2021年中国互联网报告（英）（搜搜报告）.pdf

Supported by: Presented by: 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o2 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Introduction Following a period of rapid growth and innovation, the China internet sector has entered a new phase of development with both push and pull factors driving internet companies to evolve. Tightening regulation, increasingly saturated domestic market with changing demographics and geopolitical tensions are influencing companies to look outside their established markets, pivot business models, focus on new customer segments, and adapt to shifting dynamics to remain competitive and capture funding opportunities. 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o3 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Contents Tightening Regulations on Multiple Fronts 1 Bumpy Road Ahead for Chinese Tech IPOs 2 Changing Overseas Expansion Plans amid Geopolitical Tensions 3 Shifting Demographics Highlighting Underserved Internet User Segments 4 Growing Focus on Private-domain Traffic 5 TOP CROSS SECTOR TRENDS FOR 2021 CHINA INTERNET AT A GLANCE People Players Money 13 26 30 37 48 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o4 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Contents Tightening Regulations on Multiple Fronts 1 Bumpy Road Ahead for Chinese Tech IPOs 2 Changing Overseas Expansion Plans amid Geopolitical Tensions 3 Shifting Demographics Highlighting Underserved Internet User Segments 4 Growing Focus on Private-domain Traffic 5 TOP CROSS SECTOR TRENDS FOR 2021 CHINA INTERNET AT A GLANCE People Players Money 13 26 30 37 48 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o5 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Sources: China Internet Network Information Center (CNNIC), eMarketer, National Bureau of Statistics (NBS), Pew Research, Worldometer China vs U.S. Internet: People 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o6 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Others Others China vs U.S. Internet: Players Note: Logos in colours indicate full ownership, while logos in black and white indicate investments Source: SCMP Research E-commerce News aggregator Music Podcasts Short-form video Other videos Gaming Video game streaming Blockchain Content & media Gaming 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o7 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Others Others China vs U.S. Internet: Players Payment Digital-only banking Wealthtech Insurtech Online education Electric cars Autonomous cars Healthtech 5G AI Fintech Smart cars Note: Logos in colours indicate full ownership, while logos in black and white indicate investments Source: SCMP Research 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o8 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Others Others China vs U.S. Internet: Players Social media Messaging Q&A/ knowledge Office Dating Search Maps Ride-hailing Food delivery Social & messaging Note: Logos in colours indicate full ownership, while logos in black and white indicate investments Source: SCMP Research 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o9 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. 8.1 8.1 12.2 8.0 5.2 16.9 14.8 16.0 27.8 8.0 9.3 15.6 4.9 8.3 15.6 10.2 8.4 5.5 15.9 14.1 7.2 18.2 2016201720182019202020211Q2Q3Q4QUS$bn 1Excluding the US$1.6bn raised through its IPO in Jun 2021 and referring to its valuation after the US$1.7bn funding raised in Nov 2020. Sources: CB Insights, China Academy of Information and Communications Technology (CAICT), Crunchbase Money Funding Raised by Start-ups The number of deals in Chinas internet sector dropped by 11% in 2020. Since 2H 2020 momentum has recovered, and the total amount raised increased thanks to several mega deals. In comparison, the US internet sector defied the pandemic in both number of deals and amount raised in 2020. Number of deals in China Selected mega deals since Jan 2020 Total amount raised in China 111 188 484 483 318 507 107 388 770 524 479 554 146 536 977 577 531 151 478 564 479 515 2016201720182019202020211Q2Q3Q4Q2020 China: +24% US: +15% 2020 China: -11% US: +4% Company Date Funding raised (US$bn) Valuation (US$bn) Xinsheng Youxuan Jul 2020-Feb 2021 (4 rounds) 3.6 6 Yuanfudao Mar-Dec 2020 (4 rounds) 3.5 17 Zuoyebang Jun-Dec 2020 (2 rounds) 2.4 10 ByteDance Dec 2020 2.0 180 Full Truck Alliance1 Nov 2020 1.7 12 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o10 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. 1Including investments by venture arms. For Alibaba, the data excludes investments made by Ant Group. Sources: Crunchbase, Datagoo, ITjuzi Money Investments by Big Tech Chinas Big Tech took divergent paths in their investment activities in 2020 Tencent further solidified its leadership as most of the other giants pulled back on investments. Newcomers, like ByteDance and Meituan, became more active. Meanwhile in the US, the number of investments by Big Tech hit a historical high, with Google and Microsoft continuing to lead. Number of investments made by US Big Tech1 Number of investments made by Chinese Big Tech1 14 27 34 43 44 70 168 7 40 29 51 100 82 125 MeituanJD.comByteDanceBaiduAlibabaXiaomiTencent201920201 13 28 50 155 2 7 34 51 120 AppleFacebookAmazonMicrosoftGoogle20192020更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o11 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. 1Based on gross proceeds raised by Chinese tech companies based on a list of primary and secondary listings compiled by Bloomberg. | 2Market cap and share price as of Aug 13, 2021. Sources: Bloomberg, Google Finance, SCMP Research Money Initial Public Offerings (IPOs) Chinese tech companies raised a total of US$46bn on public markets (including both primary and secondary listings) since Jan 2020. Hong Kong was the preferred location for Chinese tech IPOs, followed by the US. The largest IPO was from Kuaishou, which raised US$6.2bn in Feb 2021. The largest US tech IPO during the same period would have ranked fifth when pitted against its Chinese peers. Top Chinese tech IPOs (since Jan 2020) Chinese tech IPOs by exchange1 (since Jan 2020) Hong Kong 64% United States 35% Mainland China 1% Breakdown based on total gross proceeds raised Company Exchange Stock code Date of listing Gross proceeds (US$bn) Market cap2 (US$bn) Share price change 30D since listing Share price change since listing2 HKG 1024 Feb 5, 2021 6.2 42.8 148% -30% NYSE DIDI Jun 30, 2021 4.4 40.1 -30% -41% HKG 6618 Dec 8, 2020 4.0 31.2 101% -4% HKG (secondary) 9618 Jun 18, 2020 3.9 111.3 6% 21% HKG (secondary) 9999 Jun 11, 2020 3.1 60.2 24% 15% During the same period, the largest US tech IPOs were those of Snowflakes (NYSE: SNOW) and Airbnbs (NASDAQ: ABNB), with each raising US$3.7bn. 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o12 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Contents Tightening Regulations on Multiple Fronts 1 13 Bumpy Road Ahead for Chinese Tech IPOs 2 26 Changing Overseas Expansion Plans amid Geopolitical Tensions 3 30 Shifting Demographics Highlighting Underserved Internet User Segments 4 37 Growing Focus on Private-domain Traffic 5 48 TOP CROSS SECTOR TRENDS FOR 2021 CHINA INTERNET AT A GLANCE People Players Money 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o13 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Chinas tech industry has been hit by sweeping regulatory crackdowns since the second half of 2020, driven by Beijings desire to better align the countrys technology development with national strategic goals and public interests. The tightening has focused on four areas antitrust, finance, cybersecurity and data privacy, as well as cryptocurrencies. Tightening Regulations on Multiple Fronts 1 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o14 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Sources: Google Finance, SCMP Research & Reporting Antitrust: Regulators Taking Aim at Big Techs Bad Behaviour Since late 2020, China has unleashed a slew of regulatory actions targeting the monopolistic behaviours of the countrys biggest internet companies a new antitrust guideline was issued, investigations were initiated, and companies were slapped with penalties. The share price of Big Tech was notably hampered, as the government reined in tech giants power and influence. Timeline of Chinas antitrust actions and share price performance of selected Big Tech 1 6080100120140160180200220240Nov-20Dec-20Jan-21Feb-21Mar-21Apr-21May-21Jun-21Jul-21Aug-21PDDJD.comMeituanTencentAlibabaNov 2, 2020=100 Nov 10, 2020: China released a draft antitrust guideline, defining anti-competition practices among internet firms for the first time. Dec 14, 2020: Affiliates of Alibaba and Tencent were fined RMB500k (US$76k) each for failing to disclose purchases of smaller competitors, a first for any internet firm. Dec 24, 2020: Probes into Alibaba over its alleged monopolistic practices started. Alibaba, JD.com, and Vipshop were fined RMB500k each for pricing irregularities on their e-commerce platforms. Feb 7, 2021: China issued the final version of its antitrust guidelines. Feb 8, 2021: Vipshop was fined RMB3mn for unfair competition. Mar 3, 2021: Several tech giants involved in community group buying were fined RMB1.5mn (US$232k) each for price dumping. Mar 12, 2021: 12 tech firms were fined RMB500k each for failing to report acquisitions. Apr 10, 2021: Alibaba was fined a record RMB18.2bn (US$2.8bn) for imposing “forced exclusivity” rules on merchants. Apr 13, 2021: 34 tech firms were ordered to conduct self-inspections. Apr 26, 2021: Probes into Meituan for its monopolistic practice started. Apr 30, 2021: Ten internet firms were fined RMB500k each for failing to report acquisitions and new joint ventures. Jun 17, 2021: China was reported to have begun an antitrust probe into Didi Chuxing, which was preparing for what could be the largest IPO in the US in 2021. Jul 7, 2021: Another 22 fines of RMB500k each were placed on tech firms for merger irregularities over the past decade. Jul 10, 2021: Chinas regulator blocked the merger of Huya and Douyu, Chinas two biggest video game live-streaming platforms, both backed by Tencent. Jul 13, 2021: However, Tencent received the green light three days later for its proposed acquisition of search engine Sogou. Jul 24, 2021: Tencent was ordered to end its exclusive music licensing deals with global record labels and was fined RMB500k by antitrust regulators. 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o15 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Antitrust: High Market Concentration in Various Internet Sectors Antitrust actions were triggered by Big Techs misuse of market power. In various sectors, the top players command over 80% market share. Market leaders including Alibaba, Meituan, and Didi Chuxing have notably been singled out by regulators with separate antitrust probes. 1 E-commerce market share1 Ride-hailing market share3 Food delivery market share2 Alibaba was fined RMB18.2bn (US$2.8bn) in Apr 2021 for forcing merchants to open stores or take part in promotions solely on its platforms. Regulators started probes into Meituan in Apr 2021 for forcing merchants to sell exclusively on its platform. Meituan could be fined up to billions of yuan. In Jun 2021, regulators had reportedly begun to probe into Didi Chuxing for unfair competition, ahead of the companys planned IPO in the US. 56% 17% 10% Others 16% Top-3 in China: 84% Top-3 in US: 51% 67% 31% Top-2 in China: 98% Top-2 in US: 83% 85% 7% Others 8% Top-2 in China: 92% Top-2 in US: 95% 1Based on retail e-commerce sales in 2020. | 2Market share for China is based on transaction value in 1Q20. Market share for the US is based on transaction volumes in Oct 2020. | 3Market share for China is based on orders in Jun 2020. Market share for the US is based on orders in 2020 estimated by eMarketer. Sources: Edison Trends, eMarketer, Reuters, Trustdata, Zaker, SCMP Research & Reporting Others 2% 更多细分领域报告请关注搜搜报告（s o s o y a n b a o ），行研君胃：s o s o b a o g a o16 The China Internet Report 2021 is independently produced by the South China Morning Post. Special thanks to Race Capital for supporting our research this year. Source: SCMP Research & Reporting Antitrust: Unfair Practices Stressing Needs for Consumer Protection High market concentration has allowed the largest platforms to adopt unfair practices the most notable ones include walled gardens, price discrimination, and forced exclusivity against business partners and consumers. Among growing complaints about such monopolistic behaviours, Chinese authorities moved to protect consumer interests, as well as to demonstrate power and maintain control of the market. As regulators ramped up pressure, Alibaba and Tencent have since begun to consider opening their walled gardens to each other. 1 Walled gardens Forced exclusivity Price discrimination To share a video clip from Douyin, users must download the clip with Douyins watermark, then upload it to WeChat. Two users were shown different prices when they requested the same ride on Didi Chuxing at the same time, suggesting the companys adoption of algorithmic price discrimination based on the analysis of users personal data. During the “618” shopping festival in 2019, home appliance maker Galanz accused Tmall of blocking