Image Source @视觉中国
Wen: Chi like nets, author: Hu Jianlong
“One of the reasons for your success is to be good at adapting to the external environment. How do you do it? “
In the late 1980s, reporters from India Today threw this issue to Old Ambani & mdash; — India's oil giant, the leader of the Reliance Group.
“The most important external factor is the Indian government. You have to put your own ideas into the government’s head. This is the most important. ”
The successful fission of the Reliance Group confirms the old-fashioned old Ambani. After his two sons succeeded in robbing, the faithful kingdom expanded all the way, and now it has spanned many unrelated industries such as oil and gas, media, entertainment, telecommunications, and banking.
For the two young people who lead the global social media, Facebook's Zuckerberg and the beating Zhang Yiming may need to revisit the teachings of Old Ambani and learn how to deal with the Indian government.
On a conference call on April 24, Zuckerberg and the Indian government were on the verge. He reiterated that Facebook opposes data localization, especially where the rule of law is not sound. & ldquo; In some countries, user data may not be protected, so we will not store data in these countries. The rule of law in these countries is weak and the government may forcibly access data. ”
Although there is no name, it is not difficult to judge that Zuckerberg is talking about the constant Indian government with Facebook. The latter threatened to close Facebook's Whatsapp.
On the same day, Chennai, a city in southern India outside Wanli, was conducting a hearing to decide on the prospect of the music short video software TikTok. In mid-April, at the request of a local court in India, Google and Apple's app store removed TikTok in the area. This has put pressure on TikTok, which has made great strides in foreign countries.
The hearing ended in the evening, TikTok breathed a sigh of relief, and the court decided to cancel the download ban. On May 6, TikTok resumed downloads in India.
Since the outbreak of the Cambridge incident, the European and American governments have begun to tighten their regulation of social media. The experience of Facebook and TikTok in India is indicative of policy risks in emerging markets, especially in Asia.
Southeast Asia and South Asia are popular destinations for live broadcasts and short videos in China. In India, for example, among the top 100 applications in the region in 2018, 44 are from China, and quite a few are live and short video products exported from China. The TikTok case also gives sea companies the opportunity to review their internationalization plans.
Going out to sea
Compared to BAT, only 7-year-old byte jumps to choose a more persistent and more difficult way to go to sea. The achievements and troubles of TikTok come here.
At the Wuzhen Internet Conference in 2015, Zhang Yiming published his own “International Declaration”. He said, “China’s Internet population accounts for only one-fifth of the global Internet population. If you do not allocate resources globally, one-fifth of the products that pursue the scale effect cannot compete with four-fifths. certain. ”
India entered Zhang Yiming's sight very early. At the end of 2016, the byte jump was injected with US$25 million. Dailyhunt, which is called the Indian version, “Today's headline” is actually awkward. It is just an aggregation of mainstream newspapers in India, and it does not form the ecology of today's headlines.
Dailyhunt is located in the Koramangala district of Bangalore, India, where the author also resides, less than one kilometer from the Dailyhunt office. After half a year, the byte-beating team kept visiting here.
However, Zhang Yiming bet on India and can be said to have won half of the game. Since 2016, China's social products, especially short videos, have begun to rise rapidly overseas, and India is the core battlefield.
At the end of 2018, the author visited the gathering age of Panyu in Guangzhou, which was founded by a former media person. In recent years, the expansion in Southeast Asia and India has been a storm.
At the beginning of the year, Bigo, an overseas live product of the gathering era, announced that the cumulative download volume of APP has exceeded 100 million, and it has been downloaded 25 million times in 2018. Indian users account for 64% of their total user base.
On the eve of my visit, a person in charge of the overseas market just visited Bangalore, India, where to search for suitable office locations. They found it a little hard, and it was not easy to find an office space that could accommodate 400 people in the crowded downtown area.
Another live broadcaster, Viva Video from Hangzhou, has been rooted in Bangalore for many years. They have placed their Indian office in Koramangala, India's well-known entrepreneurial heart. At the end of 2018, Bai Peng, his hometown Shandong, moved his short video startup project Injoy from Gurgaon around Delhi to Koramangala.
Indians are beginning to perceive the influence of Chinese social media. Bangalore's venture capital, Factory Daily, has published a long article. After comparing the data for 2017 and 2018, it is surprising to find that China has 18 seats in the top 100 applications of the Google Play store. By the end of 2018, this number has reached 44.
This seems to confirm the judgment of Li Kaifu, chairman and CEO of Innovation Works. At the beginning of last year, in an interview with the media, Li believes that the model developed by China's technological innovation will not only be limited to blocking overseas giants in the Chinese market, but will also compete with other multinational companies on a global scale. Recent trends indicate that the applicable business model in the United States is easier to promote to countries such as Europe and Australia. And China's business model and entrepreneurs are more inclined to go to Southeast Asia or Africa.
After testing the Dailyhunt, from the second half of 2017, the byte jump began to set up its own team in India. The volcano video and the acquired Musical.ly have begun to expand into the Indian market.
In the same period, Ali and Tencent are buying and buying in India. According to public data, from 2016 to June 2017, Chinese companies have invested 2.37 billion US dollars in Indian venture capital companies, and Alibaba and Tencent are the main contributors.
Earlier, Tencent also had high hopes for India. In 2012, WeChat entered India. At the peak, WeChat India's team reached several hundred people. However, after a serious lack of acclimatization, Tencent changed its strategy in India and turned to investment.
In November 2017, after the acquisition of Musical.ly, byte hopping has not seen a large acquisition of overseas business so far, and the funds are invested in product operation. In India, in June 2018, the byte jumped on the online social media platform Helo, against the local Sharechat. The app is available in 14 local languages, including Hindi, Telugu, Tamil, Malayalam, and is one of the top free apps in the Google Play store.
According to public reports, in 2018, bytebeat was one of the largest advertisers in the world, Google and Facebook. This is enough to prove the speed and determination of its overseas layout. However, the lack of rapid expansion and international experience has led to its rapid overseas challenges.
TikTok was banned overseas, not the first time.
On July 3 last year, the Indonesian Ministry of Communications announced a temporary ban on TikTok because the agency believes that there is something on TikTok that is not conducive to the growth of young children. The ban was implemented after consultations with the Ministry of Women and Children's Rights (PPA) and the Indonesian Child Protection Committee (KPAI).
However, after one day, the matter turned around. The TikTok management and the Indonesian Ministry of Communications and Information Technology held a press conference. The Minister of Communications and Information Technology of Indonesia told the media that TikTok is actually a platform that is very suitable for expressing ideas and is also a loyal user of TikTok. A week later, TikTok resumed service in Indonesia.
Compared to Indonesia, TikTok has more room for imagination in India. Zhang Yiming mentioned the company's achievements in India more than once in the company's internal meeting.
In mid-April, after TikTok was removed, its competitors in India —— especially the app from China, did not gloat, but felt another anxiety: the distrust of the Indian business environment seems to be changing Become a reality. Many entrepreneurs and investors are worried. The fragile diplomatic relations between the two countries, is the Indian government selective law enforcement, and taking Chinese companies to crack down? India’s election is coming soon. China’s issues can often easily incite public opinion. Are Chinese companies kidnapped into party competition?
However, the reasons for supporting these anxiety are very thin.
Tencent & ldquo; eat chicken & rdquo; launched in India in March 2018, in the recent March 2019, eat chicken & rdquo; India also held an anniversary celebration. According to the data of Tencent Games, “Eating Chicken” has become the most downloaded game as of December 2018, with more than 200 million downloads. On March 14 this year, the PUBG ban in Gujarat began to be implemented.
This serious news was sent back to China and was simply interpreted as “Eating Chicken”. In fact, the implementation period of the ban is only one month. A month later, the police did not renew the notice. According to the police, the ban was implemented to prevent children from distracting during the test.
On April 24, at the TikTok hearing, the case petitioner suggested that TikTok was a Chinese company's application, and China threatened India, and the court should rule on the ban. India’s judicial system and political elite are not influenced by nationalist sentiments. On April 24th, the court made it clear that it only cares about protecting Internet users, especially children, from cybercrime. After listening to the opinions of the three parties, the court decided to revoke TikTok's download ban.
In the election season, because TikTok is very popular among young Indians, Amit, the chief information technology officer of the ruling party BJP, has said that BJP has been paying attention to TikTok, “very clever platform, and the expression of young people is also very creative. ”
Compared with the mistrust caused by China's identity, in India, Chinese companies have the most headaches, in addition to the inefficient bureaucracy, and the unruly judicial system. There is no difference in this challenge. If a company has not faced litigation in India, it can only show that either you are lucky or you are too small to be worthy of attention by prosecutors and tax officials.
At the end of March, Ola, India's largest taxi platform, received a ban, issued by the Ministry of Transport of Karnataka, which requested that Ola's operating contract expired and would be stopped in Bangalore. Ola's headquarters is located in Bangalore, with a valuation of $6 billion, and the regulatory authorities ignored it.
In 2018, Wal-Mart acquired Flipkart, India's largest local e-commerce company, for $16 billion, which was immediately investigated by the Indian tax authorities. The Indian judiciary does not guard against the native unicorns. Of course, it is even more unscathed for foreign companies.
Last month, Li Ka-shing's Hutchison Whampoa received a notice from the Indian Taxation Bureau requesting Hutchison Whampoa to pay an income tax and a fine of up to HK$39.2 billion. This old account originated 12 years ago. In 2007, Vodafone International acquired a stake in Hutchison Whampoa (now Changhe)'s Indian mobile communications business.
Xiaomi’s first patent lawsuit was in India, and the opponent was Ericsson. On December 11, 014, Xiaomi was sued by Ericsson in India to the High Court of Delhi, India for allegedly infringing eight patents such as ARM, EDGE, 3G and other related technologies owned by Ericsson. This has caused Xiaomi to enter India for more than a year.
The experience of TikTok and Xiaomi in India has exposed a double problem for Chinese companies to go to sea. First, compared with European and American companies, Chinese companies have weaker internationalization capabilities. Second, because the development stage is closer to Asian countries, China's business model is more effective in these areas, but their business environment is obviously more complicated.
When China and the United States began strategic competition, Chinese companies and capital were forced to push into emerging markets.
After bumping into the sea, Chinese companies are also pulling out their own globalization. Mingchuang is an example. In India's first- and second-tier cities, it is almost everywhere. In Delhi alone, there are more than 20 stores, and more than 150 stores across India.
The experience of Xiaomi is also worth learning from Chinese companies. Although it was once banned in India, after five years, Xiaomi India has achieved remarkable results with a market share of 30%. This is attributed to Lei Jun's “smart” strategy and localization strategy.
At the end of 2017, when the author visited Xiaomi's Indian headquarters in Bangalore, he was attracted by a photo hanging on the office wall. He was the successor of the Indian national enterprise Tata Group, Ratan Tata. At that time, he was already a shareholder of Xiaomi.
The person who knows this inside story told the author, "Rantan Tata is a share of Xiaomi, and Lei Jun is almost equivalent to the price of the B round when it is C. Moreover, the amount is only a few hundred thousand dollars. ”
Obviously, Xiaomi, who obtained Tata’s blessing, can explain it to the outside world. Xiaomi is not only a Chinese company but also an Indian company.
In terms of localization, Xiaomi also trusts the local Indian team. This model was later adopted by many Chinese brands in India, using the Indian general manager as a standard.
Since 2017, TikTok has gradually become localized. It formed a team of more than 200 people in Mumbai, mostly young people in India.
In China, Bollywood movies have been accepted by the public. However, the influence of the Indian people on Chinese culture is still the same martial arts film.
The byte jump has changed the stereotype of Indians to China to some extent. At the end of 2017, the author worked in a coffee shop in Bangalore until late at night, and the neighboring table continued to send laughter. In the past, I found that the two young people were watching a small video of the volcano.
In addition, TikTok is also quite creative in its local operations in India. During the Holi Festival this year, TikTok launched the #happyholi2019 online challenge, creating a variety of interesting videos under four different stickers, and the colorful images attracted the participation of Bollywood star Neha Kakar and others. Breaking through 1.5 billion.
After TikTok was temporarily removed, the byte jump also indicated that it plans to invest $1 billion in India in the next three years to strengthen content review. Despite repeated hits, bytebeat did not give up the insistence on internationalization strategy.
Whether it is a famous product, Xiaomi is still a beating byte, and now it is only the initial stage of the internationalization of Chinese enterprises.
In mid-2017, when talking to an executive from a financial company in the sea, he used the talent to judge the stage of China's going to sea. He said, "The first stage of talent is to use its own internal promotion cadres to complete the internationalization. This stage is suitable for the start-up phase of the enterprise. The completion of this phase is mainly the issue of trust. Only my own people are sent overseas. I am relieved. ”
“The second stage is to start applying Chinese with overseas experience. The ideal is that the Chinese have worked at the headquarters, have worked overseas, or basically work overseas because of his language and culture. Inheritance, he can better connect with the Chinese headquarters”
“The third stage is the stage of using foreigners, but the premise of using foreigners is that your headquarters has been internationalized. For example, if your working language is already English, you can use foreigners, otherwise you will count on it. It is not feasible for these foreigners to learn Chinese. ”