Source: Author : Wang Shuo
Content Guide: Why eBay failed in China ? Why Yahoo failed in China ? Why almost all U.S. Internet giants have lost failed in China ?
Wang Shuo - people network founder / CEO
Over the past 10 years, almost all U.S. Internet companies in China have failed. Yahoo acquired 3721 ( some say 3721 appears before Baidu dominates the search engine keywords ) to enter the Chinese market , and soon put the 3721 hit done , and later was acquired by Yahoo China Alibaba .
eBay acquired the largest C2C site eBay , has spent several hundred million to do the marketing , the success of the latter market share from 90 % to less than 10% , and finally sold to eBay to eBay Tom Online .
After Google to enter China , a few years the market share from 30% to 10% to achieve the ultimate Google announced that it will move to Hong Kong, China site . There are other examples?
This is my question : Why eBay failed in China ? Why Yahoo failed in China ? Why almost all U.S. Internet giants have lost failed in China ?
China is not so different
The simplest answer might be: China is different. Chinese have a different cultural, economic and political systems , but the question is : Even if China and the U.S. differ , China is not so different .
Google , Facebook, Yahoo , eBay in the Middle East are successful, they have succeeded in Africa , even in the Muslim and Arab countries, they have succeeded. Compared with these countries , economic and cultural differences between the United States , the difference between China and the United States can not say more.
So why are they so successful in different countries , but no success in China ?
China is only different in one aspect , that is, its market is too big
Because China is so big , of course, the presence of strong competitors.
For example , Google provides search engine Dutch in the Netherlands . In theory, Google could not be made out of the best people to the Dutch search engine. If someone really wants to commit resources , it is possible to make a better Dutch search engine.
But the problem is that he hired 1,000 engineers do the search engines , they need to face the question: Even if I could do a better search engine than Google , so what ?
Dutch fewer than 20 million people, do such a search engine in the economic sense is unreasonable. The same story also occurs in most small countries. The story is this: even if there is room to improve , because the market is not big enough , the economic return on the investment is not enough support .
But in China , things are completely is another matter . If someone ( we now know it is called Baidu ) did a search engine , even if the engine is only better than Google on a little bit, they can get the Chinese market.
"So what " The problem then had another answer : "So what more than half of the world's Internet users in China , and the user base is growing rapidly ? ."
Because China is so big, he attracted a lot of talent , capital and entrepreneurs , or any resources to compete with world-class Internet giant needed . Soon, a better search engine, a better social network , a better market , a bigger B2C sites appeared.
Sometimes more than one appears also , all of these competitors , so that multinational Internet companies was hard to live .
My conclusion is : Even if the competition is no guarantee that these big companies will fail, but the bottom line is that these competition causes them no guarantee of success .
" Value transfer" secret
One might then ask: why only Internet company in China fail ? You see General Motors , Intel, McDonald's has achieved great success.
That is because the "value transfer" secret.
Take Intel's CPU chip , even valuable marketing, channels and partners , etc. in the chip , but the majority of the value of the chip, for example, where 80% of the chip technology . Even if that 20% is the average , or below average , Intel will still be able to succeed in China .
The same thing happened at General Motors and McDonald's engine capacity above the standardization process .
The Internet industry is different, especially for a company like eBay .
The value of their technology is not so high - everyone can use Java or database and scale of the U.S. market and China can not be compared . eBay 's brand value even smaller, because few people recognize it or read the word .
In this way, a world-class network company came to a level playing field . They do not have any advantage, there is no advantage to help them win. They had to stand on the same starting point , and local businesses . For example, in the case of eBay where : first build the platform , and then use their marketing to attract the first batch of users, and then be decisive market share. Here, the big companies do not have the advantage .
From " overly optimistic " to " overly pessimistic ."
Most multinational Internet companies from "over- optimistic" walked "excessive pessimism " and never came back .
In fact, the new company does not have any advantage , but these management companies do not think so. They began views overly optimistic : eBay want to occupy the Chinese market in three months , while Google has an ambitious plan , you want to do some big things in China .
And when they encounter competition in the face of setbacks, they suddenly become too pessimistic : eBay three years later sold their business , Yahoo also sold their business in China , Google or even withdraw from China .
Internet companies are very young , and not enough patience . Many consumer goods companies to invest in China for 20 years are not profitable , when Microsoft in China ( 1.2 billion people ) exceeded its revenue (600 million people ) revenue in Hong Kong , mainland Microsoft has operated in a full ten years.
Patience is an important enough reason for their failure.
Source: Author : Wang Shuo