Innovation Driven China’s Internet Development

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Prezentacija "Innovation Driven China’s Internet Development" koju je Miroslav Radulović održao na konferenciji E-trgovina u aprilu 2010.

Prezentacija "Innovation Driven China’s Internet Development" koju je Miroslav Radulović održao na konferenciji E-trgovina u aprilu 2010.

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  • 1. Innovation Driven China’s Internet Development Nikola Zivlak Marko Ljubi čić Miroslav Radulović Lifan Yang Dr. Ming Xu Palić, April 2010.
  • 2. Content
    • Why China?
    • Present situation of China’s internet development
    • Chinese innovative companies
    • Foreign companies in China
    • Conclusions
  • 3. Why China?
    • “ Let China sleep, for when she wakes, she will shake the world!”
    • Napoleon Bonaparte
  • 4. China
    • Civilization with 5,000 years of constant history
    • With more than 1.3 billion people (more than Europe, Russian and USA together), China represents around 21% of world’s population.
    • During last 25 years, every 8 years China doubled its GDP.
  • 5. “ If you are not in China, you are really not in the game!“
  • 6. Present situation of Internet development in China
    • China has the largest Internet population in the world – 384,000,000 users (more than entire population of USA)
    • Financial crisis started 2008 had little impact on Internet development in China
    • In 2009 the number of users growth rate was 51.7 %
  • 7. Why number of China’s users grow so fast?
    • Chinese government introduced National Strategy for Information Development from 2006 to 2020 and “Eleventh Five-Year Plan” for Informatization of National Economy and Social Development and invest in IT infrastructure.
    • IT development, 3G, usage of mobile phones, decrease of Internet costs
    • People’s living standard in China has been improving continuously.
    • Due to crisis, large number of workers return home to villages and educate people about IT
  • 8.
  • 9. Chinese Internet users
    • In 2009, 94.3% of Chinese users use broadband connections.
    • 155 million users access via mobile phone.
    • 80.2% access Internet from home.
    • Users are mainly young , especially students, coming from urban area and more developed provinces near the coast.
    • 26% of Chinese users shop online
  • 10.
  • 11. Internet applications in China
  • 12. 5C’s of Chinese Innovation
    • COPY
      • Starting point
      • Everyone tried their luck in China
      • COMPETITION
      • Companies are forced to differentiate
      • CONSTRAINTS
      • Revenue models must be adopted to low incomes and limited online advertising market.
      • Chinese user income is around 400 USD
  • 13.
        • COMBINATION
      • Combining ideas in new
      • ex. Tencent QQ
      • CHINA
      • Unique market, almost 400 million users
      • “ One-child policy”
      • Huge revenue by charging only couple of cents.
  • 14. Chinese innovative companies
    • Tencent
      • 90% of its revenue comes from its virtual currency, only 10% from advertizing
    • Taobao
      • Doesn’t charge commissions on C2C
      • Alimama advertizing platform
    • Baidu
      • China’s biggest search engine provider
      • 9 th most popular web page in the world
      • Curently offers 57 different applications
  • 15. Foreign companies in China
    • Most of foreign companies failed in Chinese market
    • They poorly understood Chinese market and ignored warnings.
    • Tried to replicate Western business models
    • Google.cn just left China in March 2010
    • Yahoo, Online gaming…
  • 16. Conclusions
    • “ China innovates!”
    • Future trends in China
      • establishing transaction channel for traditional retailers and manufactures to start with Internet business,
      • focus on local needs and situation
      • focus on online brand building
      • development of new applications for fast growing mobile phone Internet users.
    • Capture the attention of China’s internet users and you are almost guaranteed in the top 20 most popular web sites
    • Could some Chinese company become “Tencent of the West”?
  • 17. Thank you for your attention
    • ?
  • 18. Contacts
    • Miroslav Radulović
    • E-mail: miroslav.radulovic@gmail.com
    • Tel. (Serbia) +381 63 530 231
    • Nikola Zivlak
    • E-mail: zivlak@gmail.com
    • Tel. ( China ) +86 139 173 99749