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This Is What We Call,
the China Web
Dr. Gang LU | http://www.gang.lu
Founder of TechNode.com | gang@technode.com | @ganglu
Note
 It’s impossible to summarize the China Web in only ~20 slides;
 Here I just highlighted some of the most interesting and maybe
  controversial parts;
 Every point mentioned in these slides actually you can view them
  from different angles;
 Take this presentation as a reference. 
The Figures -
By end of June 2011 (CNNIC)

 China’s Internet population has reached 485 millions;
 Mobile internet users has reached 318 millions, China
  Unicom’s 3G subscribers ~33 millions
 Microblog users now reached 195 millions
 Instant Messaging, News, Search, Online Music are the Top
  4 most popular mobile service
The Hot Sector I - eCommerce
2011.11.11
 Started at 00:00, 3.42 millions users jumped onto Taobao within only 1
  minute;
 It only took 8 minutes to reach rmb 100m (~$15.8m) transaction
  volume, another 13 minutes to reach rmb 200millions (~$31.5m), and
  11 minutes later the transaction volume reached rmb 300millions
  (~$47.3m).
 At the time 11:11am, the transaction volume reached rmb 1.154billions
  (~$182m);
 By 24:00, the total transaction volume reached rmb 3.36 billions
  (~$530m);
 On the date 11/11/11, the total transaction volume on Taobao and TMall
  reached rmb 5.2billion (~$820m), and the number of transaction
  reached 336.9m.
The Hot Sector II –
The Booming of Mobile Internet
Mobile Applications
Android vs. iOS vs. WM7
App Stores
Market share for Mobile OS in China (Q3 2011) - by eguan.cn
~450K iOS Applications
                                                      on App Store


                                                      ~250K Android
                                                      Applications on Android Market

the No. of Apps in various App Stores (Q3 2011), by
eguan.cn
But……
Where is the Money?

Free Culture?!!
Jail-Breaked means Pay-by-Download model does not work in China, at least for now

                                                          Q2 2011, by UMeng
Characteristics of Mobile Users
                                        Low Education
                                        Low Income
                                        Low Age


   High School            Student
The 3L groups are the ones actually paying
for mobile service, but not the ones who
could afford for an iPhone (they might have
cheap Android phone, though.)
And……
International Brands Fail In China
The Stories of Copy Cats
The simplest way to tell how successful
your business is, just check how many
copies you can found in China web.
GooApple




Shanzai Culture
Loyalty?
•   Easier to raise Money?!
•   Tough Competition
•   Lacking of true Innovation
•   No long-term Plan
Big vs. Small
In China, Entrepreneurship means “life, death, or Tencent”
Complicated Chinese Web
关系
Guan Xi
gang@technode.com

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This is What We Call, the China Web

  • 1. This Is What We Call, the China Web Dr. Gang LU | http://www.gang.lu Founder of TechNode.com | gang@technode.com | @ganglu
  • 2. Note  It’s impossible to summarize the China Web in only ~20 slides;  Here I just highlighted some of the most interesting and maybe controversial parts;  Every point mentioned in these slides actually you can view them from different angles;  Take this presentation as a reference. 
  • 3. The Figures - By end of June 2011 (CNNIC)  China’s Internet population has reached 485 millions;  Mobile internet users has reached 318 millions, China Unicom’s 3G subscribers ~33 millions  Microblog users now reached 195 millions  Instant Messaging, News, Search, Online Music are the Top 4 most popular mobile service
  • 4. The Hot Sector I - eCommerce 2011.11.11  Started at 00:00, 3.42 millions users jumped onto Taobao within only 1 minute;  It only took 8 minutes to reach rmb 100m (~$15.8m) transaction volume, another 13 minutes to reach rmb 200millions (~$31.5m), and 11 minutes later the transaction volume reached rmb 300millions (~$47.3m).  At the time 11:11am, the transaction volume reached rmb 1.154billions (~$182m);  By 24:00, the total transaction volume reached rmb 3.36 billions (~$530m);  On the date 11/11/11, the total transaction volume on Taobao and TMall reached rmb 5.2billion (~$820m), and the number of transaction reached 336.9m.
  • 5. The Hot Sector II – The Booming of Mobile Internet Mobile Applications Android vs. iOS vs. WM7 App Stores
  • 6. Market share for Mobile OS in China (Q3 2011) - by eguan.cn
  • 7. ~450K iOS Applications on App Store ~250K Android Applications on Android Market the No. of Apps in various App Stores (Q3 2011), by eguan.cn
  • 8.
  • 10. Where is the Money? Free Culture?!!
  • 11. Jail-Breaked means Pay-by-Download model does not work in China, at least for now Q2 2011, by UMeng
  • 12. Characteristics of Mobile Users Low Education Low Income Low Age High School Student The 3L groups are the ones actually paying for mobile service, but not the ones who could afford for an iPhone (they might have cheap Android phone, though.)
  • 15. The Stories of Copy Cats The simplest way to tell how successful your business is, just check how many copies you can found in China web.
  • 17. Loyalty? • Easier to raise Money?! • Tough Competition • Lacking of true Innovation • No long-term Plan
  • 19. In China, Entrepreneurship means “life, death, or Tencent”
  • 22.