Internet Giants of China Struggle in New Market


Internet giants Alibaba, Baidu and Tencent are fighting for online shopping in China with the ferocity of the Samurai. These warriors had no fear of death and fought on regardless where the battle took them. China’s web superpowers have been in retreat with stocks falling around them. Can their corporate captives help them win the war with synergistic business? What is going wrong?

Are Tencent, Alibaba and Baidu Victims of Their Own Success?

InternetFinally, all business growth must asymptote, even in a country as vast as China. With mobile reaching the top of the curve and levelling out, ECNS reports the three web monoliths have been casting around the Internet for functionally related businesses to capture and absorb.

Despite vigorous online-to-offline investments, they find they cannot always force their motions through stockholder meetings. In finance, entertainment, transportation, health and education, markets can be too functionally distant to make their models work.

  • Alibaba hoped to make mobile generic by acquiring assets in a diversity of entertainment media. It has yet to see its multi-billion yuan investments knock through to its bottom line.
  • Baidu tacked in the direction of majority O2O acquisitions, including collective-buying site Nuomi. It is still trying to convince Nuomi’s customers to navigate across to Baidu’s mobile app, and search and mapping services.
  • Tencent has taken up the shotgun approach of ‘if you see it, buy it.’ Core connections with diverse operations in chat, hail taxi and classified sectors are not that simple to drive through on the Internet.

Are Internet Giants Looking Past China Online Culture?

Chinese online shopping emerged in a space where you bought your government-manufactured goods from state-controlled outlets, or sometimes went without. Digital culture in China is an outpouring of joy for newfound freedom to shop anywhere you want. Perhaps the citizens are saying, ‘We won’t be ruled by Alibaba, Baidu or Tencent either. We want to make our own space on the Web.’

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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