Why Amazon's kindle might not catch on in China - Shaun Rein

Shaun Rein

Amazon is trying to return to China, but business analyst Shaun Rein doubts severely whether China's consumers are waiting for the elsewhere so successful Kindle, he tells in Abacus News. China's Xiaomi could be more successful as a competitor, but has problems of its own, he adds.

Abacus News:

Analysts say smartphones have an edge over dedicated ebook readers in China. Unlike Americans, who adopted the Kindle to read ebooks before smartphones became widely popular, Chinese people leapfrogged e-readers and went straight to using smartphones, according to Shaun Rein, managing director of China Market Research Group.

“They’re much more comfortable reading books off a mobile phone interface than something specifically for books like the Kindle,” he said... 

“Because salaries are a little bit lower in China, people are less likely to buy a TV, a mobile phone, a Kindle reader, and many multiple devices,” said Rein. “So they’re willing to spend a larger proportion of their monthly salary on, say, a mobile phone than Americans would… They’re putting all their money into mobile phones.”... 

“I think Xiaomi has potential, but I think Xiaomi in general is just one of those companies that has way too many product lines,” said Rein. “Basically they try to get into every product category there is and just spread into their internet of things, but they don’t necessarily have a cohesive strategy.”

More in Abacus News.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Why e-readers are doing well in China - Shaun Rein

Shaun Rein and his books

The Hong Kong IPO by Tencent's China Literature, driving on a Chinese e-reader, was a big hit, while e-readers like Amazon Kindle are clearly over their highpoint. Business analyst Shaun Rein explains in CNNMoney why e-readers go like crazy in China.

CNNMoney:

Compared with other smartphone distractions like video games and streaming TV, e-books may seem a bit low-tech. 

But they appeal to many Chinese, as they are subject to less stringent government censorship rules than movies and TV. 

"There's a lot more flexibility and freedom," said Shaun Rein, managing director of China Market Research in Shanghai. The most popular genres are romance and fantasy, he added. 

Rein said that local e-reading platforms are also more popular than foreign entrants, like Amazon's Kindle. That's despite the U.S. behemoth's e-book store having been in China for almost five years. 

Apple's iBooks service in China was abruptly shut down last year, reportedly on government orders. 

China Literature's Qidian.com portal lets users buy individual chapters for the equivalent of a couple of U.S. dollars, rather than forking out for an entire title. 

"It's seen as virtually free and it builds up momentum" for the following chapters, Rein said. Unlike Amazon's Kindle Store, the titles on Qidian.com are mostly written by enthusiastic amateurs hoping to strike it rich as the next J.K. Rowling. Part of China Literature's long-term strategy is licensing out this steady flow of content into other media, like TV series, games and movies.

More in CNNMoney.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on innovation at the China Speakers Bureau? Do check out this list.  

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