Jerling says his lack of experience in Western business practices actually helped him manage better in China. [Provided to China Daily]

There is a major demand from well-heeled Chinese to network with their peers, according to Swedish native Svante Jerling, co-founder of P1.cn, an exclusive social networking site.

"During the global economic crisis, China did not only survive, it expanded. This is the place to be when it comes to dealing with luxury consumption," he says.

And it is luxury consumers who are P1.cn target members, making the website one of the largest databases of high-end users in China.

Adventure brought Jerling to China for the first time in 2005. While he was studying political science at Stockholm University he decided to take a break from his college schedule and live abroad, either in South America or China.

"Sweden was so boring because there was no buzz and I wanted to try something totally different. Even South America seemed too Western, so the decision was to go to China," he says, laughing.

Like many young newcomers, Jerling studied Chinese in Beijing, but moved back to Sweden after one semester. He wanted to make sure he had left Sweden for the right reason.

"Again, I didn't find Sweden challenging enough. In China everything was changing, something new was happening, the tempo was quick, so I moved back."

He returned to the Chinese capital and after one year in Beijing he bumped into two other Swedes, Yu Wang and Alexander Frederiksen. They discussed the possibility of building an online network that would attract affluent young Chinese, a group that has grown noticeably in China.

In order to develop their own business model, the friends looked at three other successful online communities: Stureplan.se in Sweden for its snapshots of young, attractive, rich people; Facebook for its interactive function, and A Small World.net in the US for its by-invitation-only system. In 2007 their website was launched and their fingers were crossed.

"From the beginning it was hard to convince event managers, club owners, people on the streets to have their picture taken. They didn't see the value as a free commercial. For them I was just a strange Westerner," he says.

Because Jerling had never done business in Sweden, he says he could adjust quite easily to the business environment in China, but he still found building guanxi (relationships) quite challenging.

"If there is one thing that is better here, it is definitely networking," he says.

"Both Chinese and Western people in Beijing are very helpful and willing to introduce their friends and business networks when they think there are mutual benefits in working together."

Because the young men were new entrepreneurs in the city, expectations about the success of their website was not too high. They knew the idea was feasible but could never have imagined how popular it could become.

The company now has about 1.2 million online members in China, including people from cities such as Beijing, Shanghai, Chengdu, Guangzhou, Dalian and Qingdao.

The reason why other big online networking companies, such as Ren Ren and Kaixin001.com, are not their biggest concern or competition is because P1.cn is not just about numbers, instead the site is about the spending capability of its members.

On average, each member spends about 4,000 yuan ($627) a month on clothes, electronics and partying.

"So the services are developed to let this group of people network with those who share similar lifestyles. It's a comparatively older group between 20 and 35. But this group has a big influence in China, and can afford this lifestyle," he says.

To keep P1.cn exclusive, membership is only available through invitation from an existing member. VIP membership costs 400 yuan and includes discounts at nightclubs, KTV (karaoke bars) and shopping malls.

"We have trend scouts who invite people to nightclubs, department stores and high-end events," Jerling says.

"Once I saw the potential of the company's growth, I decided to make myself at home in China," the 29-year-old says. "Until then I had been living in temporary homes but I wanted something stable. A place I could hang up pictures on the walls, buy plants. A place I could call home.

"I think that is what every foreigner has to go through if they really want to live here."

You can contact the writer at

sundayed@chinadaily.com.cn.

China Daily