In the last 20 years, we have progressed from fixed-line telephony and television advertising to mobile ubiquity and Internet blogs. These evolving technologies are playing increasingly greater roles in business models across numerous industries, and it seems only fitting that China—which invented paper and the printing press—is again at the forefront of many of these developments.
Some see China as lagging behind the West, but in the technology and communications space it is often on the leading edge. Not only is China the largest mobile phone market in the world and home to the second-largest Internet-using population, but Chinese people are also increasingly making use of advanced communication devices in their everyday lives.
Greater China has also become the center of the electronics value chain—on a truly global basis. Starting with the development of electronic manufacturing services players in Taiwan in the 1990s, China now boasts the majority of all electronics production globally, and the region is increasingly becoming a center for more comprehensive technology design—with global challengers like Huawei and Lenovo leading the pack. Technology players around the world need to thoroughly understand the consequences of this concentration on their own value chains.
The Chinese market poses its own set of challenges, and BCG has a long history of helping leading companies—telecom operators, consumer electronics firms, IT companies, media companies, and technology equipment players—successfully navigate the many complex issues. Specifically, we have:
- Helped companies broaden their sales and marketing footprint into lower-tier cities and rural areas
- Worked with Chinese technology players looking to internationalize their businesses
- Supported media and communication companies looking to develop strategies to leverage Internet-related opportunities in China
- Worked with operators on growth strategies, paying particular attention to new technologies (3G, WiMAX) and industry convergence
- Developed innovation and intellectual property rights strategies specific to the Chinese market
- Organizational Adjustment for a Provincial Subsidiary
- Improve International Services for a Large Mobile Phone Operator
- Identify Opportunities Arising from Technology Convergence
- Help a Global Software Company Enter China’s SME Market
- Assess Rural Market Opportunities for Mobile Handsets
- Sales and Marketing Reorganization for a Leading Consumer Electronics Manufacturer
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David Michael Senior Partner & Managing Director Beijing +86 10 8527 9000 |
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Christoph Nettesheim Senior Partner & Managing Director Beijing +86 10 8527 9000 |
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Xinyi Wu Partner & Managing Director Beijing +86 10 8527 9000 |
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Publications
July, 2010
[PDF]China's Digital Generations 2.0: Digital Media and Commerce Go Mainstream
Internet users in China spend about 1 billion hours online each day, more than double the daily total in the United States. That number will grow to well over 2 billion hours a day by 2015. Similarly, business-to-consumer and consumer-to-consumer online transactions are expected to increase from a total of $37 billion in 2009 to more than $100 billion in just three years. The report offers a comprehensive study of online behavior in China based on quantitative data as well as interviews with nearly 2,000 people from 12 cities in 11 of China’s 22 provinces. It also illustrates these trends through in-depth profiles of individual consumers, allowing them to tell the story of China’s dynamic and complex market. Any company committed to engaging Chinese consumers will need to grasp the trends and implications of the country’s Internet-usage patterns.
July, 2008[PDF]China's Digital Generations: The 570-Million-Hour Opportunity
During the past few years, the Chinese embraced digital technology so rapidly that conventional views about that nation's Internet and mobile-phone use are out of date. The report China's Digital Generations: The 570-Million-Hour Opportunity seeks to dispel many outdated impressions about digital life in China and to show companies how they can profitably serve China's "digital generations". The report is based on interviews with 3,700 Chinese consumers. Urban Chinese consumers, in particular, are becoming sophisticated and dedicated mobile-phone and Internet users. They have quickly adopted so-called Web 2.0 applications, which enable users to contribute and share content in creative ways. In introducing these Chinese consumers and explaining their aspirations, behaviors, and expectations, we hope to put a human face on this dynamic market and encourage companies to serve it. The digital revolution in China has vast implications for companies in nearly all industries. Organizations must find innovative ways to connect with Chinese consumers in this new digital landscape. Companies need to build a rich Web presence, develop trusted brands online, and actively invest in understanding their customers' changing behaviors and needs. They also need to develop new products and services that cater to the emerging needs.
Press Releases
July 01, 2010
Explosive Growth In Internet Use Is Fundamentally Changing China’s Economy and Society, Consumer-facing Companies Are at Risk of Missing this Huge and Rapid Change, Says New Report By The Boston Consulting Group Internet users in China spend about 1 billion hours online each day, more than double the daily total in the United States—and that number will grow to well over 2 billion hours a day by 2015, according to a new report by The Boston Consulting Group (BCG). This report, titled China’s Digital Generations 2.0: Digital Media and Commerce Go Mainstream, offers a comprehensive study of online behavior in China based on quantitative data as well as interviews with nearly 2,000 people from 12 cities in 11 China’s provinces. It also illustrates these trends through in-depth profiles of individual consumers, allowing them to tell the story of China’s dynamic and complex market. View more
July 09, 2008
China Set to Burst on Global Scene as Digital Giant Chinese consumers have emerged as leading users of mobile communications, instant messaging (IM), and Web 2.0 services, pushing the boundaries of digital activity in ways unimaginable just a few years ago, according to a new report by The Boston Consulting Group (BCG). View more
BCG in the News
September 05, 2008
Harvard Business Review China
Opportunities of Digital Marketing in China Companies should take opportunity of digit marketing including online advertisement, msg marketing and etc.
June 30, 2008
21st Century Business Herald
Digitalized Life of Chinese People Chinese citizens use high technology products more frequently and complicatedly than US citizens.
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The Future of Leadership: Conversations with Leaders about Their Challenges and OpportunitiesMore -
China's Digital Generations 2.0: Digital Media and Commerce Go MainstreamMore -
The Keys to the Kingdom: Unlocking China's Consumer PowerMore -
Winning the BRIC Auto Markets: Achieving Deep Localization in Brazil, Russia, India, and ChinaMore -
Taming the Tiger: New Realities of Doing Business in China’s Year of the TigerMore