Google Defends Shrinking China Market Share

by on September 21, 2010

Google secured the Chinese share market, as the market was at a risk of declining its prevailing status, due to the closing of the Chinese of the search engine in March. Google Inc. promotes Android operating system for mobile phones by opening its own advertising center and researching centre in China, and it caused to hire numerous marketing and technical employees in China.

Though the local fans suggested that the Chinese search engine should be reopened, Google has not indicated anything regarding the same. In January, a Google report stated that they have no need to have an impact with the local users of the Chinese search engine, and they do not intend to accomplish the Chinese censorship any further.

However, Google fans expect that Google will be back in China by renewing the agreement.  Highlighting the effectiveness of Google, they further say that some Google products are only available in Google and they cannot be found by using any other search engines.

As world’s most populous internet market, China gets the supreme assistance of Google for advertising. Google is already confident about its advertising capacity, as they have effective local sales in China, which greatly assist the Chinese online business.

Mainland users also accept that Google is more efficient in advertising, as it provide well structured information in an attractive way and also it maintains perfect professional standards.

According to the international analysis, 24.2% revenue of Chinese’s search engine goes to Google in the second quarter of the year.

Besides, the closing up of Chinese search engine has created some disadvantages to Google. For instance, the users who are not familiar with Google tend to use to Baidu, and Alibaba, which are rivals of Google. And these sites are in high competition with Google as they attract considerable traffic to their sites due to the closing up of the Chinese search engine.

Illustrating this tendency, Baidu attempted to imitate Google and included more services on electronic books and entertainments. Regarding this, David Wolf, a technology marketing consultant in Beijing expressed that there may be a seven to twelve percent decline of Google market shares in the next two to three years.

Further, David Wolf stated, “Regardless of what changes they’ve made, Google has an ongoing government relations challenge here”. But, it is not evident that Google will continue the same. However, Google required the official contracts for launching research operations and advertising in China; and still Google has not declared their decision regarding the same.

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