Getting Local with China’s Internet

Written by Katie on Tuesday, 18 September 2012. Posted in September 2012

Understanding China’s Internet geographically may help you improve your market strategy

China is one of the largest emerging markets in the world.  That’s not news.  Neither is the fact that competition for multinational companies seeking to tap into that growth opportunity is fierce.  McKinsey Quarterly featured an article a while back on how “country-level strategies,” as most multinationals develop, are not enough to accelerate growth in markets like China.  Why?  Well, let’s put it this way.  China’s population is more than four times the population of the US but is slightly smaller in terms of land mass.  There are hundreds of different languages and thousands of dialects spoken in China versus one main language spoken in the US.  From these comparisons alone, it seems apparent that China is much too diverse to be considered a single market.  In fact, a “country-level” approach could never cover the vast economic and demographic differences across China.  What multinationals need are more targeted and localized approaches.  

According to McKinsey:

“China has roughly 150 cities with at least one million inhabitants. Their population and income characteristics are so different and changing so rapidly that our forecasts for their consumption of a given product category, over the next five to ten years, can range from a drop in sales to growth five times the national average. Understanding such variability can help companies invest more shrewdly and ahead of the competition rather than following others into the fiercest battlefields.”[1]

With this said, we’ve noticed a great deal of interest in how China’s broadband speeds vary across different regions and their correlation to economic, social, and demographic factors.  So we’ve put together an infographic based on data picked up by our real-time Internet speed monitor.  You can also take a more in-depth look at the raw data by clicking on the link below.  



*Infographic updated 9/27/12 

 

Click here to download the infographic and raw data.

 

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