State of the Industry: Mobile

@GGVCapital

The Rise of Mobile

More people on the planet use a

mobile phone than use a toothbrush.

Source: 60SecondMarketer.com

NEXT ?!

2 0 0 5 2 0 1 4

W O R L D W I D E

1B Internet UsersW O R L D W I D E

3B Internet Users

# 1 I N T E R N E T C O M P A N Y

Google: $100B

market cap

# 1 I N T E R N E T C O M P A N Y

Google: $400B

market cap

Alibaba: $5B

market cap

Alibaba: $300B

market cap

THE R ISE OF MOBILE

2007

Apple

announces

iPhone

2008

iTunes

App Store

launches

2011

Smartphone

shipments

surpass PCs

worldwide

2013

100B app

downloads

globally

2014

1.76B

smartphone

users

worldwide

2017

Tablet market

share to

surpass PCs

2018

2.73B

smartphone

users, with

50%

penetration

Sources: Gartner, IDC, eMarketer, Canalys

CHINA + US =

Top 2 Tech Markets

The Changing Mobile Landscape

Mobile

Everything

Mobile is disrupting traditional verticals

M-Commerce Travel Music Transport Local DeliveryEvents &

TicketingPayments

$70B+ market

in US and

China and

growing

Mobile

bookings in

2015 will reach

$40B in US,

$6.4B in CN

$1.7B global

revenues from

mobile

streamed

music in 2013

Over $1T

market

worldwide for

local transport

$86B US

market in

2013,

continually

shifting to

mobile

$1.5B in

mobile

ticketing

payments in

2013

$235B in m-

payments

globally in

2013

Sources: iResearch, eMarketer, Phocuswright, Juniper Research, IBIS, Gartner

China is leading the US in m-commerce adoption

U S C H I N A

46% of mobile users have

ever purchased

something on their

device

59% of mobile users have

purchased something

on their device in the

last three months

Sources: Nielsen, “The Asia Mobile Consumer Decoded,” September 2013 and Business

Intelligence by Business Insider, 2013.

Share

Everything

Mobile and social go hand-in-hand

Source: The Wall Street Journal and Statista

Sharing based communities and services develop alongside mobile

Shared resources Shared interests Shared knowledge

Connected

Everything

Mobile makes it possible to connect everything

connected devices

expected by 20189BSmart

watches

Fitness mHealth Home Pets Toys/Games Auto

Source: Business Insider

Cloud Everything

Cloud

Everything

Cloud and mobile are leading to an evolution of IT

Consumerization

of IT

Mobile-first

enterprise apps

Big data and

analytics

Cloud storage and

computing tech

Security

80% of full-time U.S. workers

have a smart-phone and 49%

have a tablet.

72% of enterprise IT plans

to put the majority their

work in the cloud by 2017

Sources: Verizon, Gallup

Hardware Case Study

Xiaomi saw unique opportunity in 2010

Internet companies

don’t know how to

make phones

Mobile OEMs don’t

know the internet

MNC don’t know

Chinese users or want

local team to innovate

Xiaomi’s Way

Few Hot-Selling

Products

Focus

Excellence

Speed

Manage Platform

and Community

Word of Mouth

PGC > UGC

Users = Friends

App Case Study

Launched March 2013, now a top shopping app

Made for mobile shopping experience:

• Shoppers want to browse, not search

• “Buy” button is omnipresent

Mass-market model

• Mass market = a $500B+ category

• Taobao (Alibaba) merchants

• Aspirational, fun products, low prices

• Global users

Wish: global supply chain, global audience

Thank you