In the space of just a half year, Internet giant Tencent’s (HKEx: 700) popular mobile messaging WeChat app has gone from obscurity, to red-hot rising star, to its latest position as a target of attack from just about everyone. The popular app has come under assault in the last 3 months from the nation’s 3 telcos, which complain that WeChat users are taking up a growing share of their network capacity. The trio have found a potent ally in the nation’s telecoms regulator, the Ministry of Industry and Information Technology (MIIT), which has stepped in to help “mediate” the dispute. On top of all that, a wave of envious rivals with copycat products is quickly appearing on the scene. Read Full Post…
Internet security software maker Qihoo 360 (NYSE: QIHU) is in the headlines much more than most companies of its size, sometimes for positive news but equally often for its controversial business tactics that many might consider bordering on the unethical. Against that backdrop, it’s interesting to see that Qihoo has just announced a new government tie-up that looks like an effort to improve its image in the marketplace. That announcement has Qihoo saying it will provide enterprise Internet security solutions to the Commerce Ministry, a major government body. (
There’s a flurry of interesting new developments in China’s online search market, which has suddenly become a hotbed of new activity after a several years of quiet during a period of domination by sector leader Baidu (Nasdaq: BIDU). Leading the reports is news that e-commerce giant Alibaba, which already operates an e-commerce search site called eTao, is entering the more mainstream search market. At the same time, other reports are saying that Sohu’s (Nasdaq: SOHU) Sogou, the industry’s third largest search engine, is in talks to acquire Soso, the search engine run by Chinese Internet titan Tencent (Nasdaq: 700). Lastly there’s the more minor news bit that the search engine run by the People’s Daily has run into hard times and is laying off up to 10 percent of its staff.
I don’t know if anyone else has noticed this, but a lot of Chinese Internet firms suddenly seem to be engaged in a series of major reorganizations. I came to this conclusion after reading this morning that Suning.com (Shenzhen: 002024), one of China’s top e-commerce firms, has just undergone a major structural reorganization as part of what the company says is a regular exercise. (
It may be a new year, but there’s nothing new about the latest development in the group buying space where an ongoing cleanup has claimed one of the biggest victims yet with reports of mass layoffs at a mid-sized player called Qianpin. This latest shake-up is part of an ongoing retrenchment that has now reached its late stages, and I do expect we’ll see 1 or 2 more major fireworks in the next 6 months before this long and painful consolidation wraps up around the middle of the year.
I quite admire scrappy smartphone start-up Xiaomi for its savvy marketing tactics, but I’m beginning to have doubts about some of its more strategic choices after reading about its latest tie-up with the stodgy China Central Television (CCTV), China’s dominant state-run TV broadcaster. Xioami is in a challenging place in its development, as it tries to make the transition from a niche maker of low-cost, high-performance smartphones to a more mainstream company with a wider range of product and service offerings. The company in many ways is trying to follow in the footsteps of its idol, US tech giant Apple (Nasdaq: AAPL), which also has made the transition in the last 5 years from a relative niche player to the world’s biggest tech company.
As China prepares to open its telecoms market to virtual network operators (VNOs) later this year, investors will inevitably be following the market closely to try to figure out who might become the first firms to enter the lucrative area. Many have speculated that Internet titan Tencent (HKEx: 700) could be one of the first 6 companies to enter the arena (
