Joe Wu, Co-Ceo of NetDragon, sheds light on his experiences in three different areas of the mobile internet space in China: differentiation, potential and synergy. Being the largest online distributor in China, NetDragon has access to some very interesting information.
After showing us a few slides of data, we get a sense that the potential in China’s mobile Internet space is very unique and very different from other markets. Compared to the global market, Android is growing at an explosive rate in China. The amount of Android devices that are activated in China is beating Apple 2 to 1 at the moment, and this trend is only increasing. By 2011, the monthly activation of Android devices in China already outperformed US activations. The mobile phone user population has already reached 1 billion users, however only 10% of the 1 billion users are using smartphones.
Another interesting figure is the smart phone terminal number. The annual revenue for Apple and Android together is now 1.86 yuan per month per unit. On the other hand, the revenue for NetDragon is 0.24 yuan per month per unit. Joe Wu says that it is possible to close this gap by exploiting the increasing trend of Android use in China, but it will take time.
Another observation Joe Wu shared with us was the classification of downloaded apps, “in foreign countries, games account for 52% of Worldwide Sessions. In China, it accounts for 46%,” he explained. Additionally, he identified the opportunities for entertainment-orientated younger people, as they are typically more price-sensitive. Though they do not have much money, they can still buy games, wallpapers and ringtones.
“Think Global, Do Local”
Their upcoming project is to build the “91 ecosystem,” which will provide one system free of charge, in line with their moto of “Shared-value, [and] Prosperity for all”. They strive to cooperate with their developers and partners to provide value-added services and work with people from various sectors with the ultimate goal to provide a one stop services platform for consumers. This can create synergy and promote the sharing of resources.
Will is an undergraduate exchange student in Beijing Tsinghua and guest writer for mobisights.com