Southeast Asian companies are copying business models proven to work in China. A decade ago Chinese companies had success with “Copying to China” what worked elsewhere. Now others have success with “Copy From China”. Chinese companies adopted the business models of established US technology and internet companies.
They are replicating
Tencent Holdings’ WeChat super-app model,
Alibaba’s Taobao e-commerce model and
Alipay’s innovation of escrow payments for e-commerce transactions among others.
Mobile-first business model were first pioneered in China. Mobile-first is becoming popular in Southeast Asia. Southeast Asia is at a similar stage of internet connectivity as China was a decade ago. Both regions have high mobile penetration rates.
Singapore-based mobile classifieds platform Carousell pioneered the “snap, list, sell” model to sell second-hand items, earlier this year launched CarouPay, a payment system within its app that serves as an escrow service. If a buyer makes payment through CarouPay, the funds are held by the third party until the buyer has received the item, whereupon payment is then released to the seller.
This model is similar to the strategy that Alibaba took with building its e-commerce empire, where it launched Alipay as a payment and escrow service to improve trust between buyers and sellers on its Taobao e-commerce platform. Alipay’s escrow service is widely credited with increasing the popularity of the Chinese e-commerce platform as it created greater confidence between buyers and sellers in China’s generally low-trust society.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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Won’t work for them.Different world.1) The Cold War World Order established and maintained by the United States that allowed that model to work is rapidly being dismantled.2) In the new global automated economy, the wiers will be those with the best robots who can serveall their domestic needs, not countries who can develop a marketable specialism in exporting goods.And even if they did specialize, they would still have to move production as close as possible to thetarget market, ideally co-locate it there.So, worldwide international trade of manufactured products characterized by deep and long supply chain networks will shrivel up. This means nations that overly depend upon exports right now for their economies are in for a rougher time in adjustment than those who have net deficits of goods like the US does. (There is no real trade deficit for the US, btw. Every $1 that is spent on stuff imported in is balanced by the sale of investment vehicles paid by money coming back in. In fact, there is a net surplus when you look at it this way.)The only thing the robo ships will be shipping will be refined raw materials mostly.
They are basically creating their own versions of paypal and Amazon”That’s a good start. But it isn’t the Chinese Model being referred to when talking about emulating China’s path to development.
They are basically creating their own versions of paypal and AmazonSo every time they make a sale or purchase they don’t have to give greedy multinationals $1 in service fees These companies are basically parasites and they amount of money they collect in service fees far exceeds the amount of effort required to create a website or service like amazon and paypal Amazon and Paypal make money by taking a small percentage of every transaction You don’t need to be a genius either, so they can definitely do it
Won’t work for them.Different world.1) The Cold War World Order established and maintained by the United States that allowed that model to work is rapidly being dismantled.2) In the new global automated economy, the wiers will be those with the best robots who can serveall their domestic needs, not countries who can develop a marketable specialism in exporting goods.And even if they did specialize, they would still have to move production as close as possible to thetarget market, ideally co-locate it there.So, worldwide international trade of manufactured products characterized by deep and long supply chain networks will shrivel up. This means nations that overly depend upon exports right now for their economies are in for a rougher time in adjustment than those who have net deficits of goods like the US does. (There is no real trade deficit for the US, btw. Every $1 that is spent on stuff imported in is balanced by the sale of investment vehicles paid by money coming back in. In fact, there is a net surplus when you look at it this way.)The only thing the robo ships will be shipping will be refined raw materials mostly.
“They are basically creating their own versions of paypal and Amazon”
That’s a good start. But it isn’t the Chinese Model being referred to when talking about emulating China’s path to development.
They are basically creating their own versions of paypal and Amazon
So every time they make a sale or purchase they don’t have to give greedy multinationals $1 in service fees
These companies are basically parasites and they amount of money they collect in service fees far exceeds the amount of effort required to create a website or service like amazon and paypal
Amazon and Paypal make money by taking a small percentage of every transaction
You don’t need to be a genius either, so they can definitely do it
Won’t work for them.
Different world.
1) The Cold War World Order established and maintained by the United States that allowed that model to work is rapidly being dismantled.
2) In the new global automated economy, the winners will be those with the best robots who can serve
all their domestic needs, not countries who can develop a marketable specialism in exporting goods.
And even if they did specialize, they would still have to move production as close as possible to the
target market, ideally co-locate it there.
So, worldwide international trade of manufactured products characterized by deep and long supply chain networks will shrivel up. This means nations that overly depend upon exports right now for their economies are in for a rougher time in adjustment than those who have net deficits of goods like the US does. (There is no real trade deficit for the US, btw. Every $1 that is spent on stuff imported in is balanced by the sale of investment vehicles paid by money coming back in. In fact, there is a net surplus when you look at it this way.)
The only thing the robo ships will be shipping will be refined raw materials mostly.