China and India - why is there a difference in the development stage
The linked article is a very data and number heavy comparison between the two Asian powerhouses India and China in the online market, and why China is so much ahead of India - currently. Ahead, despite all the restrictions that the government imposes on all those pesky online users and companies.
I mean, look at the numbers mentioned: "The number of Web users in China has expanded sevenfold in eight years to 94 million. India, whose population of 1.1 billion is close to China's, has 24 million Internet users. Yahoo employs 600 people in China, 10 times as many as in India." Goodness, this is a lot.
There are certain valid reasons for this advanced position, underlined by a vivid investment level of the government in China.
"The Chinese government has paved the way for Internet growth by investing $138 billion in telecommunications networks in the past five years, even as it bans online content on topics from democracy to the Falun Gong spiritual movement." And this is just one reason.
Thus, India, with its democratic government and free press, is so far behind China in developing its Internet market because of the gaps in the Indian structure that is much more spotty seen across the country.'
Here is another one: "India's lower incomes and shortage of phone lines explain the gap. China had 667 million active fixed- and mobile-phone lines at the end of 2004 - about one for every 1.9 people. India has about one for every 11 people."
The number of Web users in China has expanded sevenfold in eight years to 94 million. India, whose population of 1.1 billion is close to China's, has 24 million Internet users."
Yahoo employs 600 people in China, 10 times as many as in India. Google is entering and expanding, and I mentioned other companies' strategies that already followed. Once you have reached the tipping point, things just go your way.
This doesn't count India out, of course. I wouldn't like to separate or underestimate the influence of both countries on the world economy. What makes it even more important for any company operating in Asia to really understand Asia.
(By Asia Business Consulting)
I mean, look at the numbers mentioned: "The number of Web users in China has expanded sevenfold in eight years to 94 million. India, whose population of 1.1 billion is close to China's, has 24 million Internet users. Yahoo employs 600 people in China, 10 times as many as in India." Goodness, this is a lot.
There are certain valid reasons for this advanced position, underlined by a vivid investment level of the government in China.
"The Chinese government has paved the way for Internet growth by investing $138 billion in telecommunications networks in the past five years, even as it bans online content on topics from democracy to the Falun Gong spiritual movement." And this is just one reason.
Thus, India, with its democratic government and free press, is so far behind China in developing its Internet market because of the gaps in the Indian structure that is much more spotty seen across the country.'
Here is another one: "India's lower incomes and shortage of phone lines explain the gap. China had 667 million active fixed- and mobile-phone lines at the end of 2004 - about one for every 1.9 people. India has about one for every 11 people."
The number of Web users in China has expanded sevenfold in eight years to 94 million. India, whose population of 1.1 billion is close to China's, has 24 million Internet users."
Yahoo employs 600 people in China, 10 times as many as in India. Google is entering and expanding, and I mentioned other companies' strategies that already followed. Once you have reached the tipping point, things just go your way.
This doesn't count India out, of course. I wouldn't like to separate or underestimate the influence of both countries on the world economy. What makes it even more important for any company operating in Asia to really understand Asia.
(By Asia Business Consulting)
posted by Andreas @ 4:40 pm
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