Internet Culture in China Diana Cheng Babbie Liu

Web-Culture in China Top internet applications: Online Music (84.5%) Online News (81.5%) Instant Message (77.2%) Online Video (71.0%) Search Engine (69.2%) E-mail (62.6%) Online Game (58.3%) Blog (42.3%) Forum (38.8%) Shopping (25%)

Basic Internet Application in China Email 6th in China, 1st in USA Popular instant message in China has effect on email usage Instant message 3rd in China with usage rate of 77.2% 39% in USA, 47.8% in Korea Integrated services including online streaming video, blog, and file sharing High usage rate of instant message due to strong software and high publicity of QQ.com? Or the different age distribution. (China has a huge amount of younger users.)

Basic Internet Application in China Search engine 5th in China with usage rate of 69.2% 2nd in USA, with usage rate of 91% Baidu.com Data indicated that usage rate of search engine and email become higher as higher education level, for education level beyond university, usage rate 93% for search engine and 87% for email

Internet Media Internet News Online Music, Video, and Game 2nd in China with a rate of 81.5% Higher than 71% in USA, 67.1% in Korea Online Music, Video, and Game Usage rate 84%, 71%, and 58.3% Important form of entertainment Internet popularity poses serious challenges for government 1st and 4th in China higher than other countries

Top 10 Sites in China Baidu.com 163.com QQ.COM Google.com sina.com.cn (Search engine) QQ.COM (Portal / network) sina.com.cn (Portal) Google.cn Taubao.com (Auction / shopping) 163.com (Web-mail) Google.com Yahoo.com Sohu.com (Search / portal) Youku.com (Video)

Baidu.com World’s largest Chinese website China’s largest search engine 63% market share (Google has 26%) Revenue $239M USD in 2007 (NASDAQ: BIDU)

Baidu.com Website searching: exact same feature as Google

Baidu.com Other features: Online forum Problem solving / knowledge sharing forum Search engine for MP3, video, wiki Baidu, for instance, said on Thursday that its second-quarter net profit had jumped 81 percent. During that period, Baidu had a 63 percent share of China’s search engine market, while Google had about 26 percent, with Yahoo trailing far behind, according to iResearch, a market research firm based in Beijing.

QQ.com Check all the links—when Sina started it was like this

QQ.com Tencent: stock market value of $15B First Chinese version instant message Penguin trademark was a big hit Value-added services targeting high school students (QQ Show, QQ currency) Tencent, a popular site for social networking and gaming, now has a stock market value of $15 billion, making it one of the world’s most valuable Internet companies. In comparison, Amazon.com is valued at about $30 billion.

QQ.com 2008 1st Half-Year Revenue: $444M USD

QQ.com Chat room window with applications

QQ.com QQ Show Chat room window with applications

Age Distribution of China Internet Users Why QQ is so popular The survey found that nearly 70 percent of China’s Internet users were 30 or younger, and that in the first half of this year, high school students were, by far, the fastest-growing segment of new users, accounting for 39 million of the 43 million new users in that period

Education level

Alibaba.com B2B e-Commerce Website 36 million registered users (28.7M in China) From over 240 countries and regions Q3 2008 revenue: $114.2M USD— $70.9M Intl., $43.3M China

Alibaba.com

Growing Number of Internet Users in China 253 million comparing to 230 mil in US

Internet Penetration Rate across the Globe By contrast, about 220 million Americans are online, or 70 percent of the population, according to the Nielsen Company. Japan and South Korea have similarly high percentage Internet users in China will reach 953 million with similar pen. rate of USA

Conclusion China is the biggest internet market in terms of number of users with no doubt Future growth will concentrate on several underdeveloped areas E-Commerce: only popular in big cities now Online education Online banking Other developing infrastructure and business activities will foster internet growth Government regulations and incumbent players continue to play important roles Political content on Web sites inside China is heavily censored, and foreign sites operating here have faced restrictions.

Reference www.cnnic.cn www.internetworldstats.com http://www.nytimes.com/2008/07/26/business/worldbusiness/26internet.html http://www.alexa.com/ http://en.wikipedia.org/wiki/Internet_censorship_in_the_People%27s_Republic_of_China http://www.baidu.com/ http://www.qq.com/ http://www.alibaba.com/

Q & A ??