Chen Haozhi, CEO of Chukong Technologies, developer of the highly popular gaming app, Fishing Joy, which rakes in about 50 million yuan monthly, talked about turning mobile games into revenue on the first day of GMIC last week.
“One of the most important thing overseas companies has to take note of when entering the China market is to understand the consumer market and their wants”, Chen said during his keynote address at GMIC 2013 Beijing. By understanding that the China market is mainly comprised of small–scale users, gaming apps like Angry Birds and Fruit Ninja are always going to be a hit among Chinese users.
Chen went on to explain that understanding the plans of other players in the market will also aid in the interpretation of the market, and he highlighted this point by saying that is precisely why he is still awaiting news of Tencent’s announcement of their mobile gaming blueprint due to be released today.
The crux of every successful entrepreneurship story is in picking the right opportunity but the difficulty comes in how to differentiate when it is the “right timing”, according to Chen. He also says that in order to be able to do that, it is necessary to understand the market and have your own analysis of the market.
He went on to make comparisons with the movie industry in China, another industry growing at an explosive pace, similar to that of China’s mobile internet industry. He spoke of how a local production “Lost in Thailand” became a hit in the cinemas because the producers understood the market and identified the correct marketing strategy.
To end off, Chen shared the market value of the mobile gaming industry in 2012 which was at 3.2 billion yuan and this value will grow to a potential 8 billion this year and a whopping 24 billion in 2014.
Edited by Matt Johnson