Investing In China: Opportunities Ahead (w/ Mark Yusko) | Skin in the Game | Real Vision™

TL;DR

Chinese telemedicine company Ping On Good Doctor experienced significant growth in revenue and user sign-ups, resulting in a $5 billion market cap. Fruit Day, a company addressing food safety concerns, generated $60 million in revenue within a year. Kascend, a Chinese online gaming platform, has more daily active users than Twitch and was acquired by Google for $300 million.

Transcript

So four years ago, there was a problem in China. If you wanted to see a doctor, it would take you six hours, two hours to travel, four hours to wait for the doctor. And they said, we could do a lot of stuff by telemedicine. Right? Do I actually need to see a doctor if you have a rash or your child has an ear infection? You just get the antibiotic. ... Read More

Key Insights

• ❓ The success of Ping On Good Doctor demonstrates the potential of telemedicine in providing convenient healthcare solutions.
• 😋 Fruit Day's growth reflects the increasing importance consumers in China place on food safety and the willingness to pay a premium for quality produce.
• ❓ Kascend's popularity and Google's acquisition highlight the immense growth opportunities in the Chinese online gaming industry.
• 🧑‍💻 Chinese companies are experiencing rapid growth and attracting investments from global tech giants like Google.
• 👨‍💼 Expanding markets and changing consumer preferences in China present numerous business opportunities, and companies are capitalizing on them.
• 😋 The Chinese healthcare and food industries are evolving to meet the demands of a growing middle class and increased awareness of health and safety concerns.
• 🪛 Innovation and technological advancements are major driving forces behind the success of Chinese companies.

Questions & Answers

Q: How did Ping On Good Doctor achieve such rapid growth in revenue and user sign-ups?

Ping On Good Doctor's success can be attributed to its telemedicine services and partnership with Ping On, the largest insurance company in the world. Offering online consultations and allowing healthcare workers to work part-time contributed to its growth.

Q: What was the motivation behind the founding of Fruit Day?

Fruit Day was established as a response to food safety concerns in China. As people became wealthier, they sought fruit produced outside China to avoid contamination. Fruit Day capitalized on this demand by delivering fresh fruit from countries like Malaysia, Thailand, and Japan.

Q: How did Kascend become a major player in the online gaming market?

Kascend gained traction by targeting the rising popularity of esports. The company's platform attracted gamers and enabled streamers to monetize their content through teaching and receiving virtual currencies. With double the daily active users compared to Twitch, Kascend attracted a substantial valuation and caught Google's attention.

Q: Why did Google acquire Kascend?

Google acquired Kascend for $300 million due to its potential for growth and its already established user base. With Chinese regulations and the high competition for IPOs, Google saw the acquisition as a strategic move to enter the lucrative Chinese online gaming market.

Summary & Key Takeaways

• Ping On Good Doctor, a Chinese telemedicine company, grew from nothing to $250 million in revenue and gained 350 million users within four years.

• Fruit Day, a Chinese company that delivers fresh fruit from other countries, recorded $60 million in revenue after its first year.

• Kascend, a Chinese online gaming platform, has more daily active users than Twitch and was acquired by Google for $300 million.