Also due to their collectivistic culture, Chinese people became reactive to their foreign superiors, who tried to treat them in a Western style, and Groupon experienced low efficiency and high turnovers. Written by Fabien Gaussorgues View all posts by: As it is mentioned above, the characteristics of Chinese netizens is being data addicted. It is a fact that people trust more on local products than foreign ones. Want to know more about Chinese e-market, click here The Chinese e-market is huge today, and this evolution was predictable from years.

Even more, Taobao is the biggest e-tailing platform in the world today. By Maria Garbelli and dania Romagnoli. Chinese laws allows online downloading content so many people use internet for downloading music and video. Zhang Yu, vice president in charge of C2C marketplace operations at Taobao, explains: They rather prefer clicking from the pool. Diamond Framework of Chinese Internet Sector a.

The journey has started in with Amazon acquiring Joyo.

case study how taobao bested ebay in china

The second thing is choosing nickname is giving an informal attitude, which is the key to allow people to feel welcoming and being a member of a community. China has the largest online population in the world: It was not exposed to government interventions however could not have a considerable consumer base in China.

The ways that the government uses to detecting and dismissing the dangerous user can be listed as: S Internet Sector 4.

China became a member of the World Trade Organization in Due to the regulatory environment for foreign digital content to prevent the productions which contain homosexuality, alcohol, and even witchcraft. Paul Ingram, professor at the Columbia Business school specialized in social network explains: The first one is that Taobao proposes mostly fixed prices and only few auctions on the contrary of eBay.


Be a global citizen.

In eBay, as a global strategy customers make their transactions via credit cards and online. Due to the growing income level of the citizens, changes can be observed in their spending patterns. It is a fact that people trust more on local products than foreign ones.

Baidu knows the customer well and is able to provide several services, such as downloading free music and videos, because of its good relations with the government and supplying industries: Chinese people are comfortable with uncertainty, which cultivates their entrepreneurial side and makes them adaptable to every occasion.

(PDF) Why US Internet Firms Fail in China? | Ezgi Çakmak –

Besides the level of development of financial industries and communication firms, the environment is very favorable to exploit opportunities. Diamond Framework of Chinese Internet Sector a. The wrong choice of local partner was also one of the troublemaker factor for Groupon. In order to write, they use simple Chinese.

Why Taobao Succeeds in China Unlike eBay?

More specifically, we would like to examine the U. Ranking and Categories of Internet Applications Source: However entering a risky and complex market like China alone, rather than shaking hands with local partner costed dearly to Uber.

By Maria Garbelli and dania Romagnoli. Want to know more about Chinese e-market, click here. As Google has a low performance in quickness because of the bandwidth problems, Baidu traces another strategy by partnering with Chinese Telecom companies.


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China is a global hub for manufacturing, and is the largest manufacturing economy in the world as well as the largest exporter of goods in the world. It is a Chinese eBay especially made for Chinese consumers and consumers like to be considered. Written by Fabien Gaussorgues View all posts by: We see emotional concerns in business as unprofessional. They like to surf on the internet and read the blogs before make a shopping decision.

case study how taobao bested ebay in china

On the contrary, the local competitor, Taobao that was created in had and still has a big success in China.

It means that people can negotiate prices with sellers.

Rating info of a registered user — Alipay, lauched in is an escrow service of Taobao. With this payment system they can insert cash to their account and use it online hw that they are not obliged to have a bank card. The protectionist regulations concerns and restricts minors connecting to internet in internet cafes, arguing that in that way the children will not be able to reach harmful content such as violent video games or pornographic sites.

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