HOME PAGE RESOURCES MOST POPULAR EDITORS PICKS EDITORS BLOG Free 7-Day Trial | Login

Try The China Perspective Free
Consumer and Retail

Chinese firms head up against foreign rival over the Internet
By AMY CHEUNG
Published: August 21, 2006 12:00 AM
The booming of the Internet in China has boosted domestic firms to fend off foreign competitors, as they speak the unique language of China, The Wall Street Journal reported. Online bookseller Dangdang.com was founded in 1999. It has now expanded into a range of new products and claims to be China's biggest online retailer. Dangdang serves as an example of how local competitors in Internet businesses are battling back or even beating foreign rivals such as Amazon, Yahoo, Google and ebay. Analysts and executives say, is the ability of domestic companies to understand and adapt to some of the other peculiarities of China's market. Founder Ms. Yu says to the paper that Dangdang had to make adjustments to the model pioneered by Amazon.com and others. For example, the vast majority of Dangdang's Chinese buyers of books pay cash on delivery -- a result of the fact that credit cards still are relatively uncommon in China. Edward Yu, president of Analysys International, a Beijing technology-research company, says foreign Internet companies sometimes don't give local managers enough leeway to adapt their businesses to local customs. Web companies from abroad also can find it difficult to establish local partners and distribution channels, he says. Those factors "definitely hurt their market performance when they are trying to compete head-to-head in the local market." "Don't try to change consumer behavior," Ms. Yu says she learned from that experience. "If consumers don't want to pay with credit cards, then ask them how they want to pay. If they want to pay cash, then figure out a way to get their cash."
bookmark | digg | Permalink | Tell a Friend
Today’s Daily Briefs E-Mail
Sign up for a roundup of the day’s top stories, sent every day.






SS Archive | About us | Affiliates | Privacy Policy | Contact us | Keywords
China News | Subscriber Agreement & Terms of Use
Browse by Title
1 2 3 4 5 7 8 9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
½ÓÊܱê¼Ç