Social  Market  Intelligence.

3  Hot  Startup  Models  in  ChinaLucas  Englehardt

   1.    Group  buying  -­‐  “Tuan  Gou”  is  new  again

   2.    Fashion  E-­‐commerce-­‐  Not  so  private  buying  clubs

   3.    Social  games  -­‐  Chinese  are  crazy,  Happy  Farmers

Groupon  -­‐  with  Chinese  characteris;cs Group  buying  is  well  established  in  China

Currently  400+  Groupon’s  have  appeared  in  3  months

Groupon  clones  focusing  on  discounts  /  products

CreaPve  markePng  campaigns  (-­‐1  RMB  mystery  box)

Very  early,  companies  sPll  just  geXng  started

E-­‐commerce  has  finally  arrived

Fashion  E-­‐commerce

Fashion  E-­‐commerce   Taobao  (and  Alipay)  dominate  the  market

Largely  Cash  on  Delivery  (COD)  -­‐  60%+

Consumers  are  spoiled  already,  expect  Zappos  style  service  and  return  opPons

Generally  very  price  sensiPve,  looking  online  for  deals

Not  so  Private  Buying  clubs Open  plaborms  -­‐  people  weren’t  sharing  deals  enough

Consumers  are  weary  of  “grey  market”  fakes

Limited  reliable  service  providers  -­‐  companies  doing  everything  in-­‐house

PredicPon:  this  space  will  explode!

China  Social  Games China  social  game  developers  very  fragmented

Game  themes  and  mechanics  translate  between  China,  Facebook  and  other  markets  (universal  love  for  farming  games)

Chinese  social  gamers  are  more  compePPve  than  their  FB  counterparts:  status  and  stealing  play  a  large  role

Games  generally  lagging  behind  Facebook,  being  copied  here

A  happy  farming..

Social  games  conPnuing  growth Zynga  acquires  XPD  (Medical  Mayhem),  joins  Rockyou  and  others  in  sourcing  games  from  China

Increasing  government  control  -­‐  “pick”  don’t  “steal”  vegetables

Most  games  aren’t  making  money  domesPcally,  simply  posiPoning  for  the  long  run

Shameless  plug:

Social  Market  Intelligence.

3  Hot  Startup  Models  in  ChinaLucas  Englehardt

What  is  BloggerInsight?BloggerInsight  delivers  unique  market  intelligence  and  analysis,  100%  customized  to  your  needs.  Get  the  knowledge  you  need  to  thrive  in  China,  Korea,  and  Japan.

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MOBILEApplicaPons,  WAP,  gaming

GAMINGSocial  gaming,  MMOs,  mobile,  casual  gaming

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Our  Insight,  Your  Strategy.What  You  Can  Achieve  With  BloggerInsight

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Client  Case  StudyAn  established  European  company  approaches  us  looking  to  enter  the  Chinese  social  networking  market.  BloggerInsight  performs  in-­‐depth  research  to  help  them  make  smart  decisions.    The  final  100-­‐page  report  includes  our  expert  bloggers’  responses  on  four  topic  areas:

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