China Rich Media Conferencing Channel Network Guide: Locating Solutions and Partners in the Middle Kingdom published by Wainhouse Research, LLC in June, 2006. This report consists of 100+ pages, 28 figures, 44 channel profiles and the price starts from US $ 1995.
Abstract
Executive Summary
Overview
Two basic truisms about the Chinese market are its vast business potential and
pervasive lack of transparency. This situation frequently translates into a
cycle of enthusiasm, investment and disappointment for companies developing
partnerships in China. The purpose of this report is provide a high resolution
snapshot of the companies involved in China's rich media conferencing industry
and the environment in which they operate.
This guide is primarily meant for:
- Vendors seeking new partners or a better understanding of current partners,
- Resellers with global companies who wish to certify local partners, and
- Information and Communications Technology (ICT) managers at global
companies who have invested in a global videoconferencing network and need
local support and services in China.
Why focus on China?
Dramatic growth and uneven development have created unique challenges and
opportunities within the IT and Network services industries. Rich Media
Conferencing (RMC) -- which involves IP communications, specialized audio and
video technologies, and enterprise groupware applications -- is no exception.
The following points highlight some of the contradictions facing customers and
suppliers today.
- China is the second largest national market for videoconferencing
equipment after the U.S., accounting for close to 20% of global sales and
service revenues. And yet local Chinese market developments and sales
practices are often obscure to international RMC company decision-makers due
to language and culture barriers. This has provided an edge to domestic
suppliers, who grew their market share from 57% in 2004 to just over 70% in
2005.
China is perennially one of the top three destinations for foreign direct
investment. The majority of Fortune 500 companies and international agencies
have multiple China locations. These same companies are major accounts for
conferencing and collaboration vendors and suppliers. Yet they often have been
left to fend for themselves when it comes to implementing and maintaining
their conferencing and collaboration networks in China.
China is the home to many of the "first" and "biggest" IP based rich media
communications networks in the world. Yet the conferencing and collaboration
service industry is in its infancy.
This report examines how both large and small channel partners are navigating
through a rapidly changing and often contradictory market.
Key Findings
Companies operating in China straddle a gap between global market trends and
operating practices and a developing market with a unique character, based on
being barely a generation out of self-imposed isolation. Focusing too much on
China's "uniqueness" can be as dangerous as expecting customers to value
exactly the same applications, features and services as customers in the U.S.
Or other western countries. The goal of this report is not to present black
and white certainties, but to introduce the nuances and complexities that are
necessarily part of a strategic approach to this market.
Several points emerged from this research that can impact the success of
partnership strategies in China.
- Although the government is still the largest customer for rich media
conferencing products and services, almost 60% of the companies profiled earn
more than half of their RMC revenues from other market segments. This suggests
that the time is right to evaluate sales practices and channel strategies that
traditionally have been geared exclusively to large government tenders.
- The value of developing loyalty and skills at the local and provincial
levels is growing as rich media conferencing solutions are implemented by
local governments and private companies are incorporating more diverse
applications such as training, surveillance, and emergency services.
- Chinese vendors are no longer operating in a separate, parallel universe
to international vendors. There is increased overlap in channel partners,
sales models and customer segments.
- Reseller service models are emerging as local integrators start generating
revenues with RMC-related software development, conferencing services, and
managed services. However, it is not yet clear whether these efforts will be
successful enough to turn the tide against an ingrained lack of service
culture.
- Conferencing services are struggling to get out from under the weight of
the major telecoms. Of all the RMC companies interviewed, only one local
integrator and one VAR have on ongoing partnership in the conferencing space
with a major netw0ork operator. In neither case has this given them any
traction with customers.
- Wainhouse Research believes that this may be a critical time for rich
media conferencing
- companies to re-evaluate partnership strategies in China. Just as the
global rich media
- conferencing industry is maturing and becoming integrated into mainstream
IT markets, the
- market environment in China is also maturing as the customer base
diversifies and
- companies experiment with different market approaches. Local partners -
the feet on the
- street - are a key determinant of any company's success in providing
solutions for a diverse
- set of customers.
RMC Channel Partners Profiled in this Report
Chapter Two includes an introduction to each of the following companies,
including its Chinese name and contact information, as well as a review of
products and services, key customers and projects, geographical reach and the
scale of its conferencing business activities.
- 9 Star
- Anhui Lucent
- Bestel
- Canic
- Capital IT
- Changhong IT/ Zarva
- Chinasys
- Control Tech
- Control VC
- Digital China
- Econ AV IT
- GoodMicro
- Googol
- Henan Century IT
- Henan Huibo
- HighNova
- Hollybridge
- HT CreatAV
- Huawei 3Com
- Huier
- In. Mongolia Guangpu
- Insigma
- Kunlun Kaitong
- Lanxum
- Marvelous
- Nanjing Jingyang
- Qingdao Haisida
- Rebecca AV
- SDT
- Sha'anxi Anscien
- Sichuan Juheng
- Southern Telecom
- Suzhou Superhero
- Teamsun
- Tianjin Kaichuang
- We@lcomm
- Wuhan Boosom
- Xiamen Fande
- Xiamen Jindeli
- Xi'an Liwei
- Zhengzhou Fangzhou
- Zhizhen
Table of Contents
List of Figures
List of Tables
Chapter 1 Executive Summary
- Overview
- Why focus on China?
- Report Methodology and Analysis
- Key Findings
- RMC Channel Partners Profiled in this Report
Chapter 2 China's Rich Media Conferencing Value Chain
- The Links in the Chain
- The Customers
Chapter 3 Company Profiles
- 9 Star Communications Equipment
- Anhui Lucent Technology
- Bestel
- Canic Technology
- Capital Information Technology
- Changhong IT/ Zarva
- Chinasys Science & Technology
- Control Tech
- Control VC
- Digital China
- Googol Software & Communication
- GoodMicro
- Henan Century IT
- Henan Huibo
- HighNova
- Hollybridge
- HT CreatAV
- Huier Electronics
- Huawei 3Com
- Inner Mongolia Guangpu Edu-Tech
- Insigma Technology
- Kunlun KaiTong
- Lanxum OA
- Marvelous Technology
- Nanjing Jingyang Communication
- Qingdao Haisida Office Equipment
- Rebecca AV Solutions
- SDT
- Sha'anxi Anscien
- Teamsun Technology
- Tianjin Kaichuang Hengxin
List of Figures
- Figure 1: DST's Geographic Coverage
- Figure 2: RMC Channel Types Represented in the Survey Sample
- Figure 3: Primary Busines by Channel Type
- Figure 4: Role of RMC by Channel Type
- Figure 5: 2005 Rich Media Conferencing Related Revenues
- Figure 6: Geographical Coverage of Different Channel Types
- Figure 7: Office Locations
- Figure 8: Product Mix Carried by Each Type of Channel
- Figure 9: Vendor Channel Composition
- Figure 10: Service Mix by Channel Type
- Figure 11: Revenue Mix of Distributors Profiled
- Figure 12: Revenue Mix of Value-Added Resellers Profiled
- Figure 13: Revenue Mix of System Integrators Profiled
- Figure 14: Revenue Mix of AV Integrators Profiled
- Figure 15: Percentage of RMC Revenues Derived from Government Customers
- Figure 16: The Direct Sales Model
- Figure 17: Two-tied Sales Model
- Figure 18: Three-tiered Sales Model
- Figure 19: Channel Distribution of Selected Chinese Brands
- Figure 20: Channel Distribution of Selected Chinese Brands
- Figure 21: Aethra's Geographical Coverage
- Figure 22: DST's Geographic Coverage
- Figure 23: Huawei's Regional Coverage
- Figure 24:Polycom's Regional Coverage
- Figure 25: RADVISION's Regional Coverage
- Figure 26: SONY's Regional Coverage
- Figure 27: TANDBERG's Regional Coverage
- Figure 28: Emblaze-VCON's Regional Coverage
List of Tables
- Table 1: Role in the RMC Value Chain
- Table 2: Primary Business by Channel Type
- Table 3: Role of RMC by Channel Type
- Table 4: 2005 Rich Media Conferencing Related Revenues
- Table 5: Number of Locations by Geographical Coverage
- Table 6: Geographical Coverage of Different Channel Types
- Table 7: Office Locations
- Table 8: Products Carried by Each Type of Channel
- Table 9: Products Developed In-House by Channels
- Table 10: Service Offered by Each Type of Channel
- Table 11: Revenue Mix of Distributors Profiled
- Table 12: Revenue Mix of Value-Added Resellers Profiled
- Table 13: Revenue Mix of System Integrators Profiled
- Table 14: Revenue Mix of AV Integrators Profiled
- Table 15: Response Rate for Market Segmentation Question
- Table 16: Percentage of Revenues Derived from Government Customers
- Table 17: Profiles of Companies Working in the Defense Vertical
- Table 18: Profiles of Companies Working in the Education Vertical
- Table 19: Profiles of Companies Working in the Fortune 500 Vertical
- Table 20: Profiles of Companies Working in the SME Vertical
- Table 21: Resellers Carrying Selected Chinese Brands
- Table 22: Number of Resellers Carrying Selected International Brands
