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Hot trade in mobile game accounts in SW China

( chinadaily.com.cn )

Updated: 2016-03-31

Step inside the HQ of China's leading site for mobile game account deals in the city of Xingyi, Guizhou province, taoshouyou, a taobao-like website from Chinese e-commerce giant Alibaba, and you see stacks of computers with flashing screens covering the 200-square-meter office, cybercafé-style, because this is where game fans can buy and sell their mobile game accounts.

A year after its founder, Yang Peng, started the site back in 2013, it was doing more than 200 million yuan ($30.74 million) in business and he predicted that it would amount to 500-million yuan ($76.85 million) this year, with 900,000 yuan ($138,323) in daily transactions, and 70-percent of the deals worth more than 1,000 yuan. It now has more than 1,000 types of games on the website and his special office has more than 4,000 tablet computers performing the role of "broadcaster" in the virtual world.

A report from the China Internet Network Information Center shows China with 248 million mobile game players by the end of 2014, and almost half of them spent money on games in the first half of 2015, up 18.8 percentage points from 2014. China's mobile game business is growing rapidly and saw 54.18 billion yuan ($8.33 billion) worth of business in 2015, up 84.6 percent from 2014, according to Analysys International.

Yang says that nearly 50 percent of the accounts on the website can be sold within 7 days, even with only a 3-percent market penetration and that 82 percent of his customers are boys or men, with females accounted for only 18 percent, and Guangdong and Jiangsu province and the mega city of Shenzhen are his top three regions, followed by Zhejiang province and the city of Beijing.

He goes on to say that fewer than 3 percent of the trades comes from Guizhou where the average price ranges from a couple of dozen yuan to hundreds, and that the province is not a leading mobile game player, but that its "lower labor cost" is a distinct advantage for a labor-intensive business such as the Internet, and, thanks to its lower labor costs he was able to survive amidst stiff competition.

He explains that two top competitors -- in Beijing and Guangzhou – are located in places where the manpower is triple the cost and that he plans to expand his business by hiring local college students and migrant workers for game promotions and cultivate 100 micro companies, while creating hundreds of jobs.

Yang concludes by saying, "One company has limited strength so we hope to get financial and policy support from the local government," and that many people have joined his project, and 60-percent of them are generating income, and that he sees immense potential in the mobile game market, and that R&D on his own game is the future since they have tremendous data.

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