Beijing will become the only real Silicon Valley’s rival in the next 10 years…
Beijing is a good starting playground which is becoming really interesting and will be powerful in the few years. Indeed, startups can reach the ladder’s top quickly, because the China’s inner market of 1.3 billion people, represent four times the United States or Europe’s population.
Moreover, in the US, only 190 million of people own a smartphone while in China, they are more than 530 million today to own one, and they will be 700 million and even more within three years.
Actually, Beijing is the main hub by offering quickly new aspirations, a lot of money and talents to China. Consequently, Beijing obviously will reach the Silicon Valley’s level to become the main competitor on the market in terms of innovation over the 10 next years.
Then, of course there are other few hubs such as Berlin, with a different scale. Moreover, India is the only potential candidate to get into this new market trend. Thus, Silicon Valley benefit from this rivality by changing the scale’s level, increasing much more Worldwide innovation and entrepreneurship.
Silicon Valley’s Speed innovation VS Fast Chinese Startups’ rising
The first main competition’s driver is the consumers’ skills’ rate. Indeed, new Chinese’s app’s features on smartphones are very successful and take a fly on even faster mass scale than the United States. This new services’ improvement has got into the Chinese consumers’ lifestyle because they are totally connected for these last years. Moreover, this rate will be reach around 560 million by the end of 2016.
In China , the most of startups are built in 3 to 5 years instead of 5 to 8 years for the United States.
Moreover, the work — life balance is nonexistent in Chinese startups.
In addition, there is a corporate work culture which is called 9/9/6. This means that the normal working hours for most employees are 9:00 to 9:00 p.m., six days a week. For the founders and executives, it is more often 9 /11 / 6.5.
An innovation’s wave from China
Chinese entrepreneurs are totally pragmatic. They only want to find the quickest way to win. As cloning peaked, the next fastest way to win is innovation. However, innovation is longer than cloning…
What are missing Chinese startups ?
The recent Chinese entrepeneurs’ generation is driven by money and financial success (« get rich quick »). Therefore, this motivation have to be during long periods and sustainable to be effective which is often difficult for a lot of startups. Then, beyond the « mentality of money », the Chinese startups most lacking knowledge on how to manage the development of high quality products in parallel with the growth of the rapid distribution. In addition, another drawback of Chinese startups is to become an expert on how to get into the markets out of China quickly and efficiently. Indeed, beyond the cultural and language barriers, the fact that the Chinese market is so big means Chinese startups can easily fall into the trap and never even get to the international expansion, as other have already been able to quickly copy. Finally, the Chinese startups miss clean air.