Insights: Where the Next Billion Internet Users Will Come From
China's mobile users will have some online company.
SPEAKER 1: Why does it matter to find the next billion users? There's tons of stuff to do in New York, ton of stuff to do in Silicon Valley. America is a great place to invest. We spend time going to Seattle, to LA, to different parts of East Coast. In Silicon Valley, San Francisco alone is booming. However, when you look at those statistics, 10 years ago, when Alibaba first launched Tmall, and first launching e-commerce in a more major fashion, they started a Singles Day promotion on November 11. You're all alone-- in Chinese is double 11-- you don't have any date, you're by yourself, you're kind of a loser, so what do you do? You shop to make yourself feel better. So that's how they started that promotion. $8 million sales happened that day. Quickly, 10 years later, it grew by 4,000x to $31 billion. And Alibaba, obviously as a group, is a half trillion dollar company listed in New York. At the same time, in the US, promotions still grew. You look at Cyber Monday and Black Friday, over that 10-year period, the combined sales also grew 4x. But it wasn't the same. If you look at what was happening in China from an internet space standpoint, user only doubled. Yet the world changed because everybody got used to do things online. We look at users growth internet on a worldwide basis. A lot of growth coming from smartphone. And when you look at where the smartphone users are coming from, three places stand out. Over the next three years, from 2018 to 2021, we're expecting 750 million new net adds of smartphone users. And 2/3 of them are in three places-- India, LatAm, mostly in Brazil, and in Southeast Asia, with Indonesia being the biggest market. And many of these users that are coming online are very young. Almost half of them are under 24 years in age. All of us have kids, many of us have kids. And when I see my daughter and my son, one is 7-years-old, one's 11-years-old, and every single thing they see, they automatically want to touch it and move things. They grew up on iPad. They grew up listening to Spotify. They grew up looking at shows on YouTube. They spend more time on YouTube than all the TV time I ever spent in my life. It's amazing how digitally native the users are, and so they are so used to coming and trying new things.