Thursday, December 1, 2011

Rumor: Lashou Mall to Launch Next Week, Disrupt E-Commerce in China

Lashou, one of China’s leading group-buy sites, is rumored to be expanding into the more conventional e-commerce segment next week with the launch of ‘Lashou Mall.’ Chinese tech media reports that the Lashou Mall – due for launch on December 8th – would be aimed at helping consumers buy services online from local small businesses in a more straightforward way than the current ‘deals’ method. The fees charged to local firms could be as low as 1,980 RMB (US$312) for six months.

The group-buy/daily deals segment in China has been frantic and fierce this year, marred by lawsuits, protests, firings, and unpaid merchants. Plus, margins are tight – possibly below 10 percent for the sites themselves – and many are losing money.

A shift towards the B2C – or B2B2C – sector, would seem a good way for Lashou to scale, diversify, and secure fatter margins all at the same time. As per today’s rumors, it sounds like an open platform of the sort that Alibaba’s Taobao Mall pioneered in 2008, and which has gone on to be the country’s leading e-commerce site.


Lashou Mall vs Taobao Mall?


Purported lower overheads for vendors on Lashou Mall would be quite timely and pertinent, as the past month has seen both virtual protests and actual, physical demonstrations by smaller businesses running on Taobao Mall due to rule changes that brought in much higher cash deposits. If it turns out to be true, Lashou Mall’s much lower rents could be disruptive in the industry, especially amongst much smaller family-run companies.

Lashou is supposedly listing in the US this month, but it’s believed to have been delayed by regulatory issues. A major announcement from Lashou next week would be in contravention of the pre-listing quiet period – and so would indicate that the IPO was either significantly delayed or cancelled altogether.

[Source: QQ Tech news - article in Chinese]



Link to full article

Everyday is Like Startup Arena

gladiator

I’m a competitive person. Some might hate competition (because it takes market share away and makes you work harder). Others, like me, embrace it and see it as a way to sharpen my skills. The tougher the competition, the more fun it becomes. What doesn’t kill you makes you stronger, and competition is the perfect medicine to turn the weak into the strong. I’m loving every day of it.

In my mind, I see myself being thrown into the gladiator arena everyday. (Yeah, it’s a dramatic fantasy but don’t we all have those thoughts?) Whether I survive depends on my performance on that very day. That thinking makes me work my ass off as my team and I insanely want to pull away from our competitors.

So Startup Arena — the startup competition that is part of our Startup Asia Singapore conference — has very much reflected my impression about entrepreneurship with inspiration drawn from TC Disrupt’s Startup Battlefield.

The name says it all. And instead of throwing in gift vouchers, we decided to offer cash ($10,000). Because that’s one of the biggest motivators for every entrepreneur working their ass off day after day.

While Startup Arena is just another competition in many people’s eyes, we structured it, as best as we could, to provide a tiny snapshot of the life of an entrepreneur. The anxiety, the passion, the pain, the feeling of winning, and of course, losing.

I’m thankful because the feedback has been very good so far. After launching just last week, we have over 50 submissions. Keep them coming! And while preparing for D-day on the 2nd and 3rd of February 2012, I urge fellow entrepreneurs to continue to sharpen your products. The real arena, after all, is the market — your opponents are your competitors, and the consumers are your spectators.


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Tudou Sets Up Animation Studio, Aims at Pixar

The Chinese video-sharing site Tudou (NASDAQ:TUDO) has said it will increase its investment in the animation industry in China – and has set up its own original cartoon production studio in order to do that.

The Beijing-based animation studio will, said Tudou CEO Gary Wang, talking yesterday, within three years produce some world-class animated movies and shorts that are “up to Pixar standards … That is our goal.” Aspiring to produce some CGI titles to rival Disney’s (NYSE:DIS) Pixar is ambitious indeed.

Tudou already has a dedicated portal for all kinds of licensed, animated content at cartoon.tudou.com.

It’s part of a broader shift by Tudou – and its rival, Youku (NYSE:YOKU) – towards more self-produced quality content, because such material is a lot cheaper than purchasing licensed shows, but also more of an attraction to viewers than the mass of user-generated content (UGC). Earlier this year, Youku ventured into animation with its sexy-looking Miss Puff series, while Tudou has been pushing forward what it calls UGC 2.0 and other indie productions.

In addition to Tudou’s new cartoon studio, the website will team up with state-run broadcaster CCTV for an exclusive simulcast of the upcoming fourth season of the cartoon historical epic, Qin’s Moon. If that’s not enough, the company has Japanese anime covered as well, with its new partnership earlier this week to simulcast some anime hits from TV Tokyo.

[Source: Sohu’s eNet news - article in Chinese]


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Beijing Has Quantity But Shanghai has Quality in China’s Group Buying Market

Shanghai based group-buying site aggregator; Dataotuan has released its latest analytical report about the heated market in China recently. One of the most interesting findings is that although Beijing sells more deals in number, Shanghai sells more per deal launched. Meaning, Shanghai is better is better at selling group buying deals than Beijing.

Over October, Beijing and Shanghai launched 2.12 million deals and 1.99 million deals respectively. Out of the deals launched, Beijing and Shanghai sold 7,505 and 4,941 deals respectively. Meaning, Beijing sold 282 per deal launched and Shanghai sold 404 per deal launched. This highlights that Shanghai has a greater ability to market what people want and perhaps Beijing is simply launching deals for the sake of launching. Interestingly, even tier 2 city such, Tianjin was better at selling deals than Beijing with 296 sales per deal.

Now that the cold snap has hit China, Dataotuan analysis shows a spike in warm goods such as underwear and plasters that you stick on your body, are selling well. Also, for those wanting to hibernate for the Winter, bedding and blanket products sold well.

In the revenue leader board, Lashou has taken the lead from second place. Meituan has jumped from fourth to second place and 55tuan has dropped from first to third place.

Dataotuan has also released a new map feature to allow users to filter types of deals by location. For example, if I am in Beijing around Sanlitun and want to get a meal deal, I can find it on the map.

 

 

 

 

 

 

Related posts:

  1. Quantity or Quality? What is More Important for a Group Buying Site
  2. The Struggling Group Buying Model in China – Gaopeng the Biggest Victim
  3. QQ Now Leads Group Buying Market with 10%, Lashou Drops to 10th Position


Link to full article

NetEase’s Lightblogging Tool Lofter Open to Public

Another tumblr-like service is coming in town. Lofter, the lightblogging tool curated by NetEase is now open to public registration.

So now we have Dianian (by Innovation Works), Sina Qing (by Sina), Tuita (by Shanda), Renren Xiaozhan (by Renren) and I haven’t mentioned those founded by minor names.

Some were raving about lightblogging as they thought the service bridged the gap between blog (Blogger, WordPress or China’s Blogbus) and microblog (Twitter or Fanfou in China). Normal blogging takes a lot of time whereas microblogging is not always expressive. Liteblogging seems a good compromise between the two.

And this is partially evidenced by Tumblr’s skyrocketing growth with over 250 million pv per day.

Diandian, which is considered to be the best if its kind in China, said the company is trying to build a interest graph on top of its service to connect people share the same fondness. The site boasts over 1 million users as of this July.

Even though, the revenue picture for lightblogging is still in question, especially when Sina Weibo hasn’t make much from its heavy spending and over 2.5 million users yet. At least, lightblogging isn’t that different from microblogging. Sina can hands-down promote its Qing service in great efforts to compete with these Chinese tumblr should the company feels any pressure.

Related posts:

  1. NetEase is Working on a DianDian Lightblog Competitor – Lofter.com
  2. Sina Releasing Tumblr-like, Light-blogging Service Qing
  3. Chinese Microblog Syncing Tool Discontinued Service


Link to full article

Foxconn Fails at E-Commerce Venture in China

Foxconn (HKG:2038; TPE:2354), the Taiwanese manufacturer thrust into the global spotlight after fourteen worker suicides in 2010, seems to be failing in its Chinese B2C e-commerce venture, and it might be on the verge of shutdown.

efeihu.com – or, ‘e-flying tiger,’ to give it its pretty awesome literal translation – first went online in December 2009, selling mostly home electronics and gadgets (3C). Just the kinds of things, in fact, that Foxconn actually assembles for clients such as Apple (NASDAQ:AAPL), Acer (TPE:2353), and Microsoft (NASDAQ:MSFT). But, two years after its inception, the Chinese tech media is reporting that the e-commerce site is selling no more than “6,000 to 8,000” items per day.

But that’s a paltry figure when we know that 14 percent of Chinese urbanites has shopped online in the past month. And so Foxconn’s efeihu site seems to have failed up against similar B2C 3C sites such as 360Buy and Dangdang (NYSE:DANG).

The e-commerce effort was struggling last year as well, when it was decided that efeihu should diversify into general goods and foodstuffs – the territory of specialist online malls such as the Walmart-backed YiHaoDian.

Another failure, as reported by Sina Tech, is that as many as 30 percent of the site’s customers are in very rural areas – the kinds of places where Foxconn’s factory-floor workers originally come from – and so the site is purportedly losing money on a lot of its set delivery fees. Delivering to major urban areas is, of course, a lot cheaper.

And so, with rumors of a major restructuring – or even shutdown – for Foxconn’s online venture, it seems that the Taiwanese manufacturer failed to take advantage of its relationships with so many hardware companies. For example, efeihu doesn’t have the kind of official, brand-run storefronts on its B2C platform that Taobao Mall has; and so Foxconn’s online mall appears to consumers to be quite random and less impressive than its rivals.

Plus, in breaking news, Foxconn CEO China Wai-leung will be resigning on January 1st, 2012.

[Source: Sina Tech news - article in Chinese]



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A8 Invests $100M into Social Site Kaixinai.com

A8 Digital Music Holdings Limited invested US$ 100 million into social site kaixinai.com, a wap/Symbian/Android based social networking service targeted the post-80s, post-90s, students and white-collar workers.

Founded by former A8 (yes, you read it right) Music CEO Lin Hai in November of last year, Kaixinai.com is aiming to be a mobile social networking service, claiming more than 1 million users as of this July.

The Shenzhen-based company’s products pipeline includes a WAP site, several symbian and Android apps, plus a mobile reading app and a WAP music site. On its website it says: “With all these nice-looking girls and guys in their lonelinesses, download the app and join us, now!” What a implicit invitation.

In this February A8 bought 20% of the company’s stake for RMB 5.3 million (US$ 835,000).

Some quick check points about the service, besides the point that its website it way too awkward to navigate on:

  • It’s directly competing with Tencent, Renren and Kaixin with intense competition.
  • Relatively uncorrelated product pipeline.

    Related posts:

    1. Tech Briefings: Tencent Invests In 3C Site 500CCC.com; Lashou To Initiate IPO Soon
    2. Alibaba’s Mobile Social Network? LaiWang.com Quietly Launched
    3. Rumor: Tencent Invested US$ 100M in Chinese SNS Kaixin001


    Link to full article

    Hey G+: Your China Infographic Kind of Sucks!

    Let me start this post off with something nice: we’re very happy that major Western tech blogs are finally paying attention to what’s going on in China. That’s good. That said, please hire someone who knows what they’re doing because otherwise shit like this happens.

    I should point out that article on Mashable is almost entirely based on the infographic by G+ (not to be confused with Google Plus), which is apparently “a community for professionals, academics & entrepreneurs.” So perhaps it’s not fair to blame Mashable for this. Anyway, let’s take a closer look at the post, shall we?

    So how then, do the Chinese connect online [since Facebook, Twitter, etc. are blocked]? On their own series of social networks, mimicking several blocked foreign counterparts. Renren and Kaixin001 fill Facebook’s void. Sina Weibo is the microblog of choice in Twitter’s absence. Youku is a video hosting platform, which only loosely enforces copyright laws; think of it as a YouTube-meets-Hulu, because many popular TV shows and movies are posted freely. Jiepang is the most popular location-based mobile app, with Foursquare-style checkins.

    I’m not going to attempt to claim that some of these services didn’t start out as copycats, because many of them did. That said, parts of this paragraph are wildly misleading. Let’s talk about Sina Weibo. Sina Weibo might be “the microblog of choice in Twitter’s absence”, but that phrasing implies that if Twitter was unblocked tomorrow, Sina Weibo would be in trouble. That’s just not the case, though. Why not? Because Weibo offers basic features that Twitter just doesn’t have, like commenting. And guess what? It has always had that feature. It’s not that they copied Twitter and then later down the line they refined the concept a little bit. No, they launched with a core feature that made the service fundamentally different — and yeah, I’m gonna say it — better than Twitter.

    Since then, they’ve expanded in every direction, now offering things like IM chat and Weibo games, none of which Twitter has. Sure, they didn’t invent the concept of microblogging, but their service is not just a copy of Twitter’s, and suggesting that’s the case is just as misleading as it would be to suggest that Twitter’s service is just a copy of blogging services.

    Now let’s move on to Youku, the “YouTube-meets-Hulu” that “only loosely enforces copyright laws”? Uh, what? Sure, that was true a couple years ago. Now, I don’t think there’s any more pirated content there than there is on Youtube (in fact, there might be less, given the number of clips from copyrighted shows that are on Youtube). And the Youtube-meets-Hulu description does a disservice to Youku, which was producing its own independent programming with great success well before either of those Western sites jumped into original productions.

    SocialMediaRevolution-L_3073

    Here's the infographic. Click to enlarge because it's freakin' huge.

    Admittedly, there’s some pretty interesting stuff in the infographic, but there’s also some pretty dumb stuff. First off, when talking about the sites that China blocks, the makers of inforgraphic — out of all the sites that are blocked, of which there are many — decided to list the Huffington Post. Not only is the Huffington Post not blocked in China (works fine for me in Beijing, works great for my cohort Steven in Shanghai too), but also, who cares? Chinese net users do not give a crap about English-language news sites they can’t read (which is why most of those sites, like the Huffington Post, aren’t blocked).

    Now yes, I’m sure HuffPo has been blocked at some point — many foreign news sites have been at one time or another — but it’s not blocked now, and it’s not a site Chinese net users care about, so why put it in the infographic? Here are some better ideas: Google Plus (where there actually is a pretty active and interesting Chinese community, by the way). DropBox. Blogspot. Many link-shorteners. Most public proxies. Boxun and a host of other Chinese-language news and BBS sites based overseas. The Pirate Bay. Wikileaks. I could keep going.

    Then there’s the claim that “one million articles were censored each day” in China in 2010. That claim comes from this PDF, which cites its source as “official numbers.” Uh, OK. Guess someone wasn’t paying attention in high school when they learned about citations! I would guess that the official numbers they’re talking about include things like censored Weibo posts, and if that’s the case calling them “articles” seems a bit misleading. But of course, there’s no way to know, because they didn’t cite an actual source.

    Now, I don’t meant to suggest that censorship in China is being overstated. Yeah, the internet here is censor-iffic, and it sucks. But I think it’s still important to be accurate about exactly what’s happening rather than just grabbing big numbers from vague sources. It’s also important to remember that a lot of censorship on the Chinese internet isn’t directly related to the government, at least not in the way people think. If you upload a video to Youku, for example, and it gets deleted, that generally doesn’t mean anyone in the government saw it, let alone said anything about it. It means someone on Youku’s content team felt it was too edgy. Obviously, that decision is motivated by what they know about government policy — and the government does sometimes issue blanket demands to delete certain types of content — but I think it’s still a useful distinction to make. So, does China censor a million articles per day? I highly doubt it. But are a millon things in China censored per day online, including videos, weibo posts, news articles, BBS posts, etc.? Probably. But let’s be clear about what’s actually happening when we talk about it.

    kaixin-nongchang

    This is not a copycat, it's the original, dammit!

    Anyway, I’ve gone on long enough, but I can’t keep myself from making one last observation: in the infographic, it says sites like Kaixin001 have “Farmville-like games” such as Happy Farm for users to play, the implication being that it copied them from Facebook. Actually, it’s the other way around. Farmville is a clone of Happy Farm, which was developed in China and released nearly a year before Zynga launched Farmville.

    Now that I’ve said that, I’ll admit that most of the infographic is OK. But come on, people, if you’re going to talk about copycats, please spend some time using these services first. Calling Sina Weibo a “copycat platform” is just dumb. Calling Youku a copycat platform might have made sense once, but it doesn’t anymore. Calling Happy Farm a copy of Farmville is straight-up ignorant, lazy, and wrong. And being lazy when writing about Chinese censorship does readers a disservice if you want them to actually understand the market.

    Of course, we see this sort of thing all the time, and it’s kind of unfair to me to pick on G+ and Zoe Fox and Mashable. But come on, guys, let’s pick it up a little, you know? We’re not expecting you to learn Chinese or anything — although it’s easier than you think it is — but at least maybe consider the possibility that despite all the copycats, there might just be some interesting and unique stuff happening here.

    Sure, there are a boatload of crappy copycats, too. But for the most part, they fail. The “copycats” that have lived this long have mostly done so because they’re not really copycats anymore, but services that offer robust and unique features targeted to the Chinese market (which, in many cases, is a market the Western innovators have utterly failed in because they assume they can just copy their own product to China and have it work).

    In conclusion: Hmmph!


    Link to full article

    Japan Gets Its Own YouTube Movie Rental Service

    So far, only YouTube users from Canada, the US and (since October) the UK were able to rent movies, but yesterday, Japan has finally been added to the list, too (the country is the second biggest market for movies in the world).

    Youtube users in Japan can initially stream content from a total of five American and local studios onto their PCs and Android phones, namely

    • Toei
    • Sony Pictures
    • Universal
    • Warner Bros.
    • Bandai Channel (for anime)

    On its official blog, YouTube Japan says that the initial line-up consists of a mix between paid and free movies (200 in total), for example Unknown, Red Riding Hood, Take Me Home Tonight, or Sucker Punch.

    Paid titles cost either 300 or 400 Yen, depending on how new they are. Movies can be rented from 24 to 72 hours.

    The online movie rental space in Japan has seen some movement recently. Apart from established players like Gyao, YouTube Japan's new service competes with newcomer Hulu (which started streaming movies and other content in Japan in September this year) or Nico Nico Douga (which started doing the same in cooperation with Warner Bros. a few days ago).



    Japan Gets Its Own YouTube Movie Rental Service


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