This study will look at the current state of China’s mobile market and outline the strategic investments plans of China Mobile, China Unicom, and China Telecom. It will also investigate the opportunities and challenges for global expansion of 3 key Chinese mobile manufacturers: Lenovo, Yulong Coolpad, and Xiaomi. Finally, it will examine the 2 biggest Internet companies in China—Tencent and Alibaba, by exploring their core products and the business models that they employ. The insight will focus on how each company is adapting its business model to accommodate the consumer shift to mobile.
With million Internet users, China’s online community is larger than the population of almost every country on earth. This number, however, only constitutes a penetration rate of %, meaning, there is still plenty of opportunity for growth in the market. With million, the United States has the second largest population of Internet users, which is less than half of China’s, but with a penetration rate of % for adults and % for teenagers. China has more than a billion mobile subscribers and is the world’s largest smartphone and eCommerce market, and therefore, offers Internet companies unparalleled growth potential. However, China’s unique dual economy, with central planning methods and market liberalisation principles, makes the wireless, mobile, and internet market particularly difficult to navigate.
The first part of the market insight will look at the current state of China’s mobile market and outline the strategic investments plans of China Mobile, China Unicom, and China Telecom. It will prove that the regulatory changes will create a much-needed competition in the mobile market. Further, changes in foreign ownership rules suggest a broader policy shift toward allowing global competitors to compete in the market.
The second section will investigate the opportunities and challenges of global expansion for three key Chinese mobile manufacturers—Lenovo, Yulong Coolpad, and Xiaomi. It will draw lessons from Samsung’s success and HTC’s relative difficulty in penetrating mature markets and will recommend that these companies must focus on innovation, achieving scale, and developing brand equity if they are to be successful.
This last section examines the biggest Internet companies in China—Tencent and Alibaba—by exploring their core products and the business models they employ. It focuses on how each company is adapting its business model to accommodate the consumer’s shift to mobile. Despite very different roots, these companies’ strategies clearly converge when it comes to making money on mobile. Advertising on mobiles is not yet sophisticated enough to replace revenues lost from desktops, and so each company is looking to mobile commerce (mCommerce) as its growth engine.
Electronic Access - Single User Fulfilled By Publisher
Electronic Access - Global Site License Fulfilled By Publisher