Viewpoint: How to Survive in This Winter for a Traditional Website

Viewpoint: How to Survive in This Winter for a Traditional Website
Dec 19, 2008 04:09
CHINASTOCKAD... Points: Join Date: Dec 19, 2008 Status: offline	By Kofi Duan Source: www.chinastockadvice.com Updated: Dec 19, 2008 For most websites, winter of 2008 is really cold. In China, it is the tenth year of the internet sector, most of the famous websites such as Baidu, QQ, SINA, ALIBABA and NetEase, etc, were not born in 1998, not to say the newly-appeared stars, such as YOUKU, TUKOU and some SNS. All these websites were supported by VC capital in the early stage of their development. Just like in other countries, VC capital is the most important power to push this emerging internet and information technology industry. But for now, it’s more difficult for a traditional websites to get VC in China. Below are the three main reasons. Firstly, liquidity shortage is a widespread problem under global finance crisis and recession. Secondly, China increased governmental regulation on internet sector in the past year. In December 2007, government banned all websites operating online lottery sales, which made more than 700 websites dead or hibernated until now; Thirdly, the emergence of wireless mobile internet attracts more VC’s attention. Since traditional internet has developed in China for more than 10 years, this is a red sea in many people’s eyes. However, the wireless mobile internet is a blue sea and only in its seed stage. As analyzed above, it’s difficult for a traditional website to get VC capital now. Under such circumstance, how could a traditional website get through this cold winter? I give the following four suggestions: I. Be confident. Some websites can develop well without VC’s investment, and after the capital market reboundwhich is estimated in 2H2009, the VC would be active involved in the investment again then. ii Cut cost. Lower cost can make the project survives longer, and more competitive among the peers. iii Strengthen basic skills. During fierce completion, basic skills are always ignored; in this winter, the project can focus on basic skills of the team. For a content website is to increase content and attract visits; for web-game website is to learn players’ demand and improve the game design; and for B2C website is to learn the potential clients’ demand and maintain these clients. iv Promotion. Internet is a media in a broad sense. For a media, finding the target audience is the most important thing,andattracting the audience and keep their interest comes the second. The value of a website greatly depends on its effective visits, of which the visits are the precondition. Don’t stop promotion even in the winter, although you can choose a lower-cost option. Please contact China Stock Advice for any inquiries. Reproduction in whole or in part without China Stock Advice's permission is prohibited.

Dec 19, 2008 04:09

CHINASTOCKAD...
Points:
Join Date: Dec 19, 2008
Status: offline

By Kofi Duan
Source: www.chinastockadvice.com
Updated: Dec 19, 2008

For most websites, winter of 2008 is really cold. In China, it is the tenth year of the internet sector, most of the famous websites such as Baidu, QQ, SINA, ALIBABA and NetEase, etc, were not born in 1998, not to say the newly-appeared stars, such as YOUKU, TUKOU and some SNS. All these websites were supported by VC capital in the early stage of their development. Just like in other countries, VC capital is the most important power to push this emerging internet and information technology industry.

But for now, it’s more difficult for a traditional websites to get VC in China. Below are the three main reasons.

Firstly, liquidity shortage is a widespread problem under global finance crisis and recession.

Secondly, China increased governmental regulation on internet sector in the past year. In December 2007, government banned all websites operating online lottery sales, which made more than 700 websites dead or hibernated until now;

Thirdly, the emergence of wireless mobile internet attracts more VC’s attention. Since traditional internet has developed in China for more than 10 years, this is a red sea in many people’s eyes. However, the wireless mobile internet is a blue sea and only in its seed stage.

As analyzed above, it’s difficult for a traditional website to get VC capital now. Under such circumstance, how could a traditional website get through this cold winter? I give the following four suggestions:

I. Be confident. Some websites can develop well without VC’s investment, and after the capital market reboundwhich is estimated in 2H2009, the VC would be active involved in the investment again then.

ii Cut cost. Lower cost can make the project survives longer, and more competitive among the peers.

iii Strengthen basic skills. During fierce completion, basic skills are always ignored; in this winter, the project can focus on basic skills of the team. For a content website is to increase content and attract visits; for web-game website is to learn players’ demand and improve the game design; and for B2C website is to learn the potential clients’ demand and maintain these clients.

iv Promotion. Internet is a media in a broad sense. For a media, finding the target audience is the most important thing,andattracting the audience and keep their interest comes the second. The value of a website greatly depends on its effective visits, of which the visits are the precondition. Don’t stop promotion even in the winter, although you can choose a lower-cost option.

Please contact China Stock Advice for any inquiries. Reproduction in whole or in part without China Stock Advice's permission is prohibited.

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