Google Losing Ground in China

[worldstar]

By ELAINE KURTENBACH, AP Business Writer
Wed Aug 31, 3:44 AM ET

SHANGHAI, China - A survey by a Chinese Internet research group has found that Google is losing market share to its biggest Chinese rival, Web search engine Baidu.com.

The survey, conducted by the Beijing-based China Internet Network Information Center, reported that Baidu.com Inc. boosted its market share in Beijing by 10.8 percentage points to 52 percent.

Google Inc.'s share was at 33 percent, as the American Internet search engine kept its customer base steady while the overall market grew, said the survey, seen Tuesday on CNNIC's Web site.

China's Internet population hit 103 million by June, second only to the United States, according to CNNIC.

Google public relations officials in China had no immediate comment on the report.

The survey found that combined, Google and Baidu held 80 percent of the market in Beijing and Shanghai, and 75 percent in Guangzhou. The three cities account for most of Chinese Internet use, it said.

Six months ago, Google held the largest market share in the three cities covered by the survey, which was conducted earlier in August, the report said, without giving specific figures.

CNNIC's survey found Baidu has a 43.9 percent market share in Shanghai compared to 38.2 percent for Google. In Guangzhou, Google's market share was 28.7 percent while Baidu's was 48 percent.

Meanwhile, U.S. Internet giant Yahoo! held only a 3.7 percent market share overall, with smaller Chinese rivals Sohu.com and Sina Corp. claiming a 4.6 percent and 4 percent share, respectively.

Google has long been popular with Chinese Web surfers, but has suffered from a lack of brand recognition.

The Mountain View, Calif.-based company only recently set up an office in Shanghai in preparation for a belated expansion in China and obtained a Web address under the country's China domain, http://www.google.com.cn

Google bought 2.6 percent of Baidu.com last year in a move outsiders thought might lead to the American giant taking over the tiny Chinese startup. But Baidu.com has stayed independent, striving to become Google's Chinese-language equivalent.

 

[netzilla]

Great read thanks for sharing.

 

[The Prodigy]

Quite well apparently means, getting richer anyway. I can't believe they're becoming less popular anywhere though.

 

[shadow_boi]

baidu is only popular in China, not other places though

 

[worldstar]

Many Chinese companies copy the successful method from the Nasdaq listed Companies! Like eachnet from ebay and now become ebay China! Baidu is so called Chinese google! At least they have the local advantage!

To success one must be playing a leading role and should have creativity! Chinese compaines learns quickly from Giants! If having more creativity and go faster one step, there should be more miracles! Never forget there is a huge population and a fast developing IT industry!

 

[admans]

Many Chinese companies copy the successful method from the Nasdaq listed Companies! Like eachnet from ebay and now become ebay China! Baidu is so called Chinese google! At least they have the local advantage!

To success one must be playing a leading role and should have creativity! Chinese compaines learns quickly from Giants! If having more creativity and go faster one step, there should be more miracles! Never forget there is a huge population and a fast developing IT industry!

Nicely said..but Despite the present scenario i would place my bet of Google. Baidu's dayz are numbered as of now...

 

[matrics]

Nicely said..but Despite the present scenario i would place my bet of Google. Baidu's dayz are numbered as of now...

Correct. Who knows, that huge heap of money might be burning a hole in google's pocket. They might even buy Baidu

 

[Zeeble]

Baidu is getting big. They have even started to index some of my sites (No chinese in site).

Correct. Who knows, that huge heap of money might be burning a hole in google's pocket. They might even buy Baidu

You have a very good point there. I get the feeling though that its going to go into free internet access to the US.

 

[bojianh]

Totally agree. But some people say baidu will get sued over mp3 copyright issues. (it indexes mp3s)So, what's your view?

 

[diddie]

Maybe you forget Chinese govt ? they control information of what chinese people see on the internet. This could make the difference.

 

[matrics]

:lol: If I was running google, I'd buy Baidu just to shut it down. And then, if possible redirect the traffic to PPC :D

 

[DomainSarahUk]

Google Own shares in Baidu.com! Not sure how many now, but they bought some more in the last few months.

 

[bojianh]

Google has something up their sleeves... :blink:

 

[Zeeble]

Baidu is just a pawn in the Google chess board. Google may have trouble buying them out though, as the chinese government control things like that.

 

[nicholas]

Remember those many search/portals before like Sohu.com etc?

They usually explode in a big bright flash for some time, but eventually lose their energy and fritter away.

Baidu looks like it's in that category, especially when you consider the news about that company recently.

Google, on the other hand, is here to stay (not if Microsoft has anthing to say about it though).

 

[znender]

Baidu.com has mp3 searches, tat's quite cool.
Google obviously has bought Baidu or at least own a part of it.
GOogle prolly plans to monopolize the searching world ^^;

 

[The Prodigy]

Google should buy them, it would be a good business venture.

 

[bojianh]

Totally agree...But will Google lose money if baidu fades out of the scene?

 

[commes]

And the fall of Google begins...

Like that would ever happen lol, baidu will be gone soon enough