Top of the Great Era

Chapter 3009 Support

There are 5.7 million mobile users in China, which is almost the same as the total number in Europe and the United States. This is a huge market.

Naturally, it will be very attractive to some foreign technology companies.

However, many foreigners have no idea about the situation in China.

They think that just like developing other overseas markets, they only need to copy the successful operating model in the United States and simply change the language, and then they can develop in China. Then they will fall into a huge misunderstanding, which will cause their business to encounter troubles again and again.

Multinational technology companies often encounter LAN restrictions, which are often only understood intuitively but not clearly understood, like the secret of Bermuda.

The reason why Microsoft has achieved such great success in China is that when Microsoft first entered the domestic market, it did not conduct business directly. Instead, against the backdrop of serious domestic piracy at the time, Microsoft set up large-scale R&D institutions to train domestic talents and donated computers and software to educational institutions such as universities, colleges and primary and secondary schools. It emphasized the establishment of a trusting and mutually beneficial relationship, which increased mutual understanding and trust.

Apple's model is similar.

When the iPhone came to China a few years ago, it also made a series of promises. In addition to setting up large-scale R&D institutions to help the country cultivate a large number of outstanding talents in the mobile phone field, there was also a "localization" requirement to help the country build a supply chain system for the entire smartphone industry and actively use domestic spare parts as substitutes for use in the iPhone.

When Tesla came to China later, it adopted the same model.

Only seeing how much money others make but not seeing the contributions they make is a limitation of thinking that many emerging multinational technology companies have when developing in China.

In fact, it’s not just a small startup like Duolingo.

Even a large recruitment company like LinkedIn, with a market value of over $100 billion, has such misunderstandings and confusion.

This is also the reason why Zhou Buqi actively opposed it.

The acquisition of LinkedIn has not yet been completed, and there are still internal opponents who want to adopt an aggressive international expansion policy and lead LinkedIn to develop in China. The evidence of this decision is that LinkedIn currently has no office in China and no simplified Chinese version of the LinkedIn website.

  However, LinkedIn already has more than 400 million users in mainland China!

It is conceivable that these more than 400 million users are a group of elite groups in China, all of whom are capable of working globally and are well-educated. They are a group of very high-quality seed users! With such a group of excellent seed users, isn’t it reasonable and natural for LinkedIn to develop in China?

Zhou Buqi firmly opposed it.

By the same token, he was also against an educational product like Duolingo developing in China, and told Louis von Ahn frankly and sincerely that if it were to develop in China at this stage, it would surely fail!

Policy factors are actually secondary.

  Because the domestic mobile Internet is in a crazy period at this stage. Coupled with the thawing of financial policies, which allow private investment institutions to widely attract investors, and the entry of insurance funds, the domestic investment market is flooded with a large amount of hot money!

Once this hot money enters the market, it will start to invest crazily.

This will lead to unprecedented competition in the mobile Internet field in China, with bloody and brutal competition everywhere. Foreigners would be scared to death if they don’t even think about participating in such a competitive environment.

It can be said that whoever comes will die!

Louis was unwilling to give up. "Are we really going to give up? That's the biggest market!"

Zhou Buqi was a little silent because he was not optimistic about the development of many neighboring countries in China, especially educational products.

Under the general trend of increasingly strict regulation, not to mention foreign education products, even some domestic education giants with a market value of tens of billions of dollars can collapse overnight with a single order. If even the locals can't figure out the ins and outs, it's even more impossible for foreigners to figure it out.

But this reason is not easy to explain.

Zhou Buqi glanced at him and said, "Don't you believe what I said?"

"Ah? No, no..." Louis was startled and explained quickly, "Believe it, why wouldn't I believe it? I just can't accept it."

Zhou Buqi said firmly: "You said that Duolingo obtained very good data in the early stage under the recommendation of the Apple Store. But you don't realize the difficulty of developing market competition in China. I can tell you clearly that the so-called Bermuda excuse is not the core reason at all. Even Google and Facebook will die without a burial place if they develop in China. This has nothing to do with policies, it has to do with competition. You can't compete."

"Alas!" Louis sighed.

Zhou Buqi smiled and said, "I know you may not be convinced, and may even be a little bit unconvinced. Let's put it this way, meeting is fate. As long as you give up your plan to develop in China, I can give you two better options."

"Oh?" Louis von An's eyes sparkled, and he looked at Boss Zhou expectantly, "What is the choice?"

Zhou Buqi said: "First, I can acquire your company. If you don't want to sell your company and still want to stay in the entrepreneurial state, that's also possible. Ziweixing International can make a strategic investment in your company to help you develop."

"really?"

Louis immediately became excited.

He had finally managed to get an opportunity to meet with Boss Zhou. In addition to asking for advice on Duolingo's development strategy in China, there was another important reason, which was the hope to introduce capital to Ziweixing International.

Ziweixing International is an Internet giant with numerous social products. It is an industry giant with the largest traffic in the mobile Internet field.

If we have the opportunity to connect with Ziweixing International and obtain their resources and traffic, the development of many neighboring countries will be unprecedentedly smooth.

Zhou Buqi took the time to meet him, definitely not just to do good things, but also for his own needs. "Either acquisition or strategic investment. You decide which one you want to choose. However, there is a prerequisite, which is to avoid the market in mainland China. I can't just watch you take my money and waste it."

"Even you can't do it?"

Louis was still a little unwilling.

Zhou Buqi said bluntly: "Yes, I can't do it either! As you can see, Ucgram and Snapchat are both the most popular social products in the world. However, both products have avoided the mainland market. I believe you can understand something from my decision."

Louis took a deep breath, "I understand."

Zhou Buqi smiled and said, "Then what do you want to choose? Overall acquisition or strategic investment?"

"Uh..." Louis hesitated and said slowly: "My previous plan was to get an investment... I never thought about the possibility of a comprehensive acquisition. I... I need to discuss with the team. I need time."

Zhou Buqi said generously: "It's okay, you can go back and think about it slowly. Ziweixing International is considering an IPO recently, and there will be no major financial moves. Wait until August or September, and then give an accurate result."

"Ok, no problem!"

Louis still had a few months to think about it, and he felt that Boss Zhou was indeed an accomplished entrepreneur. He did not have an aggressive aura and was willing to consider issues from other people's perspectives.

Zhou Buqi smiled and said, "By the way, I would like to ask you for a favor."

"Just say it!"

Of course, Louis was willing to stand up without hesitation.

Zhou Buqi said, "I have invested in a company called LinkedIn, and I am a director of the company. However, LinkedIn is currently facing similar problems as you. There are a group of people within LinkedIn who want to actively promote LinkedIn's development in China, but I disagree. I hope you can summarize some of the difficulties Duolingo has encountered in its development in China, and then come with me to speak at the next LinkedIn board meeting."

"Okay, I'll go!"

Louis immediately realized that this was not Boss Zhou assigning him extra work.

This is an opportunity for collaboration!

  This is an opportunity for Boss Zhou to take me to the LinkedIn board of directors to showcase myself and the Duolingo product in front of those big shots!

Mr. Zhou is so friendly!

So touching!