Outsourcing
e-Commerce, and
Online Gaming in China
Prepared by Susi Ma
China Eventus Co. Ltd
Outsourcing in China
• Case Study
• Why outsource in China?
• Expert Knowledge Services
• Business Research
China Eventus Co. Ltd
Why outsource in China?
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China is a huge market.
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MNCs interested in entering China but do not have any credible on-the-ground
research partner. On the other hand, Chinese companies have started showing global
ambitions and will need a lot of research support in order to create their strategy.
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Ease of research into Japan and Korea: China, Japan and Korea have broad cultural
similarities. Japanese and Mandarin scripts have lots of commonalities. There are
many students of Korean and Japanese languages. Carrying out research into Japan
and Korea will be much easier from China.
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Long term vision: China has a huge talent pool and is developing English capabilities
very fast. In the long run China will have a good supply of smart English speaking
resources. In the long run. China office will become a very good ‘second’ centre from
where to carry out global research.
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Reducing country risk by having an additional operations centre besides India.
China Eventus Co. Ltd
Expert Knowledge Services:
5 Distinct, Synergistic Service Lines
Investment Research
Financial Analytics
Intellectual Property
Business Research
Market Research
China Eventus Co. Ltd
Business Research
Services Spectrum
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Market studies & segment analysis
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Technology evaluation and licensing
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Company, industry profiles & analysis
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Product & value chain analysis
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M&A target identification and valuation
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Standard benchmarking
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Sector monitoring
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Value-added daily news services
Existing Expertise
Financial Services
Telecom and IT
High tech / Electronics
Pharma / Biotech
Chemicals, Oil and Gas
Consumer Goods
China Eventus Co. Ltd
Contact at Evalueserve UK
Mike Taylor
Sales Director
Evalueserve UK
Client Executive in China
Susi Ma
Director
China Eventus Co. Ltd.
Email:
[email protected]
[email protected]
Mobile:
+44 7713 065946
+44 7833 740 226
China Eventus Co. Ltd
E-Commerce in China
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Case Study
Brief history and business model
Largest Global Suppliers Platform
Key Services and Products
Partnership with
China Eventus Co. Ltd
Business Model
• Listing of suppliers, web hosting, web design
• International trade fair representation
• Annual subscription fees
• Certification and Seal of Approval
• Additional value-added services: Ali chat, Ali Pay, Alibaba University
China Eventus Co. Ltd
E-Real estate
• Chinese Website
B2B
• Japanese Website
B2B
• TaoBao
B2C
China Eventus Co. Ltd
Hot Products
• Ali Chat
• Ali Pay
Merchant services Platform
Payment gateway
• Alibaba University
China Eventus Co. Ltd
“possible” developments
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Partnership with
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Overtake eBay (over 100M users
$55,5B market cap)?
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Overtake PayPal (79M accounts,
56 countries, est. $18,9 B total transaction volume)?
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Overtake VeriSign ($40B in total payment
volume in 2004 )?
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Overtake Skype (185M downloads, $7M in 2004
est. €60M in 2005, $200M in 2006)?
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Overtake Baidu.Com ($5.15M revenue per 31.3.05.
$2.16B market cap. Highest at IPO $153,98, today $67.37)?
China Eventus Co. Ltd
Internet Demographics in China
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Solid infrastructure and low communications cost. State incentives & directives.
Internet as an e-Learning educational tool
Internet Usage in China
Population 2005 Est.
1,296,110,643
Internet Users (Year 2000)
22,500,000
Internet Users Latest Data
103.000.000
Use Growth (2000-2005
357.8%
Penetration (% Population)
7.9%
(%) Users in Asia
31,5%
Source: Internet World Stats
USA. As of June/2005: 202,888,307 Internet users, 68.5% of the population
296,208,476. In year 2000: 95,354,000 internet users, 33.1 % of the population
287,855,200
Intensity of usage: one-child policy
China’s “secret weapon”: age-defying urge to learn!
China Eventus Co. Ltd
Online Gaming
• Case Study
InterServ International (USA, CN, TW)
http://www.interserv.com.tw
http://www.interserv.com.cn
http://www.is-games.com
China Eventus Co. Ltd
About InterServ
Founded 1989.
Market Cap.US$8.3M
Taiwan Stock Exchange
Business Divisions
Games Division, www.is-games.com
 Development & publishing – console, PC, MMOG, wireless
 Art design and production services for games
Edutainment Division, www.uc520.com
 Online learning platform & content
 Edutainment CDROM’s for children
Offices Taipei – headquarters (100)
Shanghai (120)
Irvine, CA (2)
China Eventus Co. Ltd
Strategic Setup
CA, USA
• Co-Development
• Outsourcing
 Timely liaison for the US & Europe
 Bridge the gap
 First hand marketing feedback
Liaison Office
SHANGHAI
Production
Production Center
 2D/3D art design, modeling, animation
 Motion capture studio
 Effective process control
 Efficient resources integration
TAIPEI
(HQ)
Creative Center
 Creative / Product Planning
 New Technology Development
 Marketing Strategies
 New Business Development & Alliances
China Eventus Co. Ltd
MMORPGs
A massively (or massive) multiplayer online role-playing game
• On August 4, 2005, the Chinese government
announced a ban on all "violent" game play for
minors under 18. Chinese officials declared
violent any game that involves player vs. player
combat, a common feature among MMORPGs.
Later in August the same year, the Chinese
government imposed online gaming curbs so
players can not play more than three consecutive
hours!
China Eventus Co. Ltd
MMORPGs
A massively (or massive) multiplayer online role-playing game
• Farming
Farming is a form of playing where a player kills monsters in the
game for the money and items that the monster drops. Players who
farm usually camp an area, kill monsters as they spawn, collect the
loot, and later sell the items to others.
Online sweatshops in China, people are actually employed to collect
in-game items for their employer who then sells them. It is reported
that one can make up to USD$100 a day, which is actually better pay
than many other jobs in China.
China Eventus Co. Ltd
MMORPGs
A massively (or massive) multiplayer online role-playing game
Private Servers
Single-client based graphic MMORPGs may have private servers or
server emulators. Private servers are mostly run by volunteers:
mostly free. However, some private servers may wish for people to
donate money, sometimes in exchange for a bonus in the game.
In China private servers are more prevalent. Most players are aware
of private servers. They may even prefer private servers over official
ones. Reasons: relatively high fees for official servers, availability of
100MB/s fibre optic Internet connections (at US$30 p/month). The
costs of running a server in China are also remarkably low. In one
instance, a private server had more than 50 000 players registered.
Some even have 1000 accounts in 1 day (the opening day).
China Eventus Co. Ltd
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Outsourcing, E-commerce, and online gaming in China