‘Facebook is doomed to die’ and other East Asian misunderstandings
Written on March 25, 2008 – 8:00 pm
Ernst-Jan Pfauth, editor in chief
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During one of the lunches at the LIFT conference in Geneva I met Markus Fuhrmann. He’s the co-founder of Web2Asia. A European service with headquarters in Shanghai that specializes in supporting western Internet companies and Mobile content developers to get a company or service going in China, Japan and Korea. Needless to say, there’s a lot of potential in these rapidly developing markets. Some of their clients are Jimdo (Germany), Xendex (Austria) and Vanilla Live Games. I kept in touch with Markus, and the business he runs turns out to be really fascinating. So I decided to ask him some questions about this hard to comprehend Asian markets.
Markus has a entrepreneurial history in games. His story in China began with an IMBA semester at Tongji University in Shanghai. “In the beginning I both loved and hated it in China, because I started my stay with one week in a Chinese hospital with pneumonia. After recovering and getting used to the cultural and environmental differences, I started to enjoy the dynamics and sheer endless opportunities available here.” He consulted several companies on how to launch in China. When he met his partner George Godula they connected immediately and it made perfect sense for them to team up.
How to bring a product from Europe or the US to Asia
So, when I want to enter the Asian market, what should I take in account? “The East Asian characters. This is a smaller problem for completely web based services but can amount to a lot of work if you have to change your client or back end infrastructure because you forgot to use Unicode and double byte support in the first place. In terms of function and usability there are a lot of things to watch out for, especially in Japan and Korea with the example of mobile phone support, which is crucial.”
“The second important part is the content side. Here you have to take care that the content fits the Asian culture, especially in terms of symbols and language. Another sensible topic is working specifically to local legislation requirements and restrictions on certain content.” I assume Markus is referring to dealing with censorship in China. Which probably brings some conscience issues.
The last part is less complicated and controversial, namely the feasibility of the underlying business model. Markus: “It’s already quite hard to earn money through advertising in Europe and the US, but it is even more difficult to earn money through this model in East Asia. The positive examples have been able to transfer a model of premium memberships, customizable content - micro payments - and value added services.”
Facebook doomed to die
These three different parts seem to create some obstacles for all the global players, since they failed to gain a foothold in East Asia. “One of the most famous examples that didn’t work out in China has been Ebay China, the local competitor Taobao realized that Chinese users prefer much more to buy products instantly than to wait for an auction to end. Same thing with Google; in Korea the company only has approximately 6% of the market share. As for other western hypes, they have yet to make it to East Asia, which are not good signs either. For example, jokes are already going around in China calling Facebook, “fei si bu ke” (非死不可) a transliteration which means ‘doomed to die’.” (more…)
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