Archive for ‘Internet’

14/05/2014

How Small U.S. Businesses Can Court Customers in China – Businessweek

Question: What are Chinese consumers looking for in an online shopping experience? What would you describe as the main reason websites aimed at Chinese consumers fail?

How Small U.S. Businesses Can Court Customers in China

Answer: News about Chinese tech companies making their way to Wall Street has been raising awareness about the vast potential Chinese market for U.S. small businesses. China is definitely interested in American-made goods. Here are some steps you can take to make sure your website is appealing to these new customers.

First, as I discussed recently, you need a website in Chinese. Make sure the site is created by a native Mandarin speaker who can convey the culture of your brand without a clunky verbatim translation that will fall flat, says James Chan, president of Asia Marketing & Management.

The main obstacle to selling online in China is the pervasive fear of being cheated or of buying a pirated product. “You need to find the best way of making a Chinese customer in front of a computer comfortable with the fact that you really have a brick-and-mortar company on American soil,” Chan says.

Pictures are a must: an exterior shot of your office or shop, a map showing your location, and pictures of you and your staff. A video of you talking about your business and its history (include Chinese subtitles) and giving a tour of your premises will go a long way. “Some companies ship orders with a certificate that says, ‘This product is made in America,’” Chan says. “Others will wrap the product in their city’s American newspaper for that day. Anything that authenticates you will help.”

Your site should also feature lots of good pictures of your products. “Use different angles, show different colors, and give detailed written descriptions as well,” advises Stanley Chao, managing director of All In Consulting, and author of Selling to China: A Guide to Doing Business in China for Small- and Medium-Sized Companies (2012). “Seeing is believing for the Chinese.”

Anything you can think of that would allow a wary Chinese customer to feel comfortable with your company will help: Your mailing address, your e-mail address, your telephone number. It will cost some money, but if you can, hire a customer service representative who speaks Chinese and can answer telephone queries or at least provide online chat support. “Also, always include 100 percent-guaranteed refunds, or even an added incentive where they get a small credit for the inconvenience of returning something they did not like,” Chao advises.

The piracy problem has prompted Chinese shopping sites such as Taobao.com to institute multilayered customer rating systems for every product, Chan says. You most likely cannot replicate that, but you can include comments on your site—in Mandarin and English—from your Chinese customers. “If others successfully bought your products, then [Chinese customers will think] maybe you are trustworthy.”

Being a small business will put you at a disadvantage in the minds of most Chinese consumers, Chan says, so if your company has any connection to a celebrity or an iconic American brand—such as a major corporation that buys your products, sells them in its retail outlets, or uses your services—trumpet that connection on your site, with pictures, if possible. “Maybe you make a food product that has been served at the White House, or your shoes were worn by an American celebrity,” he suggests. That will appeal to some shoppers in China. “Just make sure you’re being truthful,” Chan says.

Company websites fail in China for the same reasons they fail in the U.S.: They’re done on the cheap, so they are marred by misspellings, ugly design, bad photos, and technical glitches. “I’ve noticed that successful sites are updated frequently, so users want to come back to check for new information, special deals, or more products. This also shows that the site is active, it’s busy, and there are real people behind it,” Chao says.

The bottom line: Take care of your Chinese customers, and they will recommend your company to their friends, show off your products proudly, and visit your store when they’re vacationing in the U.S. When they do, get pictures and put them on your website, Chan says: “If you can build a history in China, where there are millions of people buying and selling online, you’ll win big business there.”

via How Small U.S. Businesses Can Court Customers in China – Businessweek.

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11/04/2014

All you need to know about business in China | McKinsey & Company

A lot of people view China business as mysterious. Relax. Consumers behave pretty much the same everywhere. Competition is pretty much the same everywhere. You just need to ignore the hype and focus on the basic fact that in China today, there are six big trends (exhibit). That’s it. Six trends shape most of the country’s industries and drive much of China’s impact on the Western world. They are like tectonic plates moving underneath the surface. If you can understand them, the chaotic flurry of activity on the surface becomes a lot more understandable—and even predictable.

Coauthors Jeffrey Towson and Jonathan Woetzel discuss China’s six megatrends with Nick Leung, the managing partner of McKinsey’s Greater China office.

These trends move businesses on a daily basis. They’re revenue or cost drivers that show up in income statements. Deals, newspaper headlines, political statements, and the rising and falling wealth of companies are mostly manifestations of these six trends, which aren’t typically studied by economists and political analysts. In fact, we happen to think that Chinese politics or political economics are wildly overemphasized by some Westerners in China. So let’s tell a story about each of these megatrends, with some important caveats. They’re not necessarily good things. They’re not necessarily sustainable. For every one of them, we can argue a bull and a bear case. Most lead to profits or at least revenue. Some may be stable. Some lead to bubbles that may or may not collapse. We are only arguing that they are big, they are driving economic activity on a very large scale, and understanding them is critical to understanding China and where it’s headed.

via All you need to know about business in China | McKinsey & Company.

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18/01/2014

The internet: From Weibo to WeChat | The Economist

WHEN Luo Changping, an investigative journalist, tried on November 22nd to post the latest chapter of his big scoop on WeChat, a popular Chinese mobile messaging service, censors blocked it. But he was able to work round them. In a follow-up message he told his subscribers they could send him the words “Chapter Seventeen”; users who did so automatically received the post on their mobile phones, uncensored.

WeChat, or Weixin in Chinese, is known mostly for private chatting and innocuous photo-sharing among small circles of friends. With more than 270m active users, it has become the star product from Tencent, an internet conglomerate. Some have compared it to WhatsApp, an American messaging service. More quietly, it has become the preferred medium for provocative online discussion—the latest move in China’s cat-and-mouse game of internet expression and censorship.

 

Mr Luo began posting his serialised stories on WeChat in May. They related how he had exposed the alleged corruption of Liu Tienan, a senior economic official. He had tried tweeting them on Sina Weibo, a Twitter-like microblog on which he had accused Mr Liu of corruption months earlier, but internet censors blocked him from doing so: hence his switch to WeChat. Though his initial attempts there were also blocked, the loophole that enabled him to send out the file is typical of WeChat’s more relaxed approach to censorship.

A WeChat account works much less publicly than accounts on microblogs (of which Sina Weibo is the most prominent). Anyone using Sina Weibo can see almost anyone else’s tweets and forward them on, meaning a single tweet can spread very quickly. On WeChat, it is usually only subscribers to a public account who will see a post (though such posts may also be viewed on a separate web page), and if a subscriber forwards a post, only that subscriber’s circle of friends see it. Its non-public accounts are even less open. Information on WeChat spreads at such a slow burn that authorities feel they have more control over it. Also in contrast to microblogs, many types of public account (like Mr Luo’s) can send out only one post to subscribers a day, making them much easier for authorities to monitor.

Mr Luo does not always have problems sending out his stories on WeChat and, since switching to the service, he has posted the equivalent of a blog post every week or two, and built a following of more than 60,000—“higher than the actual subscription figure of many Chinese magazines”, he says. WeChat is now his prime delivery platform for newsy titbits, including sensitive information that would be censored more rigorously on microblogs. (He has not published for Caijing magazine, his former employer, since being transferred in November to a non-reporting position at an affiliated research institute.) Meanwhile, he makes much less use of his Sina Weibo account, even though it has more than four times as many followers: “The ground for public opinion has begun to shift toward WeChat,” he says.

The rise of WeChat is a business phenomenon in its own right (see article). But it is also a measure of how adaptive and resilient China’s political and social discourse has become—almost as adaptive as the censorship regime that seeks to contain it. Recently a number of public intellectuals have lamented the decline of meaningful discussion on weibo. The microblogs were full of user-led activism in 2012 but, starting in 2013, officials have dramatically escalated their efforts to control them. Propaganda outlets have intensified attacks on the spread of rumours online, authorities browbeat online celebrities to be “more responsible” (at least two have been arrested on unrelated charges), and microbloggers can now be jailed for up to three years for tweeting false information that is forwarded 500 times or viewed 5,000 times. President Xi Jinping, in a speech to party leaders in August, said that the internet was the prime battleground in the fight over public opinion, and that officials must seize control of it.

via The internet: From Weibo to WeChat | The Economist.

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28/12/2013

China’s IT sector to gross 12.5 trillion yuan – Chinadaily.com.cn

The sales revenue of China\’s information technology sector will hit 12.5 trillion yuan (about $2.04 trillion) this year, a Ministry of Industry and Information Technology official has forecast.

English: Logo Information Technology

English: Logo Information Technology (Photo credit: Wikipedia)

In the first nine months of 2013, the sector\’s sales revenue reached 8.98 trillion yuan, up 14 percent year on year, said Ding Wenwu, chief of the ministry\’s electronics and information department, at the 13th China Tianjin Information Technology Exposition, which opened in Tianjin on Thursday.

China\’s information technology sector has maintained stable growth in the past three years, with its output of mobile phones, computers and color TV sets world leading, according to Ding.

With new developments such as the Internet of Things, cloud computing and big data, the information technology sector faces new growth opportunities, he said.

The ministry will underscore innovations in the sector to enhance its core competitiveness and promote the consumption of information products and services, and deep integration between industrialization and informationization, the official added.

China aims to boost the consumption of information products and services and make the sector a new engine for domestic demand and economic growth.

via China’s IT sector to gross 12.5 trillion yuan – Chinadaily.com.cn.

04/12/2013

IT push aims to boost domestic demand |Sci-Tech |chinadaily.com.cn

Work on 4G licenses and broadband

Internet access to be speeded up

China is to promote consumption of IT-related products and services as it seeks to spur domestic demand and push economic upgrading.

It will speed up work to issue licenses for the fourth generation (4G) mobile network this year and accelerate development of broadband Internet access, according to a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.

The nation is aiming for annual average growth of 20 percent in the information consumption industry from 2013 to 2015, the statement said.

The meeting demanded implementation of the “Broadband China” strategy, stepped-up efforts to construct and upgrade network infrastructure, pushing forward the FTTH (Fiber To the Home) project and improving Internet speed.

China, which has the largest number of mobile phones in the world at 1.2 billion, is already building 4G trial networks in major cities.

China Mobile, its largest telecom carrier, is promoting the homegrown Time-Division Long-Term Evolution (TD-LTE) 4G standard and hopes to start commercial 4G rollout as soon as possible.

via IT push aims to boost domestic demand |Sci-Tech |chinadaily.com.cn.

26/08/2013

China’s Bloggers Rally Around Bo Xilai

BusinessWeek: “Official China has been touting it as a breakthrough for government transparency. But has the decision to live blog the five-day trial of Bo Xilai, which closed Monday, backfired? That’s a relevant question as a flood of support for the charismatic former high-flying princeling has erupted on China’s Internet.

Former Chinese politician Bo Xilai speaks in a court room at Jinan Intermediate People's Court in Jinan, eastern China's Shandong province, on Aug. 25

China posted portions of the five days of court proceedings in Jinan, Shandong Province, on Sina Weibo (SINA), China’s largest microblogging site. Chinese checking out the trial online got to see an unusually spirited defense put up by the 64-year-old Bo, the former head of China’s southwestern megalopolis Chongqing who almost made it into the top echelons of the Chinese leadership.

The decision to show the trial online demonstrates an admirable new candor, according to state-run media. “The public hearing and the Weibo broadcasts reflect the transparency and openness of the country’s rule of law,” said a commentary on the website of China’s official party mouthpiece, the People’s Daily, on Aug. 22.

STORY: Can Bo Xilai Be China’s Comeback Kid?

But that’s not the takeaway for everyone. Instead, many on the Web have written of a newfound admiration for Bo, who has been charged with bribery, embezzlement, and abuse of power (the verdict—likely harsh—will come later, at a time still unspecified),and who fell from official grace last year after a murder perpetrated by his wife came to light.

“I’ve changed my view of him! He is much more gentlemanly than those with power and he really does know the law,” said one tweet by blogger He Jiangbing on Sina Weibo, translated by blog Tea Leaf Nation, which monitors China’s Internet. “This man has remarkable logic, eloquence and memory. As someone who likes smart people, for a moment I almost forgot about his avarice, evilness and ruthlessness,” wrote another microblogger, also on Sina Weibo.

While the decision to tweet key parts of the trial has indeed surprised many, others are less impressed. “The selective postings can only show selective openness and selective justice, and cannot be said to represent the truth,” said Liu Wanqiang, a Guangxi-based journalist, reported the BBC on its website on Aug. 22.

VIDEO: Can Bo Xilai’s Trial Change China’s Government?

In contrast, way back in 1976, the trial of Mao’s widow Jiang Qing, a member of the so-called Gang of Four, was shown live on television for all to view. While few Chinese then had their own TV sets, much of the population gathered communally around televisions to watch and discuss the live proceedings.

Beijing over the past week has launched a crackdown on spreading rumors on the Internet, which some fear will be used to squelch online free speech. Already authorities have announced arrests, including the detention of a muckraking journalist for “criminal fabrication and dissemination of rumors online,” reported the official English language China Daily on Aug. 26. Interestingly, little effort appears to have been made so far to scrub the Internet of the pro-Bo commentary.

“China is a country that respects and protects free speech, but people should also bear in mind that greater online freedom is guaranteed by greater responsibility,” stated the official Xinhua News Agency in a piece calling for greater efforts to police the Web on Aug. 21. “People should maintain moral principles and denounce any activities that harm the reputation and interests of others so as to stop the Internet from decaying into a land of abusive language and rumors.””

via China’s Bloggers Rally Around Bo Xilai – Businessweek.

23/07/2013

China’s Smartphone Generation

BusinessWeek: “Every day at noon, workers spill out through the red gates of the Xue Fulan garment factory on the outskirts of Beijing to enjoy one precious hour of lunchtime freedom. They are mostly in their late teens or early 20s, living in no-frills dormitories within the factory complex. Most saunter out on a hot summer day with a water bottle in one hand and a smartphone in the other.

Commuters use their phones riding a Metro train in Shenzhen City, China

While personal computers are rare inside the factory, many of these young migrant workers—who are just climbing onto the lowest rung of the urban economic ladder—are now on the Internet daily. With 12-hour workdays, their free hours are scarce, but they still find time to use social media and dating apps, play video games, and read lifestyle and news sites, where they can catch a glimpse of the upscale urban life they aspire to.

Last week the government-affiliated China Internet Network Information Center reported that 591 million people in China now have Internet access; that’s 45 percent of the population. Just six years ago, only 16 percent of China’s population was online. Among the drivers of the steep rise in Internet penetration: the rapid adoption of Internet-enabled mobile devices, especially among groups that previously lacked regular connectivity, including China’s migrant workers. More than three-quarters of China’s netizens (464 million people) now use a mobile Internet device—instead of, or in addition to, a laptop or PC.

Kantar Media, a U.K.-based global consumer research and consulting firm, polled nearly 100,000 Chinese Internet users about their online habits and preferences in 2012 and just released its analysis of the study: 59 percent of respondents said that online chat and dating were their favorite uses of the mobile Internet, while 43 percent described themselves as “frequent” users of social media. Notably, the number of Chinese netizens who claimed they had visited a social media site in the past day was higher among mobile Internet users (32 percent) than among all netizens (26 percent). Weixin (“WeChat”), Tencent’s (700:HK) popular social-media app, is almost exclusively used on smartphones and tablets.

Megacity commutes are also correlated with more time online. In 2012, Chinese commuters who travelled more than one hour to work were three times as likely to go online daily as those whose commutes were under a half hour. As China’s large cities sprawl, traffic jams proliferate as well. Shen Ying, a general manager at CTR Media, Kantar Media’s joint-venture partner in China, believes that the “fragmentation of ‘social’ time created by longer commutes” goes hand in hand with the “desire for social networking.” Fortunately for China’s lonely subway passengers, Internet access on Beijing’s subway is more stable than on New York City’s.”

via China’s Smartphone Generation – Businessweek.

29/06/2013

Chinese Official Sentenced to 13 Years in Sex Scandal That Was Exposed on Internet

NY Times: “Lei Zhengfu, a Chinese official who became a symbol of corruption, was convicted of taking bribes and sentenced to 13 years in prison on Friday in a scandal that exposed the sordid deal-making in Communist Party politics.

The conviction of Mr. Lei was the culmination of a fall that began when video images spread on the Internet in November showing him with an 18-year-old woman. The images, and ensuing accusations of graft and extortion, made him a much-mocked exhibit in the newly appointed Communist Party leadership’s efforts to persuade citizens that it was stamping out official graft and depravity, which have stoked deepening public ire.

Mr. Lei was sentenced days after President Xi Jinping made a new call to halt bureaucratic corruption and bribe-taking. A court in Chongqing, the municipality in southwest China where Mr. Lei once worked, dismissed his argument that a payoff of $488,000, or 3 million renminbi, he had arranged through an associate was a legitimate loan, not hush money to keep secret the video showing him with the young woman.

The court said the money amounted to a bribe.

“The sums involved were massive, and the effects were malign,” said the verdict read to Mr. Lei in the courtroom, according to Xinhua, China’s state-run news agency. “This should be sternly punished according to the law.”

China’s leaders have vowed to get rid of corrupt officials, however low or high. Before his dismissal in November, Mr. Lei was the party secretary of Beibei, a district of Chongqing. Critics said the spectacle of his trial did not make up for Mr. Xi’s failure thus far to take down senior officials, despite widespread speculation about corruption investigations in the government and the military involving powerful figures and large amounts of money.”

via Chinese Official Sentenced to 13 Years in Sex Scandal That Was Exposed on Internet – NYTimes.com.

15/05/2013

* How India’s buses got connected

FT: “Phanindra Sama remembers only too clearly the inspiration behind his business. “RedBus was started because of a personal pain point,” he says. “I couldn’t get a bus ticket.”

Phanindra Soma CEO of RedBus photographed in a bus in Bangalore, India on Friday, May 10, 2013

It was October 2005 and Mr Sama, who is known to everyone in his company simply as “Phani”, was heading home to celebrate Diwali, the Hindu festival of lights. The journey involved a trip from Bangalore to his parents’ home near Hyderabad, nearly 600km to the north.

“I went to this travel agent to book a ticket. He made a few phone calls to the bus operators and told me there were no seats,” says Mr Sama. He tried four more agents. All called a couple of bus companies, but none could find a seat. Even more frustrating, all of the agents told him there might be a ticket out there – they just couldn’t locate it.

Mr Sama was stuck. “I am there, all flustered, staying in my flat,” he says of the long holiday weekend that followed. “I woke up the next day, and all of my friends were not there because they had gone home. It really pained me.”

An electronics engineer by training and working for Texas Instruments, he decided to do something about it. The result was RedBus, India’s leading bus ticketing service, which links thousands of unconnected bus operators and ticket agents, and sold more than 7.5m tickets last year.

Mr Sama’s entrepreneurial journey required figuring out India’s vast but fragmented $3bn bus system, which is dominated by small and often unreliable operators. Buses often leave from anonymous storefronts and frequently travel overnight. While some are upmarket, modern vehicles with wireless internet and air conditioning, most offer much more basic features.

When Mr Sama entered the industry, fast economic growth and urbanisation had vastly increased demand for travel. But most people couldn’t afford to fly and India’s celebrated train system struggled to cope with rising demand.

A lesson in listening

Phanindra Sama says being an entrepreneur has taught him a lot about listening. Speaking of the bus operators who have received bad reviews on RedBus, he says: “You get these calls from people saying: ‘I’ve been in the industry for 10 years and suddenly you come and rate me as a bad operator. What about my reputation?’ ”

“I think a lot of entrepreneurs probably don’t make time. If somebody says, ‘I want to talk to you’, they don’t make time,” he says. “We make time because that is very important for us.”

It is a lesson he has picked up not only from patiently listening to angry customers but also from reading management theory.

“There is a common theme in all those books. They say make space for others,” he explains. “I have dreams and passions, [but] everybody in the team also has their own dreams and passions. So if I have to get the best progress that we want, it can’t just be me standing there and having everybody do what I want.”

Even so, Mr Sama found India’s bus users were treated shabbily, with scant information on prices or bus companies. “This whole industry was very unregulated,” he says – a situation he admits has barely changed in the years since the company’s launch.

Despite holding down a day job, Mr Sama spent his weekends working out how to improve matters and even convinced his two flatmates to join him. Just under a year later, the trio had quit their jobs and were preparing to launch the RedBus website, along with two other software packages linking India’s disparate travel agents and bus companies.

The site has since become both popular and profitable, with revenues of Rs6bn ($110m) last year. It has also won fresh funding from the likes of Inventus Capital and Helion Venture Partners, investors attracted by an Indian intercity bus industry with revenues projected to grow to about $8bn over the next four years.”

via How India’s buses got connected – FT.com.

14/05/2013

* China launches new crackdown on internet celebrities

My personal view is that “the genie is out of the bottle” or that you cannot shut “Pandora’s box” with the Internet and social media.

Telegraph: In its latest bid to contain the often riotous jumble of news and rumour on the Chinese internet, the Communist party has decided to bring the most high-profile and influential voices to heel.

China launches new crackdown on internet celebrities

Before his account was removed, Mr Hao had 1.85 million followers

On Saturday, Hao Qun, a famous 39-year-old novelist and frequent government critic who goes by the pen name Murong Xuecun, found his account on Sina Weibo, China’s version of Twitter, deleted. He tried to open another account but failed.

Before his account was removed, Mr Hao had 1.85 million followers and his postings on the site often went viral.

The world of Weibo, which had 368 million registered users last year, operates much like Speaker’s Corner. Its most famous inhabitants command huge followings and have the power to steer debate in a way that is often uncomfortable for the Communist party.

The deletion of Mr Hao’s account follows a series of actions against other high-profile users.

He Bing, the vice president of the law school at China’s Political Science and Law university was suspended last week “for deliberately spreading rumours”. Prof He, who had close to 500,000 followers, had posted a snippet of news, which later turned out to be false, claiming that there had been a mass stabbing in a hospital in Hefei.

Since the Chinese media is carefully controlled, Weibo has developed into the country’s most important source of news.

And since newspapers and television stations are not allowed to report on many of the topics that are voiced on the internet, rumours often go unchecked and develop their own momentum.

“Some of the [high profile users] have become rumour relay stations,” noted the Global Times in an editorial last week. “Any frequent Weibo user knows that rumours cannot be widely spread unless there is a [high-profile user] helping to spread it,” it added.

“Theoretically they have the right of speech on the internet, but they should also have an equal responsibility. Currently they have no moral responsibility or legal liability for what they post.”

Kaifu Lee, the former head of Google in China, who has more followers (40 million) than Barack Obama does on Twitter (33 million), said he was careful to verify information before posting it on Weibo.

“I realise with the number of followers I have that I need to make sure the messages I forward are legitimate,” he said. “With great power comes great responsibility,” he added.

However, he noted that Weibo already has inbuilt checks that should prevent false news from gaining traction.

“If you suggest something that is clearly false and do not retract it, your reputation (online) will suffer. I think the social ecosystem should largely be self-reinforcing,” he said, adding that Sina already has a type of tribunal system that can rule over the veracity of certain posts.

Mr Lee said he did not know what the purpose of the new government “internet management” campaign was. There already exists a sophisticated censorship system that filters posts and deletes sensitive topics. “I am not in the government, so I cannot say why the government is doing this,” he said.

Zhang Lifan, a historian with almost 270,000 followers said the attempt to control high-profile users would be fruitless. “Shutting them down will not make much difference. For each account they silence, other people will speak up,” he said.

“Of course people should not spread rumours, but the government is using a double standard,” he said. “CCTV (China’s state television station) also sometimes reports the wrong news.”

The campaign appears to have sent a firm message however. Yao Bo, a commentator and restaurateur with close to 900,000 followers said a number of his friends had seen their accounts shut down. “Some of the accounts are shut down for criticising government policy, others for reporting bits of information. I now feel I need to watch what I say before I post something,” he said.”

via China launches new crackdown on internet celebrities – Telegraph.

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