Baidu.com is the largest search engine in China and its search market portion has increased a lot especially after Google's quit. Just the same as Google, its main revenue comes from ads. But recently many advertisers announced that they would remove ads on Baidu.com, including Newegg.com, Dhgate.com and Dangdang.com.
Baidu.com has achieved a lot in Chinese online ads market. Because of the roaring ads price and low input-output ratio many e-business companies are unable to stand anymore. A few days ago Dangdang.com published on its website public notice writing that it would stop advertising on Baidu.com completely that includes brand zone and keywords promotion. It also added that it would not stop Baidu.com from collecting its websites. The CEO of Dangdang.com said that the reason was monopolistic Baidu.com manipulated the search results arbitrarily and didn’t respect intellectual property rights. And the CEO of 360buy.com also wrote on his micro blog to criticize Baidu.com.
There is no official response from Baidu.com when those companies decided to remove ads on Baidu.com.
Big e-business companies have the ability to promote themselves in other ways, but small and medium-sized companies must depend on Baidu.com promotion and ads. A staff from a group purchase website told that because its competitor bought the keyword of its company's name, every time users search its company's name they would be lead to competitor's website. So he said that they also were forced to advertise on Baidu.com.
Showing posts with label e-business. Show all posts
Showing posts with label e-business. Show all posts
Tuesday, April 12, 2011
Friday, April 8, 2011
Online Group Purchase in China
After the success of Groupon.com, group purchase attracts more and more attention in China. Statistics show that there are 3,265 online group purchase e-business websites as of March, 2011. And Groupon.cn completely copies the business style of Groupon.com. Why this online business model becomes so popular in China? Will it succeed and last for a long time?
The popularity of online group purchase is not strange. We mainly follow the way of America on the internet development. With the success of micro blogs we have many internet giants who provided their own micro blogs services.
This business model can bring benefits to consumers, e-business websites and suppliers or wholesalers.
Besides those benefits we should not ignore the disadvantages of this group purchase model. Some disadvantages are obvious. Consumers can't have a completely control of the goods or services that they buy from the websites, the quality and after-sale services. And as to online group purchase platforms they can't have a good understanding of the true demands of the consumers. They can't get the specific locations and tastes of the consumers. And they also can't control the goods quality and after-sale services. The consumers' problems can't be solved timely.
Now we can only conclude that the group purchase model is extensive style. Consumers only choose goods passively. And to a large extent suppliers and platforms are passive in this business model. Whether this business model can succeed and last for a long time, only time will tell.
The popularity of online group purchase is not strange. We mainly follow the way of America on the internet development. With the success of micro blogs we have many internet giants who provided their own micro blogs services.
This business model can bring benefits to consumers, e-business websites and suppliers or wholesalers.
Besides those benefits we should not ignore the disadvantages of this group purchase model. Some disadvantages are obvious. Consumers can't have a completely control of the goods or services that they buy from the websites, the quality and after-sale services. And as to online group purchase platforms they can't have a good understanding of the true demands of the consumers. They can't get the specific locations and tastes of the consumers. And they also can't control the goods quality and after-sale services. The consumers' problems can't be solved timely.
Now we can only conclude that the group purchase model is extensive style. Consumers only choose goods passively. And to a large extent suppliers and platforms are passive in this business model. Whether this business model can succeed and last for a long time, only time will tell.
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