Daily Digital Pulse of China : China E-Commerce, China Mobile, China Gaming, China Online Payment

What's Next For The Gaming Market In China?

The future looks bright for the Chinese mobile gaming market with 20 billion yuan estimated turnover by 2015. No wonder that game developers and distributors in China are searching for ways to attract more people to download gaming apps. Statistics show that more than 32 percent of the total spent by a consumer on mobile devices is for gaming purposes. The results of a survey conducted by Flurry Analytics revealed that 24 percent of the consumers are using social networking apps.And since China has established a number of online payment services, players can purchase more paid content from app stores. Young players are more likely to download paid games because they are more aware about the intellectual property and they trust the online payment services.  At the beginning of the year China overtook United States as the world's biggest market for active Android and iOS smartphones and tablets.Still analysts warned that China's mobile gaming market might not be as healthy as anticipated. The market is still highly unstable for the gaming market.

Foreign Brands No Longer Top Choice For Chinese Customers

According to a 2013 study conducted by Epsilon, there is a growing preference among Chinese people to buy made-in-China products. Although six out of the 10 Chinese respondents endorsed foreign brands, experts revealed that local-brand supporters have grown to 43 percent from 31 percent in 2011. These trends are already visible in the Chinese fashion industry. Self-branded products from other industries, such as cars and consumer electronics, are also becoming extremely popular. More Chinese people said they would support Chinese-made cars, especially after the Diaoyu Island dispute between China and Japan. Experts believe that "it will be very hard to tell if a brand belongs to China or a foreign country in the future,"(Regina Leung, vice-president of the marketing division at Epsilon International).

Alibaba And Tencent Get 1 Billion Accounts

China's online payment service have been growing rapidly in the past decade and the main players, Alipay and Tenpay had a 46.6 percent share of the payment market last year and 20.9 percent share, respectively. Alipay, the online payment arm of e-commerce giant Alibaba Group Holding Ltd, had a total of 800 million registered accounts by the end of April. Tencent's Tenpay announced that it counted 200 million registered users by the end of last year.Both companies have been trying to expand their business portfolio by entering a wider range of services, such as micro loans and mobile payment services.

Alibaba doesn’t want to be the next Facebook

According to Bloomberg, the world’s biggest online retailer is considering a more conservative valuation than what the social-networking company achieved last year.While Alibaba, based in Hangzhou, China, has said it has no timetable for an IPO, analysts are anticipating an offering this year or next. Proceeds from the IPO would be used along with additional cash to buy back stock held by Yahoo! Inc. Alibaba is already in the early stages of a Facebook-like speculative fever over its valuation. With revenue projected to increase about 59 percent this year, echoing. Facebook estimates at the time of its IPO, some analysts have said Alibaba could be valued at as much as a $100 billion -- right around the $104 billion price tag Facebook fetched in its offering.While investors may clamor to own a piece of the world’s biggest e-commerce platform, that kind of price could produce disgruntled shareholders and a legacy of ill will if the stock drops -- the same fate that befell Facebook, which went on to lose half of its market value. Investors, who have seen the most-traded U.S.-listed Chinese stocks fall 6.8 percent this year while the Standard & Poor’s 500 Index has rallied 13 percent to a record, also need to be comfortable with the price.
Source: Bloomberg

China Mobile Planning To Bring 4G To 344 Cities In 2013

The world’s biggest mobile telco by user-base, China Mobile is said to be ready to make a RMB 41.7 billion final push to get the infrastructure in place to launch China’s first national 4G network later this year. That is 200,000 base stations that will cover 344 Chinese cities. Regulatory approval is said to be announced on May 17th, with China Mobile hoping to switch on its nationwide 4G network this August. China Mobile has been conducting extensive city-area 4G trials for over a year, most recently in the cities of Hangzhou and Wenzhou on the outskirts of Shanghai.