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Opening Asian Web:
What’s Happening in China
    Dr. Gang LU – http://www.gang.lu | twitter.com/ganglu
    Co-founder of MOBINODE Networks & KUUKIE.com
    Co-founder of OpenWeb.Asia Workgroup
MOBINODE Networks
                                     ReadWriteWeb
                             TechCrunch
                           Blogger
                                                    KUUKIE.com
         3G Application
                                     Widget                  Evangelist
        JBoss
                          Universal Widget API          China/Asia Web
Ad hoc Networks Netvibes                            OpenWeb.Asia

 2002                                                                Now

                                       bio: http://www.gang.lu
What is Open Web
   OpenSocial, F8
      Open Standard
                        Open Platform
   Facebook, Renren
     DataPortability
    Open Data


             Open                      Open
          Communications
          Collaboration

                          Open Web


   Open Web is not only about Open technology, but also
   the Open communications and collaboration
Why Open Web Asia

   In US/Europe
   
   Becoming an International company is relatively Easier
   
   Language is Not huge barrier, e.g. Le Web conference


   In Asia
   
   Hardly find a cross-country web company or service
   
   It is very interesting that Asia local industry, especially
       China, Korea, Japan, seldom or never talked to its
       neighbors despite the culture is similar.
What Open Web Asia

   Asia has learned a lot from US/EU;


   However, how much we know about us: China now has
   No.1 market with around 380+million Internet users;
   mobile market is huge and much advanced in Japan;
   Korea leading the online gaming industry. What else?
   How about Malaysia, Singapore, etc?

   How much does the global industry know about Asia?
   Where are the startups, what are they doing? How’s the
   big names such as Mixi, Naver, Tencent, Baidu etc? In
   fact, we are still lacking of Channels bridging the west
   and the east.
The Mission of OpenWebAsia

   Builds an efficient channel connecting the western and
   the eastern web


   Builds an ecosystem, recognized the great startups,
   companies, individuals from Asia and bring them to
   the greater stage


   Improving the communications in the Asian local
   markets.
Unite the Local Communities



                E27 (sg)                Bangke (cn)

                                             Lunch 2.0 (cn)
                       5G Group (cn)
      iDrink (is)
                                                      TokyoWeb2.0 (jp)
                                 Barcamp
        NTalks (cn)                                      PunchParty (tw)
                            WebWednesday (hk)

    Entrepreneurs.my (my)             SGEntreprenuers (sg)

              Mobile 2.0 Forum (cn)         China Wall Club (cn)

       OWA Union: Unite the Local Communities
OWA & Local Communities

   OWA could be the Hub which can help you talk to the
   local active communities and reach local markets


   OWA together with local communities can make a
   greater impact on the global market


   Local communities together can reach the potential
   sponsors and international contributors to help the
   local communities, identify and incubate international
   business opportunities
The Ecosystem
                                                                              TechCrunch

                                                                                LIFT
                     OWA                     OpenWebAsia
              & Local Communities             Conference
Individuals                                                                     DLD

                                                                               Le Web
         Angel Fund
                         Venture Capital


               Talk to Asia, Identify the Best, Introduce them to the World
It is a Open Concept
        join us: contact@openweb.asia
What’s happening in China Web
China as an Example
Statistics

   420 million Internet users by June,
   2010; 176 million users are using
   online social networks (end of
   2009);

   142 million users are shopping
   online by June, 2010 (via CNNIC);
   Chinese e-commerce transaction
   volume in Q1 2010 has hit rmb
   1015.27 billion (~$150billion) via
   iResearch;

   The Internet penetration has
   reached only around 31.8%;
The Key Players
   Portal


e-commerce



   search                game




Social networks


   web2.o
Tencent
    
     by end of 2008, 891.9 millions
          registered user accounts, 376.6
          millions active user accounts;
          31.4 millions Fee-based Internet
          value-added services registered
          subscriptions; 14.7 millions fee-
          based mobile and
          telecommunications value-
          added services registered
          subscriptions.


    
     Tencent, owner of QQ has RMB
          7.15billion revenue, its gross
          profit reached RMB 4.98billion.
  QQ.com


   QQ Instant Messenger


   QZone SNS bigger than
    Facebook?!


   QQ Game – Virtual Currency


   QQ Online payment


   QQ Pinyin Input


   QQ Paipai auction site
Alibaba Kingdom




             2008, Taobao took 84.1%
          C2C market share, Paipai of
          Tencent took 8.3%, EachNet
          took 6.2%.
Internet is Culture
To Be or Not To Be: Copy-to-China Model

               
   YouTube - Youku, Tudou, Ku6, 56 etc

               
   Facebook - Renren, Hainei, Xiaoyou,
                   Tongxue, Kaixin001 etc

               
   Twitter - Fanfou, Jiwai, Zuosa, Digu,
                   Sina, QQ etc

               
   Linkedin - Wealink, Tianji, Ushi, etc



               Localization is the KEY!
Microblogging

   Twitter is dying in China,            Celebrities   Grassroot
    together with its first
    round of copies;

   Microblogging is growing
    super fast as Chinese
    portals entered the
    market

   Marketing strategy is the
    KEY: Entertainment-
    centric, instead of
    information-centric
                   http://t.sina.com.cn
Groupon & Foursquare

     400+ Groupon clones already in
      China, some are startups, and
      some are launched by big names
      including Taobao, Renren etc


     Although everyone knows the
      competition is getting very tough,
      VCs are still throwing money in


     Location-based Service attracts
      many eyeballs as everyone is
      thinking of the new opportunities
      in 3G (e.g. K.ai, Jiepang, etc)
Old Style Web– Bulletin Board System

                                       
     Bulletin Board System (BBS) - In
                                             China the registered BBS users have
                                             reached 3000+ millions; ~80% of
                                             Chinese sites are running their own
                                             BBS and the total daily page view is
                                             over 1600 millions and 10 millions
                                             posts are published every day. In
                                             China around 36.3% users spend 1-3
                                             hours on BBS, about 44.7% users
                                             spend 3-8 hours and even 15.1%
                                             users are on BBS for more than 8
                                             hours a day. Over 60% of users will
                                             login at least 3 BBS more than 3
  by iResearch & Comsenz report 2008         times each every week.
Liba.com
                                           
   Liba started as a
                                               BBS focusing on
                                               home decoration/
                                               home improvement
                                               market;

                                           
   Now it provides a
                                               life-long service to
                                               its users.



Home Decoration -> Wedding -> Mum&Baby -> Car Decoration
TG.com.cn
Opening Asian Web: What is Happening in China
Chinese Mobile Market:
Massive with Huge Potential
Chinese Mobile Market
Mobile Market Overview
•    786 million mobile subscribers by end of April 2010;

•    Total revenue of telecommunication market (Jan –
     April 2010) rmb 967.38 billion

•    >276 million mobile subscribers are surfing Internet
     on mobile phone;

•    By end of 2009, a year after 3G started operation in
     China, the 3G users reach 10 million;

•    By end of 2010, the number of mobile internet users
     is expected to reach 300 million.
Characteristics of Mobile Users
                    Who are actually paying for
                      the services:
                       
   Low Education
                       
   Low Income
                       
   Low Age


High School
          Student
Shanzaiji (Bandit Phone) Culture
             
     In 2008 alone over 250 million Shanzhaiji
                   handsets where produced. The handsets are
                   mainly targeted for China’s rural markets
                   and are extremely cheap feature-to-feature
                   compared to established brands (starting at
                   $40).
             
     Shanzhaiji manufacturers have a wild
                   ambition to innovate and endlessly cater the
                   needs of customers. They are able to
                   constantly adapt, innovate and tweak their
                   offering as the turnaround time is only 3
                   months for a handset (instead of the 9
                   months that established brands need).

             
     The revolution is heavily supported by the
                   Taiwanese Mediatek which has a 90% share
                   of Mainland China’s mobile chip set
                   market.
iPad, the Next Shanzhai Target
The Hype of App Store
         
     Operators: China Mobile, China
               Telcom, China Unicom

         
     Phone Manufacturers: Nokia (Ovi
               Store), Motorola (ZhiJianYuan), Mezu


 Ecosystem
         
  


         
  
               Mobile Service Providers: NetDragon,
               Sky-Mobi, Crossmo

               Startups: eoeMarket LakooStore

         
     Thousands of Mobile Gaming/App
               development companies/individual
MOBINODE.com Networks
My Try: Opening China Web
MOBINODE.com

     Independent Media: English and Chinese blog (mobinode.com), and
      video blog (mobinode.tv)

     Industry Events: NTalks Events (mobinode.tv/ntalks)


     Monthly Industry Report StartupsWatch
      
   download:
          
   http://www.mobinode.com/startupswatch/startups-watch-1st-issue-
              en.pdf
          
   http://www.mobinode.com


     MOBINODE Angel Group
      
   Orange France
      
   BlueRun Ventures
      
   TrilogyVC
      
   More…
Follow Your
      Curiosity
Geek forever
     The Spirit of Geek
KUUKIE.com – Coupon Code: OWASEA
Every card printed could be UNIQUE
Thank You!!
              lugang@gmail.com
              twitter.com/ganglu

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Opening Asian Web: What is Happening in China

  • 1. Opening Asian Web: What’s Happening in China Dr. Gang LU – http://www.gang.lu | twitter.com/ganglu Co-founder of MOBINODE Networks & KUUKIE.com Co-founder of OpenWeb.Asia Workgroup
  • 2. MOBINODE Networks ReadWriteWeb TechCrunch Blogger KUUKIE.com 3G Application Widget Evangelist JBoss Universal Widget API China/Asia Web Ad hoc Networks Netvibes OpenWeb.Asia 2002 Now bio: http://www.gang.lu
  • 3. What is Open Web OpenSocial, F8 Open Standard Open Platform Facebook, Renren DataPortability Open Data Open Open Communications Collaboration Open Web   Open Web is not only about Open technology, but also the Open communications and collaboration
  • 4. Why Open Web Asia   In US/Europe   Becoming an International company is relatively Easier   Language is Not huge barrier, e.g. Le Web conference   In Asia   Hardly find a cross-country web company or service   It is very interesting that Asia local industry, especially China, Korea, Japan, seldom or never talked to its neighbors despite the culture is similar.
  • 5. What Open Web Asia   Asia has learned a lot from US/EU;   However, how much we know about us: China now has No.1 market with around 380+million Internet users; mobile market is huge and much advanced in Japan; Korea leading the online gaming industry. What else? How about Malaysia, Singapore, etc?   How much does the global industry know about Asia? Where are the startups, what are they doing? How’s the big names such as Mixi, Naver, Tencent, Baidu etc? In fact, we are still lacking of Channels bridging the west and the east.
  • 6. The Mission of OpenWebAsia   Builds an efficient channel connecting the western and the eastern web   Builds an ecosystem, recognized the great startups, companies, individuals from Asia and bring them to the greater stage   Improving the communications in the Asian local markets.
  • 7. Unite the Local Communities E27 (sg) Bangke (cn) Lunch 2.0 (cn) 5G Group (cn) iDrink (is) TokyoWeb2.0 (jp) Barcamp NTalks (cn) PunchParty (tw) WebWednesday (hk) Entrepreneurs.my (my) SGEntreprenuers (sg) Mobile 2.0 Forum (cn) China Wall Club (cn) OWA Union: Unite the Local Communities
  • 8. OWA & Local Communities   OWA could be the Hub which can help you talk to the local active communities and reach local markets   OWA together with local communities can make a greater impact on the global market   Local communities together can reach the potential sponsors and international contributors to help the local communities, identify and incubate international business opportunities
  • 9. The Ecosystem TechCrunch LIFT OWA OpenWebAsia & Local Communities Conference Individuals DLD Le Web Angel Fund Venture Capital Talk to Asia, Identify the Best, Introduce them to the World
  • 10. It is a Open Concept join us: contact@openweb.asia
  • 11. What’s happening in China Web China as an Example
  • 12. Statistics   420 million Internet users by June, 2010; 176 million users are using online social networks (end of 2009);   142 million users are shopping online by June, 2010 (via CNNIC); Chinese e-commerce transaction volume in Q1 2010 has hit rmb 1015.27 billion (~$150billion) via iResearch;   The Internet penetration has reached only around 31.8%;
  • 13. The Key Players Portal e-commerce search game Social networks web2.o
  • 14. Tencent   by end of 2008, 891.9 millions registered user accounts, 376.6 millions active user accounts; 31.4 millions Fee-based Internet value-added services registered subscriptions; 14.7 millions fee- based mobile and telecommunications value- added services registered subscriptions.   Tencent, owner of QQ has RMB 7.15billion revenue, its gross profit reached RMB 4.98billion.
  • 15.   QQ.com   QQ Instant Messenger   QZone SNS bigger than Facebook?!   QQ Game – Virtual Currency   QQ Online payment   QQ Pinyin Input   QQ Paipai auction site
  • 16. Alibaba Kingdom 2008, Taobao took 84.1% C2C market share, Paipai of Tencent took 8.3%, EachNet took 6.2%.
  • 18. To Be or Not To Be: Copy-to-China Model   YouTube - Youku, Tudou, Ku6, 56 etc   Facebook - Renren, Hainei, Xiaoyou, Tongxue, Kaixin001 etc   Twitter - Fanfou, Jiwai, Zuosa, Digu, Sina, QQ etc   Linkedin - Wealink, Tianji, Ushi, etc Localization is the KEY!
  • 19. Microblogging   Twitter is dying in China, Celebrities Grassroot together with its first round of copies;   Microblogging is growing super fast as Chinese portals entered the market   Marketing strategy is the KEY: Entertainment- centric, instead of information-centric http://t.sina.com.cn
  • 20. Groupon & Foursquare   400+ Groupon clones already in China, some are startups, and some are launched by big names including Taobao, Renren etc   Although everyone knows the competition is getting very tough, VCs are still throwing money in   Location-based Service attracts many eyeballs as everyone is thinking of the new opportunities in 3G (e.g. K.ai, Jiepang, etc)
  • 21. Old Style Web– Bulletin Board System   Bulletin Board System (BBS) - In China the registered BBS users have reached 3000+ millions; ~80% of Chinese sites are running their own BBS and the total daily page view is over 1600 millions and 10 millions posts are published every day. In China around 36.3% users spend 1-3 hours on BBS, about 44.7% users spend 3-8 hours and even 15.1% users are on BBS for more than 8 hours a day. Over 60% of users will login at least 3 BBS more than 3 by iResearch & Comsenz report 2008 times each every week.
  • 22. Liba.com   Liba started as a BBS focusing on home decoration/ home improvement market;   Now it provides a life-long service to its users. Home Decoration -> Wedding -> Mum&Baby -> Car Decoration
  • 25. Chinese Mobile Market: Massive with Huge Potential Chinese Mobile Market
  • 26. Mobile Market Overview •  786 million mobile subscribers by end of April 2010; •  Total revenue of telecommunication market (Jan – April 2010) rmb 967.38 billion •  >276 million mobile subscribers are surfing Internet on mobile phone; •  By end of 2009, a year after 3G started operation in China, the 3G users reach 10 million; •  By end of 2010, the number of mobile internet users is expected to reach 300 million.
  • 27. Characteristics of Mobile Users Who are actually paying for the services:   Low Education   Low Income   Low Age High School Student
  • 28. Shanzaiji (Bandit Phone) Culture   In 2008 alone over 250 million Shanzhaiji handsets where produced. The handsets are mainly targeted for China’s rural markets and are extremely cheap feature-to-feature compared to established brands (starting at $40).   Shanzhaiji manufacturers have a wild ambition to innovate and endlessly cater the needs of customers. They are able to constantly adapt, innovate and tweak their offering as the turnaround time is only 3 months for a handset (instead of the 9 months that established brands need).   The revolution is heavily supported by the Taiwanese Mediatek which has a 90% share of Mainland China’s mobile chip set market.
  • 29. iPad, the Next Shanzhai Target
  • 30. The Hype of App Store   Operators: China Mobile, China Telcom, China Unicom   Phone Manufacturers: Nokia (Ovi Store), Motorola (ZhiJianYuan), Mezu Ecosystem     Mobile Service Providers: NetDragon, Sky-Mobi, Crossmo Startups: eoeMarket LakooStore   Thousands of Mobile Gaming/App development companies/individual
  • 31. MOBINODE.com Networks My Try: Opening China Web
  • 32. MOBINODE.com   Independent Media: English and Chinese blog (mobinode.com), and video blog (mobinode.tv)   Industry Events: NTalks Events (mobinode.tv/ntalks)   Monthly Industry Report StartupsWatch   download:   http://www.mobinode.com/startupswatch/startups-watch-1st-issue- en.pdf   http://www.mobinode.com   MOBINODE Angel Group   Orange France   BlueRun Ventures   TrilogyVC   More…
  • 33. Follow Your Curiosity Geek forever The Spirit of Geek
  • 34. KUUKIE.com – Coupon Code: OWASEA Every card printed could be UNIQUE
  • 35. Thank You!! lugang@gmail.com twitter.com/ganglu