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Rambling 'Round

China's social media:'Warp speed, Mr. Sulu!'

Junko Yoshida

6/17/2012 4:37 PM EDT

SHANGHAI – The speed of revolution among Chinese Internet social sites is so fast that it makes Google, Yahoo and Amazon look molasses in January on the Siberian border, according to discussions between EE Times and semiconductor industry executives in Shanghai and Beijing.
 
Say what?
 
Considering that Twitter, Facebook and YouTube are all banned in China, my first reaction to this wild claim was: “Well, with all due respect, the main reason Chinese social networking sites are flourishing is that the Chinese government’s policy is to suppress and discourage Western social media sites.” Honestly, I didn’t quite get how the speed of innovation was relevant in this discussion.
 
There is a pattern in China of restricting Western Internet sites, acknowledged Jian-Yue Pan, corporate vice president, Asia Pacific region at Synopsys in Beijing. But by dwelling on it, he implied, one could easily miss the bigger picture.  Pan emphatically said, “None of the multi-national Internet social sites including eBay, match.com and Amazon [none of which are banned] has succeeded in China thus far because they lack the speed in implementing changes.”  
 
I found these comments mildly offensive, and I still wasn’t sold on the theory.
 
So, Pan went on selling: “Chinese Internet service companies thrive on quick decisions. Based on the instantaneous feedback they get from their local users, local guys can make a change overnight. Meanwhile, for multinational Internet companies, it takes them three months [to institute similar changes].”
 
Allen Wu, president of ARM China in Shanghai, agrees. “Think about new features you want to add to your sites, based on your customers’ requests in China.” He said that such feature suggestions would join, back at U.S. headquarters, a long list of other new features that website elves are working on — one by one, each in its own turn. Suggestions might not get lost, but it certainly wouldn’t jump to the front of the queue. Hence, weeks or months of waiting pass before the new feature appears — or doesn’t.
 
Successful local sites in China include: Baidu, China’s number one search engine; QQ (Tencent), China’s largest instant messaging service provider; Sina.com.cn, China’s biggest portal site; Taobao.com, the most popular shopping website in China, an equivalent to eBay. All of them process new features at breakneck pace, because their competitors are doing the same.
 
There’s a term for this sort of thing. Let me think.

Ah! “Capitalism?”

Here are some basic facts and figures about the state of China’s Internet usage today.

According to ITU, the world is home to 7 billion people, one third of which are using the Internet. Today, Internet users in China represent almost 25% of the world’s total Internet users and 37% of those in developing countries.

Share of Internet users in the global population
 
Source: ITU World Telecommunication/ICT Indicators database


Further, according to ARM’s Wu, China is seeing an explosion on the mobile Internet. China’s mobile Internet population is expected to grow by 29 percent this year.

China’s Internet population

Source: Tencent, CINNIC; DCCI; iimedia; Orient Securities




http://www.lulu.com/spotlight/poconoarmchairreview

6/18/2012 3:27 AM EDT

Weibo wobbles, but it does not fall down.

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Luis Sanchez

6/18/2012 3:46 AM EDT

Personally, since a whale being pulled out of water appeared when I was trying to reach Twitter, i got the idea that Twitter isn't strong in development. I a think is a company always working with a very tight budget.

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http://www.lulu.com/spotlight/poconoarmchairreview

6/18/2012 4:04 AM EDT

The first detection of Weibo by US computers: http://www.youtube.com/watch?v=3R6COGKX8ws&

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ibm221

6/18/2012 8:59 AM EDT

hey Junko, it's time to write sth about the chinese space station story.
seems most americans here are still quite ignorant about this news.

they still sucked in their spacex fantasies.

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chanj

6/18/2012 11:23 AM EDT

Excellent information. I have heard of these services for a long time; yet, I have never tried them out. The evolution of social media will never be ended. What's better is mostly subjective. The couples UI improvement introduced by Weibo looks really great. It may be time for American social media companies to refer social media companies elsewhere, making their own platform a better one. On top of it, revenue and growth are crucial since facebook and LinkedIn already become publicly traded companies. Evolving business model may be highest priority at this point. I wonder how Weibo's business model.

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junko.yoshida

6/19/2012 8:18 AM EDT

Hi, Chanj. I, too, had wondered about how the Chinese social media sites were doing...so this was also a revelation to me. I found it especially interesting how quickly these weibo sites are wiling to move -- in terms of changing their feature sets, etc.

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gasdfnq

6/18/2012 12:25 PM EDT

if you want to enter Chinese world by internet, it is good to start from Baidu, Sina, QQ and Taobao, but you have to understand Chinese.

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abraxalito

6/28/2012 11:38 PM EDT

Taobao isn't really an equivalent to eBay - its much better. For example its shopping only, no auction (that I've seen). Also I understand its much lower friction - the fees are lower (or even zero) for sellers. It also gives me the impression of being more responsive to users - there was an outcry a while back when the boss wanted to impose new fees on smaller sellers. He listened and then changed his mind - the new fees were not implemented.

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abraxalito

6/28/2012 11:51 PM EDT

Oh and I forgot another crucial difference - its truly an interactive marketplace. QQ chat is integrated in so you can see which sellers are online and negotiate directly with them before placing your order. The flip side though is I've found there are a lot of fake prices - when you begin negotiation they'll say that the real price is (say) 3X higher. That's assuming I've already weeded out the bottom decile which post absurdly low prices.

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