Chinese companies dominate Deloitte's Technology Fast 500 list for APAC

06 December 2018 Consultancy.asia

Deloitte has released its Technology Fast 500 rankings for the Asia Pacific region, with Chinese open platform real estate unicorn Ke.com claiming the top spot after notching growth in excess of 30,000 percent over the past three years.

Ranking the fastest growing regionally-based companies in the software, hardware, clean tech, media, communications and life sciences segments, the annual Asia Pacific Technology Fast 500 list compiled by Big Four professional services firm Deloitte (which, incidentally, recorded its own 13.3 percent growth in the region for its past financial year), has this year seen real estate platform provider Ke.com come out on top.

Ke.com, developed by leading Chinese real estate brokerage Homelink, is an online real estate platform for new, second-hand and rental property listings utilising a range of innovative 4.0 technology enhancements such as virtual reality to provide browsers with interactive 3D viewings of available properties. Having gained unicorn status (start-ups valued at a worth of above $1 billion), Ke.com has recorded staggering 32,179 percent growth over the past three years.

“We are honored to be recognised by Deloitte's Technology Fast 500 Asia Pacific," said Ke.com CEO Stanley Peng on the announcement. “Our success lies in BeiKe, a platform that connects consumers and businesses, with a property transaction gene. BeiKe is an industry infrastructure that has facilitated an ecosystem for diverse real estate brands, stores and agents, bringing together and empowering agencies of the property market, with similar value and goals.”

Chinese companies dominate Deloitte Technology Fast 500 list for APAC

For the remainder of the list it was a familiar story, with Chinese firms dominating the pointy end with seven entries inside the top ten and a clean-sweep of the top five – mirroring the recent release of fellow Big Four firm KPMG’s annual global Fintech 100 rankings for 2018, of which Chinese firms claimed three of the top five spots and six of the first dozen. Depending on the source, China is now home to 160-plus unicorns, the majority in the tech domain and founded in just the past six years.

Following Ke.com in the top five on the Technology 500 rankings, which assesses percentage fiscal year revenue growth over three years, were (by product name) IBUYCHEM.com in the media category (with growth of 24,702%), Weshare Financial (software – 24,564%), Sinotex.com (Media – 23,646%) and Quwan Network Technology in the communications category with growth of 16,895 percent.

Altogether, the average revenue growth for the top-ten ranking companies, which further included two entries from India (MogIi Labs and Razorpay in 6th and 7th) and one from New Zealand (HDT – 10th), was pegged at 17,314 percent – the highest ever recorded average in the 17 years of the rankings. The average growth for the overall list was also the highest ever achieved, clocking in at 987 percent across the 500 listed companies.

Breakdown

As a country breakdown, companies from China accounted for nearly 30 percent of the fast-growing 500, while Taiwan contributed 91 companies to the list and Australia 71, both down from previous years. A further 44 were from South Korea. Meanwhile, as to categories, Software continues to dominate the list with 190 entries operating in the sector (including five of the top ten), followed by those in the Media (170) and Hardware brackets.

“This year brings an interesting and diverse selection of B2B e-commerce, including real-estate, chemicals, textiles, industrial supplies and fintech companies,” said Deloitte partner and APAC and Japan Technology, Media, and Telecom practice leader Toshifumi Kusunoki. “We are witnessing a rapid transition from legacy business models to online platforms among B2B ecosystems and China is at the forefront of this growth.”

Beijing and Tokyo emerge as serious tech hub rivals to Silicon Valley

12 April 2019 Consultancy.asia

As Silicon Valley struggles with a number of institutional issues, the location of the world’s top tech-hub may ultimately change – with Beijing and Tokyo emerging as serious contenders according to a survey conducted by KPMG.

Now into its seventh edition, KPMG’s Technology Industry Innovation Survey quizzed over 700 global tech executives on their thoughts on the future industry landscape – revealing that for the first time more than half of the respondents (58 percent) believe Silicon Valley will no longer be the technology innovation center of the world in just four years from now, with Beijing and Tokyo seen as two possible usurpers.

“Many factors affect a city’s perception as an innovation hub, including favorable government policies and incentives, accelerators, tech parks, corporate investment, state-of-the-art infrastructure and, in all cases, at least a few highly successful and wildly popular success stories,” said Peter Laco, an Executive Director at KPMG in Slovakia, of the previous survey.Top contenders for the next world-leading technology innovation hubWhile New York remains the most touted hot-spot among respondents, Beijing and Tokyo landed in the second and third spots as likely contenders for the global tech-hub crown, with seven Asian cities featuring among the top dozen; Shanghai (in equal 5th, but overtaken by Beijing), Taipei (in joint-5th as a notable riser), Singapore and Seoul (at 7th and 8th) and Hong Kong, which rounded out the top dozen. Shenzhen, meanwhile, has dropped outside the top 20.

With access to talent and quality infrastructure remaining key attributes for a successful hub, the report states that, despite all the positive business factors present in Silicon Valley, “an escalating cost of living, questions about diversity and corporate cultures, high business taxes, an overmatched infrastructure, and even increasing scrutiny into data privacy and other business practices are contributing to the perception that Silicon Valley may not continue to dominate.”

Still, the US (which also featured seven cities among the top 20) as a whole is still considered the country expected to produce the most disruptive technologies in the coming years, maintaining its top spot ahead of China despite a narrowing of the gap by two percentage points on last year (to 23 percent against 17 percent). The UK meanwhile has gained some separation on Japan in fourth, while Singapore, South Korea and India appear among the top ten.Countries that show the most promise for disruptive technologyTo gain further insight into the likelihood of a burgeoning tech-hub reaching the peak of the global pecking order, KPMG analysed the results of the survey against a range of other city indices, including A.T. Kearney’s 2018 Global Cities report and Mercer’s Quality of Living rankings – identifying Singapore as the most consistent Asia Pacific performer across the board, with Tokyo, Seoul, and Hong Kong lagging in a variety of areas.

“The belief that Silicon Valley will be displaced as the leading hub underscores the continuing decentralisation of technology innovation, spurred by investment in other cities and regions globally, as well as contributing factors in Silicon Valley,” says Tim Zanni, KPMG’s global technology sector leader. “Even when faced with pressing issues that call for funding, cities and countries are carving out significant investment to become a technology innovation hub due to an expected broad economic impact.”