the internet culture and industry in china

Ben Zhang, Aaron Li

The Internet Culture and Industry in China

450 Million Internet users in China now

33.9% of total population

Growing at 20% a year

The Big Numbers

The Trend

300 million mobile Internet users

66% of all Internet users*iPhones and iPads are hugely popular in

China unlike Apple desktops

Mobile Internet Users

Internet Usage Difference

Internet Cafe

$5 Billion Online Gaming IndustryGrowing at 30% a year50:50 split between Chinese games and foreign gamesGaming addiction of children is concern for

parents

The Gaming Industry

Fake newsBrowser Market Share

OS Market Share

Internet Stardom

Internet Stardom

Internet Stardom

Internet Stardom

Piracy

Chinese Income

$100 $200

Relative to average income,Windows cost about 4 times more in China than in the US

VS

An Example

• 6 million graduates

People

People

• People - abundant supply of raw talent, good universities provide strong technical training.

• Language - English and communication skills are swiftly catching up. English curriculum from 5th grade.

• Infrastructure - more robust than India (roads, water, electricity, bandwidth, office space…)

• Cost – up to 5x cheaper than US, 2x than India with tax incentives for “clean industries”. Salary level of an engineer in 2nd tier cities are around $400 a month.

• Law – new laws protect private ownership, IP & public/private or foreign/domestic partnerships

Source: http://www.randomwire.com/wp-content/uploads/China101.pdf

Outsourcing to China

Behind the Great Firewall of China

Guess Who’s Who

Google - Baidu

Youtube-Youku

What’s Different

Groupon - Tons of Sites in China

No one copying Linkedin

SN$ in China

Follower:9,293,520 Follower: 7,371,395

Chen YaoLady Gaga

Following: 850Following: 143,824

Tweets: 664 Tweets: 3352

Joined Twitter on 2008-03-26 17:37:48

Joined SINA Weibo on 2009-9-1 15:34:00

Revenue: 1 billion

Active User: 500 million

Revenue: 40+50=90 million

Active User: 250 million

Q&ABen Zhang twitter: @benzhangproLinkedin.com/in/benzhang Aaron Li imlizhi@gmail.com Linkedin.com/in/aaronliboston