Sunday, January 23, 2011

Stale Internet Growth in India -Is Offline Promotion the Way to Build Great Internet Business?

BBC has an interesting coverage of Internet growth in the world – right from 1998 to 2008 and India, (un)surprisingly remains at the same level (relatively), while others have managed to grow the Internet population.

Internet Growth in India

Internet Growth in India

Changing the track, you must have noticed how Snapdeal and Flipkart have taken the offline route to market their offering – Snapdeal is advertising on TV, while Flipkart has an ad on ET newspaper today.

Couple of questions/perspectives:

1. Why would Internet companies go offline to promote their service, which is online?

Answer: A logical answer is brand building [Google did this with Chrome] - but that’s what banner ads are for! Most importantly, there is no way to measure RoI for TV/print advertising (unlike online) – so is there just too much of easy money these days ? (read: Are Indian VCs Hedging Their E-commerce Risk?).

Smells like bubble?

2. These offline promotions peg an important debate – if there a ceiling to Internet audience in India, will such offline promotions help increase the base/usage? Will more people check out these dotcoms because they are being advertised on TV/newspapers?

3. Ultimately, is offline/print the ‘only’ way to build (i.e. promote) a great Internet business in India (100 Crore ++), in terms of marketing/mass outreach?

What’s your opinion? For sure, Flipkart has moved ‘up’ the level.

[link to BBC story]


Link to full article

[Overheard] Google Launching Checkout in India [In Partnership with TimesofMoney]

It seems Google is launching Checkout in India, in partnership with TimesofMoney.

Google earlier partnered with TimesofMoney for adwords payment and though Checkout has been launched in several other countries (apart from US/UK), India is still not in the list of countries where sellers can sell using the Checkout service.

Google Checkout is an alternative checkout flow you can use to process sales. While Checkout is designed primarily for transactions involving tangible and digital goods, you may also process transactions for services, subscriptions, and donations and will enable small businesses to sell online (minus hassles).

An important perspective to keep in mind is that Google recently extended support for Paid Apps in India, though Indian developers still need a mechanism to sell their apps in Android marketplace – and Checkout launch is what closes the loop.

Given that there are no easy Paypal alternatives in India, there is a huge demand in the current setup and we only hope that Google launches Checkout at the earliest.

What’s your take?

Also read: Review of Payment Gateways in India – Best among the lot?


Link to full article

Roundup: IMIMobile Launches Make My Tunes on Ringback Tone platform

IMIMobile has launched ‘Make My Tunes’ service on its RBT platform. The service has been launched by Aircel as ‘Dialer Tune – Song Edit’. Aircel customers in Chennai & Tamilnadu circle can dial 5300053 and select their favorite section of the song as their RBT.

This  service enables users to listen to a full song and choose any part of the song as their RBT. Additionally, this gives users the option to download the selected part of the song as Ringtone or dedicate the song to friends, providing a unified music experience to consumers. This service can replace the conventional IVR based music services like Music on Demand, RBT discovery portal & Ringtone portals.

The market size for RBT in India is approximately Rs 2200 cr and growing at a fast pace. Further Mobile Radio and Music on Demand form another Rs 2000 cr of potential market. MVAS has witnessed unprecedented growth during these times of cut throat competition among telecom service providers and will continue its growth path. To keep up the momentum, the market requires continuous innovation such as Make My Tunes.

Bharti Airtel to launch 3G services within a week today

Bharti had won spectrum (radio waves) for 3G services in 13 of the country’s 22 telecom service and the company has announced that they will launch the service within a week.

Vodafone has also announced plans to launch the service within the next three months.

Update: Airtel is launching 3G services in Karnataka today.

ESSAR IPO

Vodafone has said it will not block the Essar Group from conducting an initial public offering of the latter’s shares in Vodafone Essar.

The British telecom company also said that the decision to exercise either put option on or before May 8 is entirely the choice of Essar.[source]

Nasa terms ongoing Indian winter as ‘deadly’

The US National Aeronautical and Space Administration (Nasa) has termed as ‘deadly’ the 2010-11 winter bearing down on north India.

The Nasa report coincided with the latest national agro-met advisory bulletin brought out by the India Meteorological Department (IMD) that called on farmers to arrange for more smoking around the field to prevent the crops from cold/frost injury.[source]

Indian IT sector back on growth path

The top five IT companies are estimated to hire 1,60,000 to 1,80,000 new employees in the next 12 months, said Kris Gopalakrishnan, CEO, Infosys Technologies [source].


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Best of the Week – MNP Live, $35 Tablet Launch Delayed [and more]

Events scheduled for this week:

a. Know Your Term Sheet [Tuesday, Jan 25th. 11 AM - 1 PM, Delhi]

b. Product Strategy Workshop [Saturday, Jan 29th, 9 AM - 6 PM, Noida]

Top Articles for week ending January 23rd, 2011.

The $35 Tablet Project Hits a Roadblock – Tender Cancelled

The tender for the project has been cancelled, as HCL Infosytems (which got the contract) failed to deposit INR 60 Crore (for bank guarantee). This impacts the launch date, which was supposedly in the month of January, 2011.

Apparently somebody has claimed the yahoo.com listing on Alexa and added a little sales stuff about themselves.

Pan India MNP Goes Live – Now Get Coffee for Service Delays

Pan India MNP (Mobile Number Portability) will be rolled out today -  and while operators have been marketing their offering aggressively, MNP will surely put a pressure on telecom operators to improve their QoS (Quality of Service).

Recommended Read: MNP In India – FAQs. How Would It Work For Users?Marketing Lessons from MNP – How NOT To Compete

Are Indian VCs Hedging Their E-commerce Risk?

Something strange is happening in Indian e-commerce space – suddenly there is a flow of fund (few announced, quite a few not announced). Funded startups are moving away from niche play to the same-old generic play (i.e. you can buy anything).

A Year of Entrepreneurial Journey – From a Founder’s Diary [Inspiring]

Many of you think, why I stick with certain things and be so adamant about. When I started my business exactly a year ago no one knew, whether I would win or lose. Neither did I. Others felt that I’m overconfident, inexperienced to build a business; but as a matter of fact, all I have is hope which others never understood or never tried to understand.

Entrepreneurship/Funding/Startups

Tech

»Take this survey on Ecommerce in India.


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Singapore’s successful young entrepreneurs and how they did it

This is a sponsored post for ideas.inc

On his/her last school year before graduating to join the workforce, an average kid would often wonder about where and what he/she’s going to be 10 years after. If you are exceptionally competitive and sharp, this may not apply to you. What fascinates a person with high hopes, big dreams and brilliant ideas, is whether who you are going to be in the future and what you should do to make it real.

Here in Singapore, youth are highly encouraged to express themselves and venture into new and innovative businesses. We often hear about the young entrepreneurs in the international scene: Facebook’s Mark Zuckerberg, Groupon’s Andrew Mason, Youtube’s Chad Hurley, Digg’s Kevin Rose. Now, we are naming some of Singapore’s pride and their secrets (as featured in Businessweek Asia) – entrepreneurs who made it big at a young age, from just an idea to a successful business enterprise.

Chua U-Zyn, Ping.sg
U-Zyn’s programming skills were revealed at the age of seven. Years of practice and determination made him the founder and developer of Ping.sg, a community-based service for Singaporean bloggers. His secret: U-Zyn knew what the community needed and developed a platform to cater to that need. Today, ping.sg is home to Singapore bloggers actively posting more than 5,000 new blogs daily, making it one of the best online marketing platforms in Singapore.

Paddy Tan Lek Han, BAK2U.com
Paddy, the founder of the unique lost-and-found anti-theft services provider Bak2U, had a very good motivation in starting his own business. His main concern was to provide a better life for his parents. His secret: “When I was young, I saw myself starting my own business as an escape route to provide a better life for them,” sad Paddy. His parents are his inspiration.

Eric Feng, Area 9 Training International (formerly EduVale)
For Eric Feng, the founder of Area 9, provider of leadership training, communications and branding, and creator of FAQ books, there is always something to learn every day. His secret: It is always best to take the next logical step, do due diligence and take action – because time is of essence.

Cheo Ming Shen, Nuffnang.com
Cheo Ming Shen, the founder of blog advertising community Nuffnang.com, loves challenges. It’s what keeps him going. Speaking about being an entrepreneur, he revealed that he’s motivated by the knowledge that he himself owns the successes as well as the failures. His secret: In his own words, “Being a boss, a salesman, and a client all at once is a challenge you do not get anywhere else but in business.” Cheo Ming Shen gets the tough going when the going gets tough!

Chew Choon Keat, SharedCopy.com
Chew Choon Keat created SharedCopy, a platform which allows anyone to share interesting web pages. He learned that though a product needs only an idea and speedy execution to get started, it’ll require endless experimentation and feedback in order to progress. His secret: His hunger for improvement and limitless possibilities

Herryanto Siatono, Pluit/BookJetty.com
Experienced in web application design, Herryanto created Pluit, a Web application design and development house and BookJetty, a place online where you can catalog your books and follow your friends’ bookshelves. His secret: The main challenge is to build enough credibility among customers – letting them know that you can deliver.

Just like them, you don’t have to be a seasoned practitioner to be credible enough to start your entrepreneurial career. All it takes is exceptional knowledge, perseverance and hardwork, a strong heart to take in criticisms, and the attitude to move towards progress despite the challenges. In fact, starting young in business has its advantages. Being young, you are exposed to technology early. You are able to adapt to the technological trends quickly, allowing you to tap on fast moving media. Because you are young, you have a lot more energy and your brain can function faster. Creative juices can’t stop flowing and ideas are fresh out of the box. The best thing about being young is you are brave enough to take risks and face challenges.

Our say is, starting young in business is giving yourself the opportunity to create a wide network and study the business trend. Do not be afraid of making mistakes because mistakes make the business stronger and yourself, wiser. Business is not just about survival. It is all about being able to help in economic growth and providing jobs to more people. And while you are young, seize all opportunities that will help you become a great entrepreneur. Ideas.inc Business Challenge is your chance to showcase your ideas and at the same time, you are given access to funding, workshops and mentorship from the industry’s experts. Register today and make your dreams come true! We look forward to a longer list of Singapore’s successful young entrepreneurs.


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New Singapore govt grant for consumer apps

Singapore’s Infocomm Development Authority has announced a new grant of up to SGD15,000 (around USD11,600) for companies developing consumer internet apps aimed at mass local adoption.

The grant is open to any Singapore-registered company developing a web or mobile app that is designed for use by the general public. I suppose that means not just cool geeks or some other tiny niche. So I asked the folks at IDA what they thought the app’s mass appeal should be like to qualify for the money.

“At the minimum, the app should reach out to at least several thousands to tens of thousands in terms of downloads,” said Alvin Tan, one of the people managing the grant.

The IDA’s other criteria for the grant is that the app should fulfill “community outreach and engagement purposes.” Here’s Tan’s clarification:

“It refers to the social component of the proposed app, that is, the interaction between the organization or company and the users of the mobile apps, and among the users themselves. This could be in the form of feedback to the company, sharing of activities that the user participated in with their social networks, searching for content related to the company (possibly with the use of location-based services), etcetera.”

The grant is called the People Sector Infocomm Partnership Scheme. Companies can apply for half of the project’s qualified costs, up to SGD15,000. The money will be paid out once the “project deliverables” are complete. Tan said that the total amount of money available under the grant is is confidential, although a quota is in place.

If you have questions, there is a briefing about all this next week. Details, taken from IDA’s website, are below:
Date: 27th Jan 2011
Time: 13:00 to 14:00
Venue: Infocomm Development Authority of Singapore
Multi-purpose Hall 1 and 2
8 Temasek Boulevard #14-00
Suntec Tower Three
Singapore 038988


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Techbeat 8: It’s all bunk

Join in the tech show that brings together tech pundits, developers, and smart-ass geeks in Malaysia to discuss the latest news in tech and digital media. This week, host John Lim is joined by David Wang from theclickstarter.com, and serial entrepreneur Vernon Chan to talk about:

1) Steve Jobs’s leave of absence: Will he or won’t he return this year?

2) Apple’s blow-out quarter following holiday sales: it’s getting real close to Microsoft’s quarterly profit figures.

3) The Star and The Daily coming on the iPad: Will people pay for newspaper content? 86% prefer to get their news free and ad-supported, according to a survey.

4) Windows 8 will be on future mobile devices.

5) Google launches Google Offers, and don’t say it’s a Groupon clone (but it sure has a lot of similarities to it).

6) Google dropping support for the H.264 video codec for its Chrome browser. It probably won’t matter to the end-user, but it’s worth looking into the strange reasons why Google is doing so.

Download this episode (right click and save), subscribe using iTunes or the RSS Feed, or stream directly:


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Alibaba’s US$4.5 billion investment in logistic – just a plan only!

Alibaba recently announced it will invest up to US$4.5 billion into developing China’s logistics industry together with financing partners.

I called up a friend who knows Alibaba well to see what it is really about. Does it mean Alibaba will build warehouses, or it will operate a logistic company?? No, my friend said. At the moment, it only means Alibaba will setup a platform for small traders to choose between different logistics providers (e.g. UPS, Fedex, etc.) And Alibaba can take some commissions from facilitating such service.

Taobao sellers have been doing that already. Alibaba is just expanding the services to its B2B platform. You can argue this is a global expansion, as most Taobao sellers are trading domestically, while Alibaba’s B2B traders are mostly exporters targeting overseas markets.

But if there is no warehouse, no logistic company, why Alibaba needs to invest US$4.5 billion? “Well, it is just the first step of an overall plan. If everything goes well, of course, more can be done and the investment can gradually increase,” said my friend.

However, history showed a lot of Alibaba’s previous plans have not been realized. For example, Alisoft, its plan to provide inexpensive business software to SMEs in China. It basically has fail. Alisoft is a small department with less than 50 staff in its listed B2B company now.

Another example is its plan to provide bank loans to SMEs, Ali-loan. “Another failure” said another friend of mine. There are 2 parts of Ali-loan businesses. One of them is to act as a middleman between banks and SMEs. “After 4 years, the banks find out they can deal with the SMEs directly. No need for Alibaba’s involvement,” said my friend.

Another part of the business is lending Alibaba’s own money to the SMEs. “Alibaba does not have a lot of capital. How many SMEs can it lend to ??” said my friend.

In brief, be careful what you read in the press. A lot of them are plans only, with no solid commitment in execution.


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Believe in Android? Bet on HTC

For investors who want to benefit from the surge of smartphones globally, apart from Apple, maybe they can also consider Taiwanese phone maker HTC.

The company had a good year in 2010.  Its bet on Android has paid off handsomely.  Year-over-year, its smartphone sales jumped 111% from 11.7 million to 24.6 million devices. In the fourth quarter of 2010, the holiday shopping season alone accounted for 9.1 million of HTC’s yearly sales. Higher sales translated to higher revenue and profits for the company, which jumped 93% and 75%, respectively, when compared to 2009.  And it is very likely its momentum can maintain this year.

JP Morgan analyst, Laura Chen, pointed out, the company’s 4G products is going to drive its sales. HTC debuted two 4G WiMax devices with Sprint in 2010. “Thanks to Verizon, AT&T and Sprint’s push on 4G service, we expect 4G product (including LTE, Wimax and HSPA+) to contribute 15-20% of HTC’s 2011 sales,” she wrote in a note. The company is also working on its first dual core product called “Pyramid”, which will be introduced to the market in early second quarter.  Laura expected HTC’s “ASP to trend up with stable margin outlook”.

HTC predicts it will ship about 8.5 million devices during the first quarter of the year. That would represent a slight dip compared to the holiday quarter, but an improvement of 157% compared to the year-ago quarter.  Fully 50.6% of HTC’s global sales in 2010 came from North America, with Europe contributing 32.2% of sales and Asia and other regions responsible for 17.1% of HTC’s yearly sales.


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Q&A: What’s The Japanese Equivalent Of [enter foreign web service here]?

Are Japanese people using different websites than users in other countries? Back in July 2008 and 2009, we made two lists that showed some similarities and differences in usage, and now it’s time for a reboot.

Note:
We know that this list is highly subjective. We know that some sites are not identical in nature (but just similar) in some cases (Netflix-Posren, for example). Leave a comment if you want to know more or think one of these attributions is off.

I linked to the English versions whenever possible (see the [ENG] mark).

Here’s the list (in no particular order):

What is the Japanese equivalent of Tripadvisor?
4Travel.

Google?
Yahoo! Japan.
-> Since our first list in 2008, Google caught up in terms of search engine-related traffic and is now cooperating with Yahoo in Japan.

Wikipedia?
Wikipedia Japan.

Facebook?
Mixi.

Flickr?
Photozou.
-> Photozou, now a Zynga Japan property, plays in the same league as Flickr in Japan.

delicio.us?
Hatena Bookmark. [ENG]

MySpace?
MySpace Japan.

Digg?
Hatena Hot Entry.
-> Hatena lists up the “hottest” bookmarks by their users here.

LinkedIn?
No equivalent (many business social networks failed in Japan – look here for a list).

Twitter?
Twitter Japan.

Youtube?
YouTube Japan and Nico Nico Douga.

Amazon?
Amazon Japan.
-> Online mall Rakuten is actually Japan’s biggest e-commerce player.

dooyoo (price comparison engine)?
Kakaku.com.

Netflix?
Posren.

Quora?
No equivalent.

Youporn?
DMM.

Craigslist?
No equivalent (there is no culture for classifieds in Japan, which means an instant success for a “Japanese Craigslist” is next to impossible to achieve).

Yelp?
Tabelog and Gourmet Navigator.

Groupon?
Groupon Japan.

IMDb (Internet Movie Database)?
Nihon Eiga Database (Japan Movie Database).

Wall Street Journal Online?
Nikkei Online. [ENG]

monster.com?
Rikunavi.

Ebay?
Yahoo! Japan Auctions.

Alexa?
No equivalent.

Match.com?
Rakuten O-net.

Hulu?
acTVila. BeeTV from NTT Docomo on cell phones.

4chan?
Futaba (the original).

last.fm?
No equivalent.

Technorati?
Kizasi.

Yahoo! Answers?
Oshiete!goo, OKWave, and Yahoo! Chiebukuro.
-> OKWave is powering Oshiete!goo and a host of other Q&A sites in Japan.

Zynga?
Zynga Japan.

Deviantart?
Pixiv.

The Onion?
Kyoko Shimbun.

Allrecipes.com?
Cookpad.

Hotels.com?
Jalan.

Miniclip?
Yahoo Mobage. GREE and Mobage-town on cell phones.

Techcrunch?
TechCrunch Japan.

Huffington Post?
Agora.

tmz.com?
Zakzak.

Boing Boing?
Zaeega.

Gizmodo?
Gizmodo Japan.

Engadget?
Engadget Japanese.

In case you want to know more, please add a comment.


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Spotted: Google Science Fair Advertising on YahooMail But Only Gmail Users Allowed

Google announced the Science Fair 2011 last week. Google Science Fair is an international competition to spot young scientists. Surprisingly, Google is not using its own display ad network to promote this, instead advertising this on Yahoo Mail. The irony of the matter is that one cannot use their Yahoo email to register and must have a Gmail account. (Source)

Given the fact that Science fair is targeted towards 13-18yr olds, this is a nice engagement strategy to catch’em while they are young. What say?


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