Byte beat overseas survive: defeat in Indian market and game in America

category:Finance
 Byte beat overseas survive: defeat in Indian market and game in America


Two years ago (Q1, 2018), when tiktok became the worlds number one download app store for the first time, Zhang Yiming, founder of byte skipping, also celebrated this small success in his circle of friends. But now, he seems to be used to the high growth of tiktok.

However, in the global market, the time to capture users can not represent the final victory. Byte hopping is now facing a much more severe test than user growth, that is, how to deal with the relationship with global regulators.

Under the leadership of Zhang Yiming, byte skipping has entered a no mans land. Here, it has no successful mode to apply, and every step forward is full of unknown.

On the evening of June 29, the Indian government suddenly issued an announcement, citing it as damaging Indias sovereignty, national defense, national security and public order. It announced that it would ban the use of 59 Chinese mobile phone applications in India, including tiktok.

As of July 1, tiktok had been removed from the Indian app store, and tiktoks, which have been downloaded to mobile phones, cannot display any video in India.

In just one day, tiktok disappeared from the Indian market. If it had not been in the mobile phones of hundreds of millions of Indian users, it would have never been here.

According to SensorTower data, India tiktok is the largest downloading market in the 2 billion downloads of jitter and TikTok. By the end of April, it had contributed 611 million times to download, accounting for 30.3% of the total downloads.

The Indian market has always been the first choice for Chinese enterprises to go abroad, and byte jitter is no exception. In April 2019, byte hop announced that it would invest US $1 billion in the Indian market in the next three years. In fact, in the past few years, byte hop has invested more than $1 billion in India.

In addition to tiktok, the byte skipping products on the banned list include social media platform helo and another short video platform, vigovideo. According to a person close to byte skipping, almost all of its products have been destroyed in the Indian market, resulting in losses of more than $6 billion, which is likely to exceed the total losses of all other banned companies.

In fact, in the process of running the Indian market, byte hopping has been trying to make itself more like a local company. At present, byte skipping employs more than 2000 local full-time employees in India. In terms of data privacy, byte hop has always stored Indian users data in the United States and Singapore in order to comply with local legal requirements. In July last year, byte hop announced that it would establish a data center in India to store Indian user data locally.

A senior person who has been deeply engaged in Internet service for many years told the reporter that in the process of going out to sea, Chinese enterprises will mainly face risks from policies, laws and regulations, intellectual property rights, data privacy, localization, etc., among which the policy risk is often the most lethal.

In particular, such a completely non-negotiable ban like the Indian government will cast a shadow on Chinese enterprises that have sailed here. Even if it can be unsealed in the future, it may be a question mark whether Chinese enterprises are willing to continue to invest more energy in the Indian market.

Game America

Compared with being helpless in the face of the Indian government, tiktoks regulatory problems in the United States appear to be much more moderate.

The United States is tiktoks second largest overseas market. By the end of April, the U.S. market had contributed 165 million downloads, accounting for 8.2% of the total downloads.

Enter the American market, byte beat to take a clever. In November 2017, byte beat purchased $1 billion Musical.ly After the acquisition, Musical.ly It was officially renamed in August 2018 and merged with tiktok.

Musical.ly It officially appeared in the North American market in 2014. Only one year after it was launched, it reached the top of the US app store list. When acquired by byte skipping, Musical.ly The number of daily active users in the world exceeds 20 million, including more than 6 million active users in North America.

Through backdoor, tiktok successfully landed in the US market, which is no wonder that Zhang Yiming is purchasing Musical.ly Later, he said that this is an exciting step in the globalization strategy of byte beating.

When expanding overseas markets, byte beat has always followed the ROI method, that is, make a large amount of brand, purchase volume, and quickly accumulate users. According to a previous media report, tiktok spent nearly $1 billion on publicity in 2018.

Although a person in charge of an enterprise once told reporters that in the long run, the user retention rate of this ROI method is not ideal, but looking back on the development of tiktok and the rapid accumulation of early users, it has played a crucial role in its penetration into the market.

However, after winning the favor of the majority of American teenagers, the game with the U.S. regulators has become the most troublesome thing for byte skipping. At present, the U.S. regulatory problems faced by byte skipping mainly come from two aspects

One is the problem of user data collection in the US market. In December 2019, byte skipping was prosecuted for alleged violations of the child Privacy Act (Coppa) by tiktok. In October of the same year, the US Senate also asked the US Foreign Investment Commission (CFIUS) to start the acquisition of byte jitter Musical.ly The survey.

It is understood that Coppa requires any app to obtain parental consent for children under the age of 13 before collecting personal information. At the beginning of 2019, the Federal Trade Commission (FTC) of the U.S Musical.ly In violation of Coppa, reach a settlement at the cost of Musical.ly It paid $5.7 million.

However, FTC Musical.ly The survey started in 2016, and the acquisition of byte skipping was in 2017, so the settlement in early 2019 is that byte skipping is solving the problems left over by history. But in the prosecution at the end of 2019, tiktok was directly targeted.

In addition, U.S. regulators are also investigating whether tiktok poses a security risk to the United States, mainly due to data privacy issues. In 2019, tiktok was sued in California for transferring U.S. personal identity information to Chinese servers.

So far, the U.S. Navy and the U.S. Army have banned the use of tiktok in government issued equipment. Meanwhile, the U.S. Senate has proposed a law prohibiting all federal employees from using or downloading tiktok.

In this regard, tiktok has also been trying to prove itself to US regulators.

A head of tiktoks U.S. market has said that tiktok is building a U.S. - based leadership team and a U.S. - based content review team. He also stressed that tiktok stores all U.S. user data in the United States, while backup redundancy is stored in Singapore, and tiktoks data center is entirely outside China.

In March, tiktok announced that it would open a transparency center in Los Angeles to let the U.S. government understand tiktok more deeply. According to the plan, the center will initially focus on content review, and then gradually expand to tiktoks presentation on data privacy and security.

Overseas survival

In addition to the Indian and US markets, the European Data Protection Commission announced in June this year the formation of a working group to examine the privacy and security of tiktok users. In the face of scrutiny from global regulators, byte skippings strategy is to make tiktok go to China.

On May 19, byte beat appointed Kevin Mayer, former Disney senior vice president, as coo and Global CEO of tiktok.

Prior to Kevin Mayer, former Warner Music Group Executive OLE obermann, former Google veteran theobertram, former Microsoft chief intellectual property consultant Erich Andersen, former Hulu executive Nick tran, former MasterCard executive Rohan Mishra, and former Sony assistant vice president chhandita Nambiar all joined the byte jump.

Such intensive recruitment of many industry executives is an important measure to strengthen the overseas team. Among them, the addition of Kevin Mayer is very important for byte skipping.

Kevin Mayer has worked at Disney for many years. He was a senior executive vice president and Chief Strategic Officer of the company. He was responsible for corporate strategy, business development and other departments, and promoted Disneys acquisition of Pixar Animation (US $7.4 billion), marvel (US $4.24 billion), Lucas films (US $4.05 billion) and 21st century fox (US $71.3 billion).

Some media comments said that with the addition of Kevin Mayer, byte beat has the image of an American commercial organization, and greatly improved its lobbying level in front of the US regulatory agencies.

On June 10, Kevin Mayer, who had just assumed the post of Global CEO of tiktok for less than 10 days, began his global journey. According to byte skipping, Kevin Mayer met with Thierry Breton, the EU Commissioner, on the same day, and the two sides discussed how to solve the problem of false information on social platforms.

At the same time, with the promotion of Kevin Mayer, tiktok also signed the EU Code of conduct against false information. It is reported that the code was released in 2018, and the main content is to require internet companies to take measures to deal with online false information. Facebook, Google, Microsoft and other companies have signed the code before.

At the same time, byte skipping is accelerating the construction of overseas offices.

In May this year, byte beat announced that tiktoks European business center will be set up in London, UK, which has become tiktoks second largest office area after Los Angeles office in the United States.

In June, byte beat opened its first office in Australia, with former Google executive Lee Hunter as general manager of tiktok in Australia, and Brett Armstrong, a former Google executive, will join tiktok as general manager of global commercial solutions for tiktok in Australia.

In September 2016, the voice was on the line, and only a year later (August 2017), the byte beat was tiktok TikTok. At that time, the user scale of the jitter has not yet erupted. The release of TikTok can show that the byte beating is urgent for the tiktok.

Zhang Yiming once disclosed that in 2012, when byte hop started its business, it had already begun to discuss globalization internally, and the real start of global layout started in 2015.

However, some of these products have been abandoned by byte skipping, such as topbuzz, which announced its closure in June this year after byte skipping failed to sell.

In 2018, Zhang Yiming set a goal of globalization in three years, that is, more than half of the users come from overseas. If it wasnt for the rise of tiktok, it would have been hard to achieve that goal.

In March this year, on the occasion of the 8th anniversary of the founding of byte hop, Zhang Yiming announced that the business of byte hop in China would be managed by Zhang Lidong and Zhang Nan. As the Global CEO of byte hop, he would spend more time and energy in Europe, America and other markets.

Through such adjustment, Zhang Yiming expressed his determination to global business. Zhang Yiming said that studying how to better improve the management of super large global enterprises will be one of his next priorities.

It is not easy to manage a company with more than 60000 employees in more than 180 cities in 30 countries. So next, hell try to travel all over the next three years to get to know the company and learn about the local culture. Our goal is not only to build a global business, but also to build a global, multi-faceted and compatible organization. Zhang Yiming said.

On January 1, 2019, Zhang Yiming posted a dynamic on the micro headline, with only four words one revolution and nine pictures. These nine pictures show the advertisements of tiktok at the new years Eve party around the world, which is also a highlight moment on the road of tiktoks development.

At present, how tiktok can survive the survival crisis caused by global regulation is the primary problem that Zhang Yiming needs to solve. Compared with it, the attack from other giants at home and abroad in business seems to be much simpler.