Pages

Share This

Showing posts with label entrepreneurs. Show all posts
Showing posts with label entrepreneurs. Show all posts

Thursday, September 12, 2019

Jack Ma Ends 20-Year Reign Over Alibaba Wealth Creation Empire

Stepping down as chairman: Jack Ma waving while standing for a photograph with Alibaba CEO Jonathan Lu (left) and co-founder and vice-chairman Joseph ‘Joe’ Tsai in front of the New York Stock Exchange. Ma is giving up the reins of Alibaba Group Holding Ltd after presiding over one of the most spectacular creations of wealth the world has ever seen. — Bloomberg

Alibaba co-founder Jack Ma retires as CEO on 55th birthday

https://youtu.be/jzYqD2-GRWU

As Alibaba founder Jack Ma retires, a look at how he built the $460 bn ecommerce empire in China


https://youtu.be/XyttnzaK44o


Related posts:

Jack Ma's Alibaba to take on Kuala Lumpur’s traffic Artificial Intellligence project

Alibaba Cloud, which set up a datacentre in Malaysia last year, is considering a second one to further develop a local ecosystem, its president Simon Hu said. — Reuters

Jack Ma, Asia's richest envisions the newspaper to leverage Alibaba's technology & resources

Jack Ma Embraces Blockchain for Ant But Warns of Bitcoin Bubble

Jack Ma advisor to Malaysian Govt on digital economy to start with e-FTZ

Looking East policy with a twist to China ?

Japan may have led Malaysia's Look East policy of yore, but the stakes are heavily tipped in China's favour now as the leader of the new world order.


 

Jack Ma Ends 20-Year Reign Over Alibaba Wealth Creation Empire

Stepping down as chairman: Jack Ma waving while standing for a photograph with Alibaba CEO Jonathan Lu (left) and co-founder and vice-chairman Joseph ‘Joe’ Tsai in front of the New York Stock Exchange. Ma is giving up the reins of Alibaba Group Holding Ltd after presiding over one of the most spectacular creations of wealth the world has ever seen. — Bloomberg

Alibaba co-founder Jack Ma retires as CEO on 55th birthday

https://youtu.be/jzYqD2-GRWU

As Alibaba founder Jack Ma retires, a look at how he built the $460 bn ecommerce empire in China


https://youtu.be/XyttnzaK44o


Related posts:

Jack Ma's Alibaba to take on Kuala Lumpur’s traffic Artificial Intellligence project

Alibaba Cloud, which set up a datacentre in Malaysia last year, is considering a second one to further develop a local ecosystem, its president Simon Hu said. — Reuters

Jack Ma, Asia's richest envisions the newspaper to leverage Alibaba's technology & resources

Jack Ma Embraces Blockchain for Ant But Warns of Bitcoin Bubble

Jack Ma advisor to Malaysian Govt on digital economy to start with e-FTZ

Looking East policy with a twist to China ?

Japan may have led Malaysia's Look East policy of yore, but the stakes are heavily tipped in China's favour now as the leader of the new world order.


 

Thursday, April 18, 2019

Steep learning curve


What is meant by "steep learning curve"?


Unfazed, this mass comm graduate overcame all kinds of challenges to make it in business.

SAMANTHA Mah did well on her first business venture but suffered a loss on her second. However, failure did not deter her and her two partners from moving on. They gave it another go until they could see the fruits of their labour.

Mah worked as a company administrator and voice talent for radio commercials before she decided to venture into business.— aNis aBdullah/The star

Mah’s first business received an investment of RM10,000 from her sister, Natasha, 37. She and two investor-partners started an online boutique targeted at young women. After one-and-a-half years, business picked up and was quite good.

Mah, 30, is the youngest in her family. She has two elder sisters and a brother.

Mah, Natasha and a friend Jason Leong, 31, started their trading company on March 8, 2011. Just four months later, it incurred a big loss, prompting them to change the products they were selling – from peanuts and sesame seeds to edible organic products.

A mass communication graduate from Universiti Tunku Abdul Rahman (UTAR) in Selangor, Mah had worked part-time as a company administrator and voice talent for radio commercials before she venturing into business. She is now the marketing manager/managing director of her company.

After starting Wide Tropism Trading, she passed her online boutique business to a friend.

One of the biggest challenges for Mah, at the beginning, was that neither she nor her partners had a corporate background.

“We handled matters based on our experiences. Sometimes we had to ask friends for advice.

“In the first few years, there were lots of arguments,” she said.

Mah is glad that her relationship with Natasha survived those trying times.

As part of the company’s costcutting measures, each of them had to take on more responsibilities in various departments.

“There were too many things on my plate – human resource, accounts, design and marketing – and I was suffocating. But we did not have enough (finances) to hire staff,” said Mah.

After two months, she “exploded” and cried during a meeting.

“I could not take the pressure and workload anymore,” she said. Eventually, they could afford to hire new staff.

“Only then did things start to fall into place,” she said.

Cheated by a supplier

Initially, they were importing foods such as peanuts and sesame seeds, and distributing them to local suppliers. Unfortunately, they suffered a huge loss in the first year itself due to unscrupulous parties.

Due to limited cash flow, they could only import one container of stock at a time. Each time, they flew over to the exporting country, India, to check on the quality of the stock and witness the peanuts being loaded into the containers. The first two shipments went through successfully.

However, the third shipment, supposedly of Grade A peanuts, was discovered to contain Grade C stock instead, when it arrived.

She said: “No one in the market would accept the stock. We sought help from the local distributor to sell off the peanuts at a lower price but even then, no one wanted them. After trying for two months, we had to sell off the peanuts to a peanut butter factory at below cost. As a result, we ran into losses amounting to RM40,000.”

The supplier denied it was his fault and instead blamed others. They then contacted the High Commission of India, in Kuala Lumpur, for help but to no avail.

“We wondered how we were going to continue business. My father advised us to pick ourselves up, learn from it, and be more careful. Everyone was very supportive and encouraged us to continue. They believed we could do better,” she said.

Mah then sought help from her uncle, an experienced fruit trader and grocer. He advised her to run a business that’s less risky, such as repackaging and distributing organic products.

She and her business partners promptly took his advice.

In July 2011, her company had its first customer, a newly opened supermarket in Petaling Jaya. In two months, Mah’s team had designed the logo and sourced for products and packaging. And so, their label Love Earth was born.  

Overcoming obstacles

Every day, Mah and her partners packed their products until midnight, and delivered them, working on weekends to selfpromote their products as well.

Said Mah: “Each time a new supermarket called, we’d celeto brate!”

Gradually, it was time start their expansion plan but they were hampered by limited cash flow.

They knew they had to spend more to create brand awareness. That’s when they started their online webstore.

“None of us had any knowledge about marketing. So I attended marketing and e-commerce talks to learn and see what we could do,” she said.

Mah recalled: “The first three years of business were really tough. My salary was only RM1,000 monthly (to cut costs).”

But their efforts paid off. After five years of sheer hard work, they could buy two units of four-storey shophouses.

The company started with 50 products and now has 180.

Currently, it is distributing these products to over 500 outlets throughout Malaysia.

New priorities

Mah, who got married two years ago, plans to expand her family this year. Her husband, C.V. Loh, 32, distributes bio-degradable plates, lunch boxes and bowls as well as health supplements.

She said: “I hope to have financial freedom, and more time for my family. If possible, I would like to be a part-time businesswoman and full-time housewife one day.”

She plans to raise her children herself and not send them to a nanny. She also hopes to travel more in the future. Presently, she travels at least thrice a year. Seeing other countries and cultures opens up one’s mind, she said.

Although she is a career woman, Mah believes in putting family first.

“Women play a role in bringing up the family. If a child is not well taught, he might be a nuisance to society in the future. But if he has a good upbringing, he can be the sun that shines and brings benefits to all. Also, a woman is the pillar that upholds the family,” she said.

Mah explained that even though she studied mass communication and broadcasting, it was during her internship that she realised that she wanted to go on a different career path than she had originally planned.

After her graduation, she thought of going into volunteer work. But her uncle advised against it. He told her to be successful so that she could help herself and others in future.

By Majorie Chiew The Star


Related posts:


Hats off to a strict father


It pays to be stern 

Startup opportunities abound

 

My home, my school

More and more Malaysian parents are turning towards homeschooling today for various reasons. 

Giving a choice of education to our students in Malaysian school systems


Steep learning curve


What is meant by "steep learning curve"?


Unfazed, this mass comm graduate overcame all kinds of challenges to make it in business.

SAMANTHA Mah did well on her first business venture but suffered a loss on her second. However, failure did not deter her and her two partners from moving on. They gave it another go until they could see the fruits of their labour.

Mah worked as a company administrator and voice talent for radio commercials before she decided to venture into business.— aNis aBdullah/The star

Mah’s first business received an investment of RM10,000 from her sister, Natasha, 37. She and two investor-partners started an online boutique targeted at young women. After one-and-a-half years, business picked up and was quite good.

Mah, 30, is the youngest in her family. She has two elder sisters and a brother.

Mah, Natasha and a friend Jason Leong, 31, started their trading company on March 8, 2011. Just four months later, it incurred a big loss, prompting them to change the products they were selling – from peanuts and sesame seeds to edible organic products.

A mass communication graduate from Universiti Tunku Abdul Rahman (UTAR) in Selangor, Mah had worked part-time as a company administrator and voice talent for radio commercials before she venturing into business. She is now the marketing manager/managing director of her company.

After starting Wide Tropism Trading, she passed her online boutique business to a friend.

One of the biggest challenges for Mah, at the beginning, was that neither she nor her partners had a corporate background.

“We handled matters based on our experiences. Sometimes we had to ask friends for advice.

“In the first few years, there were lots of arguments,” she said.

Mah is glad that her relationship with Natasha survived those trying times.

As part of the company’s costcutting measures, each of them had to take on more responsibilities in various departments.

“There were too many things on my plate – human resource, accounts, design and marketing – and I was suffocating. But we did not have enough (finances) to hire staff,” said Mah.

After two months, she “exploded” and cried during a meeting.

“I could not take the pressure and workload anymore,” she said. Eventually, they could afford to hire new staff.

“Only then did things start to fall into place,” she said.

Cheated by a supplier

Initially, they were importing foods such as peanuts and sesame seeds, and distributing them to local suppliers. Unfortunately, they suffered a huge loss in the first year itself due to unscrupulous parties.

Due to limited cash flow, they could only import one container of stock at a time. Each time, they flew over to the exporting country, India, to check on the quality of the stock and witness the peanuts being loaded into the containers. The first two shipments went through successfully.

However, the third shipment, supposedly of Grade A peanuts, was discovered to contain Grade C stock instead, when it arrived.

She said: “No one in the market would accept the stock. We sought help from the local distributor to sell off the peanuts at a lower price but even then, no one wanted them. After trying for two months, we had to sell off the peanuts to a peanut butter factory at below cost. As a result, we ran into losses amounting to RM40,000.”

The supplier denied it was his fault and instead blamed others. They then contacted the High Commission of India, in Kuala Lumpur, for help but to no avail.

“We wondered how we were going to continue business. My father advised us to pick ourselves up, learn from it, and be more careful. Everyone was very supportive and encouraged us to continue. They believed we could do better,” she said.

Mah then sought help from her uncle, an experienced fruit trader and grocer. He advised her to run a business that’s less risky, such as repackaging and distributing organic products.

She and her business partners promptly took his advice.

In July 2011, her company had its first customer, a newly opened supermarket in Petaling Jaya. In two months, Mah’s team had designed the logo and sourced for products and packaging. And so, their label Love Earth was born.  

Overcoming obstacles

Every day, Mah and her partners packed their products until midnight, and delivered them, working on weekends to selfpromote their products as well.

Said Mah: “Each time a new supermarket called, we’d celeto brate!”

Gradually, it was time start their expansion plan but they were hampered by limited cash flow.

They knew they had to spend more to create brand awareness. That’s when they started their online webstore.

“None of us had any knowledge about marketing. So I attended marketing and e-commerce talks to learn and see what we could do,” she said.

Mah recalled: “The first three years of business were really tough. My salary was only RM1,000 monthly (to cut costs).”

But their efforts paid off. After five years of sheer hard work, they could buy two units of four-storey shophouses.

The company started with 50 products and now has 180.

Currently, it is distributing these products to over 500 outlets throughout Malaysia.

New priorities

Mah, who got married two years ago, plans to expand her family this year. Her husband, C.V. Loh, 32, distributes bio-degradable plates, lunch boxes and bowls as well as health supplements.

She said: “I hope to have financial freedom, and more time for my family. If possible, I would like to be a part-time businesswoman and full-time housewife one day.”

She plans to raise her children herself and not send them to a nanny. She also hopes to travel more in the future. Presently, she travels at least thrice a year. Seeing other countries and cultures opens up one’s mind, she said.

Although she is a career woman, Mah believes in putting family first.

“Women play a role in bringing up the family. If a child is not well taught, he might be a nuisance to society in the future. But if he has a good upbringing, he can be the sun that shines and brings benefits to all. Also, a woman is the pillar that upholds the family,” she said.

Mah explained that even though she studied mass communication and broadcasting, it was during her internship that she realised that she wanted to go on a different career path than she had originally planned.

After her graduation, she thought of going into volunteer work. But her uncle advised against it. He told her to be successful so that she could help herself and others in future.

By Majorie Chiew The Star


Related posts:


Hats off to a strict father


It pays to be stern 

Startup opportunities abound

 

My home, my school

More and more Malaysian parents are turning towards homeschooling today for various reasons. 

Giving a choice of education to our students in Malaysian school systems


Saturday, October 27, 2018

China leads the way as world's billionaires get even richer

The United States created 53 new billionaires in 2017, down from 87 five years ago
China produced around two new billionaires a week last year as the fortunes of the world's ultra-rich soared by a record amount, a report said Friday.

Read more at: https://phys.org/news/2018-10-china-world-billionaires-richer.html#jCp
China produced two new billionaires a week last year as the fortunes of the world’s ultra-rich soared by a record amount - AFP

 China produced around two new billionaires a week last year as the fortunes of the world's ultra-rich soared by a record amount, Swiss banking giant UBS and auditors PwC said.

Billionaires' wealth enjoyed its "greatest-ever" increase in 2017, rising 19 percent to $8.9 trillion ($7.8 billion euros) shared among 2,158 individuals, said the report by Swiss banking giant UBS and auditors PwC.

But Chinese billionaires expanded their wealth at nearly double that pace, growing by 39 percent to $1.12 trillion.

"Over the last decade, Chinese billionaires have created some of the world's largest and most successful companies, raised living standards," said Josef Stadler, head of Ultra High Net Worth at UBS Global Wealth Management.

"But this is just the beginning. China's vast population, technology innovation and productivity growth combined with government support, are providing unprecedented opportunities for individuals not only to build businesses but also to change people's lives for the better."

The report said China minted two new billionaires a week in 2017, among more than three a week created in Asia.

In the Americas region, the wealth of billionaires increased at a slower rate of 12 percent, to $3.6 trillion, with the United States creating 53 new billionaires in 2017 compared to 87 five years ago.

Currency appreciation saw European billionaires' wealth grow 19 percent although the number of billionaires rose by just 4.0 percent to 414.

Wealth transition from just five families accounted for 30 percent of the continent's wealth expansion, the study said.

It warned of lower economic growth in the United States and China if the trade war between the two countries escalates.

"US and Asia ex-Japan equities could fall by 20 percent from their mid-summer 2018 levels."

Asia challenging US dominance

For China's young billionaires "the country's fundamentals of a huge population and rising technology will continue to offer fertile conditions for entrepreneurs to grow their businesses," the study said.

It there were only 16 Chinese billionaires as recently as 2006.

"Today, only 30 years after the country's government first allowed private enterprise, they number 373 – nearly one in five of the global total."

It said 97 percent of them are self-made, many of them in sectors such as technology and retail.

Billionaires from Asia, especially in the Chinese city of Shenzhen, are now challenging the traditional dominance of Americans as technology entrepreneurs.

"In 2017, they equalled America's level of venture capital funding for start-ups, registered four times as many Artificial-Intelligence-related patents and three times as many blockchain and crypto-related patents as their US counterparts."

Ravi Raju, head of Asia Pacific Ultra High Net Worth at UBS Global Wealth Management, said Asia's billionaires "are young and relentless. They are constantly transforming their companies, developing new business models and shifting rapidly into new sectors."

The report said that globally, self-made billionaires have driven 80 percent of the 40 main breakthrough innovations over the last 40 years.

UP AND OUT OF POVERTY - Xi Jinping


https://youtu.be/SYWz2bwCUEE


Related: 

© 2018 AFP /Phys.org

Asia's billionaires see fastest wealth growth: report  September 17, 2014 

 

 Asia's billionaires see fastest wealth growth: report

 

Related posts:

 

Beijing is home to the world's most billionaires, edging New York City out

 

Don’t blame China for global economic jitters; China contributed >25% global growth

Asia's billionaires led by Chinese tycoons enjoyed the fastest increase in their wealth this year compared to their peers in the rest of the world, a report said Wednesday.


Read more at: https://phys.org/news/2018-10-china-world-billionaires-richer.html#jCp

Asia's billionaires see fastest wealth growth: report

September 17, 2014
Asia's billionaires led by Chinese tycoons enjoyed the fastest increase in their wealth this year compared to their peers in the rest of the world, a report said Wednesday.


Read more at: https://phys.org/news/2018-10-china-world-billionaires-richer.html#jCp

China leads the way as world's billionaires get even richer

The United States created 53 new billionaires in 2017, down from 87 five years ago
China produced around two new billionaires a week last year as the fortunes of the world's ultra-rich soared by a record amount, a report said Friday.

Read more at: https://phys.org/news/2018-10-china-world-billionaires-richer.html#jCp
China produced two new billionaires a week last year as the fortunes of the world’s ultra-rich soared by a record amount - AFP

 China produced around two new billionaires a week last year as the fortunes of the world's ultra-rich soared by a record amount, Swiss banking giant UBS and auditors PwC said.

Billionaires' wealth enjoyed its "greatest-ever" increase in 2017, rising 19 percent to $8.9 trillion ($7.8 billion euros) shared among 2,158 individuals, said the report by Swiss banking giant UBS and auditors PwC.

But Chinese billionaires expanded their wealth at nearly double that pace, growing by 39 percent to $1.12 trillion.

"Over the last decade, Chinese billionaires have created some of the world's largest and most successful companies, raised living standards," said Josef Stadler, head of Ultra High Net Worth at UBS Global Wealth Management.

"But this is just the beginning. China's vast population, technology innovation and productivity growth combined with government support, are providing unprecedented opportunities for individuals not only to build businesses but also to change people's lives for the better."

The report said China minted two new billionaires a week in 2017, among more than three a week created in Asia.

In the Americas region, the wealth of billionaires increased at a slower rate of 12 percent, to $3.6 trillion, with the United States creating 53 new billionaires in 2017 compared to 87 five years ago.

Currency appreciation saw European billionaires' wealth grow 19 percent although the number of billionaires rose by just 4.0 percent to 414.

Wealth transition from just five families accounted for 30 percent of the continent's wealth expansion, the study said.

It warned of lower economic growth in the United States and China if the trade war between the two countries escalates.

"US and Asia ex-Japan equities could fall by 20 percent from their mid-summer 2018 levels."

Asia challenging US dominance

For China's young billionaires "the country's fundamentals of a huge population and rising technology will continue to offer fertile conditions for entrepreneurs to grow their businesses," the study said.

It there were only 16 Chinese billionaires as recently as 2006.

"Today, only 30 years after the country's government first allowed private enterprise, they number 373 – nearly one in five of the global total."

It said 97 percent of them are self-made, many of them in sectors such as technology and retail.

Billionaires from Asia, especially in the Chinese city of Shenzhen, are now challenging the traditional dominance of Americans as technology entrepreneurs.

"In 2017, they equalled America's level of venture capital funding for start-ups, registered four times as many Artificial-Intelligence-related patents and three times as many blockchain and crypto-related patents as their US counterparts."

Ravi Raju, head of Asia Pacific Ultra High Net Worth at UBS Global Wealth Management, said Asia's billionaires "are young and relentless. They are constantly transforming their companies, developing new business models and shifting rapidly into new sectors."

The report said that globally, self-made billionaires have driven 80 percent of the 40 main breakthrough innovations over the last 40 years.

UP AND OUT OF POVERTY - Xi Jinping


https://youtu.be/SYWz2bwCUEE

Related: 

© 2018 AFP /Phys.org

Asia's billionaires see fastest wealth growth: report  September 17, 2014 

 

 Asia's billionaires see fastest wealth growth: report

 

Related posts:

 

Beijing is home to the world's most billionaires, edging New York City out

 

Don’t blame China for global economic jitters; China contributed >25% global growth

Asia's billionaires led by Chinese tycoons enjoyed the fastest increase in their wealth this year compared to their peers in the rest of the world, a report said Wednesday.


Read more at: https://phys.org/news/2018-10-china-world-billionaires-richer.html#jCp

Asia's billionaires see fastest wealth growth: report

September 17, 2014
Asia's billionaires led by Chinese tycoons enjoyed the fastest increase in their wealth this year compared to their peers in the rest of the world, a report said Wednesday.


Read more at: https://phys.org/news/2018-10-china-world-billionaires-richer.html#jCp

Monday, October 8, 2018

Unknown Chinese startup creates the world's most valuable Bytedance

Independent moves: Bytedance has become among the most successful major Chinese tech companies in creating an international base without the backing of giants Alibaba and Tencent. — Reuters

https://youtu.be/nhrmuyEsqrk
https://youtu.be/VKD3jt0KvhQ
Building a vision: Over five years, Zhang has grown the app into one of the most popular news services anywhere, with 120 million daily users. — Bloomberg

Said to be valued at over $75 billion in new round of funding.


Bloomberg reports that when Zhang Yiming first shopped the idea of a news aggregation app powered by artificial intelligence six years ago, investors including Sequoia Capital were skeptical.

Back then, the question was how a 29-year-old locally trained software engineer could outsmart the numerous news portals operated by the likes of social media behemoth Tencent Holdings. and extract profit where even Google had failed.

Zhang, now 35, proved them wrong. Today his company, Bytedance Ltd., is on its way to a more than $75 billion valuation -- a price tag that surpasses Uber Technologies. to top the world, according to CB Insights. The latest in a long line of investors who’ve come around is Softbank Group., which is said to be planning to invest about $1.5 billion. Bytedance now counts KKR & Co., General Atlantic and even Sequoia as backers. Much of its lofty valuation stems from the creation of an internet experience that’s a cross between Google and Facebook.

35-Year-Old Unknown Creates the World's Most Valuable Startup

News aggregation app evolves into a multi-faceted media goliath


WHEN Zhang Yiming first shopped the idea of a news aggregation app powered by artificial intelligence six years ago, investors including Sequoia Capital were sceptical.

Back then, the question was how a 29-year-old locally trained software engineer could outsmart the numerous news portals operated by the likes of social media behemoth Tencent Holdings Ltd and extract profit where even Google had failed.

Zhang, now 35, proved them wrong.

Today his company, Bytedance Ltd, is on its way to a more than US$75bil valuation – a price tag that surpasses Uber Technologies Inc to top the world, according to CB Insights.

The latest in a long line of investors who have come around is Softbank Group Corp, which is said to be planning to invest about US$1.5bil. Bytedance now counts KKR & Co, General Atlantic and even Sequoia as backers.

Much of its lofty valuation stems from the creation of an internet experience that’s a cross between Google and Facebook.

“The most important thing is that we are not a news business. We are more like a search business or a social media platform,” Zhang said in a 2017 interview, adding that he employs no editors or reporters.

“We are doing very innovative work. We are not a copycat of a US company, both in product and technology.”

What’s remarkable is Zhang was able to do it all without taking money from the twin suns of China’s internet: Alibaba Group Holding Ltd and Tencent.

It’s the first startup to emerge from the dwindling cohort of mobile players that hasn’t sought protection or funds from either of the two. In fact, it has often locked horns with them, in court and elsewhere. And it’s arguably more successful at engaging youthful audiences abroad.

The story of how Bytedance became a goliath begins with news site Jinri Toutiao but is tied more closely to a series of smart acquisitions and strategic expansions that propelled the company into mobile video and even beyond China. By nurturing a raft of successful apps, it has gathered a force of hundreds of millions of users and now poses a threat to China’s largest Internet operators.

The company has evolved into a multi-faceted empire spanning video service Tik Tok – known as Douyin locally – and a plethora of platforms for everything from jokes to celebrity gossip.

But as with Facebook at the same stage of its life, Bytedance now faces questions over when or even how it will start making a profit.

“The predominant issue in China’s internet is that the growth in users and the time each user spends online has slowed dramatically.

“It is becoming a zero-sum game, and costs for acquiring users and winning their time are increasing,” said Jerry Liu, an analyst with UBS.

“What Bytedance has created is a group of apps that are very good at attracting users and retaining their time, in part, leveraging the traffic from Jinri Toutiao.”

Despite its seeming isolation, it’s become the most successful major Chinese tech company in creating an international base, venturing via apps like Tik Tok into the US, South-East Asia and Japan.

Even Tencent’s WeChat had to pump the brakes on its own overseas initiative four years ago.

What Zhang perceived in 2012 was that Chinese mobile users struggled to find information they cared about on many apps.

That’s partly because of the country’s draconian screening of information. Zhang thought he could do better than incumbents such as Baidu, which enjoyed a near-monopoly on search.

The latter conflated advertising with search results, a botch that would later haunt the company via a series of medical scandals.

There was little Toutiao could do about censorship – in fact, the company’s been repeatedly excoriated by authorities for failing to filter content and been forced to clean up its services with alarming regularity.

But Zhang held fast to his early vision of delivering content that mattered to users through AI. The closest American equivalent was Facebook’s news feed.

After falling flat with the bulk of China’s venture capital stalwarts, Zhang eventually secured investment from Susquehanna International Group.

It began offering the news app in August 2012. The platform studied what users read and searched for, then referred information and articles based on those habits. The more people used it, the better the experience, and the longer people stayed.

By mid-2014, daily active users had climbed to more than 13 million.

Sequoia finally came to the table, leading a funding round of US$100mil.

“We push information, not by queries, by news recommendations,” Zhang said in the interview last year.

But it was video that really propelled Bytedance into the big leagues.

Streaming services have always been popular in China. Even during the desktop era, companies like YY Inc championed a model where people sang and danced in virtual showrooms to win online gifts from fans. Later, outfits like Kuaishou fuelled that penchant for zany showmanship.

Bytedance saw an opportunity, but made its videos much shorter: 15 seconds, to be precise.

Around September 2016, it quietly launched Douyin. The app let users shoot and edit footage, add filters and share them across platforms like the Twitter-like Weibo or WeChat.

That format appealed to shorter millennial attention spans and became an instant hit, so much so that WeChat later blocked direct access to the app.

A year after, Bytedance acquired Musical.ly for US$800mil. It saw synergy between the buzzy teen US social video app created by Chinese co-founders and Tik Tok, and is now in the process of combining them. Tik Tok and Douyin had a combined 500 million users as of July.

The challenge now is in translating buzz and viewership into dollars. The company is expanding its ad sales operations, particularly for Toutiao.

Several media buying agencies said its massive reach and the attention it draws is a natural lure for marketers. Many said Bytedance is even pulling spending away from Tencent.

Bytedance, which previously cut a deal with Cheetah Mobile to sell ad space, has brought most of its ad sales in-house, said Kenneth Tan, the chief digital officer for Mindshare China, an agency.

“From a pricing perspective, they are expensive for what they are. They definitely charge a premium,” Tan said. “But that has not been an inhibitor for the large brands.”

There’s a big caveat, however. Brands remain cautious about Bytedance’s regulatory issues, particularly given Beijing’s historic unpredictability around censorship.

This year, it had to shut down a popular joke-sharing app in April just as it appeared to take off. It also suspended Douyin and its bread-and-butter Toutiao around the same time.

That’s “a potential risk to brand collaboration,” said Sherry Pan, general manager for China at the agency Magna Global. — Bloomberg

Related: 


Unknown Chinese startup creates the world's most valuable Bytedance

Independent moves: Bytedance has become among the most successful major Chinese tech companies in creating an international base without the backing of giants Alibaba and Tencent. — Reuters

https://youtu.be/nhrmuyEsqrk
https://youtu.be/VKD3jt0KvhQ
Building a vision: Over five years, Zhang has grown the app into one of the most popular news services anywhere, with 120 million daily users. — Bloomberg

Said to be valued at over $75 billion in new round of funding.


Bloomberg reports that when Zhang Yiming first shopped the idea of a news aggregation app powered by artificial intelligence six years ago, investors including Sequoia Capital were skeptical.

Back then, the question was how a 29-year-old locally trained software engineer could outsmart the numerous news portals operated by the likes of social media behemoth Tencent Holdings. and extract profit where even Google had failed.

Zhang, now 35, proved them wrong. Today his company, Bytedance Ltd., is on its way to a more than $75 billion valuation -- a price tag that surpasses Uber Technologies. to top the world, according to CB Insights. The latest in a long line of investors who’ve come around is Softbank Group., which is said to be planning to invest about $1.5 billion. Bytedance now counts KKR & Co., General Atlantic and even Sequoia as backers. Much of its lofty valuation stems from the creation of an internet experience that’s a cross between Google and Facebook.

35-Year-Old Unknown Creates the World's Most Valuable Startup

News aggregation app evolves into a multi-faceted media goliath


WHEN Zhang Yiming first shopped the idea of a news aggregation app powered by artificial intelligence six years ago, investors including Sequoia Capital were sceptical.

Back then, the question was how a 29-year-old locally trained software engineer could outsmart the numerous news portals operated by the likes of social media behemoth Tencent Holdings Ltd and extract profit where even Google had failed.

Zhang, now 35, proved them wrong.

Today his company, Bytedance Ltd, is on its way to a more than US$75bil valuation – a price tag that surpasses Uber Technologies Inc to top the world, according to CB Insights.

The latest in a long line of investors who have come around is Softbank Group Corp, which is said to be planning to invest about US$1.5bil. Bytedance now counts KKR & Co, General Atlantic and even Sequoia as backers.

Much of its lofty valuation stems from the creation of an internet experience that’s a cross between Google and Facebook.

“The most important thing is that we are not a news business. We are more like a search business or a social media platform,” Zhang said in a 2017 interview, adding that he employs no editors or reporters.

“We are doing very innovative work. We are not a copycat of a US company, both in product and technology.”

What’s remarkable is Zhang was able to do it all without taking money from the twin suns of China’s internet: Alibaba Group Holding Ltd and Tencent.

It’s the first startup to emerge from the dwindling cohort of mobile players that hasn’t sought protection or funds from either of the two. In fact, it has often locked horns with them, in court and elsewhere. And it’s arguably more successful at engaging youthful audiences abroad.

The story of how Bytedance became a goliath begins with news site Jinri Toutiao but is tied more closely to a series of smart acquisitions and strategic expansions that propelled the company into mobile video and even beyond China. By nurturing a raft of successful apps, it has gathered a force of hundreds of millions of users and now poses a threat to China’s largest Internet operators.

The company has evolved into a multi-faceted empire spanning video service Tik Tok – known as Douyin locally – and a plethora of platforms for everything from jokes to celebrity gossip.

But as with Facebook at the same stage of its life, Bytedance now faces questions over when or even how it will start making a profit.

“The predominant issue in China’s internet is that the growth in users and the time each user spends online has slowed dramatically.

“It is becoming a zero-sum game, and costs for acquiring users and winning their time are increasing,” said Jerry Liu, an analyst with UBS.

“What Bytedance has created is a group of apps that are very good at attracting users and retaining their time, in part, leveraging the traffic from Jinri Toutiao.”

Despite its seeming isolation, it’s become the most successful major Chinese tech company in creating an international base, venturing via apps like Tik Tok into the US, South-East Asia and Japan.

Even Tencent’s WeChat had to pump the brakes on its own overseas initiative four years ago.

What Zhang perceived in 2012 was that Chinese mobile users struggled to find information they cared about on many apps.

That’s partly because of the country’s draconian screening of information. Zhang thought he could do better than incumbents such as Baidu, which enjoyed a near-monopoly on search.

The latter conflated advertising with search results, a botch that would later haunt the company via a series of medical scandals.

There was little Toutiao could do about censorship – in fact, the company’s been repeatedly excoriated by authorities for failing to filter content and been forced to clean up its services with alarming regularity.

But Zhang held fast to his early vision of delivering content that mattered to users through AI. The closest American equivalent was Facebook’s news feed.

After falling flat with the bulk of China’s venture capital stalwarts, Zhang eventually secured investment from Susquehanna International Group.

It began offering the news app in August 2012. The platform studied what users read and searched for, then referred information and articles based on those habits. The more people used it, the better the experience, and the longer people stayed.

By mid-2014, daily active users had climbed to more than 13 million.

Sequoia finally came to the table, leading a funding round of US$100mil.

“We push information, not by queries, by news recommendations,” Zhang said in the interview last year.

But it was video that really propelled Bytedance into the big leagues.

Streaming services have always been popular in China. Even during the desktop era, companies like YY Inc championed a model where people sang and danced in virtual showrooms to win online gifts from fans. Later, outfits like Kuaishou fuelled that penchant for zany showmanship.

Bytedance saw an opportunity, but made its videos much shorter: 15 seconds, to be precise.

Around September 2016, it quietly launched Douyin. The app let users shoot and edit footage, add filters and share them across platforms like the Twitter-like Weibo or WeChat.

That format appealed to shorter millennial attention spans and became an instant hit, so much so that WeChat later blocked direct access to the app.

A year after, Bytedance acquired Musical.ly for US$800mil. It saw synergy between the buzzy teen US social video app created by Chinese co-founders and Tik Tok, and is now in the process of combining them. Tik Tok and Douyin had a combined 500 million users as of July.

The challenge now is in translating buzz and viewership into dollars. The company is expanding its ad sales operations, particularly for Toutiao.

Several media buying agencies said its massive reach and the attention it draws is a natural lure for marketers. Many said Bytedance is even pulling spending away from Tencent.

Bytedance, which previously cut a deal with Cheetah Mobile to sell ad space, has brought most of its ad sales in-house, said Kenneth Tan, the chief digital officer for Mindshare China, an agency.

“From a pricing perspective, they are expensive for what they are. They definitely charge a premium,” Tan said. “But that has not been an inhibitor for the large brands.”

There’s a big caveat, however. Brands remain cautious about Bytedance’s regulatory issues, particularly given Beijing’s historic unpredictability around censorship.

This year, it had to shut down a popular joke-sharing app in April just as it appeared to take off. It also suspended Douyin and its bread-and-butter Toutiao around the same time.

That’s “a potential risk to brand collaboration,” said Sherry Pan, general manager for China at the agency Magna Global. — Bloomberg

Related: