The document discusses 3 hot startup models in China: 1) Group buying ("Tuan Gou"), which is well-established in China with over 400 Groupon clones emerging in recent months; 2) Fashion e-commerce, which is dominated by Taobao and largely relies on cash-on-delivery, with consumers expecting good service/returns; 3) Social games, where Chinese gamers are more competitive than Facebook users and farming games remain popular, with many games copying those on Facebook. The document also discusses opportunities in these sectors and trends like increasing regulation of social games in China.

1. Social
Market
Intelligence.
3
Hot
Startup
Models
in
China
Lucas
Englehardt

2.
1.
Group
buying
-­‐
“ Tuan
Gou”
is
new
again
2.
Fashion
E-­‐commerce-­‐
Not
so
private
buying
clubs
3.
Social
games
-­‐
Chinese
are
crazy,
Happy
Farmers

11. Groupon
-­‐
with
Chinese
characteris;cs
 Group
buying
is
well
established
in
China
 Currently
400+
Groupon’s
have
appeared
in
3
months
 Groupon
clones
focusing
on
discounts
/
products
 CreaPve
markePng
campaigns
(-­‐1
RMB
mystery
box)
 Very
early,
companies
sPll
just
geXng
started

12. E-­‐commerce
has
finally
arrived

13. Fashion
E-­‐commerce

14. Fashion
E-­‐commerce
 Taobao
(and
Alipay)
dominate
the
market
 Largely
Cash
on
Delivery
(COD)
-­‐
60%+
 Consumers
are
spoiled
already,
expect
Zappos
style
service
and
return
opPons
 Generally
very
price
sensiPve,
looking
online
for
deals

18. Not
so
Private
Buying
clubs
 Open
plaborms
-­‐
people
weren’t
sharing
deals
enough
 Consumers
are
weary
of
“grey
market”
fakes
 Limited
reliable
service
providers
-­‐
companies
doing
everything
in-­‐house
 PredicPon:
this
space
will
explode!

20. China
Social
Games
 China
social
game
developers
very
fragmented
 Game
themes
and
mechanics
translate
between
China,
Facebook
and
other
markets
(universal
love
for
farming
games)
 Chinese
social
gamers
are
more
compePPve
than
their
FB
counterparts:
status
and
stealing
play
a
large
role
 Games
generally
lagging
behind
Facebook,
being
copied
here

21. A
happy
farming..

23. Social
games
conPnuing
growth
 Zynga
acquires
XPD
(Medical
Mayhem),
joins
Rockyou
and
others
in
sourcing
games
from
China
 Increasing
government
control
-­‐
“pick”
don’t
“steal”
vegetables
 Most
games
aren’t
making
money
domesPcally,
simply
posiPoning
for
the
long
run
 Shameless
plug:

24. Social
Market
Intelligence.
3
Hot
Startup
Models
in
China
Lucas
Englehardt

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