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“Internet +”: Just the Beginning
ladies and gentlemen, it is my great honor, to be invited here to deliver a speech about Internet+.
The growth story of china is too good of a story: In the past three decades, China was the world's fastest-growing major economy, with growth rates averaging 10%. During the same time, close to 700 mil. Chinese were lifted from extreme poverty.
The growth story of China is twofold. The first is easy to observe, the dizzying growth of real GDP. The second, the growth of digital China, has also drew some attention, but far from the fair share it deserves.
Moreover, there is an untold story. As more and more Chinese people are involved into the digital world, the impact of digital China on the real one increases rapidly.
This is particularly true in the mobile internet era.
Thanks for the Chinese IT firms such as Huawei, ZTE, and Xiaomi, the price of mobile devices dropped over 90% in the last twenty years. A nicely made in China smartphone could be as cheap as $100.
As a result, the population of mobile internet subscribers explored in China. By the end of 2014, there were 600mil. mobile netizens in China. This is the third largest population around the globe.
Now, the Chinese netizens’ daily routine is to shop, book hotel, grab taxi, pay all kinds of bills through their mobile phones.
Guess what. Chinese internet companies produce more than just some simple apps. We produce a hub of Chinese smart life.
Take Wechat as an example . Tencent launched Wechat as a social network app in 2011. In 433 days, its registered user reached 100 mil. A world record at that time. Guess what, it only took 2 month to reach it’s second 100mil.. By now, Wechat enjoyed a monthly active user base of 650 mil. More than 200 mil. bank cards were bound with Wechat-pay.
And wechat-pay started to penetrate into Chinese traditions. For example, people start to send hongbao through wechat-pay. In Chinese, Hong means red and bao means envelop. On special celebrative days, Chinese people would wrap up some small amount of cash into a red envelop. And then hand those envelops to intimate ones to share the happiness. Generally, the old generation should give the young ones, In south party of China, like guangodng, those who married should give hongbao to those who not, boss should give employees. During the past Chinese Spring Festive, just that single day, over one billion hongbao were sent through wechat-pay. At first, everyone thought this record would last at least a year till the next Chinese New Year. But it turn out that the record lasted only six months, that latest one is 2.2 billion hongbao at Mid-Autumn day. Nowdays hongbao has become sort of stickers at wechat. It is a wonderful example to show how popular mobile payment is in China, and also a good example of Internet + culture.
One the one hand, consumers tend to use Wechat to pay their bills and buy stuffs. On the other hand, shopping malls use Wechat as a social platform to get their customers and promote sales.
If you are an offline retailer, with a single little device Ibecone, it’ only around 10 pounds, with the battery capacity as long as a whole year, customs nearby will find you easily just through shaking their phone on wechat, the information like what’s on sale or anything you push is easy to disseminate. then they can follow you wechat account if you are attractive enough. In this way, it’s not just a single purchase as it used to be, the offline retailer get online customers, and become a e-commerce one. This is what’s happing every day in China, offline to online , what we called O2O. If I have Ibecone with me today, you can shaking your phone to get the slide I’m using now, interesting, right?
Some government agencies, like the police stations; public service providers, like hospitals, they all use Wechat to serve their customers. Even Charity foundations raise money through our platform. It is not just donating money, wechat users can even donate their steps to a charity. The mechanism is like this: a sponsor will donate a small amount of money if you walk over 10 thousand steps in a day. The more you walk the more they donate. This is also an innovative way of encouraging people to do more exercises.
Let me give you some direct notions of the growing digital China.
The digital China, serves as the foundation of “Internet +”
“Internet +” was firstly raised by our CEO Pony, he use this word to describe the relationship between internet and traditional industry, and encourage them to use mobile internet to upgrade their business. Fortunately, the government took this word as a national strategy, according to our Prime Minister Li, “Internet +” is an action plan that encourage the converge of mobile internet, cloud computing, big data, IOT with the modern manufacturing industries.”
The message is clear. Mobile internet should be served as the engine and the infrastructure of future economic growth. Internet companies should help brick and mortar companies to upgrade their business models.
A high hope for the Chinese internet companies, isn’t it?
But we actually think that, We are more than just about economies, like commerce and banking. With the help of mobile internet, we can turn around the often inefficient public services in China.
We also believe that mobile internet could be a powerful weapon to combat inequality and poverty, which is much better now but still pervasive in China.
These are the two true missions behind the action plan of “internet +”, we believe.
Internet + has changed the landscape of public services in China. With a huge population, and the relatively limited public service resources we have, the only way to fulfill the demands is making the public service system runs at its full potential.
Let me give you an example. You can easily get what I mean, Wuhan traffic police has opened an account on our social platform. Residents of Wuhan can pay their fines as fast as only 60 seconds now. But back in the old days, however, such a fine payment may take hours or even days, because you should go back and forth to the traffic police station and bank. This simple improvement could save as many as 1.4 mil. hours a year. Three hundred policemen are freed from their tedious daily routine.
I've enjoyed a tour of Oxford campus yesterday. Our guide is an Oxford student majored in history, he did really a good job. It seems he knows this place inside out very well and we all learned a lot.
My fantastic experience reminds me how we do these tourism last week in my hometown with the help of mobile internet. Kaifeng, you may head it before if you are interested in China history, It was the capital city of 8 Dynasties including the famous Song dynasty, the local government opened a voice column on their Wechat public account for the local citizen to tell Kaifeng tale. Any visitors can open this voice column by scanning a QR code attached to a building, street or any place of interest. Then anyone who lived there can tell his or her stories with the building. These are all true stories, we are happy to find that students who study in other cities or even migration overseas all participate with great enthusiasm. That's what we called Internet + tourism or Internet + culture. I think it would be great that Oxford will have this public service in the near future so that all the visitors here may enjoy the stories shared by the Oxford graduates all around the world.
According to a research conducted by us, Tencent Research Institute earlier this year, there were over 40 thousand public services accounts on WeChat in 2014. By the end of this September, this number had been doubled to 80 thousand, within only nine months. Around 800 public services are available in 68 cities, covered 200 million population.
Each account enjoys an average of 36 thousand active followers. We define “active” as the follower interacted with the account manager at least once every three months. So, you could do a simple math. That there were at least 3 billion interaction went every quarter.
Internet + public services is on its fast track of development.
About the second mission. What we could do are subtle but fundamental. Let’s watch a short video.
I’ve been to Tong Guan many times. Their singing is amazing. And they have been singing like this for hundreds of years, for fun, and fun only. But first time by these hundreds of years, they could make something out of it, to make singing more than just fun.
Its just the beginning of internet + villages,Actually, it is just the beginning of internet +
This is a roadmap we made of internet+ action plan.
Just some stylized facts.
Online payments are expected to hit 11.8 trillion Yuan this year, up from 8.1 trillon in 2014. Mobile payments account for about 60 % of this total.
Tencent open platform has attracted over 5 mil. developers, nearly 70% of them are young individuals with a dream to grow into big internet companies like Alibaba Baidu or Tencent.
Internet companies now are the main source of incomes for Chinese song writers, authors, and self-medias.
We are building up a healthy and sustainable ecosystem. With all partners, big or small, we could help china to migrate into a better place to live in.
And the key, could be what we called “internet +”
That’ all, Thank you!
11月23日-24日，“2015北大-牛津-斯坦福互联网法律与政策研讨会”在牛津大学召开，腾讯公司副总裁、总法律顾问Brent Irvin （艾文博）致辞并...
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