From our local office at Beijing, we are glad to release an introduction to the Chinese Internet Market.
With the chinese economy still growing fast, the internet market has experimented an incredible growth in recent years. And what is more promising, every analysis foresee what is seems to be an unprecedented boom for the years to come.
Highlights of the Tecnocom Report: Trends in payment instruments 2014The Cocktail Analysis
Here you have a brief summary of the Tecnocom report on payment instruments that we carried out last year, along with AFI (Analistas Financieros Internacionales), with data referred to LatAm and Spain.
The Future of Bank Branches Coordinating Physical with DigitalCapgemini
Digital Technologies will Accelerate Branch Transformation, Not Make Them Extinct
Retail banking is evolving at an accelerated pace. Globally, banks are facing disruptions from multiple directions. Business and economic realities have reduced the total number of US bank branches by 3,000 between 2009 and 2012 - a decrease of 3% over the 3-year period. In Spain alone, banks have closed 5,000 branches or 12% of their overall capacity since the financial crisis began in 2008, lowering the total branch count to approximately 40,000 in 2012.
That is not all. Digital technologies have also brought a significant shift in consumer banking behavior. The percentage of US banking customers who prefer to bank online jumped to 62% in 2011, up from 36% the previous year. Today, four of the top five transactional banking activities in North America – bill pay, viewing balances/transactions, viewing statements and money transfer – are happening online.
This brings us to the key question of this paper: do brick-and-mortar branches have a role to play in the future of retail banking?
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushKatia Bazzocchi
Pure mobile banks gain users daily, as they benefit from accessible smartphone technology. Millenials are the principal users of mobile banks, and will soon be followed by Generation Z. As consumer expectations continue to be shaped by new technology and innovative consumer affairs, a full mobile strategy is key for traditional banks to maintain market share.
The Fintech industry which is the backbone of all economies has also been impacted because of Covid. What are the implications of Covid to an important sector?
Financial services IT has focused on security and regulatory compliance in recent years. Now, more and more financial service companies are leveraging data in innovation to better serve customers worldwide.
Highlights of the Tecnocom Report: Trends in payment instruments 2014The Cocktail Analysis
Here you have a brief summary of the Tecnocom report on payment instruments that we carried out last year, along with AFI (Analistas Financieros Internacionales), with data referred to LatAm and Spain.
The Future of Bank Branches Coordinating Physical with DigitalCapgemini
Digital Technologies will Accelerate Branch Transformation, Not Make Them Extinct
Retail banking is evolving at an accelerated pace. Globally, banks are facing disruptions from multiple directions. Business and economic realities have reduced the total number of US bank branches by 3,000 between 2009 and 2012 - a decrease of 3% over the 3-year period. In Spain alone, banks have closed 5,000 branches or 12% of their overall capacity since the financial crisis began in 2008, lowering the total branch count to approximately 40,000 in 2012.
That is not all. Digital technologies have also brought a significant shift in consumer banking behavior. The percentage of US banking customers who prefer to bank online jumped to 62% in 2011, up from 36% the previous year. Today, four of the top five transactional banking activities in North America – bill pay, viewing balances/transactions, viewing statements and money transfer – are happening online.
This brings us to the key question of this paper: do brick-and-mortar branches have a role to play in the future of retail banking?
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushKatia Bazzocchi
Pure mobile banks gain users daily, as they benefit from accessible smartphone technology. Millenials are the principal users of mobile banks, and will soon be followed by Generation Z. As consumer expectations continue to be shaped by new technology and innovative consumer affairs, a full mobile strategy is key for traditional banks to maintain market share.
The Fintech industry which is the backbone of all economies has also been impacted because of Covid. What are the implications of Covid to an important sector?
Financial services IT has focused on security and regulatory compliance in recent years. Now, more and more financial service companies are leveraging data in innovation to better serve customers worldwide.
Digital Banking Customer 3.0: “What Changed in the Satisfaction and Loyalty i...Fabio Mittelstaedt
Fintech Startups are bringing new banking business models focused on simple and effective customer experience based on mobile and with lower fees. And traditional Banks are struggling to face these neo banking challengers by developing new internal digital capabilities or collaborating with Fintech and even buying them. But in this new Fintech hype scenario, how is the satisfaction and loyalty of banking customers?
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Beyond Payment - E-Commerce Trends and Payment Challenges for Online Merchant...Lawrence Cheok
Written with e-commerce finance professionals in mind, this paper provides insights and recommendations for businesses interested in expanding their e-commerce operations internationally. It relates to online merchants needing to look beyond the web front-end and consider additional factors like back-office operations and banking infrastructure. Payment options discussed include e-wallets and mobile wallets, e-banking, and escrow payments, which are gaining favor in developing markets like China
Reference: Mobile payment industry in china 2012-2015 C. Keiko Funahashi
Referenced in presentation, "The Seven Wonders of China's Mobile World"
http://www.slideshare.net/ckeikofunahashi/m-learncon-session-907-ckeikofunahashi
Mobile Banking in 2020 - Mobile World Congress ReportNadejda Tatarciuc
Present report was presented at Mobile World Congress this year, showing the outlook for mobile banking by 2020! - how a younger world, more internet, crime, and activist governments will affect mobile banking penetration.
The World Payments Report 2012 shows a healthy 7.1% gain in non-cash payments volume globally. But volume is only part of the story for the payments market, which is growing and changing in new and exciting ways. Payments continue to grow amidst volatility and increasing regulation, however the payments instrument mix is evolving fast and will never be the same.
Contactless payment and US chip-and-PIN adoption drives smart card growth in ...Smart Payment Association
Smart Payment Association announces preliminary finds of 2014 smart card payments review
• Over 1.5 billion smart payment cards shipped in 2014
• 185 million smart payment cards and modules shipped to US in 2014
• Contactless technology present on 40% of payment cards in 2014
• Secure DDA technology present on 70% of payment cards in 2014
Munich, 4th February 2015: The United States’ migration to EMV-standard chip-and-PIN cards, and the growing demand for contactless technologies, defined a high-growth payment card market in 2014, according to the Smart Payment Association (SPA).
Preliminary figures, released in advance of the SPA’s annual review of the card payment market, show over 1.5 billion smart payment cards where shipped globally last year, with some 40% featuring contactless ‘tap and go’ technology.
The United States, the only major market not to have previously adopted EMV-standard cards, accounted for 185 million card and module shipments as the country makes the transition to chip-and-PIN.
This number was significantly higher than the 30 million cards shipped in 2013 – reflecting growing enthusiasm from the country’s regulators, banks and retailers to combat card fraud on a national scale.
In a clear example of federal support for EMV transition, President Obama signed an executive order in October 2014 to apply chip-and-PIN technology to newly-issued and existing government credit and debit cards, and to deploy EMV-supported payment terminals in federal agencies.
Contactless technology continued its rapid global growth. In 2014, four out of every ten smart payment cards featured the ‘tap and go’ technology, with SPA members shipping a total of over 600 million contactless payment cards in the year.
This figure represents a year on year growth of 35%, with much of the increase driven by Europe and Asia, where contactless cards represented slightly more than 50% of total shipments in 2014. In the US, less than 10% of cards shipped in 2014 featured contactless technology – a figure in line with the maturity of the EMV market.
The data, collated by the SPA – whose seven members represent around 85% percent of the total available market – also highlighted the primacy of the Dynamic Data Authentication (DDA) technology. DDA provides chip-and-PIN cards with high levels of protection against modification of data and card cloning. 70% of cards shipped in 2014 featured this technology – up from 66% in 2013.
Sylvie Gibert, President of the Smart Payment Association: “These preliminary figures underline the crucial role EMV-standard cards and secure infrastructures in the global payments ecosystem – both now and in the future.
“In 2014 we saw banks and retailers respond to consumer demands for faster and more convenient and more secure ways to pay as contactless shipments grew to their highest levels. Crucially, the continued and growing adoption of EMV-stan
Banking & Innovation: How Financial Services Can Embrace the Customer RevolutionComrade
Financial services companies are increasingly seeing opportunities to be at the forefront of innovation. Historically, banks have been slow to translate consumer demands into technologies like paperless statements and mobile check imaging. However, they were quick to implement online banking and, today, customers who bank online are typically more satisfied as well as more cost-effective to maintain. Banks have also responded to the shift in consumer demand for mobile banking on tablets and smartphones. The next challenge facing financial services is how to address the rise of consumer trends evolving mainly outside of the industry. We’re pleased to have partnered with Matchi to publish “Banking & Innovation: How Financial Services Can Embrace the Customer Revolution." This paper focuses on three phenomena that will ultimately impact every bank:
- Crowdsourcing
- Wearable Technology
- The Sharing Economy
We explore the state of each these trends, and how they relate to financial services.
10th Annual World Payments Report 2014 from Capgemini and The Royal Bank of S...Capgemini
Ten years after publishing the first World Payments Report, Capgemini and RBS continue to provides insight into global and regional non-cash payment trends. This year it gives us a view on cross border payments and a spotlight on the U.S. market; the latest regulatory and industry initiatives including PSD2, immediate payments and intraday liquidity management; innovation within payment processing; and key changes over the last 10 years and what can we expect from the payments industry over the next 10 years.
SPA Presentation at Cartes America
Contactless Card Shipments Break all Records as
Consumers Adopt New Ways to Pay
• Contactless technology was present on 23 percent of all payment cards shipped worldwide in 2012
• Contactless growth in Western Europe and Asia exceeded 100 percent
• More than 220 million contactless cards were delivered by Smart Payment Association (SPA) members in 2012
• SPA believes the harmonization of ISO, SEPA and EMVCo standards will ensure the global interoperability of new NFC contactless services for consumers.
23rd April 2013
Digital Banking Customer 3.0: “What Changed in the Satisfaction and Loyalty i...Fabio Mittelstaedt
Fintech Startups are bringing new banking business models focused on simple and effective customer experience based on mobile and with lower fees. And traditional Banks are struggling to face these neo banking challengers by developing new internal digital capabilities or collaborating with Fintech and even buying them. But in this new Fintech hype scenario, how is the satisfaction and loyalty of banking customers?
Bank innovation - PwC Study on When the Growing Gets Tough: How Retail Banks ...Jeff Grill
As the United States emerges from the financial crisis, retail banks are striving to outperform their competitors while grappling with unprecedented regulatory challenges and shifts in consumer behavior. For more information see http://www.pwc.com/us/en/financial-services/publications/viewpoints/viewpoint-when-the-growing-gets-tough.jhtml
Beyond Payment - E-Commerce Trends and Payment Challenges for Online Merchant...Lawrence Cheok
Written with e-commerce finance professionals in mind, this paper provides insights and recommendations for businesses interested in expanding their e-commerce operations internationally. It relates to online merchants needing to look beyond the web front-end and consider additional factors like back-office operations and banking infrastructure. Payment options discussed include e-wallets and mobile wallets, e-banking, and escrow payments, which are gaining favor in developing markets like China
Reference: Mobile payment industry in china 2012-2015 C. Keiko Funahashi
Referenced in presentation, "The Seven Wonders of China's Mobile World"
http://www.slideshare.net/ckeikofunahashi/m-learncon-session-907-ckeikofunahashi
Mobile Banking in 2020 - Mobile World Congress ReportNadejda Tatarciuc
Present report was presented at Mobile World Congress this year, showing the outlook for mobile banking by 2020! - how a younger world, more internet, crime, and activist governments will affect mobile banking penetration.
The World Payments Report 2012 shows a healthy 7.1% gain in non-cash payments volume globally. But volume is only part of the story for the payments market, which is growing and changing in new and exciting ways. Payments continue to grow amidst volatility and increasing regulation, however the payments instrument mix is evolving fast and will never be the same.
Contactless payment and US chip-and-PIN adoption drives smart card growth in ...Smart Payment Association
Smart Payment Association announces preliminary finds of 2014 smart card payments review
• Over 1.5 billion smart payment cards shipped in 2014
• 185 million smart payment cards and modules shipped to US in 2014
• Contactless technology present on 40% of payment cards in 2014
• Secure DDA technology present on 70% of payment cards in 2014
Munich, 4th February 2015: The United States’ migration to EMV-standard chip-and-PIN cards, and the growing demand for contactless technologies, defined a high-growth payment card market in 2014, according to the Smart Payment Association (SPA).
Preliminary figures, released in advance of the SPA’s annual review of the card payment market, show over 1.5 billion smart payment cards where shipped globally last year, with some 40% featuring contactless ‘tap and go’ technology.
The United States, the only major market not to have previously adopted EMV-standard cards, accounted for 185 million card and module shipments as the country makes the transition to chip-and-PIN.
This number was significantly higher than the 30 million cards shipped in 2013 – reflecting growing enthusiasm from the country’s regulators, banks and retailers to combat card fraud on a national scale.
In a clear example of federal support for EMV transition, President Obama signed an executive order in October 2014 to apply chip-and-PIN technology to newly-issued and existing government credit and debit cards, and to deploy EMV-supported payment terminals in federal agencies.
Contactless technology continued its rapid global growth. In 2014, four out of every ten smart payment cards featured the ‘tap and go’ technology, with SPA members shipping a total of over 600 million contactless payment cards in the year.
This figure represents a year on year growth of 35%, with much of the increase driven by Europe and Asia, where contactless cards represented slightly more than 50% of total shipments in 2014. In the US, less than 10% of cards shipped in 2014 featured contactless technology – a figure in line with the maturity of the EMV market.
The data, collated by the SPA – whose seven members represent around 85% percent of the total available market – also highlighted the primacy of the Dynamic Data Authentication (DDA) technology. DDA provides chip-and-PIN cards with high levels of protection against modification of data and card cloning. 70% of cards shipped in 2014 featured this technology – up from 66% in 2013.
Sylvie Gibert, President of the Smart Payment Association: “These preliminary figures underline the crucial role EMV-standard cards and secure infrastructures in the global payments ecosystem – both now and in the future.
“In 2014 we saw banks and retailers respond to consumer demands for faster and more convenient and more secure ways to pay as contactless shipments grew to their highest levels. Crucially, the continued and growing adoption of EMV-stan
Banking & Innovation: How Financial Services Can Embrace the Customer RevolutionComrade
Financial services companies are increasingly seeing opportunities to be at the forefront of innovation. Historically, banks have been slow to translate consumer demands into technologies like paperless statements and mobile check imaging. However, they were quick to implement online banking and, today, customers who bank online are typically more satisfied as well as more cost-effective to maintain. Banks have also responded to the shift in consumer demand for mobile banking on tablets and smartphones. The next challenge facing financial services is how to address the rise of consumer trends evolving mainly outside of the industry. We’re pleased to have partnered with Matchi to publish “Banking & Innovation: How Financial Services Can Embrace the Customer Revolution." This paper focuses on three phenomena that will ultimately impact every bank:
- Crowdsourcing
- Wearable Technology
- The Sharing Economy
We explore the state of each these trends, and how they relate to financial services.
10th Annual World Payments Report 2014 from Capgemini and The Royal Bank of S...Capgemini
Ten years after publishing the first World Payments Report, Capgemini and RBS continue to provides insight into global and regional non-cash payment trends. This year it gives us a view on cross border payments and a spotlight on the U.S. market; the latest regulatory and industry initiatives including PSD2, immediate payments and intraday liquidity management; innovation within payment processing; and key changes over the last 10 years and what can we expect from the payments industry over the next 10 years.
SPA Presentation at Cartes America
Contactless Card Shipments Break all Records as
Consumers Adopt New Ways to Pay
• Contactless technology was present on 23 percent of all payment cards shipped worldwide in 2012
• Contactless growth in Western Europe and Asia exceeded 100 percent
• More than 220 million contactless cards were delivered by Smart Payment Association (SPA) members in 2012
• SPA believes the harmonization of ISO, SEPA and EMVCo standards will ensure the global interoperability of new NFC contactless services for consumers.
23rd April 2013
Israeli Innovation Can Accelerate China's FinTech RevolutionEsther Loewy
Upround Ventures continues to play a major role in the Israel – Asia innovation nexus. That means we invest heavily in building both our organization and our portfolio companies – and a lot of frequent flyer miles to China and Hong Kong and the region. For our Asian relationships, we identify and select the right Israeli startups to help them become, or maintain, their market leadership through innovation.
Finance, to no surprise, is a major industry in Asia with Hong Kong and Singapore vying to be the international hub for APAC. Within Mainland China, we see the largest institutions, state owned enterprises and new financial players embracing a pure digital banking experience. This report shows why traditional financial institutions need to innovate to stay relevant and why the disrupters are on a constant search for the newest technologies to stay ahead of the game.
Global banks have established or joined fintech hubs in NY, London, Hong Kong , Silicon Valley, Singapore and yes, Tel Aviv. Citi’s first (and only?) innovation center is in Tel Aviv. Barclays (where I mentor) added Tel Aviv after their tech initiatives in London, NY and Capetown. The list of global banks and financial institutions that visit Israel, keen to learn, cooperate and invest runs the gamut of continents.
Israel is home to some of the world’s strongest technologies needed to fuel the growth of China’s financial institutions. We’ll embark on that journey with How Israeli Technologies Can Accelerate China’s FinTech Revolution
A special thank you to Shir Bodner and Ye Qu of Upround Ventures who played an integral role in this collaborative project.
Data, Chinese Ants and how Alibaba Became the World’s Largest RetailerNick Smith
Keynote presentation at CIO Edge, Sydney on Thursday 23rd February 2017
Jack Ma likens his group of companies to ants in that he believes an army of ants collaborating will conquer any challenge, whilst teaching us about purpose, collaboration, and focus. With this philosophy Alibaba has successfully been using data as a strategic asset to deliver a differentiated customer experience for millennials and beyond. As such they have also become the World’s largest retailer, delivering true multi-channel experiences (not singular) and leap frogging traditional organisations with their siloed thinking.
· The importance of building collaborative ecosystems
· How to leverage the strategic value of data
· Building an information elite culture
Alibaba is one of the top internet company that shines in this digital age.
I learn that simplicity is the key when they work on their company culture.
Great learning from Jack Ma!
China Mobile Advertising Landscape Report (Thomvest Ventures)Thomvest Ventures
This report examines China's digital advertising industry, with a specific focus on mobile. Our goal with this research is to grasp the many nuances of advertising technology in China – what role does programmatic play, who are the key vendors in the space, what challenges do these vendors face, and how do we expect the market to evolve over the next several years?
The Chinese internet is a mysterious beast. Most of us know our Baidu from our Google, but what about other platforms? Kev breaks it down in 60-minutes.
Understand
1. the China E market and how to use social / digital marketing to tap into the market.
2. the habits and trends of the modern Chinese consumer.
3. the strategy of Baidu, Alibaba and Tencent.
4. the evolution of E commerce in China .
5. the future of China AI and 5G market .
The internet ecosystem is a complex and involves multiple activities and players. Study breaks down the internet value chain into five main markets: Content Rights, Online Services, Enabling Technology/Services, Connectivity and User Interface (devices and applications).
China eCommerce Market Analysis Report 2013 – Chapter 1: Industry Review and ...GLG (Gerson Lehrman Group)
With China’s eCommerce market emerges rapidly in recent years, 2013 will mark watershed moment when China surpasses the US to become the top e-shopping market in the world. The size of online shopping transactions in China continues to grow rapidly, with 10 times the increase over 5 years. In 2012, the online shopping transactions hit RMB1,259.4 billion, with an annual growth rate of 66.5%. In this report, we aim to provide you with a wider scope of the current China eCommerce market. What’s more, Chinese e-tailing is not just replacing traditional retail transactions but also stimulating consumption that would not otherwise take place.
Mary Meeker Internet Trends Report for 2019Eric Johnson
Mary Meeker Internet Trends Report for 2019 - Mary Meeker has been a leading analyst and guru for all things internet business for many years. This report outline's Ms Meeker's review of trends for the year 2019. Topics include:
1) Users
2) E-Commerce + Advertising
3) Usage...
4) Freemium Business Models
5) Data Growth
6) ...Usage
7) Work
8) Education
9) Immigration + USA Inc.
10) Healthcare
11) China (Provided by Hillhouse Capital)
Banking Disruption in Financial Services: Threats and OpportunitiesDogTelligent
There are three forces shaping the future of banking. Technology innovation is the first. For most traditional financial institutions -- banks and credit unions -- technology innovation is a weakness; instead, they rely on third-party firms ranging from established core providers to startups to provide them with a mix of products that they repackage and resell to their customers. Demographics is the second force. Millennials now account for 25% of the US population with 80 million and growing. The third force is the emergence of new business models on the one hand driven by Millennial demand and communication preferences, and on the other, enabled by new technologies as they are invented.
The report examines data from multiple sources and suggests potential defenses for institutions to fend off competitive threats from technology, retail, and telecom firms that are gaining traction in the payments and banking arenas.
Opportunities in China's Startup EcosystemZhenFund
The 2013 update from ZhenFund on the state of China's technology startup ecosystem. Last time we outlined the 3C's 2E's in understanding the differences between China and Silicon Valley. This year we focus on some of the positive trends we see developing in the startup ecosystem.
In iClick's last chapter, we have explicitly focused on the characteristics and evolution of Chinese eCommerce users, together with the new demand and online users’ preference for eCommerce sites. In this final chapter, we provide strategies and solutions that help Chinese eCommerce practitioners to face the challenges today's digital landscape.
Este año, Dreamforce se ha convertido en el evento de Inteligencia Artificial más grande del mundo, donde todas las sesiones y keynotes de producto estaban impregnadas de esta tecnología que ha venido para revolucionar la manera en la que nos relacionamos con nuestro entorno.
Durante tres interesantes jornadas, nuestro equipo estuvo inmerso en conocer todas las novedades, detalles y las últimas tendencias de Salesforce con un objetivo claro: conocer para aportarte valor. Hemos elaborado un paper que reúne los principales temas que te ayudarán a seguir impulsando la transformación y el crecimiento de tu negocio.
Desmaterialización y circularidad - Neture Impact by The CocktailThe Cocktail
La basura es un error de diseño. Utilizar materiales prácticamente indestructibles para satisfacer necesidades puntuales, sin un plan para su recuperación, es un fallo del sistema con fuertes implicaciones ambientales, económicas y sociales. Avanzar en la desmaterialización y circularización de la economía es la mejor estrategia para resolver este problema y supone el siguiente gran reto de las empresas a la hora de sostenibilizar sus negocios. Además, ambas transiciones tienen un papel protagonista en la consecución de los objetivos de descarbonización.
El informe “Desmaterialización y circularidad” de Neture Impact aborda las implicaciones de esta transformación sobre consumidores, productos y modelos operativos con el objetivo de acelerar su despliegue entre las empresas más afectadas.
Desmaterialización y Circularidad - Neture Impact - Resumen EjecutivoThe Cocktail
La circularidad y la desmaterialización tienen profundas implicaciones económicas, sociales y técnicas. Solo a través de la comprensión de estos desafíos seremos capaces de trazar estrategias adecuadas para su despliegue, considerando sus impactos de forma integral.
El consumidor mexicano tras la pandemiaThe Cocktail
¿Cómo sale el consumidor mexicano de la pandemia?
- Confiando menos en el futuro
- Reflexionando más sobre su vida y sobre sí mismo
- Expresando más sus emociones
- Siendo menos sociables
- Pensando en pasar más tiempo en casa
Nuestro recién estrenado documento habla sobre los cambios que sufrió el consumidor después de dos años de pandemia.
A lo largo del documento veremos algunas tendencias que caracterizan a este nuevo consumidor en su relación con productos, servicios y marcas, apoyándonos en información cuantitativa, tanto propia como de instituciones públicas.
Los rasgos que encontramos que definen a este nuevo consumidor nos han llevado a nombrarlo Yosumidor.
Alquiler de coches online en España: asignatura pendienteThe Cocktail
Desde The Cocktail hemos querido hacer un análisis para verificar la “madurez digital” de este sector. Estudiamos el sector desde 4 grandes áreas: usabilidad, posicionamiento en buscadores (SEO), movilidad y redes sociales, identificando las mejores prácticas del sector y potencial de mejora en cada una de estas áreas.
2. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Key takeaways
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 2
3. Introduction
Our local team at the office in Beijing has put together this brief introduction to how
internet works in China.
Presenting the habits, demographics and growth forecasts. But also providing a glimpse
about the tailored services that have made local internet so special and different from
the western online services.
Introduction to the chinese internet market 3
4. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Key takeaways
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 4
5. Internet in numbers
By early 2013 China has already 564 million Internet users(1).
That’s approximately 25% of all users online worldwide. More
than double the number of users in USA and by far more than all
European countries together. It is said that it could be around
750 million by 2015.
With a 39,9% penetration specialists says it will keep growing in
the track of developed countries as UK or USA with 84% and 78%
of penetration respectively.
The state development plans and the fast reaction of the local
industry has developed the Chinese internet to become a reality
in the daily life of Chinese citizens, specially in urban areas.
Considered to be a developed market this days in terms of time
invested online and average spend per user online, there are
still some concerns about the speed, stability and transparency
of communications.
(1) CNNI, statistic report http://cnnic.cn/
Introduction to the chinese internet market 5
6. Internet in numbers
With 242 million online buyers(1), ecommerce transactions
volume is growing steadily by 60% every 12 months.
Nearly 40% of internet users watch online TV content regularly.
Being a reasonable rate there is still room to grow compared
with other countries. The two main video platforms, Tudou and
Youku merged to unite forces during 2012 .
There are currently 309 million registered accounts in microblog
platforms like Twitter. 49% of internet users are registered in
some sort of social network.
40% of online buyers say they have read and posted customer
reviews, twice than in USA.
The new gold rush. Internet services and e-
commerce will continue to thrive as China
keep developing it’s domestic economy.
(1) CNNI, statistic report http://cnnic.cn/
Introduction to the chinese internet market 6
7. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Key takeaways
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 7
8. Demographics, devices and connectivity
The Internet population in China is young. Up to 25% of total
internet users are currently students, mostly at high school. Young
people identify internet their first source for reliable information
against TV and Newspapers. And they spend an hour more every
day online than US users.
According to CCNI1 90% of internet users earn just 5.000 RMB or
less (600 €). Despite this buyers don’t go online just for good prices
but willing to fill the absence of determinate products in their
surroundings.
Genres are equally represented and in terms of location, urban
areas represents 72,4% of the total, being the other 27,6% rural
population.
A significant rise of budget. By 2015 the
average shopper will spend $1000 online,
what US consumers are registering today.
(1) CNNI, statistic report http://cnnic.cn/
(2) New Media Trend Watch –
http://www.newmediatrendwatch.com/markets-by-country/11-long-
haul/49-china
Introduction to the chinese internet market 8
9. Demographics, devices and connectivity
China has become the first market for PC and mobile phones with
Lenovo leading worldwide computer sells.
Although western brands as Apple, Nokia or Dell are still well
recognized, local market is heavily price sensitive and local brands
usually play their cards at this level.
Smartphone sells were up 199% by 20121 in comparison with 2011. This
explain the big growth in app and games sells. Chinese people are know
to be enthusiast buyers of virtual goods.
Local players move fast. With plenty of resources
companies like Alibaba or Baidu are already
working on their own smartphones and cloud
services.
(1) Canalys - http://www.canalys.com/newsroom/stellar-growth-sees-china-
take-27-global-smart-phone-shipments-powered-domestic-vendors
By Heinecke, Flickr
Introduction to the chinese internet market 9
10. Demographics, devices and connectivity
By penetration and frequency of usage, China is already the
largest market for mobile services and applications. 75% of the
online population access internet through mobile phones.
The old idea that chinese consumers don’t pay for apps is
vanishing with 2 from every 3 smartphone user having purchased a
paid aplication during 2012.
Google Play not able to accept payments in China for apps is
giving plenty of space to local app markets: Baidu App Store,
China Mobile’s Market, Tencent App Gem and many others.
Surprisingly many users are still connected to internet through
2.5G devices. The market for services and contents adapted to low
profile phones is still hot and represent a significant industry.
Android, the king. It’s currently the unbeatable
leader with 90% of market share in mobile OS.
Introduction to the chinese internet market 10
11. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Key takeaways
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 11
12. Payment methods
The Chinese society strongly rely on cash but regarding ecommerce
cash on delivery payments have been gradually replaced by
electronic methods in recent years.
Today up to 73,9% of ecommerce payments are processed online.
Being paid on delivery just 11,6% of purchases. (1) But far from
what it could be expected Paypal don’t play a major role in China.
More than 100 companies have currently licenses for third party
payment operations, but the market is mostly shared by 5 big
players(2):
-Alipay
-Tenpay
-China Unionpay
-99Bill
-China PnR
(1) Online Payment and E-Commerce in China 2012. Maverick China Research
(2) Online payments report 2012 by Innopay BV http://bit.ly/NjnYkX
Introduction to the chinese internet market 12
13. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Final advice
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 13
14. Main players
Tencent
Tencent is the fourth internet company
by market capitalization, right behind
Google, Amazon and Ebay.
QQ a desktop messenger application is
currently the most used communication
tool in China, far more used than email.
QQ.com, a generalist portal is also one
of the top 10 most used websites
worldwide.
Wechat the new promising child, an
instant message application for
smartphones similar to Whatsapp, has
already 200 million users.
Introduction to the chinese internet market 14
15. Main players
Alipay
Property of Alibaba Group, Alipay
represents around 50% of market
share.
Claiming to have over 500 million
registered accounts(1) offers credit
card and banking account payments.
The company provides also the ability
to pay for basic home utilities as
water, electricity, mobile bills, etc.
Already in conversations with
Mastercard(2), is aiming to expand it
reach globally in the following years.
(1) Online payments report 2012 by Innopay BV
http://bit.ly/NjnYkX
(2) Tech in Asia http://bit.ly/WDNP7s
Introduction to the chinese internet market 15
16. Main players
Alibaba Group
Alibaba group, with Taobao and Tmall is
the ecommerce giant in China.
Around 800 millions articles are
available in Taobao(1).
More than 60% of buying searches by
chinese internet users starts directly in
Taobao homepage.
During 11/11/12, a big discount day,
Alibaba’s platforms sold US$3.06
billions in just 24h.
(1) Taobao company overview http://bit.ly/2iLgcP
Introduction to the chinese internet market 16
17. Main players
Ctrip
Founded in 1999 is the leader in online
travel booking with 42% of market
share, followed in the distance by
elong.net with a 13%.
With an year on year growth of 15%,
Ctrip registered US$198 million of total
revenues in Q3 of 2012.
The company reinforces the online
service with 24h free call service and
sales offices in 45 cities across the
country.
Introduction to the chinese internet market 17
18. Main players
Netease Inc.
One of the earliest internet portals in
China, founded in 1997 has evolved to
offer many services. From email
accounts, and classifieds to multi-player
online role-playing games (MMORPGs).
Today keeps being one of the most
used online services, having recorded
US$129.2 million of net profit last Q3
2012.
(1) Netease corporate website http://ir.netease.com/
Introduction to the chinese internet market 18
19. Main players
Baidu.com
Unbeatable since it beginning in the
search engine industry, Baidu has nearly
80% of market share offering many
other services including “Zhidao” a
competitor of Wikipedia and “Wangpan”
a rival of Dropbox.
Baidu recently revealed that is building a
cloud computing center aimed on mobile
market. Working in the same direction
than it’s branded smartphone made by
TCL.
The company declared US$858.8
millions in revenue(1) from online
advertising in Q2 2012. That’s 60%
more than the previous year.
(1) Baidu Investor relations http://bit.ly/cRSzPd
Introduction to the chinese internet market 19
20. Main players
Sohu Inc.
Similar to Netease, but with around half
it revenues comes Sohu. Also an
internet company offering news, links
directory, online games and many other
services.
As it happens with Tencent and
Netease, the main revenue source are
online games(1).
Sogou, a search engine service
developed by Sohu have been the main
competitor to Baidu until it was recently
surpassed by Qihoo 360 search tool(2).
(1) Tech in Asia http://www.techinasia.com/comparing-revenue-chinas-
major-internet-portals-tencent-kicking-ass-sina-872/
(2) http://hao.360.cn/so/index.html
Introduction to the chinese internet market 20
21. Main players
Youku Tudou Inc.
Youku.com and Tudou.com, two of the
main video platforms merged last
August.
The new company called “Youku Tudou”
have 310 million users and 1.6 billion
hours of video are served monthly.
Together they account for 80% of total
online video demand in China.
The company forecast a revenue around
$100 million for Q4 2012(1).
(1) AP - Yahoo News http://yhoo.it/Ubgv5F
Introduction to the chinese internet market 21
22. Main players
Renren.com
Renren is the leader “facebook alike”
social network in China. Formerly known
as Xiaonei (on-campus network) has
over 172 million registered users.
From $50 million earnings in 3Q 2012,
almost half came from online game
revenues(1).
(1) Renren 3Q 2012 Financial Results - http://ir.renren-
inc.com/phoenix.zhtml?c=244796&p=irol-
newsArticle&ID=1758393&highlight=
Introduction to the chinese internet market 22
23. Main players
Shanda Interactive Entertainment
Shanda, stablished in 1999, is the main
online game player in China.
With over 70 game products is listed in
NASDAQ stock market since 2009.
With 90 million active users Shanda
recently declared $170.4 million in net
sales during Q3 of 2012(1).
(1) Shanda games report Q3 2012
http://ir.shandagames.com/releasedetail.cfm?Rel
easeID=723214
Introduction to the chinese internet market 23
24. Main players
Weibo.com
Sina Weibo is the main microblog
platform in China, a Twitter equivalent.
Recently announced to achieve 400
million account registered, by business
and individuals, doubling it nearest
competitor Tencent Weibo.
Up to 72% of the user base access Sina
Weibo through mobile devices.
Revenue in last Q2 reported to be US
$22 million from a total of $152 in all
Sina services. With 15% of advertising
coming from mobile access.
Introduction to the chinese internet market 24
25. Main players
Douban.com
Douban is one of the most popular user
generated content website in China.
This service of opinion sharing on
books, movies and music recently
declared to have 100 million unique
visitors a month(1). And it’s ranked by
Alexa in the top 20th of chinese
websites.
(1) The next web
http://thenextweb.com/asia/2012/08/17/chinese-social-
network-douban-almost-profitable-expected-2012-
revenues-13m-100m-monthly-visitors/
Introduction to the chinese internet market 25
26. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Final advice
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 26
27. Legal framework
China has an old history of laws and rules. Traditionally based
in the Confucian approach of social control through moral
education, it’s nowadays similar to western style legal
systems.
Current regulation on internet contents and services is tight.
The government considers that within Chinese territory the
internet is under the jurisdiction of Chinese sovereignty(1).
Topics such as violence, critics to the social system, spreading
rumors or injuring the reputation of state organizations are
forbidden. Service providers are legally responsible for
customer activities so in order to avoid sanctions they tend
to assume an editorial role over content published by users.
Since 2010 individuals and businesses willing to register a .cn
domain are required to provide their respective national ID and
license.
Starting in 2012, also users of microblogs (Twitter
equivalent) are required to identify themselves with ID
number and mobile phone to use these services.
(1) Chinese Government´s official Web Portalhttp://english.gov.cn/2010-
06/08/content_1622956_7.htm
Introduction to the chinese internet market 27
28. Legal framework
Foreign companies looking to open a local branch in China
have mainly three options:
-Find a local partner for a joint venture. A good option so your
partner can access local resources for you. However, stories
of joint ventures between foreign and local companies in China
are frequently problematic and taking advantage of foreigner’s
knowledge or financial resources does not necessarily go
against local work ethics.
-Create a Wholly Owned Foreign Enterprise (WOFE) in China
mainland. Been there by your own is probably a conservative
and more reliable way to start operations. Be aware that the
bureaucracy of the process can be exhausting. It’s good to find
a proper local advisor.
-Establish in Hong Kong. The fastest way to become fully
operational and the clear option for many foreign companies.
Introduction to the chinese internet market 28
29. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Key takeaways
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 29
30. Key takeaways
1 Domestic team and resources are vital. They have a first hand understanding of how
everything works and what’s happening in the middle country.
2 Being small in China usually equals to be really big by western standards. Don’t think it
twice.
3 Mobile is key. Mobile phones have never been the second screen in China.
4 Take advantage of the early adopters. The internet user base is among the youngest
worldwide.
5 Fill the quality gap. Many local services lack of quality due to excessive focus on growth.
6 Don’t underestimate Chinese culture. It affects everything in unpredictable ways.
Introduction to the chinese internet market 30
31. Index
1. Introduction
2. Internet in numbers
3. Demographics, devices and connectivity
4. Payment methods
5. Main players
6. Legal framework
7. Key takeaways
8. About The Cocktail
Visure / IRQA
Introduction to the chinese internet market 31
32. About The Cocktail
• Founded in 2003, The Cocktail has fast developed to
become one of the most known digital consultancy
southern Europe.
• More than a hundred employees giving shape to an unique
innovation culture. From design, business, marketing and
programming to research passionate specialists.
• We’ve being fortunate to define and develop some of the
most complex and challenging services in internet.
• We deeply understand the digital business, our clients
accounted 7000 daily transactions and 100€ million in sells
last year.
• We are proud of our rock solid methods and own
technology. Great results, in time.
• Some of our clients includes: Mercedes-Benz, L'Oréal,
MTV, Google, Microsoft, Paypal, Real Madrid, Movistar,
AEGON .
Introduction to the chinese internet market 32
33. About The Cocktail
We know it’s hard to move abroad. If you are considering
China as an option for your digital business we can give you
support with:
•Research and competitor analysis.
•Cultural adaptation of your digital service and products.
•Strategy, development and management of online presence,
ecommerce businesses and mobile apps.
•Getting support for local implantation for your digital company.
Introduction to the chinese internet market 33
34. Want to known more?
Madrid México D.F. Beijing Bogotá
C/ Salamanca 17 Av. Sonora, 166. No.1. No.4 Daxue Alley Cra 11 Nº 81-26 Oficina 301
28020 Madrid (Spain) Colonia Condesa Dongcheng District Bogotá, Colombia
Delegación Cuauhtémoc 100009 Beijing, China
06100 - Mexico D.F.
+34 91 567 06 05 +52 55 55013299 +86 010 6407 4392 +57 3108776790
info@the-cocktail.com mexico@the-cocktail.com beijing@the-cocktail.com colombia@the-cocktail.com
Introduction to the chinese internet market 34