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Lessons from China’s Digital Battleground

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Lessons from China’s Digital Battleground

MIT Sloan Management Review,

5 Minuten Lesezeit
5 Take-aways
Audio & Text

Was ist drin?

Some of the West’s savviest digital players have failed in China’s booming digital market. Here’s what they need to do to succeed.

automatisch generiertes Audio
automatisch generiertes Audio

Editorial Rating

9

Qualities

  • Innovative
  • Applicable
  • Concrete Examples

Recommendation

China’s digital market has attracted some of the West’s smartest companies – Uber, Airbnb, Amazon and eBay, among others – only to leave them sidelined while Chinese players have grown at mind-boggling rates. In this concise and authoritative report published in MIT Sloan Management Review, a team from the Boston Consulting Group explains why Chinese giants like Alipay, Didi and Tujia.com have bested their Western counterparts. The authors outline four imperatives for non-Chinese companies seeking to participate in the exploding Chinese digital market.

Summary

The Chinese digital market is booming: 700 million Chinese users – and counting – are increasing their online spending by 32% every year. In May 2017, the $1 trillion market boasted 63 unicorns ($1 billion-plus private start-ups); nearly half of those companies had needed less than two years to reach unicorn status. At the end of 2016, annual mobile payments in China had topped $8.5 trillion. Income growth among Chinese consumers and pent-up demand resulting from an underdeveloped economy fueled...

About the Authors

Shu Li is a partner in the Beijing office of the Boston Consulting Group (BCG). François Candelon is a senior partner in BCG’s Shanghai office. Martin Reeves is a senior partner in BCG’s New York City office and global leader of the BCG Henderson Institute.


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