Here's Why American Tech Companies Keep Failing in China

[beijingwalker]

Here's Why American Tech Companies Keep Failing in China

 

[ahojunk]

My 2-cents comments are in italic.

The video gave three reasons. They are:-

1) China's web titans are unimaginable big and broad
- Alibaba online sales are bigger than Amazon and eBay combined. China also has JD.com which is quite big too.
- Baidu has 80% market share in China, while Google has 64% market share in US. China has 721 million internet users while US has 290 million internet users. 80% of 721 million user is 576 million, while 64% of 290 million internet users is 185 million. So, the Chinese internet search size is more than 3 times the size of US. China's internet market is huge!

2) China's laws and government intervention favors local companies
- foreign companies are banned because they refused to comply with Chinese laws and locate the servers hosting Chinese content in China.
- Google is blocked since 2010 because they refused to comply with Chinese laws. In 2010, the Chinese market is pretty small, so Google didn't give a hoot. However, today the Chinese internet market is the world's biggest and Google is trying to crawl back into China, but so far not much luck.
- for every country, their own interests come first. Whether we like it or not, because of China's internet size, it can dictate their terms. Don't complain, the US used to dictate terms and prior to that Britain also did the same.

3) Chinese technology has become really good
- yes, but only when serving the Chinese consumers/market. The local companies are successful in China because they understand the values, behavior and tastes of the locals, which most foreign companies don't.
- Also, Chinese companies/technology is very good at serving the mobile market, which is the biggest in the world. The majority of Chinese have smartphones but don't have PC's. Their main device for accessing the internet is via smartphones.

 

[dy1022]

No wonder, America is sinking very fast

 

[pakdefender]

Great progress , measurable , visible and with impact

 

[ahojunk]

No wonder, America is sinking very fast

.
I am afraid I have to disagree with your statement.

America has the second largest internet market in the world. Many other countries would have sunk before America.

 

[hexagonsnow]

The young Chinese accept the internet shopping more easily than their elder generation which help the Tec company to spread their new app and production.Like Baidu Alibaba and JD.

 

[dy1022]

.
I am afraid I have to disagree with your statement.

America has the second largest internet market in the world. Many other countries would have sunk before America.

Hate you

 

[ahojunk]

The young Chinese accept the internet shopping more easily than their elder generation which help the Tec company to spread their new app and production.Like Baidu Alibaba and JD.

.
I understand that mobile payment apps are very popular in China.

Is security a concern for the average Chinese consumer?

I am referring to viruses, malware, etc. Or is it that Alibaba, JD and Baidu have made their systems very secure and safe?

 

[AndrewJin]

.
I understand that mobile payment apps are very popular in China.

Is security a concern for the average Chinese consumer?

I am referring to viruses, malware, etc. Or is it that Alibaba, JD and Baidu have made their systems very secure and safe?

They are pretty secure and safe.
I have no concern to put my money in Alibaba, with 4-5% interest rate, interest paid by day.

 

[TaiShang]

Here's Why American Tech Companies Keep Failing in China

China wisely protected the domestic market from strong foreign internet companies in the initial phase of local development.

Now, China's internet giants have become too big to compete.

 

[hexagonsnow]

They are pretty secure and safe.
I have no concern to put my money in Alibaba, with 4-5% interest rate, interest paid by day.

Only 2.3%interest rate now,I have put half of my salary in Alipay.I trust Alibaba can protect my money.

 

[AndrewJin]

Only 2.3%interest rate now,I have put half of my salary in Alipay.I trust Alibaba can protect my money.

That's Yu'E Bao.
Check fixed term, 4-5%, >3 months.

 

[TaiShang]

Apple market share slips behind Huawei, Xiaomi
(Xinhua) 21:03, August 11, 2016


BEIJING, Aug. 11 -- Sales of iPhones continue to fall in urban China and now trail Chinese brands such as Huawei and Xiaomi, an industry survey showed Thursday.

In Q2, Apple accounted for 17.9 percent of smartphone sales in urban China, 1.8 percentage points less than a year ago, according to a survey conducted by Kantar Worldpanel.

"The decline has pushed Apple behind Huawei at 25.7 percent and Xiaomi at 18.5 percent," said Tamsin Timpson, strategic insight director at Kantar Asia, although iPhone 6s and 6s plus remain the top sellers.

With the iPhone SE in short supply, the model made little impact, accounting for only 2.5 percent of total sales.

In contrast to the decline in China, iPhones returned to growth in France, Germany, Great Britain, Italy, Spain and the United States.

In the United States, Apple's sales grew 1.3 percentage points year-on-year, accounting for 31.8 percent of all sales.

Kantar Worldpanel ComTech carries out monthly panel surveys among Chinese urban mobile phone users to monitor the market share of various brands.