SNS in ChinaCNew Space for Interpersonal Relationships

Social Networking Service (SNS) sites have exploded onto China’s Internet scene with such a force that many companies have blocked access to the sites during office hours C leaving employees anxiously counting down the minutes till they can get home and reconnect with their friends. And while Kaixin001 is the undisputed king of the Chinese SNS arena, others like Hainei and Xiaonei are signing new subscribers in their millions.More recently, some of the top web portals in the country like Sina and Yahoo got in on the act, too.

LI Yang, a 25-year-old office worker, had invited his friends to come and check out his newly bought, newly decorated villa. The party mood was spoilt, however, when Li got news that his limo had just got a ticket. Luckily for Li, the parking ticket exists only in the virtual world. Unfortunately, so do his villa and luxury car.

All the action took place in “Parking War” and “House Sales” C two games on Kaixin001, an SNS that allows users to keep in closer touch with friends, family and colleagues. Users can keep abreast of their friends’ latest movements and share life’s moments of happiness together.

Analysts have found that generations X and Y C those born in the 70s and 80s ­C prefer to strike up social relationships with acquaintances such as colleagues, rather than with strangers. Says HR manager Harry Liu: “Traditionally, a business dinner or a company activity would be about as far as collegial relations would go. These days, colleagues working in the same departments might socialize a little more, but a barrier has remained between inter-departmental employees. The emergence of SNS sites, however, is beginning to tear that barrier down, and foster deeper friendship among company employees.”

According to iResearch, a market research company, the combined market value of networking services in China exceeded RMB 500 million in 2007, and the relatively new phenomenon of social networking services accounted for an impressive RMB 280 million of that. Clever marketing strategies and user-friendly games have attracted youngsters in their droves, particularly white-collar workers and college-goers.

Massive Marketing

Chinese netizens’ inboxes have been bombarded with invitations to sign up with these SNS sites C all it takes is a quick click and a few minutes spent filling in some personal data. Once you’ve joined, you’ll be tempted to stay when you discover which of your email contacts are also in the club. This means most newbies will soon have numerous, familiar playmates C far more preferable to the relative anonymity (and possible danger) of web friends in other community formats. As your “popularity” soars, so will your enjoyment, and you’ll likely reacquaint with old school friends that you thought you’d never see again.

These sites largely rely on word-of-mouth marketing C a very effective form of product promotion that works outside a formalized setting. People are more likely to trust their friends’ opinions on a product rather than those of highly paid advertising executives. Linked into the Internet, it surpasses the limitations of time and space, and the product propagates nationwide. Even better, word-of-mouth marketing is practically free. And the word about SNS sites has spread like wildfire C Kaixin001 had more than 9 million registered users by February 2009. Today it is one of the top 150 most-visited sites in the world, and registers more than 60 million hits a day.

User-friendly

, one of China’s best-known web portals, is optimistic about the prospects of SNS sites. Its business development manager, Huo Liang, says: “The area is growing rapidly, and the wide variety of game plug-ins has proved extremely successful in capturing users.” SNS sites’ clean layout and simple design appeal to Chinese Internet users, and their comprehensive functions such as photo albums, music and movie libraries are complemented by interesting features such as “Where have you been” and professional skills tests.

“Friends Sales” keeps players amused as they can “buy” their friends, nickname them and turn them into virtual slaves. Players can use these games to escape their real world worries, while having a bit of fun with their friends. And they are so designed that as more people join, the “life” of the game is prolonged. For instance, one may tire of playing “House Buying” with A, B and C, but when X, Y and Z join, their enthusiasm might pull the user back into the game.

Most of the games are based on real world concerns, such as human interaction, buying a new car or making a fortune on the stock market. Allowing users to shift between the virtual and real worlds might be the trump card of SNS sites.

Lingering Loyalty

Xu Chaojun is CEO of Xiaonei, an SNS that is tailored towards college students. He says: “Interpersonal relations are at the core of SNS sites. We are always thinking of new ways to encourage communication between our users. As well as adding value to the site itself, this helps us to understand our customers, and design better services for them.” The SNS is currently working on developing an open platform for its users, and has crammed some 800 applications onto the site since July 2008.

That these sites have exploited the human need for interpersonal relationships has given them an edge over other online forums which cater to special interest groups. Film forums will attract movie buffs only, and cyber game sites will be visited by gamers only, but SNS sites appeal to all. And while many people sign up on their own accord, countless others learn about the sites via “invitations” ­C sent electronically by friends and colleagues who are already avid participants. If one acquaintance invites you to join, you might well ignore the request. But if five or ten people send you an invitation, and the canteen chatter is focused on the latest version of “Parking War,” could you so easily refuse to give it a go? Wang Wei, a web video editor, joined Kaixin001 in August last year. Now with 82 friends, he is firmly hooked. He says: “As long as my friends and colleagues stay, there is no reason for me to leave.”

It is not surprising that China’s SNS sites are more popular here than Facebook, MySpace and other longer-established social networking sites that were primarily developed for Western users. While most of these have launched a Chinese version in a bid to sign users in the world’s most connected nation (Facebook rolled out its Chinese-language site in July 2008), they have struggled to compete with homegrown players, who have a better understanding of Chinese cultural traits and trends. Just as eBay and Bertelsmann are no match for their homegrown rivals Taobao and Joyo, a product that fails to incorporate specific Chinese needs will be rejected for a local one that does. Let the games begin!