In China the Poor have not inherited the Internet, yet

Zona Europa says the bad news is that the Internet is too expensive for most Chinese.  There are a few quick observations from this:

  • The market is still huge.  10% of 1 billion people is a lot of people.
  • The current online market is a largely self selecting affluent group – and so more able to afford your products.
  • If price is a major obstacle, this is likely to fall fast while incomes in China are rising at the same time – so reach is likely to expand at a fast rate for some time.
  • If Google is getting trounced (in market share) now, with an urban and affluent user base it doesn’t look good for the long term with Baidu’s nationalism and free media appeals.  Once again, we wonder whether Google’s concentration on Chinese market share, rather than user quality, is wise.

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