China Innovation 08 The Dragon is Unleashed Yuri van Geest / Netwerk 2.0

Cross digimedia Yuri van Geest Mobile Monday Amsterdam (MoMo) Innovation Emerce Marketing Sales Reddion HP Freelancer yuri.typepad.com Mediakabel/ManyCast Nuon Marketingfacts Erasmus Univ. MIT

China in 1996 Combine economic growth and stability Industrially developed Infrastructural challenges Confucian culture still dominant Imitation > innovation challenges Environmental problems Western people are idealized Uncertainty due to Hong Kong and Deng Xiao-Ping transition

Combine economic growth and stability

Industrially developed

Infrastructural challenges

Confucian culture still dominant

Imitation > innovation challenges

Environmental problems

Western people are idealized

Uncertainty due to Hong Kong and Deng Xiao-Ping transition

Roadmap 1996-2010 Distributed and balanced regional economic growth Radical educational and scientific improvement Application of new technologies within SOEs Development of new technologies (ICT, biotech, new materials, energy) Development of financial infrastructure Controlled integration with the world economy

Distributed and balanced regional economic growth

Radical educational and scientific improvement

Application of new technologies within SOEs

Development of new technologies (ICT, biotech, new materials, energy)

Development of financial infrastructure

Controlled integration with the world economy

China 2008 More than doubled GDP since 1996 Most Roadmap Goals completed successfully More market economy while politically stable Competition intensified Advertising everywhere (even odd places) Materialistic culture Optimistic and can-do culture Different economic regions booming (Chengdu is new Shanghai)

More than doubled GDP since 1996

Most Roadmap Goals completed successfully

More market economy while politically stable

Competition intensified

Advertising everywhere (even odd places)

Materialistic culture

Optimistic and can-do culture

Different economic regions booming (Chengdu is new Shanghai)

Culture Less Confucianism Collective, feminine, risk averse and hierarchical -> less collective and more risk taking Ambitious Materialistic Self awareness and self-confidence Positive and growth Open-minded (sexual revolution) Introvert

Less Confucianism

Collective, feminine, risk averse and hierarchical -> less collective and more risk taking

Ambitious

Materialistic

Self awareness and self-confidence

Positive and growth

Open-minded (sexual revolution)

Introvert

Economics Incredible growth (10% yearly) Higher costs (labor, real estate, inflation) Availability of thousands of students Infrastructural improvements Digital media explosion (online and mobile) Own brands (Baidu, Alibaba, Legend, Tudou etc.) Environmental degradation Better legal protection (copyrights, patents, etc.) due to WIPO and WTO

Incredible growth (10% yearly)

Higher costs (labor, real estate, inflation)

Availability of thousands of students

Infrastructural improvements

Digital media explosion (online and mobile)

Own brands (Baidu, Alibaba, Legend, Tudou etc.)

Environmental degradation

Better legal protection (copyrights, patents, etc.) due to WIPO and WTO

Digital Media 220 million internet users 164 million PC internet users 56 million mobile internet users UMTS just arrived -> 4G/LTE coming around 2010/2011 400.000 iPhones in China; Lower mobile access / data charges (as well as voice) Internet: more social and entertainment than informational Web 2.0 (Tudou, QQ, CallMe, Yaawa, CIC Data) booming Enterprise software (Hinge Software) Gaming/MMORPGS/Virtual Worlds booming (Zlong Games, Cool Games) Incredible amounts of space (Zhizu, EUSIC) and money (Innotech) Censoring Local brands booming and protected

220 million internet users

164 million PC internet users

56 million mobile internet users

UMTS just arrived -> 4G/LTE coming around 2010/2011

400.000 iPhones in China; Lower mobile access / data charges (as well as voice)

Internet: more social and entertainment than informational

Web 2.0 (Tudou, QQ, CallMe, Yaawa, CIC Data) booming

Enterprise software (Hinge Software)

Gaming/MMORPGS/Virtual Worlds booming (Zlong Games, Cool Games)

Incredible amounts of space (Zhizu, EUSIC) and money (Innotech)

Censoring

Local brands booming and protected

Digital Media (2) Tuangou -> Group Buying booming -> LetsBuyIt TaoBao -> eBay Pioco -> Bluetooth Advertising booming Average (highly qualified) worker/student costs around 300 euro a month (quite higher in Shanghai) Loads of capable Flash designers, Photoshop artists and PHP programmers !!! Free hardware, software, services and connectivity for 6 months in Chengdu (EU sponsored) for new European startups within digital media Real estate costs -> 5 euro per square meter ! Less regulatory restrictions (no opt-in policies)

Tuangou -> Group Buying booming -> LetsBuyIt

TaoBao -> eBay

Pioco -> Bluetooth Advertising booming

Average (highly qualified) worker/student costs around 300 euro a month (quite higher in Shanghai)

Loads of capable Flash designers, Photoshop artists and PHP programmers !!!

Free hardware, software, services and connectivity for 6 months in Chengdu (EU sponsored) for new European startups within digital media

Real estate costs -> 5 euro per square meter !

Less regulatory restrictions (no opt-in policies)

Digital Media (3) 220 million internet users:18% adoption -> upside towards 1 billion within 10 years ? 80% under 35 years Higher education and post higher education Access from internet cafes and work outside Beijing, Shanghai and Guangzhou 75 million use (web 2.0) communities (BBS) 50 million bloggers (25% ; higher than NL (10%)) 17 hours a week online Chinese (higher than Dutch) More IM than e-mail; more social/viral economy than market economy Internet stars are popstars in China; online books are bestsellers in China Lower CPM rates in China than NL ; less advanced CPC, CPL, CPA deals Mobile VAS still very embryonical; starting in 2008 with UMTS and WiFi

220 million internet users:18% adoption -> upside towards 1 billion within 10 years ?

80% under 35 years

Higher education and post higher education

Access from internet cafes and work outside Beijing, Shanghai and Guangzhou

75 million use (web 2.0) communities (BBS)

50 million bloggers (25% ; higher than NL (10%))

17 hours a week online Chinese (higher than Dutch)

More IM than e-mail; more social/viral economy than market economy

Internet stars are popstars in China; online books are bestsellers in China

Lower CPM rates in China than NL ; less advanced CPC, CPL, CPA deals

Mobile VAS still very embryonical; starting in 2008 with UMTS and WiFi

Future ?

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