China – The Next Billion Dollar Mobile Market

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I recently spoke at the Global Mobile Internet Conference (GMIC) and had a chance to learn a bit more about the Chinese mobile market from the CEOs of Xiaomi, an emerging low cost smart phone vendor and UCWeb, a mobile browser that has been downloaded over 1.5 billion times around the world.

There are over 500M mobile subscribers in China. That is 1.6  times the total US population!

 

 

 

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China’s app store market

While social networks is the 3rd most common activity of smart phone users in the US, web browsing is the 3rd most common activity of smart phone users in China, for two main reasons: most Chinese are commuting for hours using public transportation and spend a large portion of that commute on their mobile phones and the lower penetration of personal computing in China.

While the market offers great opportunity, three challenges make it challenging to tap into that opportunity:

  • Wide range of devices
  • Very fragmented app store market
  • Language and culture differences

 

 

 

 

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VC investments in China – 2011

The funding landscape in China is much more of a supply market. One the one hand, the surge of wealth has led to investors chasing deal-flow. On the other hand, high quality deal flow is still scarce. This has led to high valuations on recent deals (sounds familiar to some extent, doesn’t it?)

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About shanishoham

After 14 years of General Management and incubating/scaling new businesses & organizations for enterprises (established a $55M mobile business and a $100M/400 employees global division), I became an investor Today I’m a board member/mentor with 5 incubators & micro-VCs and involved with many other private & public incubators around the world. I also founded a VC firm named 2020 and I'm a member with a number of angel groups so i get to see & work with many startups, innovation centers and other parties across the ecosystem. I’m an alumnus of the Stanford Graduate School of business - Sloan Master in Management program, a 10 months intensive program for 57 carefully selected experienced Executives and leaders from all around the world.

One comment

  1. CBD

    I was reading you post about corporate innovation, and I could not leave My message. “Innovation is a big part for every business, and how you do it is also a key factor for your business future succeed. Your points are really clear and well organize. Thank for sharing your experience, this is priceless information”. Your blog has valuable information.

    best of luck
    God bless

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