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Presentation China Innovation Trip 2008 (Interimic and Marketingfacts)

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China Innovation Trip 2008: a brief summary for Netwerk 2.0 event (www.chinareis2008.nl)

China Innovation Trip 2008: a brief summary for Netwerk 2.0 event (www.chinareis2008.nl)

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  • 1. China Innovation 08 The Dragon is Unleashed Yuri van Geest / Netwerk 2.0
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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)
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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)
  • 10. 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
  • 11. Future ?
  • 12. [email_address] www.mobilemonday.nl SPRX Mobile 06-14 375 753 www.yuri.typepad.com twitter.com/vangeest

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