【正文】 act Longshine。 Global eForce。 eBIS。 Modern Computer。 Huateng Software AGENDA Executive Summary Call Center Business ? Market Overview ? CC Customer Segmentation Inhouse users Outsourcers ? Demand ? Customer ? Economics ? Competition ? Remendations Success business model Partnering strategy ECommerce Market Overview TCI Tianjin ? Current Situation Analysis ? Remendations CC MERELY A BUSINESS PRACTICE BEFORE 1997 High tele charge Low phone peration Weak service attitude Widespread industry monopoly Commercial CC less than 10,000 seats in 1997(2) Phone call charge (cents per minute) 1171 1Long dis t a nc eL o c a lChina US Phone peration (%) 6 . 6 %6 4 . 9 %7 8 . 3 % 8 5 . 0 %C h i n a G e r m a n y J a p a n US of phones(1) (million) 1997 82 53 99 229 Automotive Example: Expert Survey 1997 Price 50%36%26%38% 13%14%13%10%C a r sT r u c k sCompetition focus (%) (1) Fixed line + mobile (2) Excluding about 50,000 seats in paging pany Source: World Development Report 1999/2023。 China Auto Market 1997。 Jarding Fleming Research。 interviews Quality Service Style National monopoly ? Banking ? Tele ? Insurance ? Utilitity Regional protected ? Steel ? Auto ? Petrochemical ? Tobacco ? ... Monopolized industry estimated 55% of industrial output Higher tele peration COMMERCIAL CC TOOK OFF SINCE 1998 Especially in NonPaging Service Sector 1 . 0 % 2 . 5 %3 . 5 %6 . 1 %5 . 6 %8 . 8 %1 1 . 3 %1 4 . 5 %1997 1998 1999 2023Peration (%) Year CAGR 1022541998 1999 2023Fixed line Mobile 37% 83% Nonpaging CC seats (?000) Year CAGR = 129% Intensified petition 9192951241161081001996 1997 1998 1999? Most industries capacity over production ? Declining retail prices Year GDP index Retail price index Index Growing awareness of technology 2 . 491 9 . 84322181998 1999 2023Inter users (mio) ECommerce revenue (US$M) Gradually reduced tele fee Source: Jarding Fleming Research。 China Statistics Yearbook。 interviews。 OECD。 China Tele 1995 1996 1997 1998 1999 2023 2023Long distance (RMB/min) () () () () 800 km 800 km CC INDUSTRY WILL REACH 330370 K SEATS IN 2023 Illustration ? Identify major driving factors to CC adoption market petition and service awareness tele charges and phone peration ? Quantify relationships between drivers and CC adoption here we used US benchmark ? Project CC development by forecasting development of drivers ? Project CC peration in major user?s industries banking, tele, insurance … ? Add up numbers of each industry to give a CC market overview ? Interview industry experts or knowledgeable industry practitioners for their opinion of CC market growth system integrators and experts 2023 projection(1) (?000 seats) 158 132 145 2023 projection(1) (?000 seats) 368 337 . Driving factor analysis Bottomup analysis Experts opinions (1) Without paging pany TOPDOWN APPROACH REVEALS A PROMISING END GAME Phone line per 1000 people CC agents per 1000 people US benchmark Y = + Deflated tele fee index Phone line per 1000 people China phone line 10215074158368Year Nonpaging CC seats (?000) Source: US Telephone Statistics。 Datamonitor。 MII data。 China Statistics Yearbook 1998 99 2023 01 04 10 REDUCING TELECOM CHARGES WILL BOOST FIXEDLINE ADOPTION Backup Competition pushes further tele reduction Most alternatives at least 50% cheaper ? IP, inter phone call, “call back” services … Ministry determined to further reduce tele charges ? “Current tele charge still does not reach its optimum stage yet” Minister of MII Tele reduction projection Phone peration per 1000 Deflated price index(1) 11 131622324763881131451611791982203001991 1992 1993 1994 1995 1996 1997 1998 1999 2023 2023 2023 2023 2023 2023Phone line per 1000 people Year (1) Price deflated by GDP index Source: China Tele Charges Policy Book。 BCG analysis TELECOM IS THE MOST SIGNIFICANT CC USER NOW Bottomup Analysis Industry Tele Mobile Banking Insurance Post service Manufacturing Computer Airline Security Courier Home appliance TV selling Others Overall Projected seats CAGR 2023 25,000 7,667 4,545 2,000 1,600 1,501 800 594 257 240 240 300 6,675 51,419 2023 35,714 22,857 11,100 3,760 6,000 7,519 5,250 4,100 4,158 1,000 2,460 1,000 26,669 131,588 2023 41,667 50,000 47,000 9,850 20,833 25,184 14,000 9,600 32,600 3,333 8,800 2,000 71,965 336,832 202304 9% 31 % 25 % 17 % 39 % 50 % 60 % 62 % 101 % 43 % 79 % 35 % 41 % 26 % 202310 3% 14 % 27 % 17 % 23 % 22 % 18 % 15 % 41 % 22 % 24 % 12 % 18 % 17 % Source: interviews。 online research。 experts opinions。 BCG analysis EXPERT OPINIONS REVEAL A MARKET OF 145,000 IN 2023 “ Fast development is expected to continue in the next five years. I believe that call centers seats will grow at 30% a year for the next five years (which means 145,000 in 2023)” Director, CTI Forum “Compared to 1999, in 2023 call center seats increased by 142%, or 16,000 seats” China Computer News “In the next three years, we project that call center seats will double. It?s our conservative estimate.” Manager of Business Development Dept, Huawei Source: BCG interviews AGENDA Executive Summary Call Center Business ? Market Overview ? CC Customer Segmentation