132 Million Chinese Online. With Money.

Related entries: Consumer Market, Corporate News, General, News, Research

While the Chinese economy has been growing quickly by international standards, at around 10 percent, its online population grew at a rate of 30 percent in 2006, reaching 132 million (including 52 million broadband users), according to a report from the official China Internet Network Information Centre (via Xinhua and Sydney Morning Herald). This puts China behind only the US in terms of its netizens.

It seems that the online sector is set for continued growth, and that the people in front of the screens may become busy consumers of online goods and services. Forbes notes that, according to a comprehensive annual survey released by the Beijing-based Internet Society of China:

    • “This growth in the nation’s Internet population…has driven a 47% surge in total online spending, to 276.8 billion yuan ($35.5 billion)…Chinese Internet users are spending on average 169.57 yuan ($22) a month online, including payments to online services providers as well as shopping and gaming.”

    • “At 4.98 billion yuan ($638 million), online advertising still accounts for a slim 1.8% of the total Internet market spending, less than the 5.96 billion yuan ($764 million) in revenues from the online gaming sector. But both online advertising and gaming are surging, with advertising advancing at 51% and gaming up 62% over 2005.”

    • “full-year revenues from the entire search engine sector [lead by Baidu, Google and Yahoo!] reached just 1.571 billion yuan ($201 million) for 2006.” (Another Forbes report suggest that “combined revenue of China’s search engine providers will reach 4.52 bln yuan in 2010, growing at a compound annual growth rate of 30.3 pct between 2006 and 2010, Beijing-based IT research firm Analysys International.”)

    • “the most rapid growth in usage last year came from blogging…The nation now has 20.8 million bloggers. Top blogging sites are hosted by Sina, Qzone and Microsoft’s…MSN”.

    • “The popularity of video-hosting and video-sharing has surged to 76 million users as of the end of 2006”.

Competition for all these online users is brutal, and I have already written about MySpace (here and here). I will be adding a note on the trials and tribulations of eBay soon.

In the meantime…anyone out there not yet have a Chinese website?

See news sources:

One Response to “132 Million Chinese Online. With Money.”

  1. serge Says:

    And how about those 205million predicted for 2007? I’ve seen much in life, but what keeps amazing me is how adoptive the people are here. So often I see an old couple playing video games at the local store (sometimes on internet) – where else can you find that outside of China. I keep thinking back to Russia, and I realize that no matter how much growth you put in that economy, this would just never happen!

    Now, of course I’m putting all lack of cultural values aside – after all we are here for the market, not for the books.

Leave a Reply

You must be logged in to post a comment.