Where is the Chinese social networking route?

The internet is a rapidly changing industry, any fashionable concept and peak enterprise, may be outdated in a year, or even abandoned by the industry. Like the first half of last year's hot, and scramble to get hundreds of millions of of dollars of investment in the consumer (corporate to individual) electric dealers, the curtain has not yet been opened, the second half of the rest has died down, began to tighten the belt winter. Therefore, in this rapidly changing industry enterprises, timely adjustment strategy is "potluck", especially in the same field of competitors, more likely to "separate" situation. For example, the two social networking leaders, such as happy Net and Renren, appeared in the strategic and developmental direction of "go left, go right".

The areas of financing

In the area of financing: May 4, 2011, Renren in the United States successfully landing the NYSE, the financing amount of 740 million U.S. dollars, creating a Chinese Internet companies to the United States to raise the initial public offerings (IPO) new high, but also 2011 Dangdang and Qihoo 360 after the third company to the United States listed internet companies, The first share of China's social network. But market capitalisation has shrunk as a result of the impact of the VIE (variable interest entity) deal and the short of muddy water institutions and the weak global economic environment. The UBS report says the outlook for Renren is more difficult to predict than expected, and needs to find killer apps, retain users, and avoid wastage.

The happy net that did not rob the social IPO first color to use another way to obtain the fund, get Tencent's strategic investment. Tencent and happy net of the joint, let Renren face pressure. Perhaps the original Happy Net CEO Cheng to accept Tencent strategic investment move, let happy net, Renren in the capital confrontation in each show a back, especially in the Thunderbolt, Shanda literature, handle nets, Fank and so on canceled to the United States IPO plan, Grand Chen, the privatization of the retreat, happy network is less than the IPO before and after a bit of trouble.

Listing or joint industry to seek funds, this is a choice.

Splitting up the developer divide strategy

In addition to the capital of the wrestling, on the open platform, Renren and happy between the competition is increasingly fierce. Renren started early in the open platform, 2008, the data show that the application installed more than 800 million times, more than 2000 applications, plug-ins daily independent use of more than 5 million users. and happy net in open platform field exerting force late, accelerate but quickly. 2011, Cheng for the domestic Internet open platform of chaos like warning, said "Happy net opening is not the fastest, but must be the most thorough." He said that the net opening will be gradual, from the API components, account connections to social relations, user behavior data, the goal is to give developers full support and resources to help.

The two sides also have different considerations about the open platform partitioning policy. At the end of last year, Renren announced that it would adjust its partitioning policy for mobile-client applications, and the mobile apps that were accessed in 2012 could enjoy a year-old preferential policy. The partitioning policy for the web side is that, after deducting 20% of the cost of paying the channel, the percentage of the past 6:4 is extended, and the developer is 60%. Happy net in December last year greatly increased the proportion of developers, the monthly income is less than 50,000 yuan of small and medium-sized developers, it can get all the income, happy NET does not participate in any of the shares, monthly income in 50,000 ~10 million developers, in addition to the 50,000 yuan income, but also to give additional incentive fund; For 100,000 ~50 million developers, divided by 6:4.

On the surface, the two sides compete fiercely on the open platform, but because of the difference in the coverage group, there are many differences in the application type, income pattern, growth space and value for the developers.

The development model has different focus.

In the business world, social networks are also beginning to diverge. Renren and Happy net, although belong to SNS mode, but in the strategic positioning and development direction began to have different emphasis. Renren reported that the game revenue still accounts for 44% of its revenue, Renren is still increasing the game field of development efforts in product experience and functional continuous improvement, but also in the mobile social field. Happy net from entertainment to practical social transformation, will cover shopping, tourism, local life information and practical tools, such as the need to build a social e-commerce consumer environment, the SNS and E-commerce combined, through the Friends of consumer behavior and consumption evaluation, sharing and dissemination of goods, This is to effectively avoid the game cycle caused by fluctuations, improve user stickiness.

It can be predicted that the 2012 Chinese social network will continue to deepen, happy net and Renren in strategic direction will move to a new fork in the road. This differentiation may lead to different models of development.