Location-based Service: Converging to a Larger Background

A snapshot of the latest trends of Location-based Service (LBS) in Beijing, Shanghai, Hongkong and Tokyo. 

Trend Description:

Many people would agree that LBS is becoming more and more popular worldwide and is opening a host of opportunities for business, but few would agree on the business model that will best monetize the service. Nokia, the mobile market leader, expects to ship 35 million GPS-phones in 2008 and the latest  ABI report blueprinted a $ 3.3 billion market value for LBS, but still the way to whip up revenues from existing technology and infrastructure remains unclear. Here we filtered some promising, if not profitable, practices of LBS in Asia to summarize new trends for industrial practitioners and those who may be concerned.

Cases:

GyPSii is a social networking platform headquartered in Amsterdam, the Netherland. It has partnered with Shanghai Rannuo and China Unicom to launch its GyPSii service during the 2008 Olympic Games in Beijing and has opened a China Data Center to enhance local user experience. What GyPSii is doing in China is encouraging its network users to send back location information via mobile devices and integrate it into the digital map. Other users (who are also content creators) then, can experience a seamless mobile lifestyle, connecting with friends and communities, searching UGC and viewing maps and directions to points of interest.

Naviblog X is Japan’s first location-based moblog/mobsearch website. With this service, usrs can easily create their mobile diary sites within 60 seconds even if they know little about programming.  After the sites are created, they point their mobile phones to the QR Code auto-generated with the sites and transfer them to the mobile phones of their friends or clients to log on the sites. It is also designed to geo-tag users’ information by one-click. Naviblog is said to be used on non-Japan phones soon.

Louis Vuitton Soundwalk

Fashion makers lag behind to none in creativity if not in high-tech. With thousands of foreigners entering China this Olympic year, Louis Vuitton, the French luxury fashion brand entered the mobile space with a unique location-based audio guide, available in six languages, to three major cities, Beijing, Shanghai and Hong Kong. The voice is coming from three locally born actresses: Gong Li for Beijing, Joan Chen for Shanghai and Shu Qi for Hong Kong. It directs visitors by mobile phones in real time through the cities and costs 17 USD for for each city in one of the six languages, English, French, Cantonese, Chinese, Korean and Japanese.

Trend Potential:

The convergence of social networking, user-created content and location is a big trend. Mobile-enabled LBS is important because it links up something missing on the internet. There are some major barriers for business related to mobile internet, such as licensing and sophisticated algorithms, but as some of the global players have discovered, a fast track to enter a local market is to line up with local mobile carriers, technological developers and last but not least the users, who know best what they want.

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