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Game Time: 5 Must-Knows About China’s Mobile Gaming Market

China has the largest mobile gaming market in the world – an exciting market not just for game-lovers, but also for those into marketing and advertising. Shanshan Cao, Senior market analyst China at Newzoo, recently shared the ins and out of China’s hot gaming world. What’s on Weibo was there to take note.

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China has the largest mobile gaming market in the world – an exciting market not just for game-lovers, but also for those into marketing and advertising. Shanshan Cao, senior market analyst China at Newzoo, recently shared the ins and out of China’s hot gaming world. What’s on Weibo joined the event, that was hosted by Digital China.

China has the largest gaming market in the world – and it is booming business. During the Digital China event (中国数码), a Sino-Dutch initiative focused on Chinese digital innovation, Shanshan Cao, senior market analyst at Newzoo, recently discussed the latest developments and opportunities in China’s gaming market, that is more and more focused on mobile gaming.

China’s Mobile Gaming Industry

“I love to play games,” Shanshan Cao smilingly starts her talk. Every day after work, she comes home to her favorite PC games. The rise of mobile gaming has now also made it possible to enjoy her games outside of the house. Not many people are that familiar with ‘mobile gaming’, but without realizing, she says, many of us already are mobile gamers. The great success of mobile games like Candy Crush or Angry Birds has proved that mobile gaming is quickly taking over a huge chunk of the international gaming market.

Shanshan Cao, Sr. Market Analyst China of Newzoo.

Shanshan Cao, Sr. Market Analyst China of Newzoo.

The US currently has around 139 million mobile gamers. The numbers vary, but according to Cao, China now has approximately 183 million gamers, and it is believed that 71% of the online population of China is an (occasional) online gamer, making it the largest online game market in the world.

One of the key drivers behind this online gaming environment is the fact that China is a mobile-first country. China’s average mobile user owns a relatively cheap but high-performance mobile phone, which enables them to play mobile games. As the quality of China’s smartphones keeps on rising, so are the possibilities and developments within China’s mobile gaming market.

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What makes the market so interesting for companies, Cao explains, is their audience: China’s mobile gamers are young, mainly living in the first and second-tier cities of China, and half of them are female. Most importantly, they generally are fervent users of QQ, WeChat, and other social media, and like to spend money online as digital consumers who do not mind paying for movies, music, or games.

There are many different ways in which mobile games can bring revenue. There are paid games, or games with in-game payment options where users can generate a new life after they are game over by paying for it.

But the commercial power of free mobile games also should not be underestimated, Cao says: in-game advertising could earn money in various ways. The social-media-loving audiences of mobile games make them very interesting for brands who can advertise through precise targeting and crossover cooperations.

For example, Cao mentions, brands could make their products extra appealing by giving away in-game rewards. In this way, one would not only buy a L’Oreal shampoo, but also get ‘extra lives’ or other in-game rewards with it, making both a product and a game more attractive for gamers.

China’s Mobile Gaming Market: 5 Things You Need to Know

By now, China’s mobile games market has risen to 41% of the total Chinese games market. Shanshan Cao names the 5 main characteristics of this market; the must-know facts for anyone interested in being part of it.

1. Highly Competitive Market
China’s mobile games market is a highly competitive one. Right now, it is dominated by big players Netease and Tencent, that, amongst many others, produced the hugely popular Kāixīn Xiāo Xiāo Lè 开心消消乐 (see image).

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Besides these giants, there are also many other big players – such as independent mobile game company iDreamsky. This makes it challenging for smaller companies to enter the market.

It is especially difficult for non-Chinese companies to enter China’s mobile gaming market, but there are also many opportunities for marketers and gaming companies that make it worthwhile. China has the world’s largest gaming market that is still continuing to grow; an exciting and booming place to be for companies that are not afraid of a challenge.

2. Restrictions & Censorship
Even without the big players, the Chinese gaming market is somewhat hard to enter for non-Chinese companies due to local restrictions and censorship. There is no Google Play Store, for example, as all Google products including Gmail, Google search, and the app store have been blocked since 2010.

This is just one of the many local restrictions foreign companies would have to deal with. But, Shanshan notes, one major possibility for foreign companies to tap into the market is to establish an own company in China or to work with a local partner that has a thorough understanding of the market and its restrictions and possibilities.

Swedish gaming company Mojang recently opted for the latter, as it teamed up with Chinese game giant Netease to develop a China-tailored version of their hugely popular Minecraft game. It currently holds the number one spot in the popular mobile games rank in China under the name of ‘My World’ (我的世界).

3. Fan Economy
Many of China’s popular online game are based on popular Chinese literature, comics, anime or reality TV shows – this ‘crossover success’ is an important part of China’s mobile gaming market.

Star Wars is a good example of how ’fan economy’ can benefit multiple markets, including the gaming one; the Star Wars: Commander game became a number one hit in China earlier this year, generating more than 1 million downloads in just four days within its release.

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Shanshan encourages foreign companies to use mobile big data to help them understand Chinese consumers and their preferences.

4. Going Global
The competitive domestic gaming market has led to an increasing internationalization of China’s gaming companies. One of these companies is Snail Games, that was established in Suzhou, China, in 2000, and set up its LA-based USA company in 2010.

Going global poses a challenge for these companies, as they have to adjust their design to a more western taste, which often means making it less ‘cute’ or adding some game elements and promotion methods that speaks to a western audience. For the USA launch of the game Taichi Panda, for example, Snail Games hired famous American martial artist, judoka and actress Ronda Rousey to be their spokesman to make the game more ‘American’.

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There are also companies, including Tencent and Alibaba, that are all about buying; they enter the western market and buy up local companies like Miniclip or Pocket Gems.

Shanshan notes that the internationalisation of China’s mobile gaming market also forms an opportunity for foreign gaming companies; if they do not have a strategy to enter China themselves, it is also commercially interesting to help Chinese games to do localisation in countries outside of China.

5. Mobile E-Sport Games
Mobile e-sport is bigger in China than it is in the West. Many bestseller games have proven that e-sport can make much money on console – but it is even more interesting when people can play it on their phone whenever they want to play it. Adding a competitive feature, like is done in Hero Pro League, makes it even more appealing to players.

One of the people who have made this market bigger is e-sports lunatic Wang Sicong, who also happens to be the son of the richest man in China.

Shanshan stresses that e-sports are important within China’s mobile gaming, but that it is not necessarily the dominant genre: “At this moment, China’s mobile gaming market has so much potential – anything is possible,” she says – again reaffirming that China’s mobile gaming market is anything but game over.

– By Manya Koetse

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©2016 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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China Digital

Are Douyin and TikTok the Same?

China’s popular “Douyin” app is known as “TikTok” in markets outside of China. But is it really one app?

Gabi Verberg

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TikTok, known as the international version of the Chinese successful short video app Douyin, is a global hit. Despite Bytedance’s efforts to present Douyin and TikTok as being the same product, they are actually two separate entities.

Douyin, (抖音, literally “shaking sound” in Chinese) is a short video media app owned by China’s young tech giant Bytedance (字节跳动). The app allows users to create, edit, and share short videos as well as livestreams, often featuring music in the background.

Douyin’s international name is TikTok, an app that looks the same as Douyin, while in fact, the two are not one and the same, despite Bytedance’s efforts to brand it as such.

This is not the first time a Chinese tech company presents one app as being the same everywhere, while it actually is not. Tencent’s super app Weixin (微信), also known as WeChat, runs two different systems for its Chinese and international version, as explained here.

When downloading either WeChat or Weixin, both being the same app, the app determines what features you can use and what information you can see based on the telephone number you register your account with.

In practice, this means that when you are a non-Chinese resident, you will be using the ‘international version,’ meaning you will have access to (international-specific) content that a user registered with a Chinese telephone number will not be able to see. The overseas version also does not have the same Wallet functions the Chinese version has.

 

Two apps, two systems

 

The difference between WeChat vs Weixin and TikTok vs Douyin, however, is not the same. Whereas the first is basically one app with two different modes, Douyin and TikTok are two completely separate entities.

Depending on the app store you use, you will either be able to download Douyin or TikTok. Users of Chinese app stores can only find Douyin, whereas users of the overseas Apple store or Google Play will only find TikTok available for download.

That the apps are actually separate systems becomes clear when running the same search words in both apps. As shown below, both apps provide different content for the same search words.

Left image: TikTok, Right image: Douyin.

For example, one of TikTok’s most popular channels of this moment is called ‘LisaandLena,’ a verified account by two German twins which has over 32 million fans. However, when you enter ‘LisaandLena’ in Douyin, the only result is an unverfied account which only has 102 fans and shows seven videos.

Results are the same the other way around. One of Douyin’s most popular accounts is that of Chinese actor Chen He (陈赫), who has over 52 million fans features 62 videos at this week. However, when running the same name search in TikTok, several unverified accounts come up, all showing some similar videos like those on Chen He’s Douyin account.

Top left picture: Douyin; top right and two bottom pictures: TikTok.

This suggests that, although Tiktok and Douyin have the same functions, layout, and logos, its users in China and overseas are kept completely separate and are not able to interact with eachother, something that a recent Chinese blog also discusses in detail.

 

The Rise of Douyin and TikTok

 

Ever since its launch in September 2016, Douyin has grown immensely popular. Just one year after its release, Douyin had more than 100 million users and became the second most downloaded app in the Chinese Apple store.

In September 2017, ByteDance took its app overseas; branding Douyin as TikTok for the international market, while keeping the app’s original name, Douyin, for its Chinese market.

Similar to Douyin, TikTok appeared to strike the right chord among internet users right away. In the first quarter of 2018 (note: within half a year after release), TikTok was the 6th most downloaded non-game app in the Apple app store and Google play store combined. In the Apple app store, it was even the most downloaded app. With its 45,8 downloads in the first quarter, TikTok beat apps such as Facebook, Youtube, or Instagram in the popularity rankings.

But that is not where TikTok’s short-video craze halted. In August 2018, TikTok merged with short video app Musical.ly (founded in 2014), that had over 100 million monthly active users at the time. In October last year, after receiving several investments, ByteDance Ltd. officially became the worlds most valuable private start-up, valued at 75 billion dollars.

By summer, ByteDance announced that TikTok, (meaning both apps combined) had more than 500 million monthly active users worldwide. About 300 million of these 500 million monthly active users are China’s domestic users.

 

Why does ByteDance separate Douyin and TikTok?

 

Why would Bytedance go through the effort to create two apps running on different systems? The answer partly lies in China’s strictly controlled online environment, where (social) media companies have to adhere to local policies on what is and what is not allowed to be published on their (user-generated) platforms.

In 2018, Bytedance was already criticized by authorities for hosting ‘inappropriate content’ on its news platform Jinri Toutiao. The joke app Neihan Duanzi, also run by Bytedance, was forced to shut down. Afterward, the company vowed to hire 4,000 additional censors, clearly not taking any risks in getting more warnings from authorities.

By separating Tiktok from Douyin, ByteDance can closely regulate the contents uploaded to Douyin, as they will be disseminated within China, while leaving overseas TikTok and its users relatively free to share whatever content they want to share (do note that the app also set up a team of 20 censors in Indonesia to monitor and ‘sanitize’ content from the platform there, after receiving complaints from Indonesian authorities).

 
New regulations for online video content
 

In light of tighter control on online video platforms, it seems that Bytedance’s monitoring team will have to work around the clock. On January 9, China’s Netcasting Services Association (中国网络视听节目服务协会), an association directly managed by the Ministry of Civil Affairs, issued new regulations that online short video platforms in China should adhere to. One of the new guidelines requires all online video service providers to carefully examine content before it is published.

Tech Sina reports that the new stipulations require that all online video content, from titles to comments and even the use of emoticons, has to be in accordance with regulations, which prohibit any content that is ‘vulgar,’ is offending to the Chinese political system, puts revolutionary leaders in a negative light, or undermines social stability in any way.

On Weibo, the newest regulations became a topic of discussion, with many netizens wondering how short video apps such as Douyin are going to comply, and how its users will be affected.

Although Douyin has not responded to how and if its platform will change in light of the latest regulations, we can expect that TikTok will not be affected – it will be marching to the beat of his own app.

By Gabi Verberg, with contributions by Manya Koetse

Interested to know more about Bytedance and TikTok? We recommend listening to this podcast by Techbuzz China.

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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China Digital

Alipay Changes Name to Hanbao (But for Users, Nothing Will Change)

Alipay, oh, Alipay, wherefore art thou Hanbao now?

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First published .

What’s in a name? That which we call Alipay, by any other name would do the trick. But although the title has changed, nothing will change for Alipay users.

On January 8, news that Alibaba’s online payment platform ‘Alipay’ (Zhifubao 支付宝) changed its official name to Hanbao (瀚宝), became a big topic of discussion on Chinese social media. The hashtag ‘Zhifubao Company Changes Name’ (#支付宝公司更名#) received millions of views on Tuesday, reaching over 30 million by Tuesday night.

Zhifubao (支付宝) is the Chinese name for the country’s leading mobile and online payment app. The brand ‘Zhifubao’ literally means ‘payment treasure.’ Outside of China, Zhifubao is known by its English name ‘Alipay.’

Alipay is operated by the Ant Financial Services Group (蚂蚁金服), an affiliate company of Alibaba.

The name change was reportedly registered for the ‘Zhifubao (China) Information Technology Company’ (支付宝[中国]信息技术有限公司), that changed into ‘Hanbao (Shanghai) Information Technology Company’ (瀚宝[上海]信息技术有限公司), just as ‘Alipay China Holding Limited’ has been changed to ‘Hanbao China Holding Limited.’

The name change was registered on December 18th of 2018. The legal ownership of the company has also been changed from Ma Yun (Jack Ma) to Ye Yuqing (叶郁青), who is the Ant Financial Chairman. Yicai Global already reported about a change to Alipay’s legal entity in the summer of 2018.

In October of 2018, the Financial Times reported that Jack Ma had quietly relinquished his ownership of the legal entities at the heart of Alibaba, after announcing he would retire as Alibaba’s chairman.

The Alipay company responded to the commotion, saying that the name change is just an “administrative matter” that will not affect consumers using the app in any way.

On Weibo, however, not everyone is happy with the change. “I owe Jack Ma some money, why do I now need to return it to Ye Yuqing?” one commenter wonders. Many others say similar things, jokingly saying they now no longer owe Jack Ma money. The Alipay platform allows users to buy items with credit through their ‘Huabei’ loan tool.

“Is Jack Ma no longer looking after us?!”, others say. “Being legal representative and being a shareholder are two different things,” one Weibo user replies.

The fact that the ‘Hanbao’ name is pronounced the same way as ‘Hamburger’ (汉堡) in Mandarin is also a reason some people are mocking the name change. Some netizens wonder if ‘Alipay’ will now change into ‘Hanbaopay.’

In 2017, there was also some online commotion when it was announced that McDonald’s China would change its name from Maidanglao to Jin Gongmen (‘Golden Arches’). At the time, McDonald’s China also responded to its name change, saying that it was for “official certification” only.

Time has shown that indeed nothing changed; just as the McDonald’s hamburgers are still the same, Alipay’s official hamburger-sounding new name is unlikely to affect its payment convenience.

Read more: Insights into Sesame Credit & Top 5 Ways to Use a High Sesame Score

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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What’s on Weibo provides social, cultural & historical insights into an ever-changing China. What’s on Weibo sheds light on China’s digital media landscape and brings the story behind the hashtag. This independent news site is managed by sinologist Manya Koetse. Contact info@whatsonweibo.com. ©2014-2018

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