Ebay China failed: competitor Strong

The tiger Sniff recently released Mr. Lee's analysis and suggestions on the failure of foreign companies, pointing out that China's Internet environment has developed into two different "parallel spaces" with the West, especially in Europe and the United States, in particular, pointing out the differences between user structure and market pattern. Two days ago, Wang Jianyue, a former ebay blogger, published an article in his English blog, "Why does ebay fail in China?" from the Perspective of "insider", further analysis of the problem.

His answer is simple: no, because the Chinese market is too big.

Silicon release to the original version of the compilation, the Tiger sniff excerpt as follows:

Because China is so big, it certainly has a strong competitor.

Google, for instance, offers Dutch-language search engines in the Netherlands. In theory, Google is unlikely to be the best Dutch-language search engine anyone can make. If someone really wants to invest in resources, it's possible to make a better Dutch search engine.

But the problem is that after he hires 1000 engineers to do the search engine, they need to face the problem: even if I could be a better search engine than Google, what?

With less than 20 million people in Holland, making such a search engine is economically unreasonable. The same story happens in most small countries. The story is: even if there is room to improve, because the market is not big enough, economic returns are not enough to support investment.

But in China, things are completely different. If someone (we now know it is called Baidu) has done a search engine, even if the engine is only a little better than Google, they will be able to access the Chinese market.

"So what?" the question then has another answer: "So what?" more than half of the world's Internet users are in China, and the user base is growing fast. ”

Because of China's size, he has attracted a lot of talent, capital and entrepreneurs, or any resources needed to compete with world-class internet giants. Soon, a better search engine, a better social network, a better market, a larger business of the Business-to-consumer site.

Sometimes there are more than one, and all of these competitors make the days of multinational internet companies very difficult.

My conclusion is that even if the competition does not guarantee that these big companies will fail, the bottom line is that these competitions also lead to their failure to guarantee success.