Saturday, August 23, 2008

Chinese Demographic: Lonely Young Tech Savvy People Looking for Friends, Fun, and Games Online

Pearl Research Calls them the "Phoenix Generation". These people are China's 16 to 30 year olds who have $135 billion in spending power.

These young people have grown up during China's economic boom, and they are very tech savvy.

Many of these young people are also lonely. Because of China's one child per family policy, these people have no brothers and sisters and are looking for friends. Since Chinese don't normally organize around sports or church, China's Phoenix Generation uses the Web and Social Networks to Fill that void.

According to a joint study by advertising companies JWT and IAC, 16 to 25 year olds in China:
  1. Using the Internet to make friends: China, about 75 percent; U.S. 30 percent.
  2. Going online to find, share opinions: China, about 75 percent; U.S., 43 percent.
  3. Expressing personal opinions or writing about themselves online: China, 72 percent; U.S., 56 percent

Many ideas above from this article.

Profit from this

Chinese Social Networking would be one way to play this.

Chinese Online Games

However a more interesting way is through Chinese Online Games especially MMORPG, Massively Multi player Online Role Playing Games such as Activision-Blizzard's (ATVI) very popular World of Warcraft game.

Many people around the world, especially, East Asians and Chinese, have taken these online games and MMORPGs to a new level.

  1. Activision Blizzard (ATVI): Aside from making the popular Guitar Hero and Call of Duty Games, ATVI also owns the World of Warcraft MMORPG franchise. As of 2008, World of Warcraft has a subscriber base of 16 million.
  2. Shanda Interactive (SNDA): Chinese Online Game Company. They too have MMORPGs.
  3. The9 Limited (NCTY): Chinse Online Game Company. They have MMORPGs games as well, and they are allowed to operate World of Warcraft in China.
  4. Perfect World (PWRD): Another Chinese Online Game Company that provides MMORPG (and other) games.
  5. Giant Interactive (GA): Chinese Online Game Company including MMORPG games.
  6. NetEase (NTES): Chinese company has an Online Game Service, Advertising services, and Wireless value Added Service Departments.

Stock Performance Now

Stock Performance: Aug. 11, 2008 to Aug. 22, 2008

  1. SPY (S&P 500 ETF): -0.81%
  2. QQQQ (Nasdaq ETF): -0.54%
  3. ATVI: +2.88%
  4. NCTY: -13.35%
  5. SNDA: +13.81%
  6. GA: +5.92%
  7. PWRD: +0.92%
  8. NTES: +17.54%

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