How many steps does it take to become a global company?
In November, a series of salons FOUNDERS + LEADERS hosted by GGV Jiyuan Capital (hereinafter referred to as GGV) was held in Beijing. The purpose of the event is to point out the direction for overseas teams and overseas teams to learn from China by sharing the growth experience and overseas experience of head companies and seniors.
As the only cooperative media of GGV, we launched a series of articles to sort out the dry goods we have absorbed. In the first part of this series, Hans Tung, GGV Jiyuan Capital Management Partner ) With the theme of “the next billion user market” , sharing with emerging guests the market situation, development and future opportunities of emerging markets; and representative head companies and founders in emerging markets.
This article is the second in the series. Annabel Lin (Annabel Lin), Vice President of Google China, takes globalization as the theme, and explains the growth and globalization of Google and how to help the guests. Chinese companies “go global”.
Image source: courtesy of GGV
The following is the content of Annabel ’s speech, organized by sea:
What are the keywords to remember this year? It is “globalization.” My sharing today is divided into two parts. First of all, I will tell you how Google has grown from a startup to a global company in these 21 years. Next, I will share with you our experience in China over the past ten years-how we helped Chinese companies go abroad.
Google’s path to growth, from Susan Worswick’s garage to going global
In 1998, Google founders Larry Page and Sergey Brin leased the garage of Susan Wojcicki (CEO of YouTube). This is located in Menl Park, California.o Park) ‘s garage became Google’s “birthplace.” Twenty years later, Google’s business covers 160 countries and has more than 100,000 employees. The number of users of its products exceeds 1 billion.
How did Google grow into a global company in 20 years? There are a few points to sum up. First, a company must have a “global vision” at the beginning. Only by looking at the world from the beginning can we formulate strategies, determine corporate style, and build talent with “global” standards. In the process of enterprise development, each department and team from the enterprise to its subordinates needs to have common and related goals, and to clarify their respective responsibilities in an effective way.
In addition to having common goals and efficient methodologies, the team’s ability to collaborate is also one of the important factors for success. Some companies like to encourage internal competition. In fact, such competition is good or bad. Each person has different advantages. You have to know what to do to make 1 + 1> 2.
Let’s talk about people again. The most important part of a team’s ability to achieve its goals is “people”, the right people. In recruitment, we will examine the candidate’s general abilities, job competence, leadership skills, and “Googleyness”, which is to see if the values of employees are in line with each other. In addition to leadership at Google, in addition to leadership, inclusiveness, and decision-making capabilities, you must have sufficient cohesiveness to enable employees from all corners of the world to feel at home. At Google, we empower employees to make judgments and decisions, and encourage them to learn from their mistakes and grow.
How Google helps Chinese companies go abroad
In this part, I will share how we help Chinese companies go global and become global companies.
Summarizing the process of Chinese companies going global, they can be roughly divided into three stages:
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In the first stage, using information asymmetry and differentiation: About ten years ago, the use of information asymmetry began to have overseas opportunities, and many cross-border e-commerce have developed from here.
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In the second stage, relying on its own product and manpower advantages: whether it is productivity or manpower advantages, the competitiveness of “Made in China” in other markets will be brought into play.
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The third stage relies on differences in business models: a typical one is the vibrato. Overseas markets do not have similar products and services, so they can enter the market. We find that many American and other international markets now want to learn about China’s operating model innovation.
Global brands in Google mode:
To be a global brand, you need to understand how big the overseas market is. Where is the right development? We usually use three models to help customers think: first, how to choose the market; second, how to differentiate; and finally, how to quickly localize (that is, integrate into the local market).
There are many issues to consider when selecting overseas markets, such as who are your local competitors? Is there a demand from local users? Where are the market opportunities? Is the purpose of going to sea for market share or profit? For example, there used to be a company in the gaming industry specializing in the Southeast Asian market, because Indonesia has a high penetration rate of mobile phones, and compared to India, Indonesian users are more willing to pay. However, if you want to do business globally, you must also consider larger markets, such as the United States.
So we tell him / her through some market insights that we can’t just look at the number of local users in the main market, the number of users willing to pay, and the cost of acquiring users, because each market is really different. When you look at more markets, you will find the difference between the United States and Southeast Asia.
The cost of acquiring users in Southeast Asia is low, but the value contributed by each user is not the highest. Although the user acquisition cost is higher in the United States, it can also bring higher benefits. On this basis, if the company wishes to use the United States as a new target market, we will help him / her further analyze the characteristics of local users, what designs in the game can be accepted by local users, and so on.
We also need to understand the differences between users in different markets and their needs. For example, in terms of clothing purchases, what is the difference between Japanese and Chinese users? Japanese online shopping groups are usually women aged 30-35. Because this group is usually busy taking care of children and work, their needs for clothing are not exactly the same as those popular in China. They are more pursuing quality and comfort. Therefore, clothes with a waist may not be welcomed by them because it is difficult to bring children.
In addition to user needs, local market infrastructure and other conditions will also affect companies going overseas. For example, the logistics situation in India and Indonesia is completely different. There are thousands of islands in Indonesia. Here, how to solve the logistics problem is also a problem that needs to be solved when going to sea.
At the same time, the needs of global users have many similarities, for example, they all want the network to be faster and cheaper. The challenge for enterprises is how to create differentiation in the same needs. At Google, we want to help everyone go out and understand market opportunities, how to localize, and how to build a global brand. What encourages everyone to think is, how can technologies and products meet the needs of users in different markets in a globalized layout? How to build an efficient team? What kind of partner do you need? How can they help you move forward quickly.
文 | 云 晞 @ 出海
EditZhao Xiaochun @ 出海
Picture | GGV Photo
In the first stage, using information asymmetry and differentiation: About ten years ago, the use of information asymmetry began to have overseas opportunities, and many cross-border e-commerce have developed from here.
In the second stage, relying on its own product and manpower advantages: whether it is productivity or manpower advantages, the competitiveness of “Made in China” in other markets will be brought into play.
The third stage relies on differences in business models: a typical one is the vibrato. Overseas markets do not have similar products and services, so they can enter the market. We find that many American and other international markets now want to learn about China’s operating model innovation.
Global brands in Google mode:
To be a global brand, you need to understand how big the overseas market is. Where is the right development? We usually use three models to help customers think: first, how to choose the market; second, how to differentiate; and finally, how to quickly localize (that is, integrate into the local market).
There are many issues to consider when selecting overseas markets, such as who are your local competitors? Is there a demand from local users? Where are the market opportunities? Is the purpose of going to sea for market share or profit? For example, there used to be a company in the gaming industry specializing in the Southeast Asian market, because Indonesia has a high penetration rate of mobile phones, and compared to India, Indonesian users are more willing to pay. However, if you want to do business globally, you must also consider larger markets, such as the United States.
So we tell him / her through some market insights that we can’t just look at the number of local users in the main market, the number of users willing to pay, and the cost of acquiring users, because each market is really different. When you look at more markets, you will find the difference between the United States and Southeast Asia.
The cost of acquiring users in Southeast Asia is low, but the value contributed by each user is not the highest. Although the user acquisition cost is higher in the United States, it can also bring higher benefits. On this basis, if the company wishes to use the United States as a new target market, we will help him / her further analyze the characteristics of local users, what designs in the game can be accepted by local users, and so on.
We also need to understand the differences between users in different markets and their needs. For example, in terms of clothing purchases, what is the difference between Japanese and Chinese users? Japanese online shopping groups are usually women aged 30-35. Because this group is usually busy taking care of children and work, their needs for clothing are not exactly the same as those popular in China. They are more pursuing quality and comfort. Therefore, clothes with a waist may not be welcomed by them because it is difficult to bring children.
In addition to user needs, local market infrastructure and other conditions will also affect companies going overseas. For example, the logistics situation in India and Indonesia is completely different. There are thousands of islands in Indonesia. Here, how to solve the logistics problem is also a problem that needs to be solved when going to sea.
At the same time, the needs of global users have many similarities, for example, they all want the network to be faster and cheaper. The challenge for enterprises is how to create differentiation in the same needs. At Google, we want to help everyone go out and understand market opportunities, how to localize, and how to build a global brand. What encourages everyone to think is, how can technologies and products meet the needs of users in different markets in a globalized layout? How to build an efficient team? What kind of partner do you need? How can they help you move forward quickly.
文 | 云 晞 @ 出海
EditZhao Xiaochun @ 出海
Picture | GGV Photo