Search-ing and Game-ing in China
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What is Google's strategy for its China presence?
english1.people.com.cn
In the morning of June 28, 2005, the Ideal Plaza situated at the north 4th Ring Road in Beijing saw a mysterious guest. The middle-aged guest in business suit is Eric Schmidt, CEO of Google. As the lift stopped at the 12th floor, he stepped into Baidu CEO Li Yanhong's office.
"I don't know about it," said Bi Sheng, spokesperson of Baidu as asked to confirm the visit.
"One thing is for sure. Google will enter the market of Chinese mainland this year," said a CEO of a noted Chinese portal site and search engine company. How it enters depends on the negotiation with Baidu.
Google announced May 11 that it had obtained license to operate in China and established representative office in Shanghai. According to some reporters who had visited Google's representative office in The Center, the office is "spacious enough to accommodate 200 staffs." Google's announcement says it has had strong interest in the Chinese mainland market. A lot of things may be done once they enter the market officially.
"Starting with a representative office seems out-of-date and too prudent if compared with MSN's joint venture."IT Manger World commented. China has definitely become the nexte target for Google's market expansion.
Obviously, the senior management of Google has fully realized this. But the market environment in China makes the always-prudent Google even more careful in making decision. Yahoo, the pioneer of search engine is just an example. It draws a blank after struggling four years in the Chinese market. Finally it ends up acquiring 3721 to strengthen its foothold in China.
"There are two options for Google," said the CEO. Google holds shares of Baidu, the NO.1 in Chinese search engine market. There is possibility for Google and Baidu to deepen cooperation, say, Google holding more Beidu's stakes, or even a JV. This may lead to Google's takeover of Baidu, turning Baidu into its subsidiary in China. The other option for Google is to strengthen its representative office in China by massive recruitment and finally set up its China subsidiary.
According to a poll done by iResearch, Baidu has 33.1 percent of market share in the Chinese search engine market, outracing any other competitor. Google, ranking the 3rd, has 22.4 percent.
By People's Daily Online
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China has a gaming population of 20 million, BBC
english1.people.com.cn
Turn your mind to the huge market in China, where people spend a lot of time and money on online games! The British game producers held a meeting in London this week. At the conference, people urged the producers to shift their attention to China's market. It is said that in China, the gaming population has surpassed 20 million, and it is still on the rise.
A report forecast this week that spurred by the online sales of video games, China's entertainment industry is facing an "outbreak''. The money that Chinese spent on online games last year reached 500 million US dollars. What is more, the enormous expenses people spent on online games have made Chinese officials change their attitude towards it. "In big internet bars of Beijing, you can see hundreds of computers operating, and most of the people there are below the age of 30. In 2004, some 22.8 million people went online for games.
Pricewaterhouse Coopers Global Accountant Office recently published a prospect report on entertainment market in the next five years, saying that there will be likely a rapid and strong growth in such items as online games in the Asia-Pacific region. The fast development of the entertainment business in China will make it catch up with Japan in 2008, becoming the largest market in this area. Online game "World of Warcraft'' has achieved a great success since it landed on China in early June. In China, once 450,000 gamers went online at the same time.
But, while gaming population is on the rise, people are worried that teenagers are spending more and more time on games, and that games content tends toward violence. With the rapid development in network games, more and more problems will appear since there have been no classification systems for online games in China so far.
By People's Daily Online
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FAC
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