Friday, September 26, 2008

Chinese Facebook clone secures USD4-5 million in venture capital

Adding to the list of Chinese social networking service providers like Xiaonei and Tencent, kaixin001.com (开心网) has confirmed to have secured USD4-5million in venture capital today from Northern Light Venture Capital headed by Feng Deng, one of the top 10 Chinese venture capitalists in 2007. Launched in April this year, the SNS that is still a private beta already boasts over 20 million active users. Rick Martin (@pandapassport) reports on CNET that the Chinese Facebook clone includes features such as a photo uploading, blogging & micro-blogging platform, music sharing and 1GB online storage space.
Tangos Chan of cwrblog.net comments that the popularity of Kaixin001 is attributed to the Parking Wars and Friends for Sale games hosted on the platform.

Thursday, September 18, 2008

Kaixin001.com Gains USD5 Million Investment From NLVC

According to statements to local media by Wu Jiong, an investment partner of Northern Light Venture Capital, the company will invest USD4 million to USD5 million to the Chinese social networking services website, Kaixin001.com.
Wu says that this is only the first investment in Kaixin001.com and by the model of Northern Light, the company may continue to invest in this website.
Referring to the reason for choosing Kaixin001.com, Wu says on one hand, Northern Light is optimistic about the model of Kaixin001.com. On the other hand, the partners of Northern Light believe in the abilities of Cheng Binghao, the founder of Kaixin001.com.
Kaixin001.com is now a popular SNS website that provides games and functions such as fighting for parking spaces, votes and tests. People can earn awards through these games or by inviting their friends to register on the website. Relying on these unique features, the website has gained great popularity, especially among white collar Chinese, since May 2008. In August 2008, the daily IP traffic of Kaixin001.com reached 720,000 and its daily page views were over 30 million, so the company claims.
Founded in 2005, Northern Light Venture Capital is a China concept venture capital firm focused on early and growth stage opportunities in technology-enabled businesses. NLVC targets businesses that leverage China's industrial, economic, or human resources.
Source:Chinatechnews

Wednesday, September 17, 2008

Chinese "facebook" friends hooked on games

Richard Gao has a problem. He owns 10 vehicles, ranging from a Harley-Davidson to a luxury SUV, and they are constantly in danger of getting parking tickets.
"I have to keep an eye on my cars all the time so no one gives me a ticket," said Gao, a PR professional in Beijing.

Fortunately for Gao, these tickets exist only in the virtual world of an online game called "Parking War." Unfortunately for Gao, so do his cars.

A players' page on kaixin001.com shows four virtual parking spaces for his five virtual cars and a list of his friends. An iResearch survey shows that internet socializing is expected to grow. [China Daily]
Gao is one of a growing legion of Chinese office workers who are hooked on "Parking War", which is hosted by Kaixin (kaixin001.com), a social networking website.

The rules are simple: each user owns a street with parking spaces. If he catches a friend parking illegally, he can ticket the offender and collect a fine. Once he earns enough (virtual) money, he can buy more (virtual) cars.

"Playing 'Parking War' with my friends is fun," said Gao, 32, "and it brings you closer to your friends."

An estimated 30 million users a day log onto Kaixin ("happiness"), which combines a social networking service (SNS) similar to Facebook or Myspace with online games. Earlier services such as xiaonei.com and 51.com targeted college students; there are also dating websites, such as Jianyuan.com, and business websites, like Tianji.com.

According to the iResearch Consulting Group, the combined market value of networking services in China exceeded 500 million yuan ($71 million) in 2007, of which social networking services accounted for 280 million yuan, dating services 220 million yuan, and business sites. 4.5 million yuan. The total is expected to reach 1.6 million yuan ($229 million) by 2011.

"The SNS market in China is ready to take off," said Xu Bin, an analyst at iResearch. About 72 million Internet users per day visited SNS sites in July, compared to 25 million per day in February, according to Xu.

"That is quite an amazing increase," he said. "It is a natural step after the national frenzy of blogging and forum posting."

Kaixin, which experts say is a 'faithful copy" of Facebook, is the brainchild of Cheng Binghao, a former executive at Sina.com, China's leading web portal. Cheng has declined to comment on rumors that he has received a $5 million offer from venture capitalists.

Although Facebook launched a Chinese-language site six months ago and MySpace has many applications tailored to Chinese users, they have not been able to keep pace with local networking services. Kaixin appears to be the favorite of white collars in big cities, the most lucrative market for developers.

Kaixin's secret lies in its easy-to-play games and in its marketing strategy, described as an "invitation virus".

Once a user registers, the website sends out emails to everyone on his MSN contact list, according to Hong Bo, a well-known Beijing tech blogger. New users who might otherwise ignore the invitation are seduced by the presence of a familiar name on the email, according to Hong.

When Richard Gao, a former Facebook user, received email invitations to join Kaixin in May, he deleted them.

Two weeks later, however, Gao discovered that his co-workers were all playing "Parking War" or sending virtual "teddy bears" to their friends on Kaixin.
"Everyone was talking about it. They would even yell at each other if they got a ticket on their car. I didn't want to be left out," said Gao, who now has 70 friends on his Kaixin web page.

Facebook is widely used by ex-pats and Chinese who befriend ex-pats, but has not caught on with ordinary Chinese, according to media expert Jeremy Goldkorn.
"The reason Facebook and MySpace don't work in China is because they don't have enough local users to trigger the ripple effect," said Goldkorn.

The secret of Kaixin's success, according to Goldkorn and others, is that it combines social networking with gaming.

"The interesting part is that you are playing with people you know," explained Richard Gao. "Suppose you get a parking ticket from a total stranger. So what?"
Kaixin's clean layout and simple design also appeal to Chinese netizens.
"Yes, it looks like Facebook. But it looks more tidy and simple,' said Li Haibo, an editor of a popular science magazine in Beijing who joined Kaixin last month and brought 62 friends with him. "That's important for highly-stressed white collar workers."

In addition to "Parking War," Kaixin users play "Friend Sales," a game in which each user can be sold as a "slave" twice a day. "Masters" can earn money by forcing their "slaves" to work as singers, miners or toilet cleaners, or they can just "touch" them for fun.

Users say the games provide entertainment and enhance friendship.
"It is really fun to 'slave' your friends and ask them to serve a cup of tea or make them sing a song," said Zhao Yun, 27, a photographer in Shanghai.
"If you like a girl, for example, you can purchase her as your 'slave'. You might have to fight for her "slavery right" with other people, which shows how much you care for her."

Although many of its applications are similar to Facebook and MySpace, Kaixin succeeds because it is more entertaining, said Hong Bo.
"Kaixin is more about playing games than networking or finding a job at sites like Linked-in," he said.
Xu Bin from iResearch agrees that the site's simplicity appeals to users between the ages of 18 and 35, as well as to the increasing number of Internet users in rural areas. Sites like Facebook that allow users to further develop the application are not feasible in China, Xu said.
Kaixin's gaming component can be a double-edged sword, however.
The more users are attached to the games, the less they work on other content such as blogs or pictures, which are essential for the site's sustained development, according to Xu.

For Richard Gao, his relationship with Kaixin is a love/hate affair. He says he enjoys his new "toy", but has formed an "annoying" addiction to the website.
"I log on at least three times a day - in the morning, after lunch, and before I go to bed," he said. "Life is boring without it."

Source:Chinadaily

56.com Will Shift To SNS Sector

An investor of 56.com says that with the approval of its board of directors, 56.com, the former Chinese video website, will shift to social networking services.


This news from the unnamed investor was posted on Sohu.com's IT channel and is the the second piece of news that says 56.com will shift its business focus since the website stopped service for over a month because of complications with its online video licensing. Early reports said that the website will shift to providing widgets, but the rumor was debunked by the company.

According to the investor, the shutdown of 56.com is the direct cause for the website's transition. At the same time, the severe competition among Chinese video websites and the lack of a profitable business model in this sector are also the reasons for 56.com's giving up of its video sharing business. After withdrawing from the video website sector, 56.com will shift its focus to animated photo albums, which is one of the earliest services of 56.com.

On June 3, 2008, 56.com stopped working for a so-called equipment room wiring error according to a notice released by the company. However, industry insiders said that the website was warned by relevant government departments over its "irregular" video contents. Its website returned to normal operation on July 11, but the one-month closure greatly impacted the website's reputation.

Staring from the end of 2007, China's State Administration of Radio Film and Television launches a new licensing system, according to which, only video websites with licenses have the right to operate online videos. At present, many video websites, including Tudou.com, Youku.com and Ku6.com, have gained their licenses, but 56.com is still unauthorized to operate in this way.

source:chinatechnews

Tuesday, September 16, 2008

SNS Websites Block Baidu Search Engine In China

After Chinese online auction website Taobao.com last week announced plans to block the search engine of Baidu.com (BIDU), social networking services websites, including Blog.sohu.com, 51.com, Xiaonei.com and Hainei.com, also have admitted to blocking Baidu, the top search engine in China.
According to a manager of an SNS website quoted by ChinaByte.com, many popular SNS websites are blocking or will block parts of search engines, because SNS are based on a real-name system and they don't want the automated bots from the search engines to index their information. If the information of users can be extracted by search engines, it will be serious invasion of the users' privacy, which suddenly appears to be an issue in China. Although some websites that have records of users' private details set code to prevent the entry of search engines, a few search engine companies will not observe those standards, so SNS websites have to block these search engines to protect the privacy of their users.
For example, search engines are requested to observe the robots.txt rule, which is a file hosted on a website that is made freely available to automated search engine agents and tells those search engines what should be searched, and what should not be searched, on a website. The Chinese search engines might be ignoring these robots.txt files because many websites themselves appear to have callous disregard for their users' data and a lack of technological understanding on what the robots.txt should contain. The Xiaonei.com robots.txt file currently only disallows Baidu's spidering of its pages, but other Chinese websites fail to provide enough guidance to search engines.
Foreign SNS website Facebook has created a successful model in refusing most search engine queries. It is almost a blank on the first page of Facebook. Every visitor should log in to see the contents and it is almost impossible for search engines to access these contents, though they are allowed to index a small portion of the site.
Some managers of Chinese SNS websites say they have set up an informal alliance to resist undesirable searches and may even replace current search engines.
source:chinatechnews

Thursday, September 11, 2008

China Mobile Launches SNS

A source at China Mobile (NYSE: CHL; 0941.HK) has revealed the company is launching a new online social networking service (SNS) called "139 Community" (www.mompy.com). Handset users can use their phone number to register and login at the site.

According to this source, China Mobile also intends to release other Internet products in the future.

Editor's Note: Previously, it was rumored that China Mobile was planning on setting up a new mobile Internet company. For more background, please see "Rumor: Aspire to Manage China Mobile Internet Spin-off", MD 4/07/08 issue, and "Rumor: China Mobile Establishes Subsidiary for Internet Services", MD 4/03/08 issue. The 139 Community site has several features that allow interactivity between the online site and a user's mobile phone, including the ability to send a photo, via MMS, or text-based blog from the user's handset to his online profile page.

source:marbridgeconsulting

Tuesday, September 9, 2008

Sources said 56. COM interested in transition SNS

According to sources, the video sharing site 56. COM  recently intention to give up pure video site targeting, intends to increase SNS video direction in transition. Recently, the site has built a research and development team, closed-end product development.

This is 56. COM suspended for more than a month, the site reported news of the second transition. Will resume service in the former, sources said it intends to transition Widget, but this is followed by 56. COM's denial.

July 11 morning, 56. COM formal resumption of services. In the ensuing two months time, 56. COM has been keeping a low profile external, not to make any external services on the cessation of the storm response, the executives of the company has not made on the future direction of business.

Industry sources said, 56. COM current flow has been restored to stop before about 70 percent, also reported that 56. COM due to the loss of customers and other issues, has given up video-sharing business, the restructuring plan. However, these allegations are not 56. COM's response.

It is learnt that, 56. COM SNS in the field of new products will combine video sharing and social networking features SNS, try to video site of the model communities seek new breakthroughs. The SNS before and online games with the model, the Internet has been a lot of the industry giants recognition.

MySpace China CEO Resigns, Oak Pacific CMO May Join

A spokesperson for online social networking service MySpace China has confirmed that the company's CEO, Luo Chuan, will soon leave his position. The reason cited for the resignation was a difference of opinion between Luo and other senior executives on the company's future development strategy.

According to a report from Tencent Tech, Wang Xiujuan, the Chief Marketing Officer and executive VP of Web 2.0 platform provider Oak Pacific, has confirmed that she will resign from Oak Pacific in the second half of September. Rumors have suggested Wang may join leading Chinese online portal Sina (Nasdaq: SINA), but a MySpace China employee revealed that he saw Wang at MySpace China's office last week.

Source:marbridgeconsulting

Friday, September 5, 2008

Offices battle obsession for slavery sites

SCOTT Wu, an advertising company executive, gets up early each day, logs onto Kaixin001.com, buys up some virtual slaves, fights over parking space and then goes to work - a contented man.

Like Scott, hordes of Chinese people are getting hooked on Kaixin, a social networking site with games like "Friend for Sale" and "Parking Wars."

The total obsession of workers with these games has sent alarm bells ringing through corporate offices.

Company managers feel that employees are spending too much time on these sites, affecting efficiency and productivity.

"Networking sites are the biggest priority in my life now. Even at work I tend to log onto the Website, the minute I am unoccupied," Wu confessed.

Alarmed by the invasion of Kaixin, companies like Accenture Consulting (Shanghai) Ltd have blocked the Website, saying that it is hurting the productivity of employees, according to a report in the Oriental Morning Post. "It is really inappropriate to spend time on social networking sites during work hours. It is so big a distraction that it poses a huge challenge for office administrators," said Daniel Ju, general manager of Shanghai VIPCare Co Ltd.

"The addiction is very infectious and affects everybody in office. Although I have registered on the site, I do not find anything interesting or special about it," Ju said.

The most popular games on Kaixin are "Friend for Sale" and "Parking Wars." The games were launched in June this year.

Users can buy their friends as "slaves" and command them around. It is also a way to gauge a person's popularity on the network.

"After I make a purchase, my friends become my slaves. They have no choice but to be under my command until someone else buys them or they earn enough money to pay for their freedom," Wu said.

In "Parking Wars," users can buy virtual cars with money they earn from parking their cars in lots belonging to other users. The longer you park, the more you earn.

"The most exciting part is when you spot a car in your parking lot. This way, you can grab all the earnings of the offender and report them to the virtual police. But I need to pay constant attention to this site," Wu said.

The possibility of the site being blocked in offices has raised the hackles of Netizens.

"I will try to log onto the Website through overseas servers in the office or at home," said Lily, an office worker. "Anyway, sometimes work is too boring and I should have some entertainment."

Nearly half the employees of ISB Shanghai Ltd have registered on Kaixin, according to Kristina Xuan, the company's office manager. She, however, does not support blocking the site as it could be counter-productive.

"The stricter the rules, the more negative employees become. I believe Websites like this are a temporary craze which will die out soon," Xuan said.

Kaixin, which was created by Sina's chief technology officer, however, declined to comment, saying that the Website is still "in the trial period."

Zhang Zhenning, senior human resource consultant from China HR's talent research center, said that the decision to block a Website depends on individual companies. "Employees of technology or manufacturing firms should not be allowed access to such Websites as it may affect output. But those in the creative industry need not be so strict. Actually, even if there was no Kaixin, there would be other distractions," Zhang said.

source:shanghai daily

Monday, September 1, 2008

China Mobile started online community SNS

September 2 news sources recently disclosed to reporters, a subsidiary of China Mobile Group Zhuo Wang has started online Internet-based platforms and mobile platforms Web2.0 model SNS community.

It is understood that in June this year, Wang Zhuo Internet companies have been open to the community to recruit community platform for mobile Internet SNS architect, senior engineer, project managers and other jobs.

Some analysts believe that due to weak growth in traditional telecom business, China Mobile users may take advantage of角逐SNS market. The official said that China Mobile SNS has done a lot of advantages, such as the huge user base, ready-made payments platform, has accumulated a certain social relations based on the user database, the number of partners, such as industrial chain.

Ereli also on the Advisory pointed out recently that in 2008 the global social networking site into a period of rapid development, China Affected by this larger. At present foreign SNS community website has been Facebook, Xing, Myspace, Cyword entered China, the Chinese mainland to the school network, Hainei network of networks, such as SNS site at a certain impact. At this time, China Mobile entered the SNS community networks to the market no doubt that this has been a highly competitive market, create more variables.