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The article basically summarizes into this: "Even though the Chinese government has heavy control over [the internet], if you factor in the population growth of
by Chocobean 18y ago
The article basically summarizes into this: "Even though the Chinese government has heavy control over [the internet], if you factor in the population growth of 1.3 billion people, there is a lot of potential there."
The article only has one point: China has lots of people. The author's basic understanding of how internet companies work is the following:
1) Operate in a place with a large number of people
2) ???
3) PROFIT
I would LOVE to read an article that discusses strategies for successfully penetrating a market where there is heavy government censorship, corruption, and tonnes of bureaucracy. Tell me how some companies deal with the fact that most of the 1.3 billion are poor, and the fact that the rich are even stingier than the poor. Tell me how to run a business in a land with no respect for intellectual property, where many of your hired hands are capable and willing to memorize your business/machine's idea/database/blueprints, and sell it to your competitor for pennies.
Tell me how you could do it when so many businesses have failed, and you have written something of worth.
- cglee 18y agoYou make a good point, but you're missing the main point: China's internet users aren't destitute and they're growing, along with a growing middle class. Lots of farmers are very poor; they're not your market. If you've ever been to a high end mall in China, you'll know people like to spend money (I'm not sure where you got the stingy idea from). There are lots and lots of very successful software and web startups in China. Most are not foreign owned because most foreigners have difficulty navigating the political/business climate here (I guess it's the same reason why most startups in the States aren't foreign owned either). I hear a lot of high-level complaining about the Chinese <fill in the blank>, but if you are really motivated, you can overcome those barriers. I don't think that's specific to China. The real problem, I think, is lack of understanding. All people hear about are great opportunities in China, but are frustrated when there's no prescribed formula for attaining such opportunities. This is analogous to a non technical person reading up about all the web startups and trying to take advantage, then complaining about this or that when he doesn't understand how to go about doing a web startup. The solution is simple: dig deeper and immerse yourself in understanding the Chinese market.
- Chocobean 18y agocglee, re lack of understand, high-level complaining/frustration and pretty much your entire post, I couldn't agree with you more. The point I was trying to make was that the article author is only echoing the idea that's been around for decades, that China is a land of opportunity, without bringing any new insights into why internet startups will do well. Just stating the potential isn't interesting, informative or insightful any more than proclaiming that "the internet is the future of business" I guess I sounded a little erh, racist when I called them stingy: I guess I meant more along the lines of "frugal" and "cunning". Frugal: compare a Linen's n' Things to a chinese houseware store. You don't find NEAR as many useless kitchen knickknacks. Cunning: if i can duplicate your idea with a low-tech solution, I won't pay for your idea.(5-sizes melon baller set?! Multi-purpose automatic measuring devices for dry, powdered, wet, sticky foods? it's called a SPOON. singular.)
- cglee 18y agoMaybe perceptions of Chinese American immigrants taint your attitude towards Chinese people. Most immigrants have to be frugal because they're poor. Most immigrants have to be cunning because they're at a severe social disadvantage. It's being an immigrant, not Chinese, that's the difference (interestingly, this is also why a lot of Americans think Chinese people on the whole are really good at math). I find that Chinese people run the gamut on frugality and cunningness. You'll probably find more cunning people in the business world, for sure, but not necessarily more frugal.