the author: Fu Cheng
silicon valley is beginning to talk about China.
on September 22, a line of us from downtown, driving along the highway no. 280, San Francisco came to Facebook headquarters. Here, I like Facebook, vice President of enterprise development Vaughan Smith and Misfit CEO Sonny Vu, for cross-border innovation of China and the United States had a brief conversation. The conversation of the host is a famous American magazine Jessica, founder of the “information”, by digital privacy series won the highest honor in the us press “Pulitzer prize”, a very keen questioner.
the topic of our discussion is larger, we had also a bit generic. Let me take the impressive several points out to share with you:
1, why alibaba can kill eBay in China
in 2002, Mr Vaughan Smith also work on eBay. At that time, they bought a 33% stake in ebay. After 2003, they bought the company, all accounted for nearly eighty percent of market share, the entire Chinese electricity and this year was the year the birth of taobao.
jack ma, the English teacher appeared.
Vaughan Smith reminded many americans at the time, attention should be paid to the people and the company. But eBayCEO think this is not a good business model free of charge. He sighs at the scene, 12 years later, alibaba’s market value is higher than eBay and amazon both combined.
as Mr Vaughan Smith, as Mr Ma is our English teacher, but he didn’t charge any fees to the businessman platform, no e-commerce transaction fee, the free business model makes the eBay eBay rapid decline in the presence of taobao’s attack.
2, the market really so important?
when the host asked Jessica: cheetah move such a Chinese company, why now more emphasis on the American market, also set up office in San Francisco?
I know, she wanted me to tell your own story.
I told them that although cheetah mobile is a Chinese company, but from a year ago have opened up the road of internationalization. After, we take full force of the company, go all out to Google Play as the core of the move tool market. We move around the world from more than 4000 active users of the month is up to more than 300 million, the United States also became our first big user countries overseas.
so, why should the cheetah as its core business in the United States?
I have to mention that my first visit to the United States three years ago observed three phenomena:
the first phenomenon, American consumers are willing to choose foreign brands. Such as samsung mobile phones, Japanese cars are very popular in the United States, especially the TV basic occupied by foreign brands.
the second phenomenon, the most excellent development engineer recruitment directly from China. Two weeks to recruit people in China, the United States takes six months.
the third phenomenon, in this big move tool category, the Google Play list on the product quality is much worse than China’s, are far less competitive level, and even some poor tool software is still in charge.
of course, the people of the United States is very rich. But I believe, is one of the world people’s common demand for free.
this, Chinese companies become adept.
in China, because the competition is intense, early software have never received. Such living environment, making the Chinese companies know how to through free software to establish the effective commercial mode.
at the same time, along with the development of mobile communications, China’s competitive advantage is more obvious:
the first, a rich user experience, make product quality better.
second, natural talent advantage, make the r&d investment of abundant resources.
third, mobile Internet make the world more, China’s model of free to replicate around the world.
so, no matter from the external environment and their own advantages, the market is very important for the cheetah.
3, the Chinese people not only like to buy cheap smart phones
Vaughan Smith, says Mr Total number of China’s smartphone is already three times the total number of U.S. smartphone. “Each and every one of Shanghai or Beijing subway, almost all looking at their smart phones, this trend is terrible”, he said, “although China’s technology innovation and a lot of room to improve, but the Chinese market scale is huge, the workers work efficiency is higher than anywhere else.”
yes, these are the advantages of Chinese enterprises.
in Sonny Vu view, while Chinese people like cheap things, but in fact, they don’t just because of this goods cheaper to buy it, such as millet and red rice. Because they are not only cheap, itself quality is very good also.
4, we do not goods produced in China, but we invented a lot of things in China
although China has many advantages, but Sonny Vu tells us that his company only sell goods in China, not in China’s production of these goods.
more interestingly, they put out the r&d center is located in shenzhen, China. , he said, a certain extent, indeed because of lower operating costs in China, but the main reason is that there are many great software talents, more efficient, process faster, shorter product development cycle.
China in silicon valley is very hot. Most americans are like free product, it is also very eager to know China, but unfortunately, their cognition of China also far as Chinese companies understanding of the United States.
however, this is me to rediscover the United States, discovers the silicon valley a new space.