![]() Blog |
RSS | East Asian Web News | Blogroll |
Fri
05
Dec
2008
Qifang appointed first Chinese WEF Technology Pioneer
We are very happy and excited to announce that our customer and partner company Qifang has just been appointed a Technology Pioneer by the World Economic Forum. Congratulations to our good friend Calvin Chin, Qifangs founder and CEO!
Qifang, is Chinas first person-to-person lending website for student loans. Its service enables individual students and institutions to find funding and manage loan and grant transactions, relationships with funding sources and share in a community of borrowers, lenders and donors.
The World Economic Forum has announced 34 visionary companies selected as Technology Pioneers 2009 for their accomplishments as innovators of the highest calibre, and whose technologies will have a deep impact on business and society.
You can views Calvins video comment on the announcement below and find a review by Business Week on Qifangs nomination here.
Sun
23
Nov
2008
Robert Scoble interviews Lucas from BloggerInsight
Here is a video interview from FastCompany.TV's Robert Scoble with BloggerInsight CEO & co-founder Lucas Englehardt. Robert just recently completed his first China trip in 12 years with the China 2.0 Blogger Tour.
You can also download the entire video here: http://twistage.fastcompany.tv/videos/aa50a93a6dd2e/assets/333844/file.mp4
Tue
18
Nov
2008
BloggerInsight officially launches
We are happy to announce the official launch of our portfolio company BloggerInsight (http://www.bloggerinsight.com). BloggerInsight uses an online expert panel of bloggers to crowdsource market intelligence.
Companies can easily create market research or product development questions and BloggerInsight will assign them to specialized bloggers who will give qualitative or quantitative feedback through the platform. For bloggers this unique concept helps them in a new way to earn money based on their expertise in a certain topic.
Please find below the official press release as download as well as a short article on the launch at the Chinese Blogger Conference here. Additionally theres a review from the Next Web Blog here.
Adobe Acrobat document [315.5 KB]
Mon
17
Nov
2008
China 2.0 Blogger Tour - Guangzhou Day 2
by CNReviewsThe second day of the CNBloggerCon 2008 started with the long awaited keynote speech from our China 2.0 participant Shel Israel.
He presented "8 Stories of Global Social Media" and you can find a summary of the speech from the CNReviews guys here http://cnreviews.com/cnbloggercon/shel_israel-2_20081116.html as well as Shel's presentation below.
Additionally, thanks to Netease, you can review all sessions on video.
Morning Session
by CNReviewsIn the afternoon we had David Feng as a second China 2.0 Tour participant on stage to speak about international Chinese.
David Feng is the President of the Beijing Macintosh Union and the Beijing Macintosh User Group, Publisher of techblog86, a tech, mobile and enterprise blog, and the founder of Beijingology, a blog and a wiki about the city of Beijing. He is also the author of The Beijingologist blog on City Weekend, a co-blogger at CNReviews, the tech editor at Shanghaiist, a columnist at Macsimum News and a regular guest on Radio Beijing (AM 774).
You can also review his speech in the afternoon session below.
Afternoon Session
There is also a great wrap-up post on the entire China 2.0 Tour and the CNBloggerCon from David Feng here.
Sat
15
Nov
2008
China 2.0 Blogger Tour - Guangzhou Day 1
by CNReviewsAfter successfully retrieving Shel Israels passport and changing his flight schedule, he, David Feng and Elliott Ng had already flown into Guangzhou last night to meet with Robert Scoble and Rocky Barbanica. The rest of the China 2.0 Blogger Tour followed this morning together with Markus Fuhrmann from Web2Asia to attend the yearly Chinese Blogger Conference. Follow the tweets at #cnbloggercon and see first pictures from Elliott Ngs photo stream here.
by CNReviewsAmong todays presenters was also Lucas Englehardt, CEO & Co-Founder of Web2Asias portfolio company BloggerInsight. CNReviews titled him now famous thanks to media coverage by two A-list Taiwan bloggers @thecarol and @kenworker. See the post at http://cnreviews.com/cnbloggercon/blog-monetization_20081115.html.
BloggerInsight conducts online focus groups with expert Chinese bloggers to provide clients the necessary information to make smart decisions. The network of bloggers spans a variety of industries and has been hand picked to represent some of the top, independent thinkers in their respective fields. BloggerInsight gives bloggers a new method for monetizing their knowledge while providing clients a cost effective way to get tailored, independent advice.
For more English language coverage of the Chinese Blogger Conference check Elliott Ng & David Fengs posts from CNReviews who posted more on this day than any other day in CNReviews history.
You can also review videos of all sessions on the Netease event page here: http://tech.163.com/special/000932A4/cnbloggercon2008.html (Chinese only - click the 4 video links, one for each half day) or view the morning and afternoon session embedded below.
Morning Session
Afternoon Session
Sat
15
Nov
2008
China 2.0 Blogger Tour - Shanghai Day 2

Started the day with the founder of Shanghai-based Qiming Ventures, Gary Rieschel. He gave us a very interesting overview of the early stage VC market in China over breakfast at the Park Hotel. Gary has over 25 years of operating and investing experience in the information technology and cleantech industries. Prior to Qiming, Gary was the founder or lead investor in several leading venture capital firms in the U.S. and China including SAIF Partners (China), and Ignition Partners (U.S.). Gary was also the founder of SOFTBANK Venture Capital/Mobius Venture Capital in the U.S. (1996), a firm with over $2 billion USD under management.

Our next destination was just accross the Suzhou river at the office of Spil Group Asia. CEO Marc van der Chijs, who is also the co-founder of video hosting site Tudou, talked to us about his personal career as a serial entrepreneur & business angel in China as well as the success of Spil's online casual games.
After the session Marc led us to the nearby Tudou office, which is also located on Suzhou Creek in an old converted warehouse.

At the Tudou office we were honoured to combine our monthly grass root event for the Shanghai startup scene - the Shanghai Lunch 2.0 - with the China 2.0 Tour. Who would have thought that we would ever have international tech blogs & writers such as Shel Israel, Techcrunch, Mashable, The Next Web Blog, CNET Asia & many more covering us live :-)
Tudou is one of the two leading Chinese video hosting sites and their CEO & co-founder Gary Wang, who had just returned from the USA, gave us an introduction presentation on their latest innovations such as the recently launched HD channel Heidou.
We would like to thank Tudou and especially Anita Huang very much for providing the space and catering with yummy startup food!
Unfortunately our wifi card had an error and we were not able to stream & record the session on video (the irony ..) but you can review some previous video footage on Tudou below.
After Garys talk Web2Asia gave a short overview of Western Internet companies in China (incl. a quiz with the China 2.0 Tour participants) and why all of the big international players have so far failed to compete with their local counterparts. We also gave a sneak peak at the GoingEast.Asia survey results which will be published soon and will give valuable insights on the obstacles & success factors of companies expanding from and to East Asia.
The Web2Asia introduction was followed by 5min pitch presentations of local startups:
- Askform - survey widget (see a previous post from Adam Schokora on survey applications here)
- WoWuWu - online pet community (had to cancle last minute)
- Club Fish - educational MMOPRG
- Qifang - P2P student loan lending platform
Highlight of the day for our China 2.0 Tour participants was without doubts the graffiti session in Tudous warehouse basement. Find some great pics by CNReviews below and reviews from Shel, Marc and Ryan (private post & for CNET).

Whilst the rest of the China 2.0 Tour headed to the last meeting of the day at the Italki office, Shel Israel (who had finally gotten his passport back), Elliott Ng and David Feng had to say 再见(Zai Jian/Good-Bye) to Shanghai and catch their flight to Guangzhou.
At Italki we got an introduction to their online language learning platform as well as an additional presentation from Italki co-founder Kevin Chen on his latest project - the family memorial website www.famento.com. Last but not least Mark Inkster from China Cascade Interactive, Inc. joined us to talk about "Chinas Tripadvisor" www.yiqilai.com.cn. All presentations can be reviewed below on our kyte.tv channel:
You can find more infos on the session with Italki incl. their presentation on their official blog here.
Thu
13
Nov
2008
China 2.0 Blogger Tour - Shanghai Day 1
Arrived in Shanghai 7am with an estimated 0.25 hours of sleep. Decided to skip overnight train as "the real China feeling" sensation for future tours. On top of things Shel Israels passport got lost in Beijing and the Park Hotel on Shanghais People's Square did not have the rooms ready for early check-in. Unfortunately we had to cancel our first meeting with gaming company The9 under these circumstances.
by CNReviewsOur mood lightened up quickly under the cristal blue sky (!) of Shanghai and with exceptionally sunny & warm weather.
After finally being able to check in the Shanghai China 2.0 bus drove us out to Pudong for a lunch meeting with Andy Yao, VP of chinese online social network 51.com.
You can review the entire session below and find a post from Ernst-Jan Pfauth here.
by CNReviewsOur next tour stop was the Dianping office (which is in the same building as our office). Dianping is Chinas leading dining recommendation website. In some ways it is similar to US-based Yelp but with an extra offline notch to it. Check out Eric Eldons post on Venturebeat from earlier this year here.
Dianpings founder Zhang Tao gave an energetic presentation with great insights into the spirit of returnee Chinese entrepreneurs. The meeting was streamed live and can be reviewed below.
by CNReviewsThe tour participants only got a few hours of rest before we walked from the Park Hotel through the crowded Nanjing Dong Lu to an exclusive VIP dinner sponsored by Alibaba at the South Beauty Shanghai restaurant close to People's Square.
We would like to thank John Spelich, VP International Corporate Affairs, Joe C. Tsai, CFO of Alibaba Group and Christina Splinder, Director, International Corporate Communications very much for sponsoring this event and giving our tour participants first hand information on the chinese & international eCommerce market.

Additionally to the China 2.0 Tour local bloggers, entrepreneurs and analyists such as Ryan from CNET Asia, Gang Lu, Adam Schokora from our lead sponsor Edelman Digital, or Kenneth from Shanghaiist joined us. As a special guest we also had the honour of welcoming German business angel Lukasz Gadowski to our dinner, who happened to be in town.
Enough to call it a day? Not for the China 2.0 crew! Up next was the Shanghai China 2.0 Cocktail reception at the M1NT club. The event had a great turn out and we were happy to welcome the who-is-who of Shanghai's Internet scene at this exclusive pre-opening event.
We were amazed to see may of the China 2.0 folks partying on at local bars & clubs until late. What a day!
Theres also are great review of the first Shanghai day to be found here from CNET Asia's Ryan McLaughlin.
Wed
12
Nov
2008
China 2.0 Blogger Tour - Beijing Day 3

Our third day in Beijing started with the highlight of the tour for many so far: an exclusive breakfast meeting with Dr. Kai-Fu Lee, the VP of Google China.
A big thank you goes to our sponsors: the General Manager of the Marriott Beijing City Wall who provided fantastic food and a perfect location. It was also great to meet up with Adam Schokora from our lead sponsor Edelman Digital, who flew in all the way from Shanghai to join us for the session and the subsequent visit to the Forbidden City.
We were able to live stream the entire session and you can find the recordings on our Web2Asia channel below or at: http://www.kyte.tv/ch/172789-web2asia.
Next destination was the Forbidden City, where we met with IBM China and the Management of the Palace Museum.
During the last 3 years they have jointly developed a project called Beyond Space and Time: The Virtual Forbidden City is a 3-dimensional virtual world where visitors from around the world can experience the Forbidden City in Beijing. You can explore the magnificient palace as it was during the Qing dynasty, which ruled from 1644 until 1912, the end of the Imperial period in China. This huge palace complex was completed in 1420 and covers more than 72 hectares (178 acres).
The cool thing is that it can not only be experienced in the showroom of the Palace Museum but also downloaded & explored at the official website www.beyondspaceandtime.com.
Check out Shel Israels blog post on his Forbidden City experience here and a pic from Adam Schokora here.

Our last company visit of the day was ChinaCache - the leading Content Distribution Network (CDN) provider in China.
Simply put, the company helps its customers to better deliver their online content to its users in different geographical locations and within the networks of the many Internet Service Providers in China. This is to guarantee to high performance, security and scalability.
Customers include large domestic & international players such as Sina, Netease, eBay, MSN, Amazon, Myspace China and many more.
After ChinaCache we headed back to the Marriott Hotel to soon catch our overnight train to Shanghai. But thats another story ...
Tue
11
Nov
2008
China 2.0 Blogger Tour - Beijing Day 2
by CNReviewsWe started our second day in Beijing with a visit to the JUCCCE cleantech conference. Although we just attended the morning sessions (it was a smoggy morning btw) it was enough to understand the tremendous challenges The Middle Kingdom is facing in sustainable energy development.
by CNReviewsIn the afternoon we had invited local bloggers, entrepreneurs & investors to a round table in Beijings Sanlitun area (just accross the recently opened Apple store). The discussion was followed by a second session with Jake Hsu from Symbio Group to talk about offshore development in China as well as the chinese Internet market in general. Find their review here.
Check out all sessions below on kyte.tv video and find an additional post from the perspective of China 2.0 Tour participant Ernst-Jan Pfauth here.
You can find all of the recorded shows and all upcoming shows to be streamed live here: http://www.kyte.tv/ch/172789-web2asia

The afternoon sessions were followed by the Symbio China 2.0 Cocktail reception at the Blue Frog Sanlitun with the usual suspects of the Beijing tech scene plus many new faces.
The night ended with Kaiser Kuo, William Bao Bean, Web2Asia's George Godula and finest Scotch Whisky.
Mon
10
Nov
2008
China 2.0 Blogger Tour - Beijing Day 1
The China 2.0 Blogger Tour officially started off today in Beijing! After a comfy start with a visit to the impressive Summer Palace lead by David Wolf from Wolfgroup Asia we met up with Kaiser Kuo and Andrew Lih at an excellent Yunnan restaurant in Beijings "Silicon Valley" Zhong Guan Cun. There we had 2 parallel sessions on Internet censorship & Andrews upcoming Wikipedia book respectively. Right across the street was videosharing website Youku's office where we had our first company visit of the day. We afterwards got back on our China 2.0 Mobile to meet with B2B trading platform DHGate at there office (thanks also very much for providing us the space for the subsequent meeting). The highlight of the day clearly was a visit from Kaixin001s CTO & Business Development Manager who gave us an overview of Chinas currently most hyped SNS. The day ended with spicy Sichuan food at the VIP tech dinner, meeting up with old and new friends from the Chinese Internet & Marketing industry.
A big thanks again to our lead sponsor Edelman Digital and Adam Schokora without whom we wouldn't have been able to get this tour started!
You can check out todays pics on our Flickr page, read Shel Israels posts here and here and Ernst-Jan Pfauths posts here, here and here or follow the tweets at #china20.
Sun
09
Nov
2008
China 2.0 Blogger Tour kicked-off!

The Chinabusiness Network, CNReviews & Web2Asia yesterday kicked off the China 2.0 Blogger Tour with first pre-sessions in Beijing and Shanghai. Official start of the tour will be tomorrow Monday Nov 10 in Beijing. For details check www.china20.asia and follow us on hash tag #china20.
Yesterday afternoon we had a great session at the Web2Asia office with Robert Scoble & Rocky Barbanica from FastCompanyTV meeting local Shanghai entrepreneurs & investors. Check out Robert Scobles Kyte recordings here, a blog post about his learnings here, some pics from Christine here and our Web2Asia Flickr set here. Additionally Danwei made a video interview with Robert Scoble on his China experience here.
by CNReviewsAt the same time in Beijing Shel Israel was on guided tour through Beijing & to the Great Wall with Eliott Ng & David Feng from CNReviews plus a bunch of local tech guys.
Check out Shels first blogpost out of China here and pics from Elliott here.
Thu
30
Oct
2008
Techcrunch joins the China 2.0 Blogger Tour
We are excited to announce that the Editor of TechCrunch UK Mike Butcher will be joining us on the China 2.0 Blogger tour to Beijing, Shanghai and Guangzhou from Nov 10-16.

Mike Butcher has written for UK national newspapers including the The Financial Times, The Guardian, The Times and magazines including The New Statesman. For the last seven years he has been a consumer technology columnist for The Irish Times in Dublin. He is a former editor of New Media Age magazine, the leading new media weekly in the UK, and The Industry Standard Europe and he has launched or relanched several media web sites. In 2000 he was nominated as NetMedia’s European Internet Journalist of the Year. In 2004 he was voted ‘One of the 100 Innovators of the UK Internet Decade’ by GfK NOP, the fourth-largest custom research business in the world. In July 2008 Mike was put at No. 47 out of the Top 100 people in London’s creative industry the UK by The Independent newspaper and The Hospital Club. He has appea(red) on BBC News, Sky News, Channel 4 and Bloomberg, commenting on technology and new media. In August 2008 TechCrunch UK was named the best “Web 2.0 and business blog” in the UK, by the readers of Computer Weekly magazine. His personal blog is mbites, while he Twitters here.
The China 2.0 Blogger tour will lead prominent international bloggers through Chinas Internet tech scene from Nov 10 to Nov 16. It is organized by The China Business Network, Web2Asia and CNReviews, with Edelman Digital China being the lead sponsor. For details please visit www.china20.asia.
Thu
23
Oct
2008
Robert Scoble interviews Web2Asia
We just dug out an old video from earlier this year when our Markus Fuhrmann ran into Robert Scoble, who immediately pointed his camera phone at him for an impromptu interview. Check it out below.
Robert Scoble just like the many participants of the China 2.0 Tour (http://www.china20.asia) such as Shel Israel, Sam Lawrence, Ernst-Jan Pfauth, a selected writer from Mashable and a (yet to be announced) representative from Techcrunch will come and visit us in China in November. Our Tour destinations will be Nov 10-12 in Beijing, Nov 13-14 in Shanghai and Nov 15-16 in Guangzhou. The tour is organized by The China Business Network, CNReviews and Web2Asia. Wanna join as host, sponsor or supporter? Ping us!
Thu
16
Oct
2008
Open Web Asia '08 - review all sessions!
Big thanks to Asiajin for recording all of our 4 sessions at the Open Web Asia '08 conference (refer to the conference’s program for more details). Session 1 is still missing but will be available shortly. Enjoy!
Session1: Insights and Best Practices (Coordinated by: Bernard Moon)
Session2: Innovations in Asia (Coordinated by: Tangos Chan & Gang Lu)
Session3: Collaboration (Coordinated by: Benjamin Joffe)
Session4: East meets West (Coordinated by: George Godula)
Sat
04
Oct
2008
OWA '08 Conference - Loic LeMeur on the "Asian Le Web"
Check out our latest video interview from Christine Lu with Loic LeMeur, founder of Seesmic, on the upcoming Open Web Asia '08 conference (October 14th, Seoul/Korea).
Fri
03
Oct
2008
GoingEast.Asia: Survey on Western interactive media companies expanding to Asia
The Going East Asia expansion survey (http://www.goingeast.asia) is an initiative that aims to delve deeper into the opportunities and challenges Western Internet, online gaming, mobile & eCommerce companies face and anticipate when "going Asian".
It will be kicked-off on October 14th 2008 during the first pan-Asian Internet conference - the Open Web Asia '08 in Seoul/Korea. First key results will be presented on November 12th 2008 during the China 2.0 Blogger Tour in Shanghai featuring Robert Scoble, Shel Israel, Sam Lawrence and many more.
The survey seeks to identify the type of interactive media enterprises that want to expand to East Asia and their motivation and expectations from their engagement. Additional targets are to identify obstacles and challenges that these companies face or expect to face within the East Asian business environment. Finally the survey aims to derive and identify success factors for interactive media companies in East Asia by analyzing the experiences of companies that have already expanded to the region.
We are currently still looking for supporters such as media partners and prize sponsors. If you run a tech blog or offer (digital) products or services for the Asian region and would like to get engaged please drop us a line at info@web2asia.com.
Wed
01
Oct
2008
OWA '08 Conference - Jason Calacanis is looking forward to it! How about you?
The first ever pan-Asian web conference, the Open Web Asia '08, is just a little more than 2 weeks away! It will be held on October 14th 2008 in Seoul/Korea in cooperation with the World Knowledge Forum. The line up of Asian internet entrepreneurs attending is awesome and we will also have several US top speakers such as Jason Calacanis, Loic Le Meur, Kent Lindstrom and Andreas Weigend coming.
See below a video interview with Jason by Christine Lu from The China Business Network on the Korean Internet market and his attendance at the Open Web Asia '08. Join him and register now at www.amiando.com/owa08!
Fri
26
Sep
2008
China 2.0 - Announcing our China Tech Tour - Nov 10-17
After months of planning and working behind the scenes, we'd like to announce the Inaugural China 2.0 Tech Tour taking place in November.
The China Business Network, Web2Asia and CNReviews.com have partnered to organize the first ever international blogger/tech influencer tour of China's tech sector taking place November 10-17. The lead sponsor is Edelman Digital China.
Thanks to web 2.0, it's now possible to influence many through the first hand insight of just a few. Since each blogger represents tens to hundreds of thousands of readers each, our theory is getting them together for one week to blog, tweet and video blog their experience in China will generate greater interest and understanding of the tech sector there through their first hand insight.
We're using the tour to demonstrate the effectiveness of direct cross border connections between tech influencers to help bridge the current gap.
It includes a multi-city tour of Beijing, Shanghai and Guangzhou in which invited bloggers and VIP attendees will have the opportunity to personally meet Web 2.0 and Clean Tech counterparts, visit HQ and meet key startup investors, CEOs and experts in China's tech community.
Confirmed international bloggers so far include:
- Shel Israel - author and social media influencer
- Robert Scoble - Fast Company.TV
- Sam Lawrence - enterprise 2.0 influencer
We will be announcing more featured bloggers in the coming weeks...
If your company is interested in supporting this tour and getting involved or if you yourself are interested in joining us, please email us. Thanks!
Please visit the link below for more information:
Thu
25
Sep
2008
Lessons learned: The roadmap into Chinese e-commerce for Western companies
In a nutshell, the Chinese market still offers immense e-commerce potential. However, it should be noted that it is also already heavily served by local providers and that several international e-commerce companies have failed to tap this lucrative market until now. Nevertheless, there are some success stories. This last part of our analysis will focus on the key factors that are essential for a successful participation of western e-commerce companies (and internet ventures in general) in China.
To successfully compete in the Chinese e-commerce sector as a foreign company, it's highly advisable not to establish yourself as a discounter and sell by price. Foreign companies should rather focus on premium products that are exclusive and unique. The nationwide delivery service is relatively expensive and only a few providers operate nationwide. So high logistics costs don't justify the sale cheap products with low margins.
The localization of an already existing e-commerce platform marks an important first step for a successful online presence in China. Western users find Chinese websites to be extremely cluttered and confusing -- many Chinese users prefer this style of site and see it as vibrant and entertaining, rather than cluttered. See screenshots comparing eBay's sites in the U.S. and China.
While Chinese users prefer colorful and playful designed websites, you need to be careful about color selection. In China colors have a different and sometimes even contrary meaning to the western world. In the West red represents danger, war and sexuality. In China, the color is traditionally associated with joy, wealth, summer and south, but also stands for government and authority. And the notorious red light districts of the West would be referred to as yellow districts in China.
Similar stumbling blocks can also be found in symbols. In most Western countries an owl represents wisdom and intelligence, in China, however, it stands for, crime, anxiety and misfortune. The disgust of spiders in very pronounced in the Western world, but in China the spider is a symbol of luck. Rats in China are regarded as a symbol of prosperity. The leading Chinese social network www.51.com for example uses a bat in its logo. The animal in China is a symbol of happiness and longevity whereas in the West it rather symbolizes night and its foreboding nature.
A peculiarity in the Chinese culture is the use of numbers in domain names, SMS, chatting and other electronic messages. Numbers have always played a central role in China and loom large in daily life. There are lucky numbers (6, 8 and 9) and cursed numbers (4, 13, 14). This is due to the similarities in the pronunciation. For example, 4 in Chinese sounds like death, or 8 like prosperity. The most diabolic number of all is 14, it sounds like die and should be avoided at all costs. E-Commerce entrepreneurs have not been slow to recognize the dual meaning of many numbers, taking advantage of the most auspicious numerical formations in their domain names, for example, www.7cv.cn -- qi cai valley -- colorful Valley (an erotic online store) or www.m18.com -- yao fa – want to be rich (online portal of the largest Chinese mail order company, MecoxLane). Similarly, many leading non-e-commerce related websites use number in their domain names such as www.51.com – wo yao – I want, www.9158.com – jiu yue wo ba – date me (dating site) or www.1ting.com – yao ting – I want to listen (music portal).
There are some special regulations that need to be taken into account if looking to establish and operate an e-commerce site in China as this sector is regulated by the state. An e-commerce website is classified as a Value-Added Telecom Services (VATS) and means that foreign enterprises can only own a stake of up to 50 percent and are subject to license. Foreign investors may find ways to circumvent these restrictions. However, such structures are obviously fraught with risk and can by no means be recommended as a safe solution.
The booming Chinese e-commerce sector and the internet industry in general are without any doubt very tempting for many Western companies and investors alike. However, anyone seriously considering expansion into the Chinese market is well advised not to take any hasty steps. All major global players have so far failed in the Chinese market or are experiencing enormous difficulties.
As a good friend of ours and China watcher Paul Denlinger said, it's time to go beyond talking about whether foreign or Chinese companies will succeed in China. Instead, it makes more sense to ask "What companies do all their product development and management in China for the Chinese market?" In other words, a local presence is mandatory for doing business in the country. When serving a market as large and as important in China, it's very important that all engineering, product and management decisions be made in China so that products can compete in faster development and launch cycles to reach Chinese customers.
The reason companies such as eBay, Google and Yahoo have failed is because they did not make all their business decisions in China and because they had to report elsewhere to get final approval by senior management, virtually all of whom do not understand the dynamics of the Chinese market.
Wed
10
Sep
2008
China Internet Conference 2008 & International Internet Summit in Nanjing
2008 China Internet Conference will be held from September 23rd to September 25th in Nanjing. This is the annual conference organized by Internet Society of China, a legal organization, authorized. The Theme of this year is "Convergence: Driving Development, Integration: Optimizing Value". This conference stands for the most updated trends of Chinese Internet market. For more details of previous conferences, please visit www.internetdigital.org.
Since 2001, China Internet Conference has generated extensive attention around the Asia Area. It has been highly regarded by the whole Internet industry around the world. Many American internet giants involved in this conference to extend brand awareness around China and detect their opportunities of doing business in China. International companies from European countries (UK, Netherlands, German etc.), Middle Asia, Japan and Korea worked together with domestic companies to discover opportunities and threats in China. Famous media networks will live and nearly 10,000 participants will attend the conference. 2008 China Internet Conference" in the size and level will be greater than with previous upgrade and expansion.
Introduction about the International Internet Summit
The International Internet Summit is the Chinese Internet Conference (CIC)'s main conference. Besides the scale, the specification, it is as important as the opening ceremony of CIC. This forum will be with the cooperation of Japan Broadband Association, Internet Professional Association Hong Kong, China, Taipei Hsien Computer Organization, China and other world famous organizations. The summit will be a stage for the Internet Companies and Organizations in the world to communicate and cooperating fully. The latest technology and innovation will be introduced by the speakers from American and European Internet or IT companies. The local characteristic of development and variation in China will be discussed between the Chinese Internet Companies and the Companies abroad. George Godula, Founder & Managing Director of Web2Asia will be present as a speaker at the International Internet Summit on 23 September 2008. The summit will also be a connection which creates more opportunities and cooperation among the world internet associations and organizations.
Mon
01
Sep
2008
CTRIP - dominating the Chinese online-travel market
The "Online Travel Report 2007" of Baidu Data Research Center - Baidu is the leading Chinese search engine - which is based on data collected from browser cookies in Q4 2007 indicates that Ctrip is dominating the online travel market with a 51.65 percent market share. Elong (Expedia's exclusive affiliate in Asia) and Mangocity (owned by China Travel Online) lag far behind with a 12.48 and 11.10 percent market share.
The China National Tourism Administration numbers the total revenue of the Chinese travel industry1,090 billion RMB (155.7 billion USD) for the year 2007. Online Travel booking currently has a share of RMB 2.25 billion (0.32 USD).
Ctrip is the leading travel service provider of hotel accommodations, airline tickets, and packaged-tours in China. The online service aggregates information on hotels and flights, and enables customers to make informed and cost-effective bookings. Ctrip also sells packaged-tours that include transportation and accommodations, as well as guided tours in some instances. The company targets primarily business and leisure travelers in China who do not travel in groups. These travelers form a traditionally under-served yet fast-growing segment of the travel industry in China. Since its inception in 1999, Ctrip has experienced substantial growth and become one of the best-known travel names in China.
Impressed by Ctrip's leading position in the Chinese online travel market, Web2Asia has talked with Coley Dale, Business Development Manager at Ctrip, to learn more about the company's story of success.
Ctrip has experienced substantial growth since being founded in 1999 and has become one of the best-known travel brands in China. It currently holds more than 50% of the online travel market. According to you, what are the key success factors upon this tremendous success in China is based on?
The most obvious key success factor is Ctrip's customer service. We are leading in terms of understanding the needs of our customers and catering to them. Customer service has never been emphasized in China. The efficiency of our call centers is an important part of our success. How the company reacts to customers' demands is the way to establish success. There is also a focus on technology. We have found that Chinese consumers are more likely to book over the phone than online. The focus on our call center has been an integral part of our success. People in the US and Europe take customer service for granted, but it is a new concept in China.
The key to Ctrip's success is its embrace of both technology and brick-and-mortar solutions. Of the two, the call center is by far the most popular. What do you think are the reasons for the preference of interaction with operators? We can see this behavior not only in online booking, but all other online services.
We are aware of the preferences and have responded by making our call center as efficient as possible. Now we have one of the most efficient call centers out there - if a question can be answered in 30 seconds we want to answer it in 30 seconds. We do not want to waste our customers' time and we do not want to waste our own time. When calling Ctrip you usually get a live person on the phone within 30 seconds. In approximately 2-4 minutes we can have a booking done for you, that's something unique in China. For a new customer it is a little harder because you must register a new number and customer name. Once you have registered we greet you with kind "hello" and your name. We focus on the personal relation and as good and comprehensive services as possible, paying extreme detail to our call center, which requires a lot of monitoring. A real innovation was incorporating Six Sigma. We've been the first service company to implement Six Sigma in China.
Ctrip launched a new English-language version of its website to make services easier to access for international users. Are there plans to expand the service range beyond China - the U.S. for example?
We have launched the English version of the site to make it more accessible to foreign travelers and expatriates in China. We want the inbound business to grow as the market does - and the market is expected to do something great in the next years. China is expected to be the world's most traveled to destination by 2015. By 2020 China will have the largest outbound business worldwide. There are very big milestones ahead - the arrival of the 2008 Olympics in Beijing and the 2010 EXPO in Shanghai. These are not necessarily one -time events; we more see them as milestone. The inbound business will keep growing over the next few years at a high pace and the English language version is kind of an anticipation of the big milestones. Right now we mainly focus within China. We really just started, hoping to test the water and make sure out service levels are as impressive as the Chinese are. The underline theme is focus in customer service, which we are trying to express through media and public relations. We always try to tweak and modify our services and tailor it to customers coming to China. We are currently developing the international flight gateway supporting international flight bookings through the English language website. My operating group is very customer-focused. We want to target as many foreign customers as possible. In the future foreign travel to China will be a very significant part of our business.
Ctrip is said to be the innovation leader in the Chinese online travel market with a very strong technology support and R&D. Can you give us some examples of those innovative products and advanced technology?
In the Chinese market our innovative feature is service, commanded by our dedication to always put customers first. We are always ahead of competition in many ways in all our service levels. For instance, we are able to deliver tickets literally anywhere - when you book a flight, one of our delivery guys will meet you wherever you are. We can respond very dynamically to customer taste and have the ability to handle high volume in our call center. Our call center is the model of call center efficiency.
Ctrip was the first service company to implement 6-Sigma in China. What can you tell us about the advanced service philosophy/service 2.0?
Ctrip is led by a very talented group of executives. The executives have experience in this business; they have been around a while and are the driving force behind making the company more efficient. Our service and technology focus is evidence of it. Ctrip is the leading company in the online travel industry in China. There is a huge market in front of us and we hope to dominate it in the future.
Sat
23
Aug
2008
Lunch 2.0 Shanghai - August 2008
Next Lunch 2.0 Shanghai will be on Friday August 29th at the office of Symbio Group (http://www.symbio-group.com/). Thanks a lot to Vincent for providing the space.
Topic is “Stock options for Chinese employees” and we will have Garret Wiley from Red 5 Studios (http://www.red5studios.com) as a speaker.
Lunch will be provided courtesy of Symbio Group - thanks again very much to Vincent for offering this.
The address is:
Tomson Commercial Building
Suite 303
710 Dong Fang Rd.
Pudong
(Right next to the Century Avenue stop on #2 line, exit 1)
浦东新区东方路710号汤臣金融大厦303室
(近二号线世纪大道地铁站,一号出口)
Please RSVP through our Facebook event page at: http://www.facebook.com/event.php?eid=25620637658
Join our Shanghai Group at: http://www.facebook.com/group.php?gid=13224258265
See you there!
Fri
22
Aug
2008
China: Who's dominating e-business?
In our first post of this three-part series on e-commerce in China, we investigated the rapidly developing online shopping market in China. In this post we want to take a closer look at who's dominating the Chinese e-commerce market.
In the Chinese consumer-to-consumer market, the major players are Taobao, TOM Eachnet (formerly known as eBay Eachnet) and PaiPai. According to a study by the China Internet Research Center (iResearch in Chinese), Taobao held an impressive 83.8 percent marketshare in this sector in the first quarter of 2008, followed by PaiPai and TOM Eachnet with 9 and 7.2 percent respectively. At present all three websites are quite similar and only differ in some details, and all three portals provide their services free of charge.
Taobao has a transaction volume of $6.23 billion in 2007. It's part of the Alibaba Group whose flagship product is the business-to-business trading portal alibaba.com. In October 2005, Alibaba Group and Yahoo Inc. formed a long-term strategic partnership. In the landmark transaction, Alibaba Group acquired Yahoo China and assumed control of Yahoo China's operations, and Yahoo invested $1 billion and became a strategic shareholder in Alibaba Group.
Just five years ago, Taobao didn't hold quite such an overwhelming lead. Eachnet, founded in 1999, was China's number one auction site with a peak marketshare of more than 90 percent. The site's popularity attracted eBay's interest, and eBay bought the company in 2003. But the process of integrating Eachnet into the global eBay platform was characterized by enormous difficulties and took over a year, giving Alibaba the perfect window of opportunity to enter the consumer-to-consumer market with Taobao. In 2004, Taobao already occupied more than 50 percent of China's consumer-to-consumer market, while eBay stood at about 35 percent. EBay Eachnet invested heavily to strengthen its presence in China but continued to lose market share to Taobao. And in 2006 eBay sold 51 percent of Eachnet to Tom Online, a wireless internet company with services in China.
EBay's listing fees were only one of the reasons why customers preferred Taobao. Many internet users also disliked eBay because of its service. EBay's PayPal did not offer an escrow product, however Alipay, which is Taobao's payment system, had this feature built in from the beginning. Even though eBay eventually incorporated escrow at a later stage, additional factors kept the majority of Chinese users from trading on eBay. One of these was that Taobao let its users communicate directly through instant messenger.
Dangdang and Amazon (also known as Joyo in China) dominate the business-to-consumer market and occupy almost half of the market, with the rest of the market being served by many smaller e-commerce websites. At the end of 2004 Amazon acquired Joyo, one of the largest online retailers of books, music, videos and DVDs in the country at that time. It now (Q1 2008) holds a marketshare of 15.40 percent. The market leader and direct competitor is Dangdang with a market share of 16.20 percent. Before the market entry of Amazon, Dangdang was often referred to as "China's Amazon." 360buy emerged as another strong competitor and occupies 15 percent of the business-to-consumer market. The rest of the market is controlled by vertical business-to-consumer websites. Most vertical sites also operate offline. Suppliers of baby and young children's products, pet accessories, entertainment and household electronics have been especially successful.
According to the latest CNNIC Survey Report on Online Shopping in China (DOC, in Chinese), China's online shoppers seem to be very loyal. 60 percent of the online shoppers only surf one web site when buying things, while only 33 percent surf two. With 67.3 percent of its users only shopping on its website, Taobao has the most loyal user base in China. Taobao has cultivated a large number of online shoppers in China. Many users experience online shopping first with Taobao and then shift their attention to other online shopping sites.
Taobao, TOM Eachnet, Dangdang, Amazon and PaiPai are the five best known shopping websites among internet users in China.When online shoppers are asked which shopping website comes to their mind first 70 percent answer Taobao, 8.4 percent say Dangdang and 7.9 percent say TOM Eachnet. According to the CNNIC survey, 20 percent of online shoppers only know one shopping website. Among those 20 percent, 80 percent only know Taobao.
Taobao is the leading portal in terms of brand awareness and brand conversion; however, regarding brand reliability Taobao only ranks third among the five major shopping websites. Nevertheless, it ranks higher than its competitors in the consumer-to-consumer market, namely PaiPai and TOM Eachnet. Taobao recently launched Taobao Mall with business-to-consumer stores that should cater to more demanding users. Dangdang enjoys higher brand awareness, but Joyo is superior in brand conversion and brand reliability.
TOM Eachnet was among the first shopping websites in China and therefore enjoys 41.9 percent brand awareness among online shoppers, the second highest. However, due to the failure in recent years, the conversion rate (the percentage of shoppers who know the website and are actually making a purchase) is relatively low, reaching only 20.1 percent.
Tom Online decided to completely rebuild the acquired Eachnet platform. And to catch up with market leader Taobao, Eachnet has stopped charging any fees since the beginning of May 2008. Taobao and PaiPai have been providing free services since they were founded. Taobao, by the way, announced that it will start charging its users after its first three years of operation - that means it will be a paid service beginning 2009. PaiPai, an online marketplace since 2006, has also announced that its service will be free for at least three years.
Additionally, Chinese leading search engine Baidu.com announced in December 2007 that it will enter the Chinese e-commerce market by leveraging its high user traffic and large online communities. Details are still scant, as the service is only just launching, but China Web2.0 Review has a closer look. Whether any of these companies will eventually charge transaction fees or come up with a completely new, China-tailored business model remains to be seen.
Ma Huateng, CEO of Tencent, parent company of PaiPai, believes that e-commerce in China is still far from being a mass business, and e-commerce companies will first have to popularize the market and educate users. Given these circumstances, one can assume that none of the consumer-to-consumer platforms are currently profitable. Tom Group's 2007 annual report, for example, reports a loss of $15.07 million (104 million Yuan) for Eachnet. Taobao can limit its losses by interest earned on the transaction volume on its escrow account, however no sustainable profits can be generated for far.
Although eBay has sold its Chinese online market place, it has held onto its market place for cross-border transactions, which according to eBay/Paypal is profitable and developing well. Cross-border trade is a core competence of eBay and therefore the company enjoys a competitive advantage over Taobao and Paipai, which only serve the domestic Chinese market and do not allow international transactions.
Thu
14
Aug
2008
Open Web Asia '08 announced
The Open Web Asia Working Group (http://www.openweb.asia), of which Web2Asia is a member, today announced the first pan-Asia web technology event bringing together executives, entrepreneurs and venture capitalists from throughout Asia.
The Open Web Asia '08 conference (http://www.openwebasia.com) will be held on October 14 2008 at the Sheraton Grande Walkerhill in Seoul, Korea in association with the 9th World Knowledge Forum (http://www.wkforum.org)
Open Web Asia '08 marks the birth of new conference that will be the first truly pan-Asian web technology event. Top technology executives, entrepreneurs, and venture capitalists from throughout Asia will gather for this premier event to be hosted in Seoul, Korea in its inaugural year.
The event is organized by the Open Web Asia Workgroup and other prominent entrepreneurs, thinkers, and bloggers within the Asian web industry. It was spurred by a desire to create a high quality, informative and practical technology conference focused on the Asian internet industry which to date has been lacking.
Open Web Asia will be held in association with the World Knowledge Forum (WKF). The WKF has established itself as one of the most prestigious conferences in Asia with speakers and attendees such as Bill Gates, Colin Powell, Jack Welch, Alan Greenspan, Michael Dell, and Paul Wolfowitz.
The theme of the 2008 conference is 'the Social Web'. Social has been a game changing development of the internet industry and the social web is an area where Asia has its own strength and vibrancy. Asian countries have a distinct internet cultures and market players, so informative and educational crosscountry comparisons can be made.
The one day conference will be divided into four sessions focusing on the following key areas: Insights and Best Practices, Innovations in Asia; Collaboration - An Introduction to Asia's Social Web; and East meets West - The challenges of internationalization to and from Asia. The topics were to chosen to create a forum for education, debate and information sharing.
Confirmed speakers include some of the most experienced and knowledgeable people from the Asian internet industry and a selection of business leaders and thinkers from outside the region such as:
- Kevin Dai (CEO, Comsenz, China)
- Arthur Chang (VP Global Sales, Alibaba, China)
- Yongseok Jang (VP, Ebay Asia, Korea)
- Yozo Kaneko (COO, NGI Group, Japan)
- Jimmy Kim (Nexon, Korea)
- Loic Le Meur (CEO, Seesmic, USA)
- Ram Lee (Head of Communities, Naver, Korea)
- Kent Lindström (Senior Vice President, Corporate Development, Friendster, USA)
- Shusaku Maruko (GM, Felica, Japan)
- Jean K. Min (Director International, OhMyNews, Korea)
- Akio Tanaka (Partner, Infinity Ventures, Japan)
- Bill Wang (VP, Perfect







