Mobile life
China has rapidly become the biggest mobile phone market in the world. This has led to a massive cultural change, says Tom Ramoser, Partner at our Beijing office.
In the not so distant past, speaking to a relative in another part of China was no easy task. It often entailed a bicycle ride to the closest city and queuing for hours to use a public telephone. You would then call your relative's company, where the receptionist would use a megaphone to notify them. Anything you said was also eagerly listening by the crowd within earshot on both sides. Things have since changed. Today, when two Chinese people meet, they are likely to exchange their mobile phone numbers before they even introduce themselves.
There are already more than 370 million mobile phones in China, and the number increases by five million each month. China has rapidly become the biggest mobile phone market in the world by far. There are twice as many mobile phone users as in the US, and six times as many as in Germany.
Europeans coming to China for the first time are surprised with a friendly welcome message from China Mobile. In 2002, the Chinese government divided the all-mighty China Telecom into four separate companies: two regional landline and broadband providers, China Netcom in the north, the much reduced remnant of China Telecom in the south plus the national mobile network providers China Mobile and China Unicom. The goal of the split up was to introduce and subsequently increase competitiveness amongst the four. In the mobile business, China Mobile is already miles ahead of China Unicom. Insiders are saying that despite its 110 million subscribers and status as third largest mobile phone operator on this planet, China Unicom could soon be dissolved.
In the not so distant past, speaking to a relative in another part of China was no easy task. It often entailed a bicycle ride to the closest city and queuing for hours to use a public telephone. You would then call your relative's company, where the receptionist would use a megaphone to notify them. Anything you said was also eagerly listening by the crowd within earshot on both sides. Things have since changed. Today, when two Chinese people meet, they are likely to exchange their mobile phone numbers before they even introduce themselves.
There are already more than 370 million mobile phones in China, and the number increases by five million each month. China has rapidly become the biggest mobile phone market in the world by far. There are twice as many mobile phone users as in the US, and six times as many as in Germany.
Europeans coming to China for the first time are surprised with a friendly welcome message from China Mobile. In 2002, the Chinese government divided the all-mighty China Telecom into four separate companies: two regional landline and broadband providers, China Netcom in the north, the much reduced remnant of China Telecom in the south plus the national mobile network providers China Mobile and China Unicom. The goal of the split up was to introduce and subsequently increase competitiveness amongst the four. In the mobile business, China Mobile is already miles ahead of China Unicom. Insiders are saying that despite its 110 million subscribers and status as third largest mobile phone operator on this planet, China Unicom could soon be dissolved.
Tom Ramoser
Cinema blockbuster "Cellphone"
Nokia and Motorola have been strongly affected by the Chinese obsession with competition. In particular, the typical design of Nokia phones looked too much like chocolate bars for Chinese tastes, while Motorola phones were much too complicated to use. Chinese phone manufacturers Ningbo Bird and TCL have halved their Western opponents' market shares with a simple strategy. They split the middle ground by specifically targeting both the low-cost and exclusive lifestyle segments at the same time. If Korea's Samsung and LG are included, the market share of the Asian ensemble in China has grown from 3% in 1999 to 55% in 2004.
Last year, the biggest blockbuster in China was not "Harry Potter", "Finding Nemo" or "The Matrix", but rather a local production called "Cellphone". The movie has captured China's Zeitgeist like no other, while at the same time addressing the Chinese population's subconscious worries about their rapid development. A dark comedy, the movie tells the story of an immoral and dishonest TV talk-show host who uses his feature-laden mobile phone to lie, betray and manipulate his way through life. The film "tells a lot about real life," says 22-year-old Chi Na in a saddened tone. Since the movie was released, using the phrase "Wo zai kai hui," - I'm in a meeting - has become a running social joke.
Nokia and Motorola have been strongly affected by the Chinese obsession with competition. In particular, the typical design of Nokia phones looked too much like chocolate bars for Chinese tastes, while Motorola phones were much too complicated to use. Chinese phone manufacturers Ningbo Bird and TCL have halved their Western opponents' market shares with a simple strategy. They split the middle ground by specifically targeting both the low-cost and exclusive lifestyle segments at the same time. If Korea's Samsung and LG are included, the market share of the Asian ensemble in China has grown from 3% in 1999 to 55% in 2004.
Last year, the biggest blockbuster in China was not "Harry Potter", "Finding Nemo" or "The Matrix", but rather a local production called "Cellphone". The movie has captured China's Zeitgeist like no other, while at the same time addressing the Chinese population's subconscious worries about their rapid development. A dark comedy, the movie tells the story of an immoral and dishonest TV talk-show host who uses his feature-laden mobile phone to lie, betray and manipulate his way through life. The film "tells a lot about real life," says 22-year-old Chi Na in a saddened tone. Since the movie was released, using the phrase "Wo zai kai hui," - I'm in a meeting - has become a running social joke.
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New sense of privacy
In China, mobile phones are not only a sign of achievement, prosperity and individuality. More than anything, they are driving cultural change. The notion of privacy is unknown to most Chinese; apart from a few exceptions, most activities take place in a community setting. Also the distinction between "my" and "yours" is absent. Parents, for example, strictly discipline children who do not want to share a toys with other children. In a society where it is still difficult to display affection publicly, mobile phones offer new privacy for romance, and extramarital affairs. Thus, the mobile phone has become also a symbol for the loss of traditional values, especially for people in rural areas.
"Cellphone" has some viewers painfully reminded of their own relationships. Internet chat-rooms are full of stories about couples fighting or breaking up after seeing the movie. The most bizarre story may have happened to a woman from Tianjin, not far from Beijing. When she demanded to see her boyfriend's SMS on the way home from the movie theater, the later became so infuriated that he hit her with his phone over the head ending her up in the hospital.
Tom Ramoser is Partner of Roland Berger Strategy Consultants and head of the Global Strategic Brand Management Group.
If you have any questions or concerns, please feel free to contact us:
In China, mobile phones are not only a sign of achievement, prosperity and individuality. More than anything, they are driving cultural change. The notion of privacy is unknown to most Chinese; apart from a few exceptions, most activities take place in a community setting. Also the distinction between "my" and "yours" is absent. Parents, for example, strictly discipline children who do not want to share a toys with other children. In a society where it is still difficult to display affection publicly, mobile phones offer new privacy for romance, and extramarital affairs. Thus, the mobile phone has become also a symbol for the loss of traditional values, especially for people in rural areas.
"Cellphone" has some viewers painfully reminded of their own relationships. Internet chat-rooms are full of stories about couples fighting or breaking up after seeing the movie. The most bizarre story may have happened to a woman from Tianjin, not far from Beijing. When she demanded to see her boyfriend's SMS on the way home from the movie theater, the later became so infuriated that he hit her with his phone over the head ending her up in the hospital.
Tom Ramoser is Partner of Roland Berger Strategy Consultants and head of the Global Strategic Brand Management Group.
If you have any questions or concerns, please feel free to contact us:
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