extremely influential and positive relations with these bodies can help companies remove regulatory red-tape and save time.

Industry veterans with a wealth of market knowledge and experience, help in managing capital, infrastructure, and guide your businesses decisions.

Hiring Local talents and give more freedom for them to adapt the product to suit local needs.

Currently ranked 17th/40 for global innovation index (USA no. 1)

Only 11 companies in China are working with startups, most through corporate venture capital with seven of them,followed by Startup Pro- grams for four of them, and startup competitions for one

3. Inefficiency of State-dominated industries (State-run laggards)

• From teleco to banking to healthcare, are woefully inefficient
• Eg, health industry is antiquated and dysfunctional. Long queues are common at state hospitals and access to drugs is complicated by an opaque system of dispensation.
• Agile newcomers who are customer-centric and deploys latest tech can easily jump ahead of incumbents than counterparts in other developed markets
• counterbalanced by government willingness to support new ventures
• Eg, eventual ban on petrol engines (probably after 2030)

1. Demographics, Physical landscape

• Allows huge scale simply by succeeding at home
• More homogeneous culture & language c/w Europe
• physical Infrastructure is good
  

2. Mindset of Chinese Consumers

• More Venturesome and voracious, eager to embrace new technology despite unfamiliarity due to deprivation of consumer goods and luxuries for many years
• Eg, as car is not a cherished cultural icon as it is in America, locals are not addicted to driving and are open to alt forms of mobility like ride-sharing
• High HP and Broadband internet penetration rates
• Cashless society allows rapid rise of fintech startups (Spending vol 8.6 trn c/w 112b in US)
• Local companies can cause global disruptions with sharing-economy services road-tested in China

Outside factors such as a sharp recession or banking crisis could lead to a panicky venture-capital bust. The rule of law in China remains uncertain.

Many new firms, such as those in online finance and the sharing economy, operate in grey areas that are vulnerable to regulatory whim. Even the popular bike-sharing firms could one day find their business models undermined by arbitrary new rules.

Sell high-quality devices at prices so low as to obliterate margins while profiting from services, content and accessories, is innovating at the top of its market.

Large community:
Mi community is hugely important and is inseparable from this platform approach. Volunteers to create content, serve as good marketing strategy

OS: users could suggest improvements that would be incorporated in weekly updates

Focus

• only smartphones and tablets, TVs and set-top boxes, and routers, rest is produced by independent companies that Mi has invested in
• only make one model of any product, so even with our high R&D costs, our unit cost is much smaller than other people's

within a year, ZMI, the power-bank startup, had become the world's largest

Hardware, in China slow is actually fast. If you take your time to iterate, when it finally explodes on to the market you can meet that demand and scale much faster -- unlike the Kickstarter model, where delays cause the hype to die.

If you're a partner in a big company, it doesn't really matter if the product does well -- your stock options will still be there. But if you're the entrepreneur and your product fails, you're done. So you're much more driven to build an amazing product.

acquiring users with amazing products, keeping them loyal, increasing their engagement and monetising them."

scale:
huge, our cost per unit produced goes down over time.