Opening Asian Web: What is Happening in China


Published on

Dr. Gang LU's speech about OpenWebAsia concept and Chinese web industry at OpenWebAsia/SouthEastAsia conference 2010 in KL, Malaysia

Published in: Technology

Opening Asian Web: What is Happening in China

  1. Opening Asian Web: What’s Happening in China Dr. Gang LU – | Co-founder of MOBINODE Networks & Co-founder of OpenWeb.Asia Workgroup
  2. MOBINODE Networks ReadWriteWeb TechCrunch Blogger 3G Application Widget Evangelist JBoss Universal Widget API China/Asia Web Ad hoc Networks Netvibes OpenWeb.Asia 2002 Now bio:
  3. What is Open Web OpenSocial, F8 Open Standard Open Platform Facebook, Renren DataPortability Open Data Open Open Communications Collaboration Open Web   Open Web is not only about Open technology, but also the Open communications and collaboration
  4. Why Open Web Asia   In US/Europe   Becoming an International company is relatively Easier   Language is Not huge barrier, e.g. Le Web conference   In Asia   Hardly find a cross-country web company or service   It is very interesting that Asia local industry, especially China, Korea, Japan, seldom or never talked to its neighbors despite the culture is similar.
  5. What Open Web Asia   Asia has learned a lot from US/EU;   However, how much we know about us: China now has No.1 market with around 380+million Internet users; mobile market is huge and much advanced in Japan; Korea leading the online gaming industry. What else? How about Malaysia, Singapore, etc?   How much does the global industry know about Asia? Where are the startups, what are they doing? How’s the big names such as Mixi, Naver, Tencent, Baidu etc? In fact, we are still lacking of Channels bridging the west and the east.
  6. The Mission of OpenWebAsia   Builds an efficient channel connecting the western and the eastern web   Builds an ecosystem, recognized the great startups, companies, individuals from Asia and bring them to the greater stage   Improving the communications in the Asian local markets.
  7. Unite the Local Communities E27 (sg) Bangke (cn) Lunch 2.0 (cn) 5G Group (cn) iDrink (is) TokyoWeb2.0 (jp) Barcamp NTalks (cn) PunchParty (tw) WebWednesday (hk) (my) SGEntreprenuers (sg) Mobile 2.0 Forum (cn) China Wall Club (cn) OWA Union: Unite the Local Communities
  8. OWA & Local Communities   OWA could be the Hub which can help you talk to the local active communities and reach local markets   OWA together with local communities can make a greater impact on the global market   Local communities together can reach the potential sponsors and international contributors to help the local communities, identify and incubate international business opportunities
  9. The Ecosystem TechCrunch LIFT OWA OpenWebAsia & Local Communities Conference Individuals DLD Le Web Angel Fund Venture Capital Talk to Asia, Identify the Best, Introduce them to the World
  10. It is a Open Concept join us:
  11. What’s happening in China Web China as an Example
  12. Statistics   420 million Internet users by June, 2010; 176 million users are using online social networks (end of 2009);   142 million users are shopping online by June, 2010 (via CNNIC); Chinese e-commerce transaction volume in Q1 2010 has hit rmb 1015.27 billion (~$150billion) via iResearch;   The Internet penetration has reached only around 31.8%;
  13. The Key Players Portal e-commerce search game Social networks web2.o
  14. Tencent   by end of 2008, 891.9 millions registered user accounts, 376.6 millions active user accounts; 31.4 millions Fee-based Internet value-added services registered subscriptions; 14.7 millions fee- based mobile and telecommunications value- added services registered subscriptions.   Tencent, owner of QQ has RMB 7.15billion revenue, its gross profit reached RMB 4.98billion.
  15.   QQ Instant Messenger   QZone SNS bigger than Facebook?!   QQ Game – Virtual Currency   QQ Online payment   QQ Pinyin Input   QQ Paipai auction site
  16. Alibaba Kingdom 2008, Taobao took 84.1% C2C market share, Paipai of Tencent took 8.3%, EachNet took 6.2%.
  17. Internet is Culture
  18. To Be or Not To Be: Copy-to-China Model   YouTube - Youku, Tudou, Ku6, 56 etc   Facebook - Renren, Hainei, Xiaoyou, Tongxue, Kaixin001 etc   Twitter - Fanfou, Jiwai, Zuosa, Digu, Sina, QQ etc   Linkedin - Wealink, Tianji, Ushi, etc Localization is the KEY!
  19. Microblogging   Twitter is dying in China, Celebrities Grassroot together with its first round of copies;   Microblogging is growing super fast as Chinese portals entered the market   Marketing strategy is the KEY: Entertainment- centric, instead of information-centric
  20. Groupon & Foursquare   400+ Groupon clones already in China, some are startups, and some are launched by big names including Taobao, Renren etc   Although everyone knows the competition is getting very tough, VCs are still throwing money in   Location-based Service attracts many eyeballs as everyone is thinking of the new opportunities in 3G (e.g., Jiepang, etc)
  21. Old Style Web– Bulletin Board System   Bulletin Board System (BBS) - In China the registered BBS users have reached 3000+ millions; ~80% of Chinese sites are running their own BBS and the total daily page view is over 1600 millions and 10 millions posts are published every day. In China around 36.3% users spend 1-3 hours on BBS, about 44.7% users spend 3-8 hours and even 15.1% users are on BBS for more than 8 hours a day. Over 60% of users will login at least 3 BBS more than 3 by iResearch & Comsenz report 2008 times each every week.
  22.   Liba started as a BBS focusing on home decoration/ home improvement market;   Now it provides a life-long service to its users. Home Decoration -> Wedding -> Mum&Baby -> Car Decoration
  24. Chinese Mobile Market: Massive with Huge Potential Chinese Mobile Market
  25. Mobile Market Overview •  786 million mobile subscribers by end of April 2010; •  Total revenue of telecommunication market (Jan – April 2010) rmb 967.38 billion •  >276 million mobile subscribers are surfing Internet on mobile phone; •  By end of 2009, a year after 3G started operation in China, the 3G users reach 10 million; •  By end of 2010, the number of mobile internet users is expected to reach 300 million.
  26. Characteristics of Mobile Users Who are actually paying for the services:   Low Education   Low Income   Low Age High School Student
  27. Shanzaiji (Bandit Phone) Culture   In 2008 alone over 250 million Shanzhaiji handsets where produced. The handsets are mainly targeted for China’s rural markets and are extremely cheap feature-to-feature compared to established brands (starting at $40).   Shanzhaiji manufacturers have a wild ambition to innovate and endlessly cater the needs of customers. They are able to constantly adapt, innovate and tweak their offering as the turnaround time is only 3 months for a handset (instead of the 9 months that established brands need).   The revolution is heavily supported by the Taiwanese Mediatek which has a 90% share of Mainland China’s mobile chip set market.
  28. iPad, the Next Shanzhai Target
  29. The Hype of App Store   Operators: China Mobile, China Telcom, China Unicom   Phone Manufacturers: Nokia (Ovi Store), Motorola (ZhiJianYuan), Mezu Ecosystem     Mobile Service Providers: NetDragon, Sky-Mobi, Crossmo Startups: eoeMarket LakooStore   Thousands of Mobile Gaming/App development companies/individual
  30. Networks My Try: Opening China Web
  31.   Independent Media: English and Chinese blog (, and video blog (   Industry Events: NTalks Events (   Monthly Industry Report StartupsWatch   download: en.pdf   MOBINODE Angel Group   Orange France   BlueRun Ventures   TrilogyVC   More…
  32. Follow Your Curiosity Geek forever The Spirit of Geek
  33. – Coupon Code: OWASEA Every card printed could be UNIQUE
  34. Thank You!!