So basically this is a business model that can only survive because of restrictions set by the current government.
What will happen if China and the US reach some kind of agreement, and unlocking online US-services will be part of it?
AND when cloning physical goods (like phones, cars, clothes, shoes, whatever) -- you can export them, since people are willing to pay lower prices for clones. How can you export a Tumblr or a Twitter clone, when both are freemium?
How are these clones surviving? Do they generate revenue, when Tumblr, Twitter and Facebook can barely do it?
From what I understand, micro-transactions for virtual goods is a lot more common in places like China, and if you can offer custom themes or other "value-added" services to these clones, you can monetize off of that - must like Farmville makes money on selling people special seeds.
If China and the US reach some kind of agreement - and the services were unlocked - there would already be enough of a market share for the existing clones to maintain control over that market. Future clones would still have a chance in succeeding as well depending on the race to localisation of the products in the local language and demographics.
What will happen if China and the US reach some kind of agreement, and unlocking online US-services will be part of it?
AND when cloning physical goods (like phones, cars, clothes, shoes, whatever) -- you can export them, since people are willing to pay lower prices for clones. How can you export a Tumblr or a Twitter clone, when both are freemium?
How are these clones surviving? Do they generate revenue, when Tumblr, Twitter and Facebook can barely do it?
Something is not right about this picture ;)