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Evan Osnos - Letter from China

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If you're not reading Evan Osnos' "Letter from China" blog in the New Yorker, you should be.

For much of the past two decades, the obstacles facing foreign entrepreneurs have been structural: bureaucratic delays, restrictions on moving foreign currency, and so on. But in my conversations with foreign business people these days, the current malaise centers on a less concrete--and, thus, fixable--sense of obstruction. The concern these days is not about the vagaries of what was once called the Iron Rooster, but about the reality of a canny, powerful, well-equipped, urbane counterpart in the global economy, which is beginning to express its own beliefs about fair trade and free flow of information. That, I'm afraid, is a far more difficult gap to bridge.

Winter of Discontent in Beijing: Letter from China : The New Yorker

And the Time piece that is improperly linked to from Evan's blog post is this one (also worth reading):

In my more than two decades in China, I have seldom seen the foreign business community more angry and disillusioned than it is today. Such sentiment goes beyond the Internet censorship and cyberspying that led to Google's Jan. 12 threat to bail out of China, or the clash of values (freedom vs. control) implied by the Google case. It is about the perception that antiforeign attitudes and policies in China have been growing and hardening since the global economic crisis pushed the U.S. and Europe into a tailspin and launched China to its very uncomfortable stardom on the world stage.

The China Fix - TIME "The China Fix"

I think the only mainstream movie Hollywood has produced with Asian leads is the "Harold and Kumar" series, which is fun on it's own merit but is not an accurate representation of Asians in America.

Skip this movie, it's awful.

Happy new year everyone.

I plan to attend the 2009 Tokyo Bloggers New Years Meetup on Jan. 17th here in Tokyo.  If you'd like to attend, please contact TPR over at Trans-Pacific Radio.

If you read only one article on Japanese politics this year, make it Tobias Harris' overview of 2008 at Néojaponisme 2008: Change and Politics

One way or another, Japan needs political change. The latest economic downturn will only exacerbate the problems already facing Japan. It will make it all the more difficult for the government to provide pensions and other social services. It will delay the government’s efforts to pay down Japan’s national debt to more sustainable levels. It will swell the already swollen ranks of Japan’s temporary workers, who now constitute nearly a third of the labor force. And it will do little to encourage younger Japanese to marry and start families.

Does anyone have the code for the quick post bookmarklet that will work in Firefox 3.0 and MT 4.2? And I don't mean the default bookmarklet which is worthless. I mean one that returns a workable link and title. Why is the default so...lacking? Dan Anderson's code does not work for me.

Changwon Kim has news on his blog that Cyworld is quitting the US market: Cyworld pulling plugs from US.

Cause of failure? Well, for starters (the obvious ones): Cyworld didn't seem to have sharp strategies as to how to position their service (Was it Myspace or Habbo hotel?); They didn't localize the service very well; SK Telecom, the parent company, didn't "get it" yet still tried to put a grip on the business.

Chang suggests that this recession is a good time for Korean entrepreneurs to build the post-Cyworld service that would ideally be more popular outside of Korea. I'd be happy for this to happen, but that barrier to success is quite high.

Why?

It's clear from the existing marketplace that Asia is qualitatively different for consumer web services. I've been blogging about this for years and the best example comes from a post by Mitani-san at Asiajin quoting George Godula of Web2Asia; In fact, I'll use the subtitle instead of the title as the subtitle is more relevant: Why it is difficult for European and U.S. companies to advance into Asia.

Godula's presentation at Open Web Asia looked at China, Japan and Korea and compared the leading ecommerce, video hosting, sns, bbs and blog service vs. what is popular outside of Asia. It's a crystal clear chart that shows that sites and services that are popular in North/South America or Europe are just nowhere to be found in Asia. Godula has a good list (be sure to click over to see it) of why companies are unsuccessful in Asia:
1. No formal internationalization/Asia entry strategy
2. Entered Asia too late/ too slow
3. Local HQ has no full decision power
4. Incomplete localization(Translation, Content, Pricing, Branding(name, colours, etc.), Features, Business model)
5. No Local technical development team (Slower time to market, More expensive)
6. Domestic players sometimes simply have the superior technology/business model
7. Global corporate guidelines
8. Local legislation

This is tough stuff. And as I commented on Chang's blog, I'm not sure there are good examples of Asian-founded successful consumer web services that have been successful outside of their home areas. One might say Naver is doing ok in Japan with their web-based games but to me Flash-games are not consumer web services.

That Friendster's success in SE Asia (specifically the Philippines) was largely accidental is telling. They've been smart to focus on their successful markets but being successful in markets by accident is a scary way to grow a business.

Tonight Jason Calcanis joins Tokyo 2.0.  I won't be able to make it as I have a previous committment but if you go, ask Jason what he thinks it takes for a non-Asian consumer web service to be succesful in Asia.  Outside of core search (which is a consumer service but one that requires the deepest of pockets) it's instructive to consider how little Asia has in common with N. America or the EU in this segment.


Jason Calcanis at Web 2.0

upgraded to MT 4.2

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Just upgraded to MT 4.2.

Please test the comments to see if this is working. I'll start blogging again if my comments start working.

Yahoo! Dethroned in Taiwan

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Wretch.cc now #1 site (by traffic) in Taiwan. If the reported purchase price is true, it was a very good purchase.

Wretch.cc was ranked the top Web site in Taiwan in a top-100 list tabulated by Business Next, a local magazine, and Taiwan's Access Rating Online (ARO). ... But despite Yahoo's best attempts to keep up with new features such as blogs, Wretch.cc continued to grow and gain popularity. It proved such a difficult battle that Yahoo Taiwan finally used cash to end the battle, buying Wretch.cc for an undisclosed sum. Local newspaper reports valued the deal at NT$700 million (US$22.7 million).

Yahoo Taiwan came in second in the ranking overall, but it remained number one against other Internet portals.

Rounding out the top five overall Web sites in Taiwan, PChome Online came in third, Yam.com ranked fourth, and Gamer.com took fifth place in the Business Next/ARO list.

The U.S. version of Google ranked first among search engines, and 14th overall, while Google Taiwan came in second, China's Baidu ranked third and video search engine Flurl came in fourth.

Yahoo Dethroned in Taiwan

New design; still work to do

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As you can see, I've finally fully upgraded to MT 4.01 with a new design. My old weblog design was many years old and with the help of a good friend (thank you BA!) I'm finally in 2008.

My comments should be working as well (although I'm still getting a lot of comment spam and I may need to turn off anonymous comments if I can't fix this) so please test my comments.

USC Global Conference 2007

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W. David Marx, proprietor of many interesting websites including Néomarxisme and Néojaponisme, and I will be speaking with Prof. Jennifer Urban of USC at the USC Global Conference this weekend on Saturday the 27th on the topic of user-generated content in Japan. If you'll be attending, please be sure to say hello.