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  1. 1. Trends, lifestyles and videogames: How Chinese generational shifts impact China and their cultural aftershocks for the world (and investors)<br />Frank Yu<br />
  2. 2. Background<br /><ul><li>Coutts NatWest Trader/Asia Analyst
  3. 3. Columbus Circle PIMCO Asia Equity Analyst
  4. 4. Chinadotcom Ion Global (CDC)
  5. 5. Principal Researcher Wireless and Games
  6. 6. Microsoft Xbox (PC Games, Mac, Peripherals)
  7. 7. First Asia Regional Business Manager
  8. 8. Microsoft Research Asia
  9. 9. Researcher Asia Cnter for Interactive Design
  10. 10. MS IE 7 /MS Media Center
  11. 11. Program Manager
  12. 12. MS Casual Games
  13. 13. Producer / Started first game team in China
  14. 14. Shouji Mobile Entertainment
  15. 15. CSO/COO</li></ul>Columnist<br /><ul><li>Gamasutra (China Games)
  16. 16. South China Morning Post (Beijing Byte)
  17. 17. China Tech News
  18. 18. Asia Pacific Management Forum</li></ul>Education : Harvard University / Rutgers University<br />
  19. 19. Wang Wei<br />A Strawberry<br />Workaholic<br />Leisure time is games<br />Wants a GF<br />Wang Wei<br /><ul><li>Bornin 1982 HS2000 Univ 2004
  20. 20. 25Single Male
  21. 21. “The IT Master”
  22. 22. University Graduate in CS
  23. 23. Software Engineer in a foreign MNC
  24. 24. Wants a steady career. Buy an Apartment. Get married.
  25. 25. A New Mandarin – status, stability and comfortable pay</li></li></ul><li>GenerationsGenerational DisconnectThe Cultural EvolutionThe Changing Face of TechLet the Games Begin Take Away Trends<br />AGENDA<br />
  26. 26. The Lost The Mini-LostThe StrawberriesThe JelliesLike US Baby Boomers and GenX, Chinese generations define the country and its trends<br />Generations<br />
  27. 27. The Lost Generation (Born in the 50’s AND 40’s)<br />The Generation that manned the Cultural Revolution<br />Schools and Universities closed<br />Cultural Revolution in China known as the “Catastrophe”<br />The Post war Reconstruction generation<br />Denied school and normal life<br />Rebuilding China<br />Now in Power<br />
  28. 28. The Mini-Lost (Born in the the 70’s)<br />The T Square Crackdown<br />Children of the Lost Generation<br />Saw some of the biggest shifts as teens and young adults<br />As Adults, driving the reforms and progress of the country<br />
  29. 29. The Strawberries (Born in the 80’s)<br />"Strawberries" (pretty and easily bruised, also the "little emperors")<br />The Strawberries were the original rebels, the "egocentric kids" and Chinese "beats" with wild and crazy ideas, dabbling in new values<br />the Strawberries - knew China before rampant consumerism<br />The Strawberries were the original rebels, the "egocentric kids" and Chinese "beats" with wild and crazy ideas, dabbling in new values.<br />"ho-hum has-beens, out-of-date.“<br />One Child Policy Kids V1<br />
  30. 30. The Jellies(born in the 90’s)<br />"Jellies" (colorful, insubstantial gelatin desserts).<br />The Jellies are commonly called the "non-mainstream" generation. The outlook includes individualistic views like "I can live by myself.“<br />"self-centered and irresponsible, materialistic, spoiled brats.“<br />have known only abundance, and many of the outspoken Jellies are arrogant in their affluence.<br />
  31. 31. University OverflowSuperGirlOne Child PolicyTexting/IM/LanguageThe Changing Dress of the Party<br />Generational Disconnect<br />
  32. 32. In 1998, 3.4 million Chinese attended university. In 2008, the number was 21.5 millionWhat was once a privilage for a select few, college education has defined a generational experience<br />
  33. 33. Li Yu Chun – The Supergirl<br />Li Yu Chun the super girl is not superman’s girlfriend or something, she is voted by 3.52 million china voters to become the winner of China singing competition “Super Girl 2005″ (“超级女生2005″).<br />Supergirl<br />Hunan TV<br />Androgynous<br />Ambiguous Sexualitty<br />SMS Popular Vote<br />
  34. 34. One Child Policies have a massive impact on China<br />The policy was introduced in 1978 and first applied to children born in 1979. It was created by the Chinese government to alleviate social, economic, and environmental problems in China,<br />
  35. 35. Chinese Text and BBS abbreviations<br />TMD: A swear word, short for Ta Ma De, which is the Chinese equivalent of something-something-mama.BT: Stands for Bian Tai, meaning perverse, perverted, abnormal.SSGG: What girls type when they see a cute guy. Stands for ShuaiShuaiGeGe, meaning literally "pretty older brother."MM: Short for MuiMui, meaning "girl," or literally "little sister."88: A way of saying, "See you later." Eight in Chinese is pronounced "Ba," so 88 sounds like "Bye-bye."3Q: A way of saying, "Thank you." Three in Chinese is "San."FB: Stands for Fubai, meaning "corrupt."PF: Stands for Pei Fu, meaning "to admire."55555: What you type when you're crying. Five in Chinese is "Wu," and "WuWuWuWuWu" is the sound (we suppose) of someone sobbing.<br />
  36. 36. Deng Xiaoping<br />The Mao Suit<br />Actually, its the Sun YatSen suit<br />
  37. 37. Jiang Zemin<br />Big Glasses<br />Trousers Ran high…very high<br />
  38. 38. HuJintou<br />China’s first photogenic president<br />
  39. 39. Zhu RongJi<br />The Father of Snappy Govt. Dressing<br />Progressive in Economic Reforms and Snappy dressing<br />The Hugo Boss and Burberry Look<br />
  40. 40. Egao (Media Remixing)Shanzhai (The Mountain Bandits)LOHASSOHOTaobaoHuman Flesh Search<br />The Cultural Evolution<br />
  41. 41. Egao (DIY Parody Remix Culture)<br />The two characters "e" meaning evil and "gao" meaning "work" combine to describe a subculture that is characterized by humor, revelry, subversion, grass-root spontaneity, defiance of authority, mass participation and multi-media high-tech.<br />A critical ironic exposure of wasteful and self important points of society in the guise of humor<br />"The Bloody Case That Started From A Steam Bun“<br />A pardoy of Chen Kaiges overblown movie The Promise<br />Older generation doesn’t get it so one can code messages within the format<br />
  42. 42. Shan Zhai – Mountain Bandits<br />Like Robin Hood<br />Rag Tag Guerrillas<br />Winning by craftiness against more powerful forces<br />Cultural Heroes of the Younger Generation<br />Non-conformist and underdogs<br />
  43. 43. ShanZhai Panda (it’s a dyed dog)<br />Witty use of resources<br />Absurd but visionary expression of individualism<br />
  44. 44. Tao Xian Li – DIY Shanzhai Submariner<br />Internet Hero<br />DIY Shanzhai Submarine builder<br />Built a small midget submarine in the middle of Beijing for fun. Tested in a lake outside Beijing<br />
  45. 45. The Hope<br />Made with flea market parts<br />Hull is a storm drain<br />Can stay submerged for 10 minutes<br />Oxygen bought from surplus tanks in flea market.<br />
  46. 46. LOHAS (Lifestyle s of Health and Sustainability)<br />A return to a simpler life and core values<br />New Age like movement of holistic and eco-aware lifestyles and products<br />AntiMaterial<br />Sustained affluence<br />Organic and a return to the Earth<br />Work Life Balance<br />Factory workers and developers finding the LOHAS lifestlye<br />
  47. 47. Zhang Ziyi for LOHAS<br />More than a marketing trend<br />A Lens to view the younger generation who don’t remember the lean struggling years<br />
  48. 48. SOHO (Small Office Home Office)<br />The Home Office movement in China<br />Small unit office spaces for creative and intellectual property industries<br />A developer spreading office building throughout China<br />Younger Generation turning away from corporate and factory work for less lucrative but more lifestyle attractive work<br />
  49. 49. TaoBao(New consumers – New Entrepreneurs)<br />Like the eBay craze of the 90’s<br />Younger Generation have turned into online fanatics<br />The Taobao Shop is the entrepreneurial dreams of a new generation.<br />Alipay and COD delivery<br />
  50. 50. Human Flesh Search<br />Netizens find people or uncovers their personal details and publishes to the Internet<br />Creates Celebrities<br />Punishes the corrupt and the abusive by exposing them to the Netizens/Mob<br />The women in Red<br />Wang Zifei王紫菲<br />Vigilante Justice against Corrupt officials<br />Rich People<br />Jerks<br />
  51. 51. Shanzhai phonesBBS / Blogs / QQ / RenRen The Great Firewall Green DamThe Three Waves<br />The Changing Face of Tech<br />
  52. 52. Shanzhai Phones<br />
  53. 53. The Chinese Online Socialsphere<br />BBS (Bulletin Boards and Forums)<br />Blogs<br />QQ / MSN <br />FacebookRenRen and Kaixin<br />Twitter and Sina’s clone<br />
  54. 54. The Great Chinese Firewall<br />
  55. 55. The Chinese Intranet (globally Unique)<br />Blocked<br />Facebook<br />Twitter<br />Blogspot<br />YouTube<br />Flickr (sometimes)<br />Sensitive sites blockedLFalung Gong. Uighar Separatists<br />Forums are monitored<br />Certain topics forbidden<br />CCTV Fire<br />Sichuan Earthquake and Schools<br />Polls and surveys showing dissatisfaction<br />
  56. 56. Green Dam<br />Filtering software that was mandated on all PCs in China<br />The Netizens rebelled and ridiculed it<br />The Nanny<br />Badly programmed<br />Multi Million Contract given to a small software company<br />The Younger Generation have their own ways of protesting without getting into trouble<br />
  57. 57. The Three Waves<br />Copy / Mutate / Expand<br />The Chinese tech development model <br />The Chinese Outsource Manufacturing model<br />Lenovo : HP Distributor / PC Maker / Device Maker<br />Huawei: PBX Distributor / Router Maker / China’s GE<br />
  58. 58. Game CompaniesCopies / Mutation / StabilityShanda/Giant/RenRenHappy farmThe New Media of a new Generation<br />Let the Games Begin<br />
  59. 59. Wave 1 Licensed Kor-Twn MMORPGS<br />Subscription Service based<br />Localized and operated locally <br />
  60. 60. Wave 2 Casual Game Communities<br /><ul><li>Free to play
  61. 61. Monetization from avatars
  62. 62. And virtual goods</li></li></ul><li>Wave 3 Web games / Social Games<br />Kaixin001<br />Parking wars<br />Friends for sale<br />Happy Farm<br />Trevian & Clones<br />Browser vs. Client <br />
  63. 63. Game Culture is Mainstream Culture in China<br />ChinaJoy game conference is one of the largest in the word<br />Chinese Youth use games as their context of a common shared mythology<br />StarCraft<br />DOTA<br />Counterstrike<br />WoW<br />Audition<br />Happy Farm is as common knownledge to kids as TV shows or movies<br />
  64. 64. Government Regulators<br />Main Overseers<br />Ministry of Culture<br />Ministry of Information Industry<br />General Administration of Press and Publications<br />Also…<br />State Administration of Radio, Film and Television<br />Ministry of Commerce<br />Public Security Bureau<br />JingJing and ChaCha Internet Cops<br />
  65. 65. CCTV - Not the Choice of the New Generation<br />Young people go online to watch onlinevideors from Yukou and Tudou<br />CCTV (Chinese broadcast TV) has become the CBS of Chinese Media (for old folks and farmers)<br />New Media is rising. Expect more regulations and oversight on Online Games, Videos and Forums.<br />
  66. 66. Inflation (Factory and Services)New Content, New Biz modelsChina’s Global Role<br />Take Away Trends<br />
  67. 67. The missing thousands<br />2009 <br />Downturn devastated Southern China Manufacturing. <br />Whole factories shut down. Hundred thousands laid off<br />2010 <br />Business picks up and re-hires. <br />Thousands did not return<br />Where did they go?<br />Jellies went LOHAS<br />
  68. 68. Inflation and Higher Costs<br />Inflationary Pressure<br />Demand for skilled talent<br />Drop in population<br />Labor pool shrinking LOHAS and SOHO <br />Yuan appreciation pressure rising<br />Younger Generation want to brand<br />Companies move away from Outsource and Contract Manufacturing<br />New Labor is mobile and can go online and abroad<br />Companies going deeper to the west but not the same gains or talent<br />
  69. 69. New Media and New Biz Models<br />China’s Unique landscape of users, regulation, piracy and cultural trends will spawn new media content and business models<br />Free to Play Virtual Goods<br />Chinese digital brands and characters<br />Alternate Reality entertainment<br />Online / Offline Media integration<br />Still more cost effective than Developed Markets<br />CrowdSourcing – Illegal but rising<br />The Wireless Generation (the Mobile revolution)<br />
  70. 70. China’s Global Role<br />An exporter and manufacturer of digital content and equipment to the developing world<br />Indian Pharma of Design<br />China design and develop is Fast, Cheap and Out of Control<br />Darwin on fast forward<br />Chinese tech companies iterate and mutate fast<br />Feedback Driven<br />AGILE – like <br />Copying is only the first wave, it’s the second wave that is interesting<br />China is a bully that uses it size and leverage to get what it wants. Think of it as the Wal-Mart of Countries<br />
  71. 71. A strawberry<br />Chan Liu<br /><ul><li> Born in 1985 HS 2003Univ2007
  72. 72. 25Single Female
  73. 73. University Graduate in Computer Science
  74. 74. Admin in a US VC in Beijing
  75. 75. Wants to start a Taobao shop
  76. 76. Family from Senior Partymemers / Father owns a coal mine</li></li></ul><li>The SHIFT ( a more assertive China)<br />Look at 2015<br />Strawberries will enter the leadership roles of middle and upper management<br />The Lost Generation will cede more control and leadership to the Mini-Lost Generation<br />The Jellies will be in the work market. This generation is a little feared by the others since its such a wildcard and more aggressive than the others.<br />
  77. 77. Questions<br />Contact:<br /><br />Twitter: Frankyu<br />Thank you<br />
  78. 78. References<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />