As the country with the most internet users in the world and the biggest mobile market in the world, China is an important place for businesses, reachers and analysts to consider as the largest data set we can observe and draw insights from around social media usage, technology adoption and behavior. Overall, China's internet industry has many unique features, and it is an enormous market opportunity with 1.3 billion people, 56 ethnic groups and over 290 spoken languages. There are about 618 million Internet users in China today, the largest in the world. When you look at penetration rates, whereas the majority of Americans who want to be on the Internet are already connected, less than half of the Chinese population are connected, hovering just below 46%. This means that there are still major growth opportunities in China, and that is exactly what the China Internet Network Information Center predicts, estimating there will be 800,000,000 users by 2015. What is also very interesting is that the vast majority of Chinese prefer to access the internet on their mobile phone. Of the 618 million Internet users in China, 500 million use a mobile device to access the Internet. That is over 80% of all of the Internet users in China. In fact, if you look at the smartphone space, China is already the world’s biggest consumer of smartphones. When you think of smartphone technology, your mind automatically jumps to Apple iPhones and Samsung products, but we are beginning to see local brands emerge. By show of hands, how many people in this room have heard of Xiaomi? Xiaomi is a very interesting brand. It is a local, Chinese company that makes Smartphones. They got started in 2010 and sell their product almost exclusively online. In December 2013, Xiaomi overtook both Apple and Samsung to become the top selling smartphone in China. It is a phenomenal example of one of the first local Chinese brands to break through and compete at a very serious level with established, global brands. If we look at the Internet landscape in China, there are several Internet giants. The most important thing to takeaway here is that these companies are different from our own. Their products are shaped by the culture and conditions in China. The social media landscape, platforms fall broadly into 3 categories: microblogs, messaging services and video/gaming. You will notice that there is a lot of overlap between these, because Chinese social media platforms are rarely singularly focused in terms of their functionality. They have a Swiss-army knife aspect to them, so a messaging app might also have a social sharing function and gaming and music and mobile payment, all rolled into one platform. This is difficult to really understand unless you actively use these apps.

1. Beyond 1.3 Billion:
Understanding China
and Social Media
Yuanbo Liu | @yuanboliu

2. China is a massive
market with a unique
social media landscape.
How is it different and
why?

3. First, let’s look at the
sheer size of China.

4. Chinese New Year is the largest annual
human migration with 3.6 billion trips taken.

5. Now let’s look at
the Internet.

6. The world’s largest population of internet users
618,000,000
Internet users in China as of December 2013
China has the largest population of Internet users in the world. It is
about twice the size of the US population (317 million people).
Tech in Asia

7. There are still major growth opportunities
85
%
Internet penetration rate, USA
45.8
%
Internet penetration rate, China
Almost all Americans who want to be online are connected to the
Internet, already. Clearly, that is not the case in China.
China Internet Network Information Center (CNNIC)

8. A mobile revolution is taking place
500,000,000
Of the 618 million Internet users in China access the Internet on their mobile device
Over 80% of Internet users in China access the web via mobile.
China Internet Network Information Center (CNNIC)

9. Local brands are beginning to emerge as leaders
China is the world’s biggest consumer of smartphones. Today, Apple
has more stores in Shanghai than in San Francisco, and launched
new iPhones in Beijing when it does in California.

10. So, lots of people in
China are going online,
mostly via mobile.
Once online, where are
they going?

11. Chinese platforms are unique
Search
E-commerce
Social
Internet giants in China are shaped by the culture and conditions.

12. Social
Microblogs
Messaging
Video/Gaming
Different social media channels in China appeal to different
audiences. Many incorporate multiple aspects of functionality, like
messaging, video and gaming, with a Swiss-army knife approach.

13. Sina Weibo
Screenshot
Weibo is a type of microblogging platform. Sina Weibo is one such
platform, though there are many others. Microblogs are now heavily
censored in China and many require real-name verification.

14. Wechat
Screenshots
Wechat is the standard method of messaging in China, occupying 82%
of messaging. Similar to WhatsApp, it allows you to send messages
over the Internet, as well as voice messages and social sharing.

15. YY
Screenshot
YY is like“Whatsapp meets Zynga meets American Idol”. A
completely different type of platform, YY appeals to a specific
audience and mixes real time voice and audio with virtual goods.

16. To sum it up, Chinese platforms revolve around:
Mobile-first technology
Swiss-army knife approach
Virtual goods
Audiences

17. China is an enormous
market that is very
active on social. But it’s
not just one big
opportunity. Why?

18. To understand why
China is different, look
to the cultural
underpinnings of
specific audiences.

19. 1. Geographic

20. Tiered city structure
Tier 1 - Beijing
Tier 2 - Qingdao
Tier 3 - Shenyang
Consumer habits vary geographically according to the affluence and
status of the city.

21. 2. Demographic

22. Social demographics
Fuerdai
Singles
Tourists
Audience subsets in China vary greatly. Each audience shares
unique characteristics and motives, which drive behavior.

23. Common Themes
Gifting
Social Pressure
Cultural practices and social pressures drive and catalyze emerging
technologies and internet phenomena.

24. These audiences are
each unique, but they
share common cultural
themes that translate
into online behavior.

25. What are the
takeaways?

26. Massive scale with
unique conditions
have led to innovation
that is very different
from our own.

27. We are beginning to
feel the impact of this
innovation.

28. To understand the
opportunity offered
by China, look to the
cultural values.

29. Thanks for listening.
Questions?