Talk about the things you have to know about China's entrepreneurial path (i)

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When it comes to large audiences and potential growth markets, the term "China" is sure to make one person quake, and the potential market is strong enough to be challenging. With the popularity of mobile devices, the Internet and mobile devices are growing at an alarming rate in 1.3 billion of the population (now far ahead of this number), which offers ambitious entrepreneurial opportunities that many other countries do not have.

However, there are also a number of challenges to enter the Chinese market, first of all to consider language. Mandarin is the basic skill that business people must have, besides the daily communication, it can eliminate the regional and cultural differences as far as possible. Many people's local consciousness is very strong, all want to find a reliable, not too large span of partners, to help themselves better expand their business.

In China's technology sector, mobility is a key element of many entrepreneurial opportunities, as the platform launches a new level of communication that has never been seen before. For many emerging markets and other countries outside the West, PCs, fixed-line internet, technology have not had a deep and pervasive impact on the vast majority of users, but the US, Europe and elsewhere have done so. It is undeniable that Chinese computers are relatively expensive luxury goods, has exceeded the average income per capita financial level, at present only in a large number of middle and high yielding class began to become popular, and the smart machine is just emerging.

There is the challenge of technology, in urban areas, the Internet has always been a very useful and reliable point, but in the two or three-line city quality began to decline, not to mention the remote rural areas. So even if everyone can afford to buy a computer, it will certainly be constrained by the availability, reliability and cost factors of the Internet access level. Internet cafes are competing to provide better networking experience, but mobile devices such as mobile phones have the potential to become more meaningful and dedicated to users when they surf the internet.

Given China's investment opportunities, it is worth clarifying the development background of our national mobile market: Unlike in the US and Europe, high-end smartphones are not the leading power of China Mobile Internet, and mobile devices like the iphone and Samsung Galaxy S3 are not the first choice for most people, Because the price is relatively more than some people's consumption area. Low-end mobile devices offer a cheaper user experience, many of which are based on Android and localized custom services.

The company's own platform is a leading position in China, with 55% of smartphone sales in the last quarter of 2011, according to data from Eric. Apple remains one of the most coveted technology companies, and its iphone still attracts huge crowds and attention, but the platform is not as hot in China Mobile's consumer base as it is expected to expand to 200 million by the end of 2012.

Perhaps cutting-edge equipment can be balanced, as China Unicom and two Chinese telecoms operators in China have started offering full subsidies to customers who buy iphones 4 S. But at this stage, the price and time area of the contract is too attractive to the audience, and the end result is not necessarily as perfect as expected. At the beginning of this year, Apple added China Telecom as a partner, and a modest tariff and price increase may be more appealing, but the breadth of the range will be unknown. This is likely to change if Apple eventually agrees to align itself with China Mobile, the world's largest operator, with 660 million local users.

Android has more room for adoption in China, and Apple phones and tablets are still a good choice among skilled or relatively affluent people. Of course, combined with other factors, these two platforms have their own selling points, and for startups it is an essential opportunity to focus on the mobile sector.

The main roles of China Mobile in the current field:

China's technology sector has its own unique ecosystem, thanks in part to the government's "blockage" of many Western internet giants, and to the growth of Chinese internet companies. It is not yet clear how the Western Giants will face up to the difficulties under these conditions, but as Google's example (moving the search engine to Hong Kong in 2010 after a clash with the authorities), the prospect of a western foray into China is not optimistic.

As the key "actor" on the Chinese stage, Tencent, based on revenue and market value, is the biggest revenue group, with revenue rising 75% per cent in the first quarter of 2012 to $677.1 million. The company offers a range of services that focus on entertainment (including games, microblogs, videos), the main weapon or the QQ messaging service. Tencent claims that its QQ business has 600 million applications, far more than 500 million of China's Internet users, instant messaging products can now cross all the Tencent website.

In addition to the above, Tencent (market capitalisation: $42.75 billion) also has an active venture capital sector, and its most recent deals include a stake in the US equity game, and the company's Silicon Valley team has a lot of talent search activities and is keen to expand its business to overseas markets.

Baidu is often regarded as China's Google, the business area is also very wide, out of the core of the competitive business search engine, but also divided into spending maps, cloud storage, documents, wikis and other Web services. In today's era, it is not a big investor (except for a 306 million-dollar travel portal where qunar-goes), Baidu has publicly said it attaches more importance to acquisitions and investments. Baidu, like many other Chinese companies, is focused on improving its online mobile offerings to meet China's surging smartphone and mobile Internet user experience.

Sina is a multimedia company, the most famous of which is Sina Weibo, currently claiming that 300 million people registered users, of course, may also include a small number of spam accounts and inactive users. Sina Weibo is the company's core product, but this is not the only business, Sina also operates a popular Internet portal, including China's top technology web sites, and has expanded to many other services, such as video and photo albums, all of which can be connected to its microblogging services. The company has a tendency to introduce new products, conduct experiments on services and strategies, but not involve acquisitions.

Sina, like Baidu, is expanding its mobile business, even as it continues to be updated and perfected. The company is also responding to the government's new policy of banning anonymous Internet users from participating in micro-blogging activities, and the company has slowly achieved its "real name" policy. Sina (The market value of 3.34 billion U.S. dollars) also put the government's influence as a risk factor can not be ignored, and in accordance with the relevant provisions of the rectification clean-up.

Youku is China's largest online video site, with a market value of $2.37 billion trillion and a merger strategy with rival Tudou (market capitalisation: $875 million), which is committed to providing users with a better visual feast. Youku executives estimate that the merger will save the company 90 million of billions of dollars in operating costs and increase attractiveness through strong negotiations and a cut in content agreements.

While Youku will become China's largest video player with some sizable profits, the merged company will have less than 50% per cent of the market, suggesting that further consolidation may be achieved through mergers or the death of some competitors. Youku is also focusing on improving its mobile business, building a robust, unique content-selection mechanism, running exclusive entertainment content and snapping up other primetime programs to attract new users.

There are many powerful technology giants in China, such as 7 billion-dollar NetEase, Renren and Kaixin, and Huawei and ZTE, which transform infrastructure into hardware players, are concentrating on developing special mobile strategies and businesses to expand China's market share. To be in China's infinite potential, competitive mobile market to get a place, must have real skills, Hard, of course, many of the necessary industry skill is not less, more wonderful content to be continued ...

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