The market of China, which encapsulates billion people and trillions of dollars in value can be intimidating to businesses which are not agile and responsive to change. To innovative and daring companies, the market of China is indeed an expansion opportunity although a huge leap into the unknown is the integral part of expansion phases.
What does that mean for ARVRtech group?
Because of our background knowledge and technical capabilities in the domains of Image Processing, Machine Vision, Artificial Intelligence, Machine learning, 3D Modelling and Animation, we can bring forward any Augmented and Virtual Reality project towards successful completion and in alignment with global trends. As a result, the daily commitment to innovation drives our company towards forming lasting partnerships in strong and emerging markets of AR and VR solutions applied across different technologies in China markets.
Chinese market is going to become the goldmine for Virtual and Augmented Reality by 2020 according to IDC. There will be 15.5 million units of VR headsets shipped by 2020, whereas 2.8 million units of AR devices will be shipped in China. This is an unbelievable leap from 609,000 VR headsets and 3,000 deliveries of AR devices in 2016.
As the new technology becomes widely available to a bigger marketing segment, new business models emerge.
IDC China research manager Neo Zheng stated for South China Morning Post
that China will lead regarding usage scenarios, whereas the US market will lead in terms of developing technologies.
Integration of Mobile Technologies and AR/VR
Another strong indicator of China’s readiness for the adoption of Virtual and Augmented Reality apps is that over 100 startups focus on VR headsets, which can benefit from prominent and highly acclaimed VR vendors such as 3Glasses, Deepoon, Hypereal, Pico and Pimax. Zheng also sees a huge potential in integrating VR and AR software with smartphone solutions of leading Chinese vendors, such as Huawei Technologies, Lenovo Group, and Xiaomi.
Also, we should not underestimate the global success of Chinese tech giants such as Alibaba, Chukong, HTC, Shanda, and Tencent. These successful brands disrupt the Chinese tech scene, thus impacting both the development of AR/VR apps and hardware. For example, upon Microsoft’s release of Hololens, their hardware partners will be 3Glasses, Lenovo, Dell and Acer.
Therefore, the similar trend regarding software and hardware is going to happen in China as in the rest of the world. A huge variety of headsets is here to satisfy different business and individual users, be that high-end or mid-range whereas it is high time for creating mind-blowing content across different industries and verticals.
Educating billions in Asia and world-wide
Not only is China a billion-people market, but it has a strong diaspora of educated, high net-worth people and as well as individuals who pave their way towards middle class and higher income. The new class of Chinese youth who want to obtain international education emerges. Due to family values and education system they are trained since early age to obtain exceptional grades and to embrace European and American culture.
Statista identifies the exact number of Chinese expats abroad such as 7 million people in Indonesia, Thailand and Malaysia whereas in the US it is 3.8 million people. Chinese who succeed overseas continue to expand Chinese culture and influence as well contributing to the business growth and economic trade.
Therefore, the ventures which educate young Chinese for global skills and succeeding in the future markets are wildly successful. For example, Shanghai-based Dyad mentorship has educated over 1,800 motivated students who received full scholarships. Under Dyad’s wing 70 students got accepted to Columbia, 31 future academic citizens to LSE, while 9 students to The University of Cambridge, and 22 to the University of Pennsylvania.
Judge Business Academy, the visionary venture of Sir Paul Judge and his UK- and China-based devoted team, will provide the English-based education and A-levels to thousands of young Chinese who want to pursue their university degrees in the Anglophone world.
Imagine the potential of Virtual and Augmented Reality in educating the Chinese market and equipping them for jobs of the future. The costs of extensive travel and instructions can be mitigated with the immersive and scalable experience of VR and AR apps.
Gaming experience in China with VR/AR
Certainly, Chinese gamers are like the people in the rest of the world: they look for more and more engaging experience, as they continue to build their reputation as they excel among their peers.
Recently Forbes has provided a survey by Niko Partners which showed that around 50% of Chinese gamers are willing to spend around $200 USD on VR device, while we should take into account that the average income in China is around $12,000 per year.
Since HTC Vive costs around $1,000 USD in China and it requires a complementary high-end PC for $1,000 USD, the Chinese business people have identified a much better way to target a larger portion of the enthusiastic gamer market. This is how throughout China thousands of VR internet cafés and experience zones emerged, whereas more and more of them are going to be opened.
When users pay $8 USD in those VR zones, they receive 30 minutes of game play and full immersion into the world of virtual gaming. Shunwang, the reputable provider of Internet café management software has provided the specialized solution for owners of VR experience zones and VR internet cafés.
The next steps for succeeding in China
In Deloitte’s 2017 Technology Outlook, Paul Sallomi, Global Technology, Media & Telecommunications industry leader and the US and global technology sector leader, provides the answer where the biggest opportunities for growth lie in 2017. According to Sallomi, key takeaways are, “exponential” technologies including robotics, virtual and augmented reality (VR) (AR), 3-D printing, and artificial intelligence (AI) are opening up significant areas of opportunity, whereas the Internet of Things has only just begun to reveal its promise.’’
For all those aforementioned reasons of innovation, scale, incredible workforce and colossal investments, China remains one of the most vibrant and important market for all innovative brands and teams that want to disrupt the existing industry. With solid and scalable products and services, plenty of perseverance and adaptability, reliable partners and globally relevant know-how you can succeed in China. That is why Augmented and Virtual Reality, the technology with exponential impact, has its huge place in China. Hardware and software companies which harness this potential will be competitive for the 21st century race.
Photo: VR Focus