MONTHLY REPORT

08.23.2002-09.22.2002

LI Pin

 

In the first month, I already knew many things about our company, and I also learned many things from our company and our officers, this is my first monthly report, it is a summary of the first month.

MARKET INFORMATION

  1. Population: China Mainland is 1,265,830,000, and Hong Kong is 6,780,000, and Taiwan is 22,280,000.
  2. Internet users: 45,800,000 Internet users in China Mainland and 8,000,000 Internet users in Taiwan.
  3. The number of Internet computers in China mainland: total 16.13million, and among which 3.07 million (19%) use the leased line, 12-million (74%) use dial-up connection, and the rest 1.06 million (7%) take other means.
  4. International outlet bandwidth: total 10,576.5M.
  5. Top four ISPs in China: China telecom 6,452M (61% of the total), China Netcom 2,870 (27.1% of the total), China Unicom 693M and China mobile 247M.
  6. Male Internet users account for 60.9% and female for 39.1%.
  7. 58.9% Internet users are single and 41.1% are married.
  8. 82.0% of Internet users are under 35 (including 35), and youths from 18 to 24 are the highest proportion of 37.2%.
  9. 86.6% of Internet users have a monthly income no more than RMB 2,000, only 13.4% above RMB 2,000, and 37.8% below RMB 500 (including no income users).
  10. Low-income groups remain the majority of Internet users (the rate is 1 US dollar = 8.27 RMB). Student users account for the highest proportion of 26.2% among Internet users.
  11. The total www websites are about 300,000 in China mainland.
  12. The total information about provinces in China, I saved it here: http://www.geocities.com/pinanxa/China.htm
  13.  There are three high developing economic areas: Northern China. Include Beijing, Tianjin, Hebei, Shangdong, Henan.   (Focus Beijing); Eastern China. Include Shanghai, Jiangsu, Zhejiang    (focus Shanghai); and Guangdong. (Focus Guangzhou or Shenzhen).
  14. These three areas, the total GDP is over 5800B RMB, it is almost 60% of the total GDP of China. And in these three areas, they have the more Internet users and mobile users. And 75% website are from these three areas.

From this basic data, we can find, Chinese Internet market is a large market, but the low salary users and students users are the main users, so this big market need us to develop, but the good news is most users are youths, they are easy to accept new things and like to try new things, and they don’t scared risk. And we can do our business step by step; first we can enter some big cities like Beijing, Shenzhen and Shanghai. Because in these cities, the people have higher salary, they have many Internet users, and many people in these three cities have mobiles, and in these three cities, it is easy to pay online, most bankcards are available there for paying online. And these three cities are three windows of China to the world, so you can find much international culture there.

 

MOBILE MARKET

  1. Motorola, Nokia, Siemens, Samsung, Ericssion, Bird, TCL, Philips, Panasonic and Alcatel are the top 10 companies in producing and selling cellular phones. Motorola is the first mobile company enters the Chinese market and now they have almost 30% market share. And now Nokia have 18.3% market share, and Siemens have around 12% market share. Bird and TCL are only two Chinese brands in the top 10. Motorola is the #1, because they have many kinds of mobile to fit different people. Some mobiles are big and easy, that are just for no salary students. And some small and you can fold, that are just for girl or who like small mobiles. But the problem is in the market, many users reaction that Motorola often be repaired. Nokia is the #2. It is #1 in the world, but many Chinese reaction even Nokia have many kinds of mobiles, but they are similar, they can’t satisfy different people’s need. And in China, the signal of Nokia is not good. Siemens is #3, because it is new entrant and don’t have many kinds of mobile. But some models have been the #1 in the market. About the Chinese brand mobile, because they haven’t the high tech to develop, so they don’t have the high market share, but now it is time for CDMA and GPRS mobile to develop in China. And many people believe Chinese brands and Sansung will have more market in China.
  2. There are only two network companies: China Mobile and China Unicom. Before China Mobile and China Telecom and China Post are one company, and two years ago, they separate to 3 companies, and China Mobile master the mobiles market. Now China mobile master 70% market share and China Unicom master 30%. And now China mobile is using GPRS to attach more market, but China Unicom is using CDMA to attach more market. In the future, more people believe China Unicom will have more than 30% market.
  3. Most Sansung mobiles are CDMA mobiles, so before Sansung is hard to hold more China mobile market, because the net did not support this kind of mobile. But now, Sansung give much support of CDMA net in China, so Sansung will hold more market in the future. And the truth is many people like Sansung, like me and many of friends, because Sansung really has the greatest design.
  4. By the June 30,2002, there are 199,000,000 landline users and 176,000,000 mobile users in China. And this coming September, the landline users and mobile users total number will get 400,000,000. 13.86% Chinese have a mobile phone. By the end of this year, it will get 15%. Beijing is the highest rates of people hold a mobile phone. 7,100,000 Beijing citizen have mobile phones and it means 55.47% Beijing citizen have mobile phones. And Shanghai is the second city, and Guangdong province is the third, over 46% guangdong Chinese hold a mobile phone.
  5. About the payment of a call and a text message, it is so different to other countries. In China Mobile, if you buy a mobile phone, you should register in your city and buy a number. Basic monthly rent of your number, you should pay 50RMB/month, if you call a local number, you should pay 0.6BMB/min; if you call a long distance number, you should pay 0.6RMB/min + 0.07RMB/6sec; if you call IDD, you should pay 0.6RMB/min + 0.8RMB/6sec; if you call Hong Kong, Taiwan, or Macao, you should pay 0.6RMB/min + 0.2RMB/6sec; and if you receive a calling, you also need pay 0.6RMB/min. If you ramble your mobile phone to another city, example you register your mobile phone in city A, and now you are in city B, if you call a city B number, you should pay 0.8RMB/min; if you call a long distance number, you should pay 0.8RMB/min + 0.07RMB/6sec; if you call IDD, you should pay 0.8RMB/min + 0.8RMB/6sec; and if you call Hong Kong, Taiwan or Macao, you should pay 0.8RMB/min + 0.2RMB/ 6sec; if you receive a calling, you should pay 0.8RMB/min + 0.07RMB/6sec. And sure if you call a long distance number or IDD number, you can use mobile IP card to make the calling, that will be cheaper. And for text message, one message you just pay 0.1RMB, and receiving message is free.

 

And just this days my friends in China told me there is only one kind of prepaid Card is available in China market, it is China mobile card, but I haven’t found the information about that, if I find, I will report it. And now you can pay you mobile fee to the China mobile or China Unicom office. In one city, there are some brands offices. And you also can pay it in banks.

6.      Anther service we can do use our mobile phones include: mobile baking, WAP, caller ID, fax, sound mailbox, and mobile secretary etc. and every service you should pay 10RMB/month for the monthly rent. And in mobile banking, by now, you can’t use it to do a payment. And about WAP, even most mobiles have WAP function, but just few people use it. You should pay 0.15RMB/min for WAP, but because now the WAP speed is very slowly and the WAP website are few, so no many people use it. But CDMA and GPRS are now available, so that will make the WAP speed much fast, and now there are 2.8million CDMA users and 1.3 million GPRS users, so we can believe in the future, there more people will like to use MMS service.

  1. The business of telecom market share: China telecom 32.6%, China mobile 38.3%, China Netcom 16.8%, China Unicom 11.2%, China railcom 1.1%.

 

E-COMMERCE AND WEBSITE

1.      www.sina.com.cn, www.163.com, www.sohu.com, www.yahoo.com.cn, are the top 4 popular websites in China, and other popular website are: www.china.com, www.263.net, www.chinese.com, www.chinaren.com, www.21cn.com, www.FM365.com, www.tom.com, www.yinsha.com,  www.online.sh.cn, www.szonline.net,  www.zhaodaola.com, www.ourgame.com, www.tencent.com, www.etang.com, www.elong.com, www.enet.com.cn, www.east.cn.net, most of these website, you can shopping online. And www.eachnet.com, is a website only for shopping. www.netbig.com is a website for students, and www.dangdang.com,  is a website for selling books, www.ourgame.com is my favorite for gaming online. 

2.      About the website. Sina, Sohu, netease, and Yahoo China are integrated Websites. Because Yahoo’s finder is Yang, is a Chinese, so yahoo enter China market earlier than other English website. And I did not use Yahoo China, because I like Sina or Sohu website styles. Many things on the first pages, for me I can easy find what s new today, and where I can find the information I want. But Yahoo is so easy, as I know many Chinese use Yahoo email or hotmail, because they thought they are safety. But about other functions, the Sina and Sohu users are much more than Yahoo.

 

About Sohu, I had good expression on Sohu, because the first time I went to Internet, Sohu is the first website I opened. SOHU.COM (NASDAQ: SOHU) is China's premier online brand and indispensable to the daily life of millions of Chinese who use the portal for their e-mail, SMS messaging, news, search, browsing and shopping. With 52.6 million registered users at the end of March 2002, SOHU has the largest online user base in China. It is a household name among the 300 million people living in urban centers. For the second year in a row the Sinomonitor International survey - the largest Internet Survey in the country- ranked SOHU.COM as the most visited portal in China. For the second quarter 2002, the total revenues are 6.13M US dollars. Profit is –0.87M US dollars. The mainly four businesses are E-Marketing, E-Technology Solutions, E-Subscription, and E-Commerce. Sohustock.com will available on the third quarter 2002, it will be the first one do this service. SOL Sohu on line is also available on the third quarter 2002; it is ISP service, but now just for Beijing users.

 

     About Sina, for me, Sina is my favorite.

           Actually Sina is similar as yahoo.  SINA ( NASDAQ: SINA ) is a leading Internet media and services company for Chinese communities worldwide, offering global Chinese-language content, commerce and community services to four localized Web sites targeting China, Hong Kong, Taiwan, and overseas Chinese in North America. I like sina because the design is very feet me, and I like read the new at right, and I can easy find what I want. And sina has many good partners, like China football association. While SINA is known in China for providing first-rate, comprehensive, up-to-the-minute news, it also offers popular chat rooms, community platforms, financial information, online shopping platforms, search and free email throughout its four sites. Differences in market preferences reinforce the need for localized and targeted content on each site. And the second quarter, the total revenues are over 8M USD. And profit is –0.95 USD.

 

 About netease. NetEase.com (NASDAQ: NETE). is a leading China-based Internet technology company that has pioneered the development of applications, services and other technologies for the Internet in China. Our mission is to deliver "Power to the People" by using the latest Internet technologies to enhance meaningful information sharing and exchange. NetEase Web sites offer Chinese Internet users Chinese language-based online content, community and electronic commerce services. NetEase's average daily page views exceeded 340 million for the month of July 2002. As of July 2002, NetEase Web sites had more than 71.54 million registered members, 55476 simultaneous chat room participants.

 

The special thing is netease pay more attention on community. The second quarter 2002, the revenues are 4.6M USD, and profit is +5000K USD.

 

 And both of these three website they sell mobile logo, ringtone and some other mobile service.

 

3.      Most products online in China mainland are tangible product, like books, IT product, food, make up products (like face cream), media products, telecom product like mobiles, TV sets ect, gifts, entertainment, sports products, cloth, living things, office products, medicine products. And service, most services are just for give solutions to companies, and education services like helping students study abroad, and just few service like give a name to a company or baby. And almost all “fengshui” service from Taiwan.

4.       About the online game. There are 50 online games in China mainland and also 50 online games in Taiwan. And the first popular game is China mainland is “ The legend of Mir 2”, www.mir2.com.cn, and another is www.waei.com.cn, and there are others website about games: www.chinagames.net, www.17173.com, www.xajh.com.

5.      OICQ is the first popular Internet tool in China. It is similar as ICQ, but it supports Chinese language, and it also have many service with mobiles, like you can send a message from your mobile to OICQ, you also can send a message from OICQ to your friends’ mobiles. And you can buy the mobile logo, ringtones from the OICQ home page, and you also can buy other product about the OICQ from the home page, most are gifts. And OICQ has good relationship with China mobile and China Unicom. Like all my classmates, everyone has one or even 4 OICQ number. And that is our first chat tool in China even when I came here. http://www.tencent.com/english/ is the English vision website about OICQ, from this page, you can easy get what is OICQ and how popular it is in China.

 

PAYMENT

  1. There are three mainly ways to pay for your product online.

Ø      The website ask a delivery company deliver the product to you, and you pay the deliver people.

Ø      You can pay one line just use your bankcards.

Ø       You can go to bank or post office to finish your payment.

            There are also others payment ways:

Ø      Like sohu, you can hold a sohu-shopping card.

Ø      And if you just buy mobile logo or ringtone, you just need send message to the website. The payment is finished by mobile.

2.      About how to pay an online game. All online game you just need buy a card that similar as a prepaid card. About the payment ways, you can pay follow up that three mainly ways. And other ways include:

Ø      Pay by landline calling (only Beijing).

Ø      Send message by mobile or you pay from your mobile prepaid.

Ø      You can go to Internet café to buy.

Ø      You can go to software shop to buy.

  1. About bankcards. Since the first bankcard was used in 1985 in China. By this year there were already 400M bank cards were used in the market. Mainly are credit cards and saving card. Not many people hold a credit card, but many people have a saving card. And I searched many E-commerce website this week, find following banks cards can be used in Paying on Line (mostly, one card just is available in most provinces or some provinces and cities)

 

These bankcards are:

Ø      Bank of China.

  a. Great wall international credit card. You can use it in 256 countries.                    

     b.  Great wall RMB ( ren min bi) credit card. RMB means Chinese money.

     c.    Great wall saving card.

Ø      Industrial and Commercial bank of china.

a.                 Peony lingtong card.

b.                 Peony RMB credit card.

c.                 Peony international credit card.

d.                 Peony saving card.

e.                 Peony transportation card.

Ø      Agricultural bank of china.

a.                 Gold fringe international saving card.

Based in US dollar. And separate as Wan shi da card: use in mastercard shop with signature. And wan shi shun card: use in Mastro shop with your pin.

b.                 Gold fringe RMB credit card.

c.                 Gold fringe saving card.

d.                 Gold fringe saving wan shi shun card.

e.                 Gold fringe international credit card.

f.                   Gold fringe constellation card (for youth especially for students.)

Ø      China Construction bank.

a.                 Dragon general credit card.

b.                 Dragon gold credit card. (Only Beijing Shanghai and Guangzhou)

c.                 Dragon saving card.

Ø      Bank of Communications of China.

a.                 Pacific credit card.

b.                 Pacific saving card.

 

Other banks can support shopping on line are the following:

Ø      China Merchants Bank

a.                 Credit card.

b.                  All in one card.

c.                  All in one net card.

Ø      Shanghai Pudong development bank.

a.                 Eastern saving card.

Ø      China Minsheng banking Corp. LTD

a.                 MinSheng card.

Ø      China everbright bank.

a.                 Sun card.

Ø      HuaXia bank.

a.                 Hua Xia card.

Ø      Shengzhen development bank.

a.    Shengzhen development credit card.

b.    Shengzhen development saving card.

Ø      China post.

a.    Green saving card.

Ø      Fu Jian Industrial bank.

a.    Shun tong card.

b.    Carnation card.

Ø      Xiamen commercial bank.

a.    Yin lu saving card.

Ø      Guang dong development bank.

a.    Credit card.

b.    Saving card.

Ø      Shengzhen commercial bank.

a.           Wan shi shun saving card.

Ø           Chinatrust bank.

a.           Credit card.

b.           Saving card.

Ø      American Express card.

Ø       Japan. JCB card.

Ø       Dinners card

And the first five banks are national banks; they are also the biggest banks in China. This year in world banks rating, Industrial and Commercial bank of China is 10th in the world. And Bank of China is 11th, Agricultural Bank of China is 17th and China Construction Bank is 23rd. most people hold the five banks’ cards. American Express card, Japan. JCB card and Dinners card are just for international users.

 

CHINESE CULTURE

CHINESE NAME

1.      Follow the family genealogy. This means in some family, they have a record to remember the entire family members name from hundred years before. And there write some rules how to give next child name, so some Chinese name from this way. I have a friend; his name is Meng xu guang. Why xu? Because in his family name record, his second name must be xu.

2.      Follow the name book. This kind of book like feng shui, so you follow the book rules give your child a name. But now already not many Chinese follow this way.

3.      Follow the time or season. Especially season. We can find some Chinese people’s name include chun(spring), xia ( summer), qiu ( fall), dong ( winter). This just follows what season they were birthed. Example, my friend,.Liu Dong, why dong? Because he was birthed in winter. And another my friend Shi chun shen, chun means spring, and shen means birth, so we can easy find his name meas he was birthed on spring. Also some name like Yu, why Yu? Because when he came into the world, it was raining. Yu means rain.

4.      Some name just the parents find the word in a book or a dictionary, just the word with a nice meaning. That is all. Like Ling, Li, Xiu, many girls’ mane with this word, just because they mean beautiful. Many guys’ name with Jie, Wei, it means great. My name is pin, it just my parent want to me be a officer of government. Actually, now many name just give a nice hope or just with nice meaning.

5.      Others are like my mother. My mother has 2 sisters and 2 brothers. And my mother name is Wu lan zhen, her sister name is Wu xiu zhen, Wu feng zhen, her brother name wu shi zhen, we can find both of them, their name include zhen, some family if they have many children, they like give the children name like this.

6.      Other is just wanted to remember a story or soma important thing. Like, some parents give their baby name based on the parents’ name, because they just want to remember their love. And some baby was birthed in national day, so their name maybe is “ ai guo “, means love our country.

These are the basis of giving a Chinese name, mostly Chinese name follow these rules.

 

LUCKY NUMBER

About Chinese lucky numbers. Actually there is just there basis lucky number: 6, 8, and 9.  6 means all right. We often hope this number give us good luck for every thing will be ok. 8 means make a pile. We often hope this number give us luck good luck for becoming rich. 9 means similar as 6, also means luck or all right. And it also has the meaning that forever. Unlucky number is 4, because is same pronunciation as death. And some times people see 7 also as a unlucky number, because it means angry.. And in a number, the last number is important, example, 258 is a lucky number, because the last number is 8. So 16, 18 are lucky numbers. 66 and 88 are lucky numbers. 98 mean you must make a pile. 99 means for ever, so in China many guys send 99 roses to the girls hoping their relationship for ever.168 means always rich, 158 means want me rich, 518 means I will become rich. 598 mean I must can be rich. 999 means forever and health. So in many cases, if you go to buy a mobile number, if there is a 8 included in the number, normally plus some money, if two 8, plus morn, but if the last number is 4, the mobile number will sell a cheaper price, if more 4, maybe this number will be free. Also in car license tag, some people for getting 88888, they even like to pay more 100K RMB. In normal number, 5 always mean I or me, 0 and 1 means you, 2 means love. So 520 or 521 means I love you. Sometimes, 3 is unlucky, but in a number is ok, just if you go to restaurant to eat with your friend, please don’t order 3 dishes, because here 3 means separate.

 

So If you want to choose a luck number be our domain name, you should not only think about the luck, and you also should think if it is easy to remember, there is a website www.8848.com. Why 8848? Because the highest mountain is 8848 meter high, so it is easy to remember. And also we can think about the Chinese domain name. Because now, many website have Chinese domain.

 

By the way, Now many company and website begin buy the Chinese domain name for their website, especially they buy some important name like soma big company, because if some day, the company want to have the Chinese website name, they have to buy from them, so maybe we can choose a Chinese domain name also. That also will make easy to be reached by our Chinese users.

 

 

OTHER CULTURE

1.      Chinese people like saving money in the bank, just for their child in the future, and for themselves in the future.

2.      When Chinese people buy a product, they will think about if the product cost this price, and the value of the product is very important.

ABOUT OUR PRODUCT

1.      Chinese generator. I thought Suzanne did very well. And if she has some questions and if she some Chinese words can make sure, she already asked me, we already solve them, so I thought the Chinese name generator sample will no problem.

 

SUGGESTION

 

1.      I suggest install a Chinese system on our computer or install a windows me system.  Because now the problem is if you use Njstar, sometimes if you transfer the Chinese words to another computer, some problems will happen. So I suggest install a Chinese system, if that, we can install a Chinese WORD, and it is east to transfer simplified Chinese to traditional Chinese. And we also can install a translation tools based on the Chinese system, so that will much helpful for the translation.

 

 

 

 

                      

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