We all know how easy it is today to get access to the internet, just take your phone out of your pocket and there you go – almost too easy. But how does a countries market transform when there are over 751 million internet users on the internet every single day?
Did you know that the Chinese Government is the biggest VC firm in the world with over $231 billion USD of government-backed venture funds raised in total? That Tencent is the #1 venture investor in China with over 10 portfolio companies valued at $1 billion USD? That China has the highest number of unicorns outside the US? These are not only facts, but they are shaping the entire Chinese Internet market – owned by the three big companies: Baidu, Alibaba, and Tencent. Not only is the Chinese internet market big and exciting, China is the world’s largest internet market with 751 million internet users.
This morning, the Head of 500 Startups in Greater China, Edith Yeung shared her insights of the 2017 China Internet Report on the Main Stage of Slush Shanghai.
Edith Yeung’s ten favorite Chinese internet trends are:
- Messaging in China: 900 million users in China uses WeChat. WeChat is the app that combines Facebook, Tinder, Paypal, Slack and WhatsApp. Forget your business cards, WeChat is the app to use when connecting with people from China.
- Mobile payment in China: China is the #1 mobile payment market in the world. Alipay is the #1 third-party online payment market with a 54,1 percent market share. Alipay was started in 2004. It was built by Alibaba to support Taobao, the eBay of China. WeChat Pay is the biggest threat to Alibaba, Ants Financials and Alipay. WeChat Pay had a 37 percent market share in Q4 of 2016 compared to 16 percent in Q3 (2016). The mobile payment users expect to reach 630 million by 2020.
- Cryptocurrency in China: The Chinese people are crazy about cryptocurrency. NEO, China’s first public blockchain, reached a $1,4 billion USD market cap in August 2017.
- Shopping in China: The Chinese people love shopping – a LOT. 75 percent of 467 million online shoppers are millennials. The average spending is 12,198 RMD ($1,836 USD) in 2017. Over 200 cities in China have same-day or next-day delivery coverage by Cainiao and JD. Also, internet influencer marketing is increasing in China. The internet celebrity Rise Cake Mama’s monthly GMV is $1,2M USD and has over 7 million WeChat followers.
- Bike sharing in China: Again, China is the #1 bike-sharing country in the world with over 106 million bike-sharing apps users in 2017. The number is expected to increase to 198 million users by 2021. The top five bike-sharing mobile apps are Ofo, Mobike, Bluegogo, Coolqil and Youon. In 1980, 63 percent of the Chinese commuters cycled to work. In 2014 the number was 11,9 percent. The Chinese Traffic Authority wants to increase the ratio to 18 percent by 2020.
- Live streaming in China: The live streaming market in China is worth minimum at $5 billion USD in 2017. YY, 6cn, Momo and Huaishou recorded in excess of a combined 11 billion RMD in live video streaming revenue. The top revenue streams are sales of virtual items, premium features, online gamers and advertising. The industry is empowered by Zhai Nan with over 235 million users on live streaming. China’s craze for live-streaming runs far deeper into third cities and remote rural areas where the internet is the one and only fun and cheap place to hang out.
- Gaming in China: What do the Chinese people do when they are taking the public transport? They play games on their smartphones. China is the game capital of the world. 600 million gamers generated $24,6 billion USD in 2016. One of the most poular game is Tencent’s Honour of Kings with 200 million players. The game generated $1 billion USD in 2016.
- eSports in China: There will be over 220 million eSports players in China by the end of 2017. In 2016 the total revenue surged 52 percent year-on-year to $50 billion RMD.
- Artifical intelligence in China: China wants to be the World Leader in Artificial Intelligence by 2030. From AlphaGo to robots for kids, restaurants, and sports. In 2016, China Invested $2.6 Billion in AI startups. The AI Market will reach $9.1 billion USD by 2020
- Education in China: Most of the Chinese parents would rather not eat, but spend 40-50 percent of their income on education for their kids. China is the world’s largest education market. Online education users reach 144 Million. China also has more university students than Europe and the US combined.
Day 2 of Slush Shanghai is on in full swing. Didn’t make it to Shanghai today? Pop your popcorns and watch the Slush Shanghai Live Stream here.