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Extending your
Web Business into
China: The Market that Cannot Be Ignored
CHINA’S INTERNET USERS

750 MIL BY 2015

193 MIL

ONLINE SHOPPERS
VS. 170 MIL IN THE US

6%

OF PURCHASES ARE ONLINE
VS. 4% IN THE US
ROOM FOR GROWTH:

ONLY 42%

OF CHINA’S POPULATION IS ONLINE
’09 ’10 ’11 ’12

’15

CHINA’S INTERNET ECONOMY

16 BIL
%
+64.4
40%
$

IN Q3 2012

YEAR-OVER-YEAR

NET NEW
SPENDING ONLINE

Challenges of Reaching the China Market
TECHNOLOGY CHALLENGES

» Six Major ISPs – But, limited peering
» The Great Firewall – Monitors, tracks and censors internet content

ALL

1,782

Domains Blocked

Domains Monitored

Facebook, YouTube,
Twitter, Google and
more.

10-15

Additional Seconds from
outside the Great Firewall
equates to more than

If not blocked, foreign
sites’ download speeds
are severely restricted.

38%

site abandonment

GEOGRAPHIC CHALLENGES
16 Seconds

of internet
population is
in rural areas

30

%

50% Slower

Avg. download
from US and
EU hosted sites

from outside the
Great Firewall

Hong Kong
is outside

CONTENT LICENSING CHALLENGES
» Two licenses are required for all internet
content delivery within China:

ICP

BEIAN

PSB
BEIAN

» The ICP license is required for any
e-commerce site with a shopping cart.

E-COMMERCE

ROI CHALLENGES

» 40% Higher Costs than
delivering from within China.
» Two Years to break even on
building data centers in China.

» Additional licenses may be required.

EDUCATION

PHARMA

NEWS

HEALTHCARE

You Need a Global CDN with Presence in China
GATEWAY TO EFFECTIVELY DELIVER WEB CONTENT TO AND FROM CHINA
Local Expertise

24x7 Support

End to End Reach

Web content, licensing,
regulations, etc.

Continuous monitoring
and mediation

Bypass unstable peering
between ISPs

Points of Presence around
the world and in China

ROI POTENTIAL
OUTSIDE
CDN

Up to 40%

savings compared to
the cost of content
delivery from
outside China

90 days

to yield returns
from delivering
content from a
Global CDN in China

SOURCES: IDC, STRANGELOOP, MCKINSEY, CHINA
INTERNET NETWORK INFORMATION CENTER (CNNIC),
GREATFIRE.ORG - ALL LOGOS COPYRIGHT OF THEIR
RESPECTIVE COMPANY

333% faster

avg. improvement in web
performance: generate
more revenue

For more information please visit:
www.cdnetworks.com/china-acceleration

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Infograph: Extending Your Web Business into China

  • 1. Extending your Web Business into China: The Market that Cannot Be Ignored CHINA’S INTERNET USERS 750 MIL BY 2015 193 MIL ONLINE SHOPPERS VS. 170 MIL IN THE US 6% OF PURCHASES ARE ONLINE VS. 4% IN THE US ROOM FOR GROWTH: ONLY 42% OF CHINA’S POPULATION IS ONLINE ’09 ’10 ’11 ’12 ’15 CHINA’S INTERNET ECONOMY 16 BIL % +64.4 40% $ IN Q3 2012 YEAR-OVER-YEAR NET NEW SPENDING ONLINE Challenges of Reaching the China Market TECHNOLOGY CHALLENGES » Six Major ISPs – But, limited peering » The Great Firewall – Monitors, tracks and censors internet content ALL 1,782 Domains Blocked Domains Monitored Facebook, YouTube, Twitter, Google and more. 10-15 Additional Seconds from outside the Great Firewall equates to more than If not blocked, foreign sites’ download speeds are severely restricted. 38% site abandonment GEOGRAPHIC CHALLENGES 16 Seconds of internet population is in rural areas 30 % 50% Slower Avg. download from US and EU hosted sites from outside the Great Firewall Hong Kong is outside CONTENT LICENSING CHALLENGES » Two licenses are required for all internet content delivery within China: ICP BEIAN PSB BEIAN » The ICP license is required for any e-commerce site with a shopping cart. E-COMMERCE ROI CHALLENGES » 40% Higher Costs than delivering from within China. » Two Years to break even on building data centers in China. » Additional licenses may be required. EDUCATION PHARMA NEWS HEALTHCARE You Need a Global CDN with Presence in China GATEWAY TO EFFECTIVELY DELIVER WEB CONTENT TO AND FROM CHINA Local Expertise 24x7 Support End to End Reach Web content, licensing, regulations, etc. Continuous monitoring and mediation Bypass unstable peering between ISPs Points of Presence around the world and in China ROI POTENTIAL OUTSIDE CDN Up to 40% savings compared to the cost of content delivery from outside China 90 days to yield returns from delivering content from a Global CDN in China SOURCES: IDC, STRANGELOOP, MCKINSEY, CHINA INTERNET NETWORK INFORMATION CENTER (CNNIC), GREATFIRE.ORG - ALL LOGOS COPYRIGHT OF THEIR RESPECTIVE COMPANY 333% faster avg. improvement in web performance: generate more revenue For more information please visit: www.cdnetworks.com/china-acceleration