Three reason that enterprise social networking will be welcomed in China.

I previously introduced that Chinese enterprise social networking(ESN) market is rapidly growing, and it is estimated that this market growth rate will be 246% in 2012 by CCW Research.

Well, why Chinese ESN market is rapidly growing? In other words, why is ESN welcomed in China?


Generally speaking, I guess that the merits of adopting ESN systems are mainly as follows:

- Everyone is on the same stage, so everyone can easily understand the current situation of company.
- It can provide an open environment for opinions and suggestions 
- Every one can collaborate more effectively and efficiently(Being able to simply ask and get a response) 
- It's easy to collect and accumulate the knowledge of enterprise. 
- It can connect with others even when your or other colleague is working remotely(Mobility). 
- Everyone can discover and recognize hidden talent in the company.
- Minimize email clutter
...

These are general reason, so it can be said that these are also fit for Chinese case. Then are there existing the other specific reason for Chinese company?

This answer is YES. I think there are specific 3 reason as follows:

1. Social media is already penetrated to consumer market in China.
Sina Weibo and Tencent Weibo already each have more than 400 million users in China. And according to the recent report by CNNIC, 82.8% of Internet users in China use Instant Messanger(IM) tools, its total account already exist over 1.2 billion. Further more, SNS also have over 250 million users in the second quarter.

Tencent QQ(IM) is the biggest social media searcvice in China, and they already have 800 million accounts. On the other hand, QQ is much use in business seen in China. That proved many user would like to use the tool that is the experienced tools in business... But IM have a weak point in the communication of N-to-N, so Weibo or SNS will be more suitable in future.


2. In China, email usage is less than the average.
According to the recent report by CNNIC, the usage of Email is lower than 50%(the usage of mobile email is 25.9%).

And I have worked in China almost five years, I also feel the usage of email in China is lower than in Japan. The conceivable things is that social media tools, such as IM, SNS and Weibo, was alreadey penetrated, futhermore email is not suitable to Chinese disposition and tastes.


3. Mobile device already became the top of all method connecting to the internet in China.
According to the recent report by CNNIC, mobile internet user in China was 388,250,000 people in the second quarter, and its growth rate is also the biggest.

Colored Red Line = Mobile

Colored Blue Line = Desktop PC

Colored Green Line = Laptop PC





One of this reason is that internet environment of PC is not so good, especially inland area of China. In the most of inland in China, mobile 3G network is faster than the internet environment of PC. And China big 3 career will start to provide LTE network in few years. So these difference of the speed may continue to widen more than now.

As I said above, ESN is good compatible with mobile devices, so it can be the one of reason that ESN tool is suitable in China.


I explained before that many companies started to provide enterprise social networking tool in China, but the growth of its market will be accelerating more than now.

Alibaba rumored that they would like to get 15-20% stock of Sina Weibo.

According to the some news source,  the biggest EC company in China Alibaba rumored to make an investment in Sina Weibo.


Now the enterprise value of Sina Weibo is estimated 2-3 billion USD, but Alibaba rumored that they wish get 15-20% stock of Sina Weibo.

Sina Weibo is a group company of Sina group, but they are a independent company to provide Weibo services.


I think this investment is good for both side.

Firstly, Sina Weibo would like to accelerate their monetization, and EC business on their Weibo is the one of key factor to do it. Actually, they already started some investment for the EC business, but they don't have enough environment compared to Tencent.

On the other hand, Alibaba is the top position of B2B EC market in China, and its group company Tmall and Taobao are the top position of consumer EC market in China. But the other EC company is also catching up with them day by day, so they would like to add the platform of EC. Furthermore, Sina Weibo have 400 million users in the third quarter, so it will be a strong marketing platform for them.


This is the stage of rumor, but this may be surprisingly decided more quickly than our expectation.

Source => IT home, Tencent IT

Kingsoft added the function of warning the deceptive advertising on Sina Weibo and Tencent Weibo to their new version of virus protect software.

Kingsoft Security is a company who provide virus protect software in China. Recently they published a new version of their product, and they added the function of warning the deceptive advertising on Sina Weibo and Tencent Weibo.

① It is a warning that this message is a deceptive advertising.


② It shows the number that other user warned a deceptive advertising for this message.


③ It shows that this account how many times tweeted deceptive advertising message before.









According to Kingsoft Security, there are 80,000 accounts who tweets deceptive advertising, and there are 180,000 deceptive advertising tweets in a day on average.


This virus protect can be downloaded freely from here.

If you would like to enjoy Weibos safely, let's try this!


Source => Kingsoft Security

Active accounts of Instant Messenger increased to 1,206,000,000 accounts in China.

According to the report by Eguan, active accounts of Instant Messenger(IM) increased to 1,206,000,000 accounts in China at the third quarter.

Its number increased 17.2% compared to the previous year, and increased 4.1% compared to the previous quarter.

In China, a user usually have multiple accounts of IM, and use the right account in the right case. And when they would like to contact other person, they prefer use it than using Email(Source : Report by CNNIC).


And there are lot of IM service in China now, for example WeChat(Tencent), Meyou(Sina), Wangxin(Taobao), MSN(Microsoft China), Feixin(China Mobile), and also QQ.


Now Tencent have the most strength in this market, but the other companies still have the chance of expanding their user. And foreign companies such as LINE, KAKAO Talk and Skype also be supposed to watch vigilantly for a chance to enter Chinese IM market in future.

So we have to keep attention as ever.


Source => Eguan

Renren published that their active users are 172 million people in the third quarter.

Chinese biggest SNS company "Renren" published the statement of accounts in the third quarter, and they disclosed that their active users are 172 million people in the third quarter.

Their active users were 137 million people in the previous year, hence it follows that their active users increased 25.5%.


And according to their statement, their net sales was 50.4 million USD, and its income was loss of 15.4 million USD. Their net sales increased 47.2% compared to the previous year, but their loss of net income also drastically increased (The loss in the previous year was 1.2 million USD).

There are two reasons of increasing loss. First, their ads revenue decrease 17% compared to the previous year. Second, the loss of their group company "Nuomi" accounts for a large percentage. The loss of Nuomi was 6.3 million USD, so it means that its rate was almost 41%.


Nuomi is a company that provide joint buying service, but its market is proceeding the selection, and its whole market size is also decreasing.


For their v-shaped turnaround, they have to seek a new revenue source, and additionally they have to consider direction of Numoi's dealing.


Source => TechWeb, Tencent IT

Android continue to increase their market share in China. Their market share exceeded 90% in Chinese smartphone market in the third quarter.

According to the recent report by Eguan, the smartphone market share in China of Android exceeded 90% in the third quarter.

In the second quarter, the market share of Android was 82.8%, hence it follows that their market share increased 7.3% compared to the second quarter.

iOS and Symbian both decreased their market share, both had 6.0% market share in the second quarter, but iOS decreased to 4.2%, and Symbian decreased to 2.4% in the third quarter.


According to this report, the sales amount of smartphone in China was 49.17 million units in the third quarter, the sales rate of smartphone continue to increase in the third quarter too.

*Yellow colored graph is the sales rate of smartphone, and blue colored graph is non-smartphone one.


More and more mobile vendors entered Chinese smartphone market, Android and related business in China will be more and more brisk in future.



Source => Eguan-1, Eguan-2

Alipay achieved the trade of 19.1 billion RMB in one day on "Single Day" sales. [Infographic]

In China, November 11 is a day called "光棍节(Singles Day)" for people who are living the single life. The largest online payment service "Alipay" achieved the trade of 19.1 billion RMB in one day on that day. Next infographic is the time series of this achievement.

0:10  Their transaction amount hit 250 million RMB.

0:37  Their transaction amount hit 1 billion RMB.

1:10  Their transaction amount hit 2 billion RMB.

2:19  Their transaction amount hit 3.37 billion RMB, and this number is total amount in the previous year.

8:16  Their transaction amount hit 5 billion RMB.

11:18  Their transaction amount hit 7.9 billion RMB, and this equal to the amount that  Cyber Monday recorded in the previous year.

13:38  Their transaction amount hit 10 billion RMB.

Total transaction amount was 19.1 billion in a day.

Other data:

1. Total amount is 19.1 billion RMB, and this breakdown is as follows:

Tmall     13.2 billion RMB

Taobao   5.9 billion RMB

2. Total UV was 213 million people.

3. Total number of orders was 105.8 billion times.

Source => Tmall official account on Sina Weibo