China's dynamic app industry lures foreign entrepreneurs

Posted by Staff on 2012-05-29 02:47:00 | Views: 39 |

Popular Menu

Cynthia Nixon Weds Girlfriend over Memorial Day Weekend 10 People Killed in Deadly Earthquake in Italy Idol Winner Had 8 Different Surgeries During Season World's Smallest Artificial Heart Saves Baby's Life Story behind Boy who touched President Obama’s hair Body of Missing Harvard Student Found in Harbor 'Cake Boss' Star Sentenced To Prison After Child Sex Assault Man Arrested After Converting Super Soaker to 20-Gauge Shotgun TSA's Shocking Find In Passangers Luggage Grandmother Shoots Grandson Eight Times, Kills Him Eight Wounded After Shooting Following Lakers-Thunder Game Over 2,000 People Freed After Wrongful Convictions This Condition is Growing Fast in Teens, 1 in 4 Have It Bee Gee's Singer Dead Couple Admits to Locking Girl in Bathroom for Years 'Summer Santa' Buys Out K-Mart Store and Donates Everything 'Terminator' Actor Missing Shocking Discovery Found Near Plane Crash ANOTHER Wrongful Execution in Texas Betty White Heading To D.C. Wrong Man Executed For Murder Man Spends Over $60,000 Trying To Win Custody Of His Dog Famous Bassist Dies At 70 Occupy Protester: Police Got Me High Joshua Webb, Ledisi Musician Dead At Age 27 Fugitive Accused of Kidnapping and Murder Found Dead State Declares Whooping Cough Epidemic Mom Arrested After Helping 13-year-old Daughter Text Nude Pictures Woman Clinging to Her Life From Flesh-Eating Bacteria After Zip-Lining Former Miss USA Sentenced in Drunk Driving Case State Bans Gay Marriage Tennessee Mother and Daughter Found Dead; 2 Daughters Still Kidnapped Terrorists' Bomb Plot Shows New Level of Sophistication Man Pulled Over For DUI, Police Find Monkey In His Trunk Man Survives Getting Hit By One Car, Dies When Hit By Second One Lion Attacks Toddler With Zebra-Stripped Clothes On Through Glass Lost Parakeet Recites Address to Police Woman Repeatedly Put Bleach Into Her Daughter's Eyes Woman and son killed in seperate car accidents just hours apart Broke Hotel Goes All Nude, Avoids Closing Down Mother Arrested After Putting 5-Year-Old Daughter in Tanning Bed India Ferry Capsizes: More Than 100 Bodies Rescued From Brahmaputra River Texas Law on Planned Parenthood Defunding Stopped By Federal Judge Former Miss New Hampshire Arrested For Assault Over 200 Sickened With Food Poisoning At Children's Day Festival Things That Google's Glasses Can Do KFC Ordered to Pay $8.3 Million After Girl Was Brain Damaged From Salmonella Poisoning Man With No Arms or Legs to Swim Around the World Mysterious Man Turns 100 Stop Signs Into Flowers Pro Wrestler Seriously Injured in Car Wreck

China's dynamic app industry lures foreign entrepreneurs

By Melanie Lee

SHANGHAI | Tue May 29, 2012 3:47am EDT

SHANGHAI (Reuters) - China, long known for its reputation as being a copycat nation, is emerging as a favored place for entrepreneurs looking to start mobile and Internet application businesses, due to the size and dynamic nature of the domestic tech market.

What makes China so attractive, say entrepreneurs, is a mix of lower operating costs compared to Europe or the United States, a willingness to work at start-ups, and the opportunity to feel first-hand the rapidly changing tastes of Chinese app users, which are seen to be leading the rest of the world.

"The Chinese market is probably the most dynamic market in the world right now for online games. There is also a lot of talent because gaming is so much a part of the ecosystem," said Ludovic Bodin, a Frenchman who moved the headquarters of his Facebook games startup to Beijing from South Korea, four years ago.

There is no industry data to show the growth in foreign-run start-ups over the past few years in China, but analysts and industry players say there has been a clear uptrend in relocating to Shanghai or Beijing.

"I can easily say foreign entrepreneurs working on apps, mobile and internet projects at large, easily double every year in China," said Bruno Bensaid, an angel investor and co-founder of Shanghaivest, a cross-border investment banking advisory firm based in Shanghai.

Cyril Ebersweiler, co-founder of Dalian-based start-up incubator fund, Chinaccelerator, also said there has been a marked increase in start-up groups featuring foreigners.

"We have had mixed groups (start-ups with both foreign and Chinese staff) for a while now, but last year was really an inflection point," said Ebersweiler, adding that his fund handled three such firms last year, compared with none in 2010.

South Korea, home to top smartphone maker Samsung Electronics and millions of online gamers, and the United States have long drawn innovators, given their high Internet penetration rates and tech savvy culture.

A key advantage in China, but also a challenge for app developers, is the high level of competition to meet the demands of tech savvy Chinese customers.

In China, the time it takes between designing a product and pushing it to the market and receiving feedback, is much faster than elsewhere, because the Chinese consumers move from product to product fast, said industry experts.

"In China, coders are always adding new features, getting things out, removing features that don't work. That's why it's interesting for entrepreneurs to work in this environment, the dynamism is here, the right carrot is here," Ebersweiler said.

Another alluring factor in China is the large pool of talent at relatively lower costs.

"China has a very entrepreneurial culture, people are very ready to work for start-ups. To ask someone to join a company with only 10 people is easier than in some other countries," said Bertrand Schmitt, the chief executive of App Annie, a mobile application analytics firm in Beijing.

App Annie, whose main market is the United States although most of its developers are Chinese, started out with only six employees but swelled to 20 after receiving funding from IDG Capital Partners.

"China is not just a low cost country, it has business potential for us. As you know, China is not easy to penetrate as a market, so being there from the beginning is not a bad thing," he added.

(Editing by Kazunori Takada and Michael Perry)

  • Link this
  • Share this
  • Digg this
  • Email
  • Reprints




Comments

No comments yet.

Add Comment

* Required information
(never displayed)
 
Bold Italic Underline Strike Superscript Subscript Code PHP Quote Line Bullet Numeric Link Email Image Video
 
Smile Sad Huh Laugh Mad Tongue Crying Grin Wink Scared Cool Sleep Blush Unsure Shocked
 
1000
Captcha
Refresh
 
Enter code:
 
Notify me of new comments via email.
 
I have read and understand the privacy policy. *
 

Latest News: