Prior to G20 Summit, Tencent’s SY Lau Lays out Challenges Businesses Face In the Digital Age

In his keynote address to the Brisbane Global Cafe, SY Lau highlights the importance of technology on China’s economy , creating a “New Normal”

BRISBANE, Australia, Nov. 13, 2014 /PRNewswire/ — SY Lau, Senior Executive Vice President of Tencent and President of its Online Media Group, today spelled out the massive changes technology is creating for the Chinese economy and its implications for economies around the globe. He was speaking at the Brisbane Global Cafe, a virtual gathering of global thought leaders held prior to the G20 Leaders Summit to explore how to power the future economy, to develop cities that meet people’s needs and to unlock new opportunities created by the digital age.

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Tencent is a leading provider of comprehensive Internet services in China. It provides users with a wide range of services including communication, entertainment, information, and eCommerce.

A key theme in SY Lau’s address was "Digital Darwinism", an expression that describes how the law of Darwinism applying to the new digital world. Because of the rapid development in the connected digital world, even companies with new business models can be threatened by the digital disruption itself. SY Lau said that Tencent is poised to be a survivor because it strives to observe and understand the changes and embraces the technological development. Tencent learns and adjusts its direction to go with the flow, and eventually  the company can navigate through the ups and downs in this fast-moving digital world. "It is our firm belief that this is the only possible way to survive despite the storms of disruptions," he said.

China is now facing a "New Normal", SY Lau said, as the model with higher efficiency, lower costs, and sustainability gives the Chinese economy greater resiliency. The Internet is a key component of the "New Normal". Its importance lies in its ability to reshape the consumer experience, the way companies do business, and the national economy as geographical limitations disappear.

"The Internet provides not only a new way of thinking and doing, but a feasible  way support China’s economic goals," SY Lau said.

Another phenomenon facing China and countries around the world, SY Lau said, is the emergence of "Internet thinking." Traditional businesses that have experienced huge changes due to the rise of the Internet are now reevaluating their business models and embracing opportunities brought by the new economy.

Industries especially the service sector are benefiting from the Internet as it offers a direct person-to-person, real-time, on-demand method of communication and eCommerce, enhancing matching of supply and demand throughout China. This model has already created tremendous changes in developed countries, and China has quickly caught up as eCommerce thrives in both large and small cities, with no geographical limitations.

The Internet has reached a high saturation point in China’s major cities, SY Lau noted, but in rural areas there is huge potential for growth, especially now, in the age of the mobile Internet.

SY Lau concluded by illustrating how the Internet has added more vitality to China’s national economy, and that of other countries around the world.

As an example he pointed to China’s taxi business, which traditionally faced too much demand and not enough supply. Real-time car-booking apps have greatly alleviated this problem, and have been enjoying increasing popularity among Chinese users.

In his closing remarks, SY Lau said, "I am proud to say that I am part of an industry that has facilitated the transformation of people’s lives. Very real financial gains are being made via the tools of the computer and the mobile phone. Achieving higher efficiencies, lower costs, a healthier and more sustainable future for everyone – what better goal could we dedicate ourselves to?"

About Tencent

Tencent uses technology to enrich the lives of Internet users. Every day, hundreds of millions of people communicate, share experiences, consume information, seek entertainment, and shop online through our integrated platforms. Our diversified services include QQ, Weixin and WeChat for communications; Qzone for social networking; QQ Game Platform for online games; for information; as well as our eCommerce services.

Our company was founded in Shenzhen in 1998 and went public on the Main Board of the Hong Kong Stock Exchange in 2004. The Company has been one of the 50 constituent stocks of the Hang Seng Index since June 10, 2008, under stock code 00700. We seek to evolve with the Internet by investing in innovation, providing a hospitable environment for our partners, and staying close to our users.

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