Why Global Internet Companies Fail in China

In the Hutong
Last Working Day Before CNY
1448 hrs.

The matter of Google in China is a growing hairball of issues that will, undoubtedly, become the subject of a book one day. Rather than try to take on the entire mess in a single go, I am going to pull it apart strand by strand to assess each of the problems in turn.

A previous employer and mentor, Mme. J.M. Claydon-Gescher, OBE, once told me that the wisest way to attack such a complex matter was to start with the biggest issue first. I haven't done that, because the biggest issue is the entire matter China's hospitality to foreign companies, which is a hairball unto itself that I will take on when I am done with Google.

So I decided to take on the next-biggest issue, which is why global Internet giants fail in China, and the result is on the Advertising Age site here.

If for some reason you can't read it, let me know and I'll repost.

A big thanks to Normandy Madden at AdAgeChina.com.

And while you're over there, check out the free legal advice ChinaLawBlog's Dan Harris is offering to marketers in China.

Comments

[Adam Daniel Mezei]

But then the corollary must also be cited...do Chinese tech players who somehow insinuate themselves into Western markets (had it happened?) -- perhaps after enjoying a joyous honeymoon phase -- also make their ungraceful exit after that excitement period peters out?

Then I was suddenly overwhelmed by another thought: what if small online players -- ones without nearly as much overhead and upfront capital cost injections -- somehow swooped into the Chinese large city online market like paratroopers, achieved their sales and marketing objectives (again, somehow), did solid turnover, only then to rapidly enter the decline phase of their product life-cycle, all before the Chinese copycats could make a living replicating these small companies' offerings. Nutty?

I can't recall of any ready examples, but I was just letting the thought stallions roam free...