Asia‘sInternet:Innova/on,Imita/on&Hyper‐Localiza/on

BySerkanToto,PhDTwiCer:@serkantotoImagesource:PennOlson

Aboutme

• Tokyo‐basedweb,mobileandgaming industryconsultant

• AdvisorforstartupsinJapanandtheUS• JapancorrespondentforTechCrunch.com

• Personalwebsite:www.serkantoto.com

Agenda

I:Asia’sInternet!

II:Imita/on&Hyper‐Localiza/on!

III:Innova/on?

I:Asia‘sInternet

Stats,Stats,Stats

Asia:No.1WebPopula/on‐>MorethanAmericaandEuropecombined.

Asia:WeakInInternetPenetra/on‐>Worldwide,justAfricaisbehindAsia.

Source:ITU(Interna6onalTelecommunica6onUnion)

Asia:InternetTrafficToExplodeBy2015‐>APACtoovertakeNorthAmericainmonthlywebtrafficin2015.

Source:Cisco,PennOlson

Asia:MobileIsBig‐>10ofthetop20mobilena/onsareinAsia.

Source:Wikipedia

II:Imita/on

AsianCloneWars

Yes,WeLoveImita/ngStuff.‐>MostlyideasfromtheUS.

Imagesource:PennOlson

TooManyImita/onsAreBad,But...‐>Noques/on,crudeclonesdosuck.

Imagesource:hCp://www.flickr.com/photos/yamagatacamille/4267887034/

„Cloning“Isn‘tJustPopularInAsia.‐>It‘saworldwide,verycommonphenomenon.

Innova/onisthecrea/onoftheneworthere‐arrangingoftheoldinanewway.–MichaelVance

Theinnova/onpointisthepivotalmomentwhentalentedandmo/vatedpeopleseektheopportunitytoactontheirideasanddreams.‐W.ArthurPorter

Innova/onistheprocessofturningideasintomanufacturableandmarketableform.–WaCsHumphrey

Toinnovateisnottoreform.–EdmundBurke

Innova/ondis/nguishesbetweenaleaderandafollower.–SteveJobs

WhatIsInnova/onAnyway?‐>“Innovare“meanstorenew,tochangeinLa/n.

Idon’tf***ingwantinnova/on.‐MarcPincus

Whocanasknorma/veques/ons?‐>ThereisabiggreyareaWRTinnova/onvs.Imita/on.

• Whodecidesifimita/ngisgoodorbad?

• Isn’thyper‐localiza/onasubformofinnova/on?• ShouldAsianentrepreneurswaitforUSandotherstartupstoenterthemarket?Why?

• Aren’talmostallbigwebplayers“clones”ofothers?• Myopinion:itdependsonthequalityoftheservice.Most“clones”arebad,butnotbecausetheyareclonesbutbecausetheyarebad.Ifyouexecute,solveaproblem,haveusersandmakemoney,awesome.

SomeAsianClonesMakeBigBucks.

III:Innova/on

7AreasAsiaPioneered

Insead‘sGlobalInnova/onIndex2011‐>AsiaisdoingOK.

Example1:MobileWeb(Japan/1999)‐>NTTDocomokickstartedthemobilewebwithi‐mode.

Example2:OnlineGaming(Korea/1996)‐>Nexon‘sTheKingdomoftheWindsisthefirstMMORPG.

Imagesource:Gamespot

Example3:VirtualGoods(Korea/1999)‐>Cyworldpopularizedvirtualitemsinsocialnetworks.

Example4:E‐Publishing(Japan/2006)‐>SonywasfirsttomarketwiththePRS500e‐reader.

Example5:Broadband(SK,HK,JP/1998)‐>94%broadbandpenetra/oninKoreain2000.

Imagesource:PennOlson

Example6:InternetOfThings(Japan/1994)‐>ToyotasubsidiaryDensoWaveinventedQRcodes.

Imagesource:Asiajin

Example7:MobileSocialGaming(Japan/2006)‐>Japan‘sDeNAgeneratesUS$1.3billionwithsocialgames.

WhatCanBeDoneInAsia‘sWebScene?‐>Biggestproblem:underdevelopedecosystemsinAsia.

• lownumberofQUALITYstartups

• fewcompetentVCsfirms/angelinvestors

• lowpropensityoftalentstoworkforstartups,• fewpeoplewithanentrepreneurialmindset

• historically,culturally,andeconomically

diversemarkets

• muchloweronlinespendthaninNorth

AmericaorEurope

• weakexitenvironment(IPOs,tradesales)

• poli/calandlegalproblemsinsomeSouth

EastAsiancountries(IPprotec/on,

bureaucracyforstartups,generalpoli/cal

instability)

• massive“braindrain”

• s/lllowInternetpenetra/on

• fragmentedmobilelandscape

• underdevelopedonlineandmobilepayment

infrastructure(ifany)

Selec/onOfInnova/veAsianStartups

Thankyouforlistening!

Contactme

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