Just 10% of the population of China are currently on the Internet... however China is now the second most important Internet-based market in the world.

And... this market of 100 million users is expanding fast. It cannot be ignored...

Marketing Sherpa reports that...

"When it comes to the Internet, China ranks #2 globally with over 100 million Internet users – or just under 10% of the 1.3 billion population.

The Chinese access the Internet from home (68.5%), at work (38%), Internet cafes (25.3%) and via phones (2%), according to the China Internet Network Information Center (CNNIC). And what are they doing once they are online? The top fifteen most frequently used services, according to the CNNIC’s 16th Statistical Survey Report on the Internet Development in China, July 2005 are as follows:

Email - 91%
News - 79%
Search engine - 65%
Browsing - 57%
Music - 46%
Instant messaging - 45%
BBS - 41%
Film/TV - 38%
School/classmate BBS - 29%
File uploads/downloads - 26%
Games - 23%
Chatroom - 21%
Shopping - 20%
Personal Websites - 17%
Banking - 14%

“In China, consumers equal youth,� states Victoria Stull, President Market China, Inc., a company that specializes in research and marketing to the 18–30 Internet Cafe demographic. “These consumers are trendy, brand conscious, early adopters who are determined to spend money. However, just because they are spending money doesn’t mean they are necessarily earning it.�

Although wages in China are still low, the youth culture has relatively greater disposable income thanks to their parents. “In China today, parents earn, children spend,� Stull says. “The current parent culture developed their thrift habit under the Cultural Revolution. And, due to the ‘one family, one child’ policy, children are highly favored – with the focus of the family’s spending happening through this child.�
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Yes, these numbers are impressive, however... as a big nosed Westerner, who has lived and worked in Taiwan (a predominantly Chinese orientated culture) for 3 years, I know that it's important to respect the fact that Chinese folk have their own way of doing things.

For example Google is not the dominant search engine in the Chinese market. Baidu is the search engine that the majority of Chinese "netties" use. So, if you were intending to use search engine marketing for a China focused campaign you'd need alliances with Internet professionals in China (or in Taiwan). I do!

Also, there are other things about Chinese cultural values which are MOST important for Westerners to understand and respect (because when you do this (respect difference) it pays huge dividends. The development and maintenance of relationships are most important in Chinese culture.

In net terms this would mean that blogging would be a powerful way to develop relationships with Chinese consumers. Of course these blogs would have to be written by a very good (or Fey Chung, Fey Chung How) Chinese blogger, and well optimized for the Chinese search engines and portals.

Live Well. Expect Success!

Kenneth Doyle - eAnalyst

Kenneth Doyle Is A Writer And Internet Marketing Consultant.
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