Opportunities for China’s VR market as the game-changer

In this episode, our guest Eloi Gerard from CrowsNest gives insights about opportunities in and barriers of China’s VR market. How can VR companies attract new sets of customers? How can a smartphone be integrated? Watch this episode to learn more.

Full transcript:

00:04welcome to Daxue talks00:06a show powered by Daxue consulting a00:08china-based strategic market research00:10company founded in 2010.00:12my name is i’m in china for eight years00:15and i now have00:16a company dedicated to vr and ar00:19based in shanghai for uh five years now00:23so uh i had the chance to work with00:25several clients you know based around00:27asia it gives me i guess a good overview00:31of what’s happening in00:33virtual reality and now augmented00:36reality that becomes00:37from this year something00:40my clients are a travel business so i00:43have some people00:44like club med like hyatt hotel00:47uh cars like pojo citroen i have00:51like a supermarket like the metro00:52supermarket and00:54logitech in technology it’s quite fast00:57it goes all around00:58usually based here in shanghai but also01:01in hong kong01:02sometimes in korea sometimes a bit01:04around01:05which travel a bit around asia what are01:08the trends for01:09china’s vr market in 202001:13so i think that the the major device01:15being released is a is a new pico01:17uh so pico is a brand of vr headset and01:21the01:22uh it’s the first uh vr headset01:25being a standalone vr headset so that01:27you don’t need to plug to a computer you01:28don’t need to have a powerful computer01:30to actually uh01:31to actually see that and um it’s the01:35first decent uh chinese designed uh01:40vr headset that we have uh and that’s01:43so it’s a it’s a kind of direct01:45competitor to oculus quest which is the01:47main01:48the main the best vr headset that we01:51have now outside of china01:53and uh and the let’s say the01:56specification01:57of this pico is even better than the01:59oculus quest02:00so it’s quite well it’s a it’s a cool02:03it’s cool hardware02:04unfortunately uh it’s still uh it’s02:07suffer from the02:08the fact that it is in china so uh you02:11have02:12zero content inside that so or barely02:14you know it is02:16one or two games uh so there is no02:18reason for any chinese to actually buy02:20this headset even if it02:22on the paper it’s it is better than a02:24oculus quest02:25you can access nothing okay uh02:28so why would you buy it you know so you02:31can have some02:32some companies using it but even inside02:35the platform uh02:36being built for that uh is not as good02:39as the oculus quest so the the software02:42itself is not as cool not as good02:44but as intuitive and not as you know the02:46the02:48user experience is not as good as oculus02:50quest02:51so it’s a bit like a missing thing but02:54this is probably the02:55major thing and then we can say that yes02:57some uh02:58some uh headset maker tried to do now03:01super small vr03:03it’s a three three degree of freedom vr03:05etcetera that you connect to your phone03:06that will be a game changer also that03:08will reach new category of people03:11uh that yes do not want to to to spend a03:14lot of money on a full standalone but03:16something that you just plug to your03:17phones which means that03:18you use the the the processor of your03:22phone03:22so the headset itself is cheaper and03:24more accessible03:26and you will have a new type of03:27experience so this is something that03:29will develop in china and that will03:30probably never develop in the west03:33so which means that we will have to03:35design some applications specific for03:37that03:38uh which means that not many people will03:40do it because the market will be too03:42small so03:43it will probably still be something that03:45will exist a little bit for a few years03:47and then03:48move to a real six degree of freedom03:50experience that you can plug to your03:51phone03:52and then we can just add up many games03:54or experiences that have been done03:55outside of china to china one of the03:57main growth barriers for china’s vr not04:13so you know to available to understand04:14how to do a good vr04:16application you need to be good in three04:19different things you need to be good and04:20creative04:21and there is not that much creative04:22school in china or good creative school04:25you know04:25uh so creative design you know and04:27inventing something and and creating it04:29from scratch04:31need to be good in business you know and04:32having a great uh04:34understanding on how to sell something04:36and uh04:37in vr to a to a client or online and you04:40need to be good in technology04:42and preferably you need to have these04:44three things a bit in the same time04:46so you don’t have like you know this04:48kind of um04:50university or or training giving you04:52these three04:54different um approach and uh04:57an understanding to really uh invent a04:59new product in vr05:01so education is a big problem i think05:04for the the chinese market is that we05:05need more05:06uh university handling this kind of05:08thing05:10or a private private school you know05:12really proposing05:13new type of design class a new type of05:17business05:19and technology second thing is that it’s05:22a huge problem as that is the firewall05:24so you have a lot of people in china05:27they are not really aware of what’s05:28going on outside of china05:30so especially in the vr industry05:33especially also in the vr industry05:35many people are just not aware of what’s05:37going on you know what are the games05:38being developed right now05:40on the oculus store what’s what’s05:43existing so many developers in china05:46they are just05:46um comparing themselves to other05:49developer in china they don’t realize05:50what’s happening outside05:52of time so i think it’s a it’s a big05:54problem also05:55is that they are not aware of what’s05:57what’s going on05:59uh i think uh we have another problem06:02that we are not talking uh06:03about enough is that many of the chinese06:06hardware maker06:08um like pico you know like the one we06:11were talking about the06:13dpvr they are not participating enough06:15into06:16the big international gathering06:19where the standardization of vr exists06:22and we are now creating the standards06:25that will help this this entire industry06:28to be06:29where we are all compatible to each06:30other when we do one application for one06:33vr headset it also works on another vr06:35it’s in the interest of the developer06:37doing it so it’s doing only once06:40for all the for all the the vr headset06:42you know06:43uh so we are looking for more06:45standardization also06:47another problem sorry and we have so06:48many problems but i’m sharing with you06:51uh there is a lack of competition in06:54china06:55so even if a lot of people try to do06:57cool things06:58you always have at some point uh like a07:01state-owned enterprise07:03or an investor uh which is uh07:05state-driven which is investing07:07into a friend or uh07:10investing into a company without really07:13analyzing what the what is the07:15the the market landscape and um07:18they are investing uh a lot of money07:21into something which doesn’t help to07:23create07:23a healthy competition any questions we07:26will find an expert to answer them07:28drop your questions in the comments or07:30send us an email07:31dx doshwayconsulting.comEnglish (auto-generated)

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