CC BY
0УДК 339.56
Saparova M.S.
2nd year Master's student Hangzhou Dianzi University (Hangzhou, Zhejiang, China)
THE CHINESE GAMING INDUSTRY AS A FACTOR IN THE DEVELOPMENT OF FOREIGN TRADE: A CASE STUDY OF HOYOVERSE COMPANY
Аннотация: foreign trade has consistently played a pivotal role for nations across the globe. The advent of the 21st century, characterized by the Information Age, has seen the gaming industry emerge as a catalyst for economic expansion and cultural leverage. The proliferation of digital devices, the internet, and computing technology has propelled this industry to the forefront of global growth. China, in particular, has traversed various stages of this industry's evolution, from mimicry to original game creation, from the ascent of online and mobile gaming to the industry's updating and globalization. China now stands as a formidable presence in the international gaming sector. MiHoYo, a distinguished Chinese gaming enterprise, has been instrumental in bolstering foreign trade through its high-caliber gaming products that have resonated with an international audience. Operating under the HoYoverse brand abroad, the company's trajectory exemplifies the vitality and promise of China's gaming industry within the global marketplace. This paper delves into the role of the Chinese gaming industry in driving foreign trade, with a case study focus on HoYoverse. It scrutinizes how HoYoverse 's worldwide expansion and strategic initiatives have bolstered foreign trade, emphasizing the company's influence on cross-border economic engagement.
Ключевые слова: China, foreign trade, gaming industry, HoYoverse.
1. Introduction.
The Chinese gaming industry has emerged as a significant factor in the development of China's foreign trade. In recent years, with the rise of Chinese gaming companies that have achieved international success, the export of games and
digital entertainment products from China has notably strengthened. One such company is HoYoverse, known for its popular games like Genshin Impact and Honkai: Star Rail.
HoYoverse, a prominent player in the Chinese gaming industry, has emerged as a key contributor to the development of foreign trade through its significant global expansion and innovative gaming products. Established with a vision to transcend geographical and cultural boundaries, the company has successfully leveraged its unique brand of interactive entertainment to captivate audiences worldwide. This paper delves into the intricacies of company's international growth trajectory and its implications for the dynamics of foreign trade.
The gaming industry, as a subset of the broader digital entertainment sector, has become a critical driver of economic growth and cultural exchange in the 21st century. With the rise of digitalization and the increasing interconnectedness of global economies, gaming companies like HoYoverse are at the forefront of shaping new trends in foreign trade. By exporting their products and services to markets around the world, they not only generate substantial revenue but also foster cross-border economic relationships and cultural dialogue.
HoYoverse's journey in the global market is particularly noteworthy. The company has managed to carve out a unique niche by creating immersive gaming experiences that resonate with a diverse international audience. Its titles, known for their rich storytelling, compelling characters, and innovative gameplay mechanics, have gained a loyal following across various regions, thereby driving demand for Chinese gaming content abroad. In China, the gaming industry has gone through several stages, including the era of imitation, the beginning of original game development, the rise of online and mobile games, as well as industry updates and globalization. This makes China an important force in the global gaming industry. As a Chinese gaming company, HoYoverse has made significant contributions to foreign trade. She has successfully gained a foothold in the international market and developed high-quality gaming products. The development of the company reflects
the importance and potential of China's gaming industry in the process of globalization.
2. HoYoverse's Role in the Development of China's Foreign Trade.
HoYoverse, founded in China 2011, has become a key player in the global market, thanks to the high quality of its products and its unique gaming style. Its games, including Genshin Impact and Honkai: Star Rail, have gained immense popularity beyond China, contributing to the growing international influence of the Chinese gaming industry.
Due to ARPG games and all of their games being released across platforms, HoYoverse is very popular. Due to spending most of our time using our mobile devices every day, this type of games is becoming increasingly popular. Usability attracts buyers, and if they consider interesting stories and graphics, people will be willing to pay more attention to and play these games. Where demand exists, supply is sure to follow.
3. HoYoverse's Global Expansion.
HoYoverse's journey from a Chinese gaming company to a global player in the international market is a testament to its strategic vision and operational excellence. The company's global expansion is not just a tale of market penetration but a story of cultural adaptation, strategic partnerships, and the ability to resonate with diverse audiences around the world.
3.1 Strategic Partnerships.
At the heart of HoYoverse's global expansion are its strategic partnerships with local and regional companies. These partnerships have been instrumental in navigating the complexities of foreign markets, including regulatory frameworks, consumer preferences, and distribution channels. By collaborating with established entities in different regions, the company has gained valuable insights and leverage, enabling it to tailor its offerings to suit local tastes and preferences.
3.2 Localized Content.
Localization is a key driver of HoYoverse's international success. The company recognizes that a one-size-fits-all approach does not resonate with global
audiences. Therefore, it has invested heavily in localizing its content, ensuring that its games reflect the cultural, linguistic, and aesthetic sensibilities of each target market. This includes translating game text, adapting storylines to local contexts, and incorporating regional references and motifs. By doing so, the company has been able to create immersive and relatable experiences for players worldwide, fostering a strong international fan base.
3.2 Targeted Marketing Efforts.
HoYoverse's marketing strategy is another critical component of its global expansion. The company employs targeted marketing efforts to raise awareness and generate interest in its games among diverse international audiences. This involves leveraging various digital platforms, social media channels, and influencers to reach potential players in different regions. By tailoring its marketing messages to local audiences, HoYoverse has been able to build brand recognition and establish a strong presence in key markets around the world.
3.3 Engaging with a Diverse International Audience.
One of the hallmarks of HoYoverse's global expansion is its ability to engage with a diverse international audience. The company's games are designed to appeal to players from different cultural backgrounds, offering them unique and compelling experiences. By creating inclusive and accessible gaming environments, the company has been able to attract a global player base, fostering a sense of community and connection among its international audience.
4. Cross-Border Economic Activities.
HoYoverse's global footprint has significantly facilitated cross-border economic activities, creating a ripple effect that extends beyond the gaming industry. The company's international licensing, content distribution, and collaboration with global partners have not only expanded its market reach but also fostered the flow of goods, services, and capital across international borders.
4.1 International Licensing.
Licensing agreements have been a cornerstone of HoYoverse's cross-border economic activities. By granting licenses to foreign entities, the company has enabled
the localization and distribution of its games in various markets. These licensing deals have not only generated substantial revenue for HoYoverse but have also allowed local partners to leverage the company's popular gaming content, thereby boosting their own market presence and profitability.
4.2 Content Distribution.
The company has also engaged in cross-border content distribution, leveraging digital platforms and global networks to deliver its games to players around the world. This distribution strategy has enabled the company to reach a wide audience, transcending geographical boundaries and time zones. By making its games accessible to international players, HoYoverse has not only increased its global market share but has also contributed to the growth of the digital entertainment sector in various regions.
4.3 Collaboration with Global Partners.
Collaboration with global partners has been a key driver of HoYoverse's cross-border economic activities. The company has formed strategic alliances with international gaming companies, technology providers, and creative talent, pooling resources and expertise to develop innovative gaming experiences. These collaborations have not only facilitated knowledge transfer and technological advancement but have also fostered cultural exchange and understanding between China and other countries.
4.4 Contribution to the Flow of Goods, Services, and Capital.
HoYoverse's cross-border economic activities have significantly contributed
to the flow of goods, services, and capital across international borders. By engaging in international licensing, content distribution, and collaboration, the company has created a network of economic relationships that spans various regions and industries. This interconnectedness has not only bolstered company's global competitiveness but has also stimulated economic growth and job creation in the countries it operates in.
5. Impact on foreign trade
HoYoverse's success in the global market has had a significant and multifaceted impact on foreign trade. The company's export of digital content,
technology, and services has bolstered China's export sector, while its import of ideas, talent, and resources has supported international collaboration and economic exchange.
5.1 Export of Digital Content, Technology, and Services.
HoYoverse's primary export is its digital content, which includes its proprietary gaming titles and related services. These exports have contributed to China's export sector by generating substantial revenue and creating a positive trade balance. The company's games, known for their high-quality graphics, engaging gameplay, and rich storytelling, have found a receptive audience worldwide, driving demand for Chinese digital content in international markets.
In addition to digital content, the company also exports technology and services. This includes game development tools, software platforms, and technical support, which are used by partners and customers around the world. By exporting these technologies and services, the company has not only enhanced China's reputation as a provider of cutting-edge gaming solutions but has also created new opportunities for Chinese companies in the global technology market.
5.2 Import of Ideas, Talent, and Resources.
HoYoverse's global operations also involve the import of ideas, talent, and resources, which are critical to the company's continued innovation and growth. By collaborating with international partners and hiring talent from around the world, HoYoverse is able to tap into a diverse pool of creativity and expertise, fostering a culture of innovation and cross-cultural exchange.
The import of ideas and talent has enabled HoYoverse to develop games that resonate with a global audience, incorporating diverse cultural elements and perspectives. This has not only enriched the company's product offerings but has also facilitated cultural exchange and understanding between China and other countries.
Furthermore, the company imports resources such as software, hardware, and marketing materials, which are essential for the company's operations and global expansion. These imports support the company's supply chain and ensure that it can meet the demands of its international customer base.
5.3 Support for International Collaboration and Economic Exchange.
HoYoverse's import and export activities have supported international collaboration and economic exchange, fostering relationships between China and other countries. By engaging in cross-border trade, the company has created a network of economic partnerships that spans various regions and industries, contributing to the growth of the global gaming industry and the broader digital economy.
6. Case Study: HoYoverse's Role in Foreign Trade Development.
This section delves into the specific initiatives and strategies employed by HoYoverse that have significantly contributed to the development of foreign trade. By examining the company's approach to market entry, localization, and global partnerships, we can gain insights into how these strategies have fostered foreign trade and bolstered HoYoverse's position in the global market.
6.1 Market Entry Strategies.
HoYoverse has employed a variety of market entry strategies to establish its presence in international markets. One of the key strategies has been the adaptation of its gaming content to suit the preferences and cultural nuances of different regions. This localization effort has involved translating game text, modifying graphics, and adjusting gameplay elements to resonate with local audiences. By doing so, HoYoverse has been able to attract a diverse range of players and build a strong international fan base.
Additionally, the company has leveraged digital platforms and distribution channels to reach a global audience. By making its games available on popular gaming platforms and app stores, the company has ensured widespread accessibility and convenience for players around the world. This digital distribution strategy has enabled HoYoverse to penetrate new markets rapidly and capitalize on the growing demand for mobile and online gaming.
6.2 Localization Initiatives.
Localization plays a crucial role in HoYoverse's international success. The company goes beyond mere translation, delving deep into local cultures and trends to
create gaming experiences that resonate with local audiences. This includes incorporating local folklore, mythology, and historical references into game narratives, as well as collaborating with local artists and content creators to enhance authenticity and appeal.
HoYoverse's localization initiatives have not only enriched the gaming experience for players but also fostered cultural exchange and understanding. By celebrating and showcasing diverse cultural elements, the company has built a reputation as a global ambassador of Chinese culture, contributing to the soft power of China in the international arena.
6.3 Global Partnerships.
The company has actively sought out strategic partnerships with international gaming companies, technology providers, and content creators. These collaborations have enabled the company to leverage foreign expertise, technologies, and market insights, thereby enhancing its global competitiveness.
Through joint ventures, licensing agreements, and co-development projects, HoYoverse has been able to tap into new markets, share resources, and pool talents with its global partners. These partnerships have not only facilitated the cross-border flow of goods and services but also fostered knowledge transfer and innovation, driving the growth of the international gaming industry.
6.4 Impact on foreign trade.
HoYoverse's market entry, localization, and global partnership strategies have collectively contributed to the development of foreign trade in several ways. Firstly, by exporting its gaming products and services to international markets, HoYoverse has generated significant revenue and bolstered China's export sector. Secondly, by importing foreign technologies, expertise, and creative content, the company has supported international collaboration and economic exchange.
Furthermore, the company presence in overseas markets has stimulated local economies by creating job opportunities, fostering entrepreneurship, and driving investment in the gaming and related industries. This has not only boosted economic
growth in the regions where HoYoverse operates but also strengthened bilateral trade relations between China and other countries.
7. Challenges and Opportunities.
Despite its remarkable success in the global market, HoYoverse faces a range of challenges that it must navigate to sustain and further its growth. These challenges, while formidable, also present opportunities for the company to innovate, adapt, and continue contributing to foreign trade.
7.1 Regulatory Hurdles.
The gaming industry is subject to a complex web of regulations across different countries, and HoYoverse must navigate these regulatory hurdles to operate in international markets. This includes complying with local content regulations, age restrictions, and gambling laws. The company must invest in legal expertise and resources to ensure compliance, which can be both time-consuming and costly. However, overcoming these challenges can lead to stronger relationships with regulatory bodies and enhanced credibility in international markets.
7.2 Cultural Differences.
Cultural differences pose a significant challenge for HoYoverse in effectively communicating its games and brand to global audiences. The nuances of different cultures, languages, and social norms require careful consideration in game design, marketing, and customer support. While localization efforts are crucial, there is always a risk of misinterpretation or cultural insensitivity. Successfully navigating these differences can lead to more authentic and engaging experiences for international players, fostering a stronger global community around HoYoverse's games.
7.3 Intense Competition.
The gaming industry is highly competitive, with numerous established and emerging players vying for market share. HoYoverse must continually innovate and differentiate its offerings to maintain its market position. This involves investing in research and development, acquiring new technologies, and acquiring or developing new intellectual properties. While the competition can be challenging, it also drives
the industry forward, encouraging innovation and improving the quality of gaming experiences for players worldwide.
7.4 Opportunities for Growth and Contribution to foreign trade.
Despite these challenges, HoYoverse has several opportunities for further growth and contribution to foreign trade.
Expansion into New Markets: HoYoverse can explore untapped markets in regions such as Latin America, Africa, and the Middle East. By adapting its games and marketing strategies to suit these markets, the company can tap into new sources of revenue and expand its global reach.
Partnerships and Collaborations: Forming strategic partnerships with local companies and governments can help HoYoverse navigate regulatory environments and gain insights into local markets. These collaborations can also facilitate the exchange of ideas, technologies, and talent, driving innovation and growth.
Investment in Emerging Technologies: By investing in emerging technologies such as augmented reality (AR), virtual reality (VR), and artificial intelligence (AI), HoYoverse can create new gaming experiences that appeal to a global audience. These technologies can also open up new revenue streams and business models, such as interactive live events and personalized gaming experiences.
Community Engagement and Social Responsibility: Engaging with the global gaming community and promoting social responsibility can enhance HoYoverse's brand image and build loyalty among its players. By supporting causes and initiatives that resonate with its international audience, the company can strengthen its brand and contribute positively to the communities it serves.
8. Sales and International Popularity.
HoYoverse has demonstrated impressive results in worldwide sales of its games. For instance, Genshin Impact, released in 2020, quickly became a hit and attracted millions of players globally. Honkai: Star Rail released in 2023 also showed strong performance, proving that the quality and innovation in HoYoverse's games contribute to their international popularity.
According to the report, HoYoverse posted a revenue of $3.844 billion in the financial year 2022, making a net profit of $2.27 billion in that year. According to annual data from the Global Unicorn Index, the market value of Hoyoverse has increased from $15.8 billion to $23 billion. This time, the studio ranks 91st and 12th. Hoyoverse is now considered the world's most expensive private gaming company.
9. International Influence.
Cross platform games are very popular in China because people usually spend most of their time playing on their mobile devices every day, so this is another profitable reason for creating such games. The more cross platform games with various useful features will be realeased, the greater the needs for purchasing a more powerful and newer mobile device will be. This means that a manufacturer who provides the best products in the technology market, suitable for this purpose, will be able to occupy a major sales position. This is one of the factors of the gaming industry, which can affect foreign trade. Here is another example. If the product gains popularity and starts to be recognized overseas, then a lot of users remembers who the manufacturer is. That will lead to the cultivation of players interest in the company's products. If the new product will be released by the same manufacturer, that will encourage players to become more familiar with it. Various brand attributes and in-game bonus boxes related to these products would also be purchased with a great desire.
Conclusion.
Overall, HoYoverse serves as an outstanding example of how the Chinese gaming industry can impact the country's foreign trade. Its success in the international market testifies that high-quality and innovative products can attract a global audience and contribute to the growth of China's economy. HoYoverse is actively engaged in globalization, with offices in Singapore, Montreal, Los Angeles, Tokyo, Seoul, and other areas.
In addition, the popularity of mobile games has driven the development of more powerful and advanced mobile phones, which also helps to develop trade relations between countries.
СПИСОК ЛИТЕРАТУРЫ:
1. Liu Pan. Analysis of the current development status and competitive landscape of the global and Chinese gaming industry in 2023, Chinese manufacturers are expected to achieve overseas substitution in the gaming industry [Electronic Resources]. URL: https://www.huaon.com/channel/trend/925221.html (Application date: 01.06.2024);
2. Chinese Games That Have Entered the Global Game Market [Electronic Resources]. URL:https://latisglobal.com/en/blog-en/chinese-games-entering-global-market-20230421/ (Application date: 01.06.2024);
3. Guojun Li. Business Analysis of Mihoyo and Its Honkai Series. University of Sussex. 2022. № 28. P. 217-224;
4. Wan Junwei, Li Zhen, Shi Jian. Chinese Games Strongly Going Global: Revenue Exceeding 100 Billion for Three Consecutive Years. How to Improve International Communication in the Future? [Electronic Resources]. URL: https : //new. qq.com/rain/a/20230216A07E9400 (Application date: 01.06.2024);
5. Tan Li, Larry D. Qiu, Ying Xue. Understanding China's foreign trade policy: a literature review[J]. Frontiers of Economics in China. 2016;
6. Unite and create a new situation, bravely strive for excellence [Electronic Resources]. URL: https://news.gmw.cn/2023-06/08/content_36616884.htm (Application date: 01.06.2024)
