Chinese tech start-ups are skipping home for developing markets
- China’s tech entrepreneurs are finding that affordable innovation appeals in developing markets
- Many Chinese companies are finding new avenues of growth
During the past decade of breakneck economic growth, China has been a gold mine for tech start-ups, with the biggest internet user base in the world of 829 million.
But a new wave of Chinese entrepreneurs are now deciding to skip the country in favour of fast-growing markets in Southeast Asia, India, the Middle East and Africa, taking their innovative ideas and cutting edge business models with them.
Whether its e-commerce, short video, live broadcasting or gaming – China’s tech experts are looking to apply the lessons learned from China’s rapid tech development to a range of emerging markets, according to interviews by the Post with analysts, investors and start-up founders.
“We are seeing Chinese tech companies take an increasing presence outside China in short video and social apps, video editing, shopping and gaming categories,” said Nan Lu, analyst at mobile intelligence firm Sensor Tower. “They’re looking at markets in South America and in Asia, such as India for example … territories with large, young populations.”
Lu added that the Middle East is also a target because of its advanced internet access and high demand for social media.
In Southeast Asia, Chinese apps took seven spots among the 10 highest-grossing short video and live streaming apps in the past year, with Singapore-headquartered live-streamer Bigo Live in the lead. Global short video hit Tik Tok topped the region’s download chart, according to a June report by Sensor Tower. Although revenue per user in many of these countries is lower than in developed markets such as the US, they have young, increasingly affluent populations, portending future growth.