China Trip Summary

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A short summary of my 5 weeks of research in China, a list of the companies I visited and a brief overview of some of the findings I did so far.

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China Trip Summary

  1. 1. China Internet Trip Pieter -Paul Walraven
  2. 2. Look beyond the Great Firewall and copycat culture <ul><li>People in the industry are annoyed that the West is so biased </li></ul><ul><li>Change short sighted perception, go a step further </li></ul><ul><li>Look whats going on behind the pixel </li></ul>
  3. 3. Some figures <ul><li>China has the most Internet users, this year it has passed the U.S. (225 million) </li></ul><ul><li>Internet advertising grows with 40% - 45% a year it is now around 1 billion </li></ul><ul><li>Developing nation: real numbers are likely to be higher </li></ul>
  4. 4. The Chinese Internet is Different <ul><li>- Demographics : entertainment rather than information </li></ul><ul><li>- Social aspects and UGC are different </li></ul><ul><li>- Language influences more than one would expect </li></ul>
  5. 5. The current situation <ul><li>- 17% is online </li></ul><ul><li>Biggest growth of netizens in 2nd, 3rd, and 4th -tier cities </li></ul><ul><li>2nd, 3rd, and 4th -tier cities no alternative for entertainment </li></ul><ul><li>No need for creativity yet; copying, localizing, tweaking </li></ul><ul><li>Returnees are essential in the growth </li></ul><ul><li>Education </li></ul><ul><li>Economies of Scale (Business Models differ) </li></ul>
  6. 6. Companies and Experts <ul><li>Tencent, SHIP, Culturefish, JLMcGregor, Tudou, Spill Group Asia, +8*, Giant Interactive, Shanda, 51.com, Alibaba, NOVOking, Ogilvy, Softbank, Hipihi, Douban, Hoodong, italki, Youku, PPLive, Sina, Baidu, Perfect World. </li></ul><ul><li>VC’s, Consultants, I-Bankers, Journalists, Bloggers </li></ul>
  7. 7. Overseas Expansion <ul><li>Gaming Industry: Perfect World, Giant Interactive, and Shanda </li></ul><ul><li>- India - Licensing, Local partners - Developing countries - Free-to-play business model - U.S., Europe </li></ul><ul><li>Exceptions: Baidu, Alibaba, and Tencent </li></ul><ul><li>- National Pride </li></ul><ul><li>- Nature of the product - Size - Investors </li></ul>
  8. 8. No Overseas Expansion <ul><li>The rest of the list…….. </li></ul><ul><li>Enough growth domestically </li></ul><ul><li>Cultural differences, language etc. </li></ul><ul><li>Physically impossible because of firewall (UGC) </li></ul><ul><li>Business Model not applicable </li></ul>
  9. 9. pietchinathesis.wordpress.com

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