In only a matter of several years, the companies listed below have gone from leading China’s domestic market to becoming some of the largest and leading enterprises in the world. Each changed the future. But, what do we really know about them? How did they start and where are they going?
DIDI has definitively changed the face of traditional transportation in China in just a few years since the start of its operation. Didi’s founding partners Cheng and Wang acknowledged at the time how progressively difficult it was becoming to hail a roadside taxi in urban China. This observation spurred the development of the “Didi Dache” mobile app, initiated with a start-up fund of ¥800,000. In 2012 the company officially rolled out its first product in Beijing. Didi deliberately and methodically launched its services in highly developed Chinese cities (referred to as “Tier 1 cities”), such as Shanghai and Hangzhou. In March 2014, the Didi platform became China’s largest Internet-based ride-hailing service, drawing an average of 5.22 million ride requests per day. Today, with 550 Million Users, 10 billion trips per year, $1 billion profit in 2021, $56 billion valuation, potential for massive US IPO & self-driving unit in the works, DIDI is one of the leading tech companies in China.
Baidu is a Chinese-language search engine founded in China in 2000 by Robin Li and Eric Xu. The company’s technology was based on Li’s patented "link analysis" algorithm which ranks search results based on the number of incoming links.
Baidu quickly gained popularity, allowing users to search for text, images, and news, all in Chinese. Over time, Baidu’s algorithms grew even more sophisticated as they gained deeper understanding of the Chinese language.
Today, Baidu is the largest search engine in China; Baidu App has 189 million daily active users; Baidu smart mini program’s monthly active users are 290 million; The company also builds driverless cars and sells bikes; The company partnered with iQiYi (video platform) and has presence in the streaming market; Reaching the pick of all times, the company’s Market cap in February 2021 reached the sum of $114.38 billion.
Lenovo was the largest PC maker in China when it purchased IBM back in 2004, with the intention to become a global technology giant. 17 years later, Lenovo is one of the largest pc manufacturers in the world; with over $50 billion revenue 2019/2020 (forecast expected to pass $60 billion revenue 20/21) and over $14 billion market cap, the company’s PC segment accounted for over 80% of revenue in the latest fiscal year, and this proportion is growing. Nevertheless, the company’s next step is to expand its non-pc segment.
高盛（Goldman Sachs）估值阿里云高达930亿美元，阿里云在2019年占亚太地区总市场份额的28%，阿里巴巴云（Alibaba cloud）经过十多年的发展，最近才实现盈利。虽然被认为是最便宜的服务之一，阿里云的增长速度已经超过了微软和亚马逊等竞争对手。在不久的将来，阿里巴巴集团计划再向云计算注入280亿美元。可以肯定的是，这对于阿里云来说只是一个开始。
With $93 billion valuation by Goldman Sachs and 28% of Asia-Pacific region market share by 2019, Alibaba cloud only recently turned profitable after over a decade. Considered one of the cheaper services around, growth outpacing both that of Microsoft and amazon’s competing services. In the near future, Alibaba group plans to inject a further $28 billion into cloud computing. It is safe to say that this is only the beginning for Alibaba Cloud.
In 2015, JD.com and Tencent announced the launch of the "Jingteng Plan" (Chinese: 京腾计划), a combination of the two companies' names, which will provide merchants with a complete solution to establish a brand and promote marketing effectiveness by linking JD.com consumption data with Tencent social data. Today, with over $115 billion market cap, JD Is one of the two massive B2C online retailers in China by transaction volume and revenue, a member of the Fortune Global 500 and of course a major competitor to Alibaba-run Tmall.
Undoubtably, China’s economy is on the rise and businesses round the world would best take a good look at the numerous Chinese companies that are soon to be their competitors in the global market.
Written by Dr. Iris Kastoriano，Shanghai Manager of Israeli Chamber of Commerece in China.
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