generally do not see investing in digitization as a priority, prefer resource-matching platforms, which enable them to go digital and deliver quick wins
  • 46. 45 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. What to expect: the winning recipe and challenges in the next chapter of Chinese Internet The business model: a unique platform model The drivers: growing roles of Chinese Internet companies China’s unique digitalization path: consumer Internet is driving the development of industrial Internet Foreword: new trends in the Chinese Internet market
  • 47. 46 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Go deep in vertical industries: break down the boundary to drive deep integration of online /offline capabilities Launch enablement platforms: operate based on digital technology and resources to enable others …… 1 2 1. Emerging leaders are defined as Chinese Internet companies that had initial public stock offerings in the 18 months prior to the end of 2018 and China's top 10 Internet companies with pre-IPO valuations of $1 billion or more as of November 2018. Source: BCG analysis Finance Medical & Education Auto & Transportation Logistics Industrial AI platform Autonomous driving open platform Alibaba ET brain Baidu Apollo Ant Financial Manufacturing Examples WeBank Lufax JD Finance Ping An Health DiDi Cainiao DJI NIOPu-Xin BEST Foxconn Winning recipe in the next chapter of Chinese Internet: going deep into vertical industries and building enablement platforms Existing giants and emerging leaders1 are either going deep into vertical industries or launching enablement platforms Examples
  • 48. 47 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Digital platform operations Vertical industry know-how Restructuring B2B organization Disruptive industry ecosystem Source: BCG analysis • How to establish B2B business organizations, how to transform from B2C genes to an effective B2B organization • How to select and build partnership with appropriate players in different vertical industries; whether the existing industry ecosystem can be disrupted • How to integrate digital capabilities with vertical industry know-how to enable traditional players and drive digital transformation in vertical industries • How to further leverage Internet companies' digital advantage to build strong digital platforms and play a vital role in vertical industries Potential challenges Challenges for Chinese Internet players in the next chapter of Chinese Internet
  • 49. 48 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Digital organization and operations Relationships with Internet companies Handling disruptive industry ecosystem Digital transformation • How to adjust current partnerships and develop new partnerships in order to be better positioned for a potential disruption of the industry ecosystem • How to effectively promote digital transformation for the current business and establish competitive advantage in the digital era • Whether to compete with or collaborate with Internet companies; if the latter is chosen, how can companies build strong partnerships? • How to learn from Internet best practices and leverage digital technologies to transform the organization and internal operations to become more agile Potential challenges Source: BCG analysis Challenges for Chinese players in traditional industries in the next chapter of Chinese Internet
  • 50. 49 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Localize China operations Revisit China strategy Ride on the tide of Chinese Industrial Internet Build new partnerships with Chinese digital giants • How to actively participate in the development of the Chinese industrial Internet; what opportunities to pursue and how to win • What value proposition and partnership to adopt to establish partnerships with Chinese digital giants • How to reposition in China given the competition from digital players; how to change the China business strategy • Facing strong competition from local digital players, how should MNCs adjust their operational model in China and become more localized? Potential challenges Source: BCG analysis Challenges for MNCs in China in the next chapter of Chinese Internet
  • 51. 50 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Authors Francois Candelon Boston Consulting Group Senior Partner and Managing Director candelon.francois@bcg.com Chen'ao Yu Boston Consulting Group Principal yu.chenao@bcg.com Jun Wang Boston Consulting Group Consultant Yi Zhu Boston Consulting Group Consultant Ping Xiao AliResearch Researcher xiaopeng.axp@alibaba-inc.com Xin Cheng AliResearch Senior Expert Linli Huang Baidu Development Research Center Director huanglinli@baidu.com Qiang Wang Baidu Development Research Center Deputy Director Experts Xinmin Gao Internet Society of China Vice Chairman, member of Advisory Committee for State Informatization Benfu Lv University of China Academy of Science, School of Economics and Management Professor, Director of Research Center for Cyber- Economy and Knowledge Management Steering Committee Derek Kennedy Boston Consulting Group Senior Partner and Managing Director Jean Francois Van Kerckhove Boston Consulting Group Partner and Managing Director Hongbing Gao Alibaba Group Vice President, Director of AliResearch Cheng Zhao Baidu Vice President, Chief Editor Authors and Steering Committee
  • 52. 51 Copyright©2019byBostonConsultingGroup,Inc.Allrightsreserved. Acknowledgments Liqi Peng Alibaba Group Vice President Tianqi Song Alibaba Group User Research Expert of Tmall Innovation Center Li Guo Alibaba Group Senior Expert of New Retail Engineering Department Wei Pang Alibaba Group Senior Expert of Foreign and Domestic Trade Experience- driven Center Shuquan Liu Alibaba Cloud General Manager of Computing Technology Zhao Liu Alibaba Cloud Technology Director of Data Intelligence Chen Su Alibaba Cloud Senior Strategy Expert Feng Tian Alibaba Cloud Director of Research Center Jiaqi Feng Ant Financial Senior Expert of Research Institute Jiali Pan Cainiao Network Head of Corporate Social Responsibility Xianchun Xu Tsinghua University Director of China Data Center Lianfeng Wu IDC China Vice President Jianfei Han CCID Institute of Industrial Economics Deputy Director Yifei Zhang Baidu Technical Expert at AI Planning Management Department Gaosi Chu Baidu Senior Business Analyst of Group Strategy BU Fei Xie Baidu Development Research Center Deputy Director Xinyu Wen Baidu Development Research Center Senior Researcher Wenyi Cui Baidu Development Research Center Senior Researcher Chengli Lou Baidu Development Research Center Researcher Shengcheng Zhao Boston Consulting Group Consultant