Monday, August 25, 2008

51.com Open Platform to Allow Payments

A senior PR executive for Chinese social networking site 51.com has revealed that the site's open platform will allow third-party cooperative partners to directly charge users for fees, and that in the future the company plans to help "preferred partners" with financing. 51.com will provide a payment system for third-party developers for its platform to allow them to charge fees in "51-coins." After taking a commission for payment processing fees, 51.com will share the money with developers; revenue sharing details have yet to be determined, but it is rumored that it will likely be a 50-50 split.

In the future, 51.com also plans to help third-party developers manage their servers in order to keep servers from being overloaded with high traffic volume generated by the system.
Source:marbridge consulting

Wednesday, August 20, 2008

WEBGAME and SNS Receive The Capital Attention, The First General Assembly Held in Beijing

from 2005 began to blog, video, community, represented by WEB 2.0 wave swept through China's Internet industry, after three years of development of the lack of a mature business model, the lack of direct profit, and WEB2.0 many enterprises are facing the test of life and death. The end of 2007, after a year of development gradually become mature WEBGAME like a shot in the arm, let people following online games, wireless value-added, e-commerce, Internet marketing and after seeing the profitability of a new hope, especially for a high-adhesion, The business model is not clear a profit of SNS communities new model. At the same time SNS community website for a quick "Shouchong" more vulnerable "out of favour" in the audience WEBGAME bring more high Mount of users. Community expansion of the value of the game, the game community driven development, WEBGAME and SNS combination of business models, increasing the industry's concerns and have test the waters. To this end the China Internet Association and the China Investment Network will be a number of joint investment and financing institutions, on November 14, 2008 and held the first WEBGAME community SNS General Assembly.

June 2008, SNS Jiuyou Wang launch its own website - long Friends Network, Tencent launched the first web game, "Silk Road Hero", MSN with the partners I Robot test the waters WEBGAME joint operation Wulin the three countries; 2008 July, the Giants acquired the leading SNS community 51. Com, Qianxiang acquisition pea interaction; August 2008, and I wonder 51 wan web site jointly enter the gaming market, the software provider of dynamic network of community launched a "bubble playing" Joint Operating platform, the game will page the way to joint operations with the station master and win-win; Baidu with a grand, 51 wan, Chengdu, DreamWorks co-operation, such as web games, Thunder test the waters web games, MySpace announced that access to web game market, the Shanghai Science and Technology has Weilai Focus has started to build WEBGAME with SNS and the leading web platform for game operators - Vera platform, accounting for Block network, network happy, Hainei also have to their communities more entertainment, Sina, Microsoft, Google, Yahoo, Alibaba And so on are all doing a similar layout. Whether it is "game of the community" or "community game", a website that the game of the trend of cooperation with the community.

It is in such a market opportunity, the first WEBGAME community and SNS General Assembly, "are taking place in the future" as its theme, depth and SNS WEBGAME mining community with the business model of the Internet and the development trend of commercial value. Government and industry authorities, investment institutions, WEBGAME developers, game operators platform, community, support and relevant technology providers, will gather WEBGAME and SNS community predictability of the General Assembly to express their views, and the participants together representatives from all sectors Exchange and interaction. In addition, the China Internet Association will jointly invest in China Network and the mainstream media co-mining industry and the introduction of the "2008 China WEBGAMETOP10 recommended list" and "WEBGAME and SNS business community with the best recommended list", the site will also hold a grand ceremony and investors WEBGAME venture with the team, community and chief WEBGAME products and projects double-election activities. Welcome the active participation of professionals.

The Development of Web Games: Why Shi Yuzhu has acquired the Community Company

Present, the Internet sector is the focus of the two sns and web games, with the facebook in the tremendous success of foreign and domestic sns also set off a wave of school, such as the quality sns Hainei already inhabited by a large number of users. At present, another focus of the Internet "online games" also gives the area has tremendous shock, that is, network giant M & 51, Shi Yuzhu has been said to hold 51. Com 40% stake in a 51. Com's largest shareholder, and Have increased holdings to more than 50 percent of the priority control. "According to Sina information technology, network giant, chairman and CEO of external Shi Yuzhu recently said that this year will be putting in a lot of resources to the network of community building and mergers and acquisitions. Because, in his view online games Community-based and community network game of the year since the industry is an important trend. Shi Yuzhu of the merger on the website of the game, how the development of the Enlightenment? »

Web game as a hot spot in today's online games industry has increasingly sought after markets and the players. Web Games (webgame): refers to the need to download the client, can be directly through a web browser (such as IE, FireFox, TT, Opera, etc.), Home games will be able to log in the network on-line interactive games.

At present the domestic online games market impressive page of several games, is 51 wan's "rising empire", "instant noodles three countries" and "God of the world" and other high-quality web games, online games craze has swept Today National, with its simple games page, download the client without the advantages are many players have been especially white-collar class and the student group sought after.

Web games of the fire, but also showed a very clear upward trend. Domestic operators of the web game started more attention and investment. In addition to Baidu and 51 wan, 17173, grand, The9, Jinshan, and other companies are optimistic about the game and have started Web page layout gaming market……

However, the development of web game has not yet reached full maturity stage, how to develop in the future, the web is the trend of the game are what we should explore issues of concern.

+ Web community game will be fast-growing outbreak

Because the characteristics of web games, as players from playing this game to the web page on another game time costs low compared to other games, so a page in the game quickly, "Shouchong" At the same time, but also more easily " Out of favour. " A strong cohesive community website, it is undoubtedly the solution of this problem, "Liang Dan Miao medicine." Web games for the community to bring more customers and revenue, and the community are also able to bring the same page the benefits of the game, the two mutual benefit, which are "marriage" a combination of natural. In that regard, 51 wan company early in the team is aware of the importance of the model, the better the website of the game and the community together and made a "my game space" Players create personal space, received very good Results. At the same time the number of online game series record, 51 wan site is a few months time quickly climbed to 3,000 ALEXA ranking of the site. According to a "Luanwu the Spring and Autumn" the beauty players, playing the game at the same time, often to communities to make friends, explore玩法skills, size of benefit.

Content: PK category has great potential for the development of web games

As the game website at the early stage of development, subject to the restrictions on various factors, PK game relatively scarce. The habits and games like PK of netizens accounted for the vast majority and thus the page on the PK gamers online games category demand relatively strong.

Technology: HTML + Flash

Taking into account the characteristics of web games, and without prejudice to the core concept of the game page under the premise, how can we make the game more extensive web of audio-visual impact, the interactive nature of good and practical Ke Wanxing, to a large extent is needed Technology to solve. The page has not yet specifically for the development of the game for the language now, making full use of existing technology, integration into the web game, to have these characteristics, is the delay of urgency. HTML has a lot of good advantage, but their interaction is natural weakness. Yijuntuqi Flash technology, which the rich interactive features, very much in line with the development of web games. Although the customers may need to install on a PC used to support the Flash browser plug-in (at present many browsers support Flash, and almost all browsers support the Flash plug-in installed), but because the Flash plug-in is very small, but with A web browser's development, more and more all the default Web browser support Flash, so some people worry that using Flash technology runs counter to the original intention of web games, this is no need to worry about.

Sunday, August 17, 2008

Mobile Social Networking Service Embedded In China

Chinese mobile handset company Ramar will embed the GyPSii location and social networking application on the forthcoming range of the company's "amsam" Windows Mobile devices.

This new agreement between GyPSii and Ramar has provisions for revenue sharing between GyPSii and Ramar based on current business models for mobile social networking including advertising, in addition to license revenues from Ramar for pre-bundling of GyPSii on the devices. Neither company has provided details on estimates in the amount of revenue they forecast from this deal.

GyPSii will initially be available on "amsam" devices in both Traditional and Simplified Chinese. Ramar will promote and distribute the GyPSii-enabled phones directly from its own stores, and also via retail partners across China. The deal includes provisions for GyPSii revenue streams from both IPR licenses and mobile Geo-advertising business models.

GyPSii currently interoperates on Symbian, Windows Mobile, and BlackBerry devices, as well as the Apple iPhone, along with browser-based Internet connected devices.

Source:Chinatechnews

Wednesday, August 13, 2008

China Yahoo Launch Yahoo Contacts

August 12 - Yahoo China was recently launched social networking services - Yahoo contacts, the service is currently used to invite a registration mechanism. It is understood that Yahoo China from the United States last year, Yahoo has introduced a social attributes of Yahoo! 360, and the name of Yahoo space operations.

Yahoo China to abandon My Yahoo! Business

Sohu IT found that Yahoo contacts domain name is http://my.cn.yahoo.com, and in foreign countries my.yahoo.com is My Yahoo! Used. It is understood, My Yahoo! IGoogle is similar to the services, users can My Yahoo! Add RSS feeds, weather, constellations and other modules. Yahoo China has been no official Chinese version of My Yahoo!, From the contact to use My Yahoo domain, not Yahoo China launched My Yahoo! Plan.

Yahoo in July this year, the United States formally launched the new My Yahoo!. The biggest new feature is that in addition to the right-hand column of the Yahoo ads, users can better organize their content.

Yahoo invited to contact the current registration system, users need to have registered users can obtain a registration key registration, but Sohu IT users did not find the entrance to the invitation. This one on condition of anonymity, said internal has not yet been opened to outside users in China Yahoo the right to use the invitation.

Yahoo's community-based strategies have been wavering

October 2006, Xie Wen, general manager of Yahoo China and Yahoo said to be done, but working 40 days after the Lightning Xie Wen left. Xie Wen Yahoo community strategies to end in failure.

February 2007, Yahoo China from the United States Yahoo introduced a Yahoo! 360 °, named Yahoo space. Yahoo then will the original album, Friends of geopolitical people to integrate Yahoo services such as space, and in 2007 launched a match demand, music show, Huabao She and other services, but with the Yahoo China early this year of layoffs and restructuring in China Yahoo service life The determination of the strategy, Yahoo has cut some services space, the only blog and photo albums in the operation.

Yahoo contacts in addition to integrating Yahoo Mail, did not integrate other community services, especially Yahoo album. Sohu IT found, click on other users to share images, open the picture is actually the final page, can not comment or tagging, and other operational functions is very weak.

At present, the social networking sites have not yet found a clear profit model. "Yahoo China's reputation and life services to be done after the merger, it is impossible to invest too much in the community, while Yahoo's strategy has been changed, the business does not have enough patience, it is very difficult in the community of its business success." A departure from the Yahoo! The informed source said.

Monday, August 11, 2008

Xiaonei's Plug-in Developer:Every Day May Receive 10 US Dollars

In July, Xiaonei open platform after the network announced by the industry and developers challenged.

Most people think that their network open platform agreement not open, while the developer's lack of respect for the rights and interests. The first agreement will be limited, developers and procedures may not have any business school network conflict, while all the plug-in only limited use in the school network, restricting third-party sites in the school network to promote the possibility. Related agreements also pointed out that through the school network, opening up the application development agreement, all rights to the campus network, if a problem by developers assume responsibility.

Faced with the user's queries and dissatisfaction with their network then began to study amending the agreement, and clearly marked with plug-in application of the rights vested in the development or developers. At the same time school network Open Platform for that in the future, we will also continue in accordance with the views that open platform strategy and policy, and guarantee full respect for the interests of third-party development teams.

Analysts believe that the school would open platform for development is a positive signal, excellent plug-in developers will be given some benefit for the promotion of their role in promoting the development of plug-ins. Taobao open platform also said that through Taobao open platform, developers can use the API, to create new business applications and win the potential profits.

A plug-in developers to Sohu IT revealed that in the development of its plug-in application page has placed three ads, one ad is Google AdSense, the daily income of about 3-5 U.S. dollars. The other two ads to sell their remaining plug-in providers, service providers a plug-in to provide the server and another plug-in to its advertising costs about five U.S. dollars a day in, day total advertising revenue of 10 dollars.

The developer said that the current development of its plug-in has over 130,000 users of, but advertising revenue than income at the site had to do a lot worse. "If schools can help us sell ads, we will be more enthusiasm." The person said.

Buy and Sell Your Friends as Pets

As long as you have enough "cash", you can buy friends as a "pet" from a childhood name, disruption to, appease one, this is the recent Hainei (www.hainei.com), Xiaonei (www. xiaonei.com) network, and so happy and in particular on the site of a fire games: the sale of friends. Many netizens said that participation in the game, just feel that the games themselves are fun, but also the hearts of the pool can vent to the anger of the play, and others have not thought about slavery.

Play: "Friends sale" very crazy

It is understood that Hainei network and their network is the real-name system, require users to provide accurate and truthful and valid personal information. Thus, in such site, accessible to the friend's name, age, gender, graduate schools and work units, and other information.

By installing the "Friends trading" games, users will be able to participate in the sale, everyone has a "value" and "cash." In the school network, when you become a friend of the "pet" In the future, you can, "he disruption", for instance, "he treated the pain Chen Shui-bian," "hungry he is not a day to eat," so that he "youths to dig Coal "wage, you can also earn" cash "; feeling good, can also" pacify him, "and his" dinner "," Sister Lotus concert to see "…… you do not want him, they" abandon He "or" discount handling of the "big sale bar. But do not forget you can buy friends when the "pet", you may also be buying a "pet."

Sunday, August 10, 2008

Chinese SNS Development:main Website and Product

Platform categories:
Tencent QQ.com: to instant messaging platform based on the SNS
Baidu baidu.com: to search platform based on the SNS
Alibaba alibaba.com: to business applications platform based on the SNS
With net yiqi.com: to open community of network-based SNS platform (to be proven practice)

Business categories:
Wealink: Tools of the SNS
Tianji: not obvious characteristics
Linkist: Tools of the SNS
hainei: SNS community

Culture:
Cellular network (http://www.artcomb.com):'s only a visual artist for the Chinese service SNS site.
Friends-net (u.fozhihui.com): At present the latest network application of the SNS groups, in this inside-Friends, Friends of netizens common stand-help, learning together. (Buddhist spirit of sharing and the sharing of the Internet with the head)
foface (www.foface.com): Buddhist-oriented network of friends, a UC Home procedures.
Birthday Network (http://www.shengri.com: birthday to the theme of community friends network. Provide practical birthday reminders, customized services blessing!)
Internet home (hulianjia.com): the face of the new access to the Internet users, creative design enthusiasts network of friends, here, you can contact each other to your friends and family, a UC Home procedures.

Tools categories:
Advertising elite network (http://www.zhicity.com/sns): advertising for professional services team to provide the tools nature site.

Community categories:
Zhai.La: for today the most popular family homes were SNS exchange platform, is now known as Zhainei (ZhaiNei.com), and other SNS Zhainei different from the home network is a group of people living in
u.8264.com: Mix-oriented, self-service travel enthusiasts the SNS, there are 3 million people'll stay, and to increase the speed of 300 high-speed development, a UC Home procedures.

Campus and entertainment categories:
Xiaonei, of Block, 51. Com, Ipark

Friday, August 8, 2008

Pony Ma:Not Optimistic About Facebook's Open Platform Model

When interviewed by a reporter last week, Pony Ma made it clear that he was not optimistic about Facebook's open platform model. "Abroad these things are easily outdated and will soon touch the ceiling, just like Internet chat room."

Last year in May, Facebook launched a developer platform, attracting a large number of developers, thus the introduction of a wealth of application software and services, thus promoting the rapid growth in the number of subscribers. Facebook platform in view of the strong development momentum, other sites have follow-up, Google launched an open platform for social networking sites OpenSocial, the campus network and other domestic social networking sites also mimic this model.

However, Pony Ma said that he had not seen such an open platform can really bring any high-value things. He insisted that should be a good platform to provide their own applications and services, leading at least part of their development should be. "We may be unhappy that the opening will always be better. In fact, if the application is good, his platform developers will do, sooner or later be replaced if it is not, and that certainly is not good."

Pony Ma of Tencent is the idea of "one-stop Internet service providers" and Tencent goal is to create "life-line community." On the one hand, provide free instant messaging QQ, e-mail, online store and community services, and other basic applications, gathered popularity, bringing traffic on the other hand, QQ through this platform, enter the information portal, online games, e-commerce, online payment , Search and other fields, bringing cash and income, thereby creating a mature business model.

In fact, apart from Tencent, Microsoft, Google, Yahoo, Alibaba, Baidu, etc., are all done in a similar layout. Ma Huateng, Tencent's advantage lies in the fact that it has the largest user of instant messaging, China's first flow of the portal, the coverage of China's Internet users reached 90 percent.

Murdoch expressed MySpace.cn subscribers reached 50 million


News Corp. CEO Rupert Murdoch expressed the hope that within two years MySpace.cn subscribers reached 50 million, and strive to China's successful social networking market leader, when he visit MySpace.cn yesterday afternoon.

via:Sohu

Xiaonei's open platform allows developers to put ads in the App

China's largest SNS site Xiaonei launch open platform, introduced a series of new initiatives: First, held a total prize money of up to 300,000 of the App Development Competition, and in less than a month on the start of 6000 to attract developers (including the team) in Competition has accumulated more than 3,000 entries were App. Then their network launched "App reward value-added" program, given to promote the development of new subscribers from the App net profit school model - a series of moves, as evidenced by their net value on the open platform.


In many domestic announced the opening of the platform site, taobao and their network is much concerned about the two sites. The former is because in the open strategy on the developers to make clear that "making money" profitable, but their network is because of the huge user base, App highly profitable industry has potential concern. SNS site as the "open" forerunner, the school network itself the "open platform" attached great importance to the launch "App reward value-added" program, the school network in the recently passed the supplementary agreement, the official said allows developers to the App (Plug-in application) Canvas page ads.

Thursday, August 7, 2008

Open source SNS in china

uchome come from comsenz , who develope the No.1 forum software in china.

ThinkSNS come from the office laps project, WEB-based on domestic technology leader in the development of ThinkPHP framework, as well as IM client software.

Wednesday, August 6, 2008

iResearch:Xiaonei,No.1 of China SNS market

August 6 - iResearch for the latest launch of the Internet for users of research systems iUserTracker the latest data show that in June 2008, Personals Community Website cover the number of users reached 75.03 million people. Xiaonei and 51.Com respectively 16.34 percent and 14.21 percent of Internet users reach in the first row, second place, making friends in the community site obvious advantages. Earlier, school network and 51. Com has received heavyweight investment, made by the SNS industry as a whole great deal of concern.

iResearch iUserTracker the latest data show that the number of their net monthly coverage reached 27.07 million, Internet users reach as high as 16.34 percent, exceeding the third Juyou as much as double the number of monthly coverage, and occupies 63.41 percent of the absolute market share. Just with the giant group of high-profile joint 51. Com, also occupy a 15.54 percent market share, its number of monthly coverage has reached 23.55 million passengers. MySpace China Juyou stations and network while in third place, but the number of monthly coverage with a gap of up to two more than 10 million people, more market share is only 2.69 percent, Thus, its localization is still a long road.

Xiaonei is in Qianxiang had received 430 million dollars in financing, caused great concern in industry, then 51. Com giant group received 51 million U.S. dollars acquisition of its 25 percent stake in the industry will be community website to bring attention Vertex . Since then, the school network and 51. Com has open platform, from product content and functionality, and further consolidate its market-leading position. iResearch Advisory iUserTracker the Q2 data is proof of the two sites, open platform after the tremendous effects have been demonstrated. Two social networking sites themselves a huge user base and innovative vigour, but also proved itself has been really high to see the value of VC.

Monday, August 4, 2008

China's young people connect online

Alex Zhang opines on his blog about music and movies and, most recently, learning to drive on Beijing's congested roads.

The 25-year-old sends instant messages to friends on his computer and cell phone, hangs out at social-networking site Xiaonei and downloads American and Chinese movies and television shows from Web sites like Xunlei.

"I would feel uncomfortable if the computer can't connect to the Internet," said Zhang, who earned a master's degree in engineering from Tsinghua University in Beijing this spring.

Zhang is representative of China's well-connected youth, for whom the Internet and cell phone have become critical communication tools.

Largely under 25, this cohort of 107 million accounts for nearly half of China's rapidly growing Internet population, according to the China Internet Network Information Center, a government-affiliated agency.

They get their news from blogs and online bulletin boards. And they depend on the Internet for entertainment, downloading and watching American television shows like "Prison Break" and "Ugly Betty."

Raised in the post-Cultural Revolution era, this generation has grown up as China began its economic boom, in a decidedly different environment than their parents.

For the most part, they have no siblings because of China's one-child-per-family policy.

"They are really lonely," said Guo Liang, an associate professor at the Chinese Academy of Social Sciences who has studied China's Internet population for almost a decade. "They have no brothers, no sisters. ... They want to have friends."

Xu Xiao Lu, a student at the Beijing Institute of Civil Engineering and Architecture, is one example. The outgoing 20-year-old browses Zhanzuo, a Chinese social network for college students, and finds folks in places she's never traveled. "I want to meet new friends from other cities," she said.

Zhanzuo - the name refers to "grabbing a seat" in the classroom or library - is one of several Chinese social-networking sites and is funded by Morningside Ventures and Sequoia Capital, the Menlo Park venture capital firm that backed Google, YouTube, PayPal and others.

Jack Zhang, Zhanzuo's founder, grew up on China's college campuses where his parents were professors. He earned a bachelor's degree from the University of Minnesota and an MBA from Yale.

He believes social networking has a bigger impact on young Internet users in China than those in the United States. China's youth don't organize around sports or church, he said. The Web and social networks have helped fill that void, offering them a place to congregate and express themselves.

Calling them the Phoenix Generation, Pearl Research estimated that China's 16-to-30-year-olds have $135 billion in spending power.

Underlying the Web's popularity among China's young people, however, is a concern that they are turning into Internet addicts. In a report in April, the China Internet Network Information Center said 30 percent of young Chinese Internet users had a "tendency of network addiction."

It said young Internet users rely too much on the Web to make friends and find entertainment, particularly online games. It encouraged the government, schools and the public to examine Internet addiction more closely.

And if the young people are spending so much time on the Internet, Guo said, when are they studying or working? Their parents, having gone through the Cultural Revolution, want their children to take advantage of privileges they didn't have, such as greater access to higher education.

"The parents strongly expect their child to be somebody in the future," he said.

Video producer aims high

Liu Zetian

Liu Zetian, a shaggy-haired 28-year-old, attracted fans after he starred in and produced a video that spoofed the reality television show "Supergirls," a Chinese version of "American Idol." He parlayed the clip and his videomaking skills into a job as an art design manager at Ku6.com, a Beijing video-sharing Web site.

Liu recalled how, a few years ago, two Chinese college students became famous worldwide after recording themselves, wearing red Houston Rockets basketball jerseys, in their dorm room lip-syncing and swaying to songs by the Backstreet Boys. He had produced several videos by then and decided to take it a step further and start posting them online. "I saw how popular they were, so I decided to make one that's better," he said.

Liu taught himself video editing, lighting and other production skills. He now has fan pages dedicated to him. And he has even bigger aspirations. "I want to go to Hollywood," he said.

source:SFGATE

Chen:Facebook copy Xiaonei too

Facebook may be prosecuted for recent speculation Xiaonei, Oak Pacific interactive chairman Chen YiZhou said, "I am not afraid to prosecute Facebook"

At the same time, Chen YiZhou, the Internet industry, in fact, we all imitate each other. Facebook campus network and there are many features are similar, because the two are SNS site, SNS site is currently should have the function and meet the basic needs of the present are the same.

Meanwhile, Chen also pointed out that, Facebook some factors to imitate the Xiaonei. "For example, the model of community + IM Facebook than we do as early as a year, Facebook is also a lot of factors from the other sites." Chen said.

July 18, Facebook prosecution of the German social networking site StudiVZ infringement. "Forbes" magazine online edition today that the most successful imitators Facebook is not StudiVZ, but China's internal network. As for whether or not to prosecute their networks, Facebook spokesman said that all cloning sites in a careful evaluation, does not rule out taking legal measures.

Chen said the Xiaonei and Facebook has been keeping close contacts, is not heard of Facebook to be prosecuted in schools.

Earlier, senior Internet analyst Lvben Fu said, Facebook should not prosecute domestic sns site. He believes that in China, the business model is not subject to legal protection, therefore, Facebook even if the prosecution of domestic websites, not necessarily successful.

Sunday, August 3, 2008

Report: Chinese netizens lead web 2.0

China's digital and online communities are the world's leading users of mobile communication, instant messaging (IM) and web 2.0 applications, according to a new report by the Boston Consulting Group (BCG).

The report, entitled "China's Digital Generations: The 570-Million-Hour Opportunity", analyzed the rapid surge in the use of digital services in China, predicted the speed and direction of future growth, and showed what companies would have to do in order to successfully connect to China's online consumers. In the course of this, BCG, the global management consulting firm and the world's leading advisor on business strategy, also dispelled a number of myths that surround the Chinese Internet.

"Many people in the West think that China is still early in its digital development. In fact, in many activities such as IM and blogging, China is more advanced than the United States and other Western economies," said Christoph Nettesheim, one of the report's co-authors and a senior partner and managing director in BCG's Beijing office.

Today, China's Internet users do not only outnumber Internet users in the United States, with 2.7 hours daily-or, collectively, just under 570 million hours per day-they also spend more time online.

They are quicker in adopting the most advanced kind of services such as watching videos and movies, playing games and sharing music. Where most American netizens still rely on emails to communicate with each other, their Chinese counterparts use IM and web 2.0 applications.

The magnitude and speed of these developments, according to the report, have outpaced the common understanding about digital life in China.

In 2007 alone, more than 80 million Chinese acquired their first mobile phone, and nearly 40 million became new Internet users. With this influx of new digital consumers, China now has more than half a billion mobile phone subscribers and 210 million Internet users.

Also contrary to common belief, this trend is not restricted to young people in large cities. It already extends far into other segments and into lower city tiers. Even in many smaller cities, more than half of the population already has access to a computer, a mobile phone, or both.

On the other hand, lower overall penetration, especially in rural areas, will ensure continued growth for years to come.

BCG estimated that the proportion of Chinese consumers with digital access could increase to 87 percent by 2015.

The report is a product of an extensive research project where the group interviewed 3,700 people from 12 cities and conducted eight focus groups.

The research also shed light on why Chinese netizens were behaving differently from their Western counterparts.

The quick adoption of fairly advanced services, for example, is in part driven by the relatively slower development and less variety of more tradition media, said BCG.

Massively multiplayer online role-playing games do not have to replace game consoles, but bring the whole genre to China. Conversely, Chinese consumers are slower in embracing online shopping and electronic banking, because trust issues and concerns about security are more entrenched.

In the course of this research, three generations of digital users in China emerged. The first is "little emperors"-people aged 14 through 25 are often Internet addicts, yet they are critical about the quality of much Internet content.

The second is reform beneficiaries, who are between 26 and 35. They have easily adapted to the opportunities of the Internet and highly value the diversity it provides.

The last is frugal middle-agers. They are between 36 and 50 and are less comfortable with digital services. They often stick to using simple voice-only services, text messages and news search services.

Last year, digital goods and services generated an estimated 580 billion yuan in revenues in China. By 2015, revenues are expected to exceed 1.8 trillion yuan. Although the share of content and advertisement revenue is still slow, BCG expected it to grow significantly in the future.

While foreign Internet giants, such as Google and Yahoo!, have long struggled to gain market share in China, local players have adopted creative solutions to produce profits and stimulate share price growth.

China's digital market has produced several leading local players, such as Tencent and Sina, that have been able to beat their global competitors by investing aggressively, customizing their services to suit Chinese tastes, and figuring out which promising business models to pursue.

But according to the authors of the report, the implications go far beyond Internet companies. Eventually, every consumer company in China will have to find new ways to reconnect to consumers, which spend their time and form their opinions online.

BCG identified eight activities and principles that companies had to implement to deal with the challenges so that they could fully exploit the opportunities presented by the new digital generation.

They included being visible in the places where your customers spend time, actively using the new influencers that surround your customers, using the Internet to advertise your brand and build trust, building the online sales channel as part of a multi-channel model, reaching out to consumers in lower-tier cities, leveraging the collective power of the network of digital consumers, customizing products and services for China's online consumers, communities, and channels, as well as building organizational capabilities to address the digital space.

Clearly, success is not guaranteed. "Each company needs to define its own objectives and road map, depending on its industry and starting point," said David Michael, chairman of BCG Greater China, "Companies should spend time segmenting their customers defining priorities, and establishing a systematic approach," he added.

Source: Chinadaily