CCID Consulting Co., Ltd. News

Google vs. Baidu: Localization vs. Internationalization

BEIJING, June 14 Xinhua-PRNewswire — CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, recently commented on the "localization" and "internationalization" strategies of Google and Baidu.

The 21st century is an era of economic globalization, with foreign enterprises swarming into China to "localize", while Chinese enterprises are actively preparing to enter international markets. Traditionally, older, more established industries, multinational companies and domestic enterprises have needed to consider various problems surrounding available funds, costs, equipment, production lines, distribution channels and patents in their localization or internationalization drives. However, the Internet industry does not seem to have those complications. This is because the Internet itself links the whole world; technology, services and talents are the only considerations that enterprises need to take.

However, everything is not that simple either.

Google: ambiguous "localization"

"Localization" has almost become a tightening ring over all foreign Internet enterprises that have entered China. Following Yahoo!, Google, eBay and Amazon have also took footholds in China. However, what we have seen are not fast-marching international giants but a succession of foolhardy youngsters. When Yahoo! China vowed itself to Alibaba, eBay was acquired by TOM, and Joyo almost disappeared from sight, it left only Google to sustain this solo play.

Despite its large number of high quality and loyal users, its carefully devised card of "Gu Ge (Google) — the only name for other languages" and its continuous active innovation to attract attention from Chinese users, sluggish performances and much blamed "localization" have nevertheless forced Google, the Internet giant which can look down upon the world, to bow its head in the Chinese market.

In fact, for both Google and those people who often use "localization" to castigate it, "localization" seems to be a catchphrase. As for what is precisely the meaning of "localization", how many can tell clearly?

Baidu: unclear "internationalization"

In contrast to foreign enterprises' enthusiasm, Chinese Internet enterprises are still cautious about internationalization. Sina, Sohu, NetEase and Shanda are all listed on NASDAQ in order to raise overseas capital. This is not true internationalization. TOM's acquisition of eBay and Alibaba's acquisition of Yahoo! China only remain at the level of integrating local resources in China. Shanda has acquired Actoz to solve the copyright problem, while Kingsoft Online Games has ventured to Europe, America and Southeast Asia to export its products. The enterprises themselves have not gone out of China. At present, Baidu seems to be the only one to challenge the overseas market on a large scale.

Claiming "Baidu understands the Chinese better," Baidu has chosen Japan, a challenging country to make breakthroughs in the overseas market. The Company is now paying a price for this. After the "domain name episode", its website in Japan is recently inaccessible. Statistics show that Baidu (Japan)'s main traffic comes from China. Just as they are not optimistic about foreign giants' "localization", people equally have doubts about Baidu's "internationalization".

"Localization" vs. "internationalization" — the same nature

"Localization" and "internationalization" talk about the same thing. Some people stand out of the door, while some stand inside. Those who enter it talk about "localization", while those who go out speak of "internationalization".

In all reason, Google has the search engine control in the United States and across the world. It should have a say in both "localization" and "internationalization". By its position in China's search market, Baidu also has a profound understanding of "localization". However, both of them have tumbled over the "localization" threshold.

In fact, both "localization" and "internationalization" mean that enterprises leave their former fertile soil to tillage a piece of new land. Before departure, enterprises must have seen that golden beans can be harvested from the land. However, though all have taken golden beans to plough the land, some have got soybeans. The problem can only come from two aspects. One is that they have used the wrong seed, while the other is they have adopted the wrong method. When enterprises select their strategies, they will face two directions: to change themselves to adapt to the market or stick to their style and guide the market. Whatever the choice, "localization" is neither a concept nor experience that past success can only be used as a reference. However successful, products may not acclimatize.

"Localization" is a thinking model. "Localization" does not mean to set up a local company, speak a local language or provide some services that are already available in the local market. Just like Google has labored to find a Chinese input method only to find the trouble it has caused.

In fact, "localization" really is a thinking model. One needs to learn in order to consider problems that can arise using the local society and to understand the local market and even get integrated into the local culture. This is why many multinational companies choose Chinese people to serve as their executives for their China branches. When your management team cannot fully understand the market, failure, rather than opportunities is the only thing that waves to you.

However, a team led by a Chinese person has only showed a posture of "localization". Fundamentally, it should have a determination of "localization". To learn about the thinking of "localization", some indigenous methods may have to be grasped. For example, to expand in China's SMB market, is Google willing to throw off its airs as a foreign company to change into the Chinese thinking and develop the market? Is it willing to concede to work alongside SMBs? Can it truly give up playing up those flowery technical advantages and let SMBs see some real benefits? For Baidu who sets foot on an alien land, profound cultural differences and linguistic habits lay ahead though there are some similarities between Chinese and Japanese users. It is right for CEO Li Yanhong to say that the Japanese should be employed to manage Baidu (Japan). However, to truly get a place in the market, one has to see whether users accept them. It is not known whether Li has thoughts about that how Japanese netizens with a strong national pride will listen to the preaches of Baidu, a monk from afar.

Both Google and Baidu need to put a mirror in the door between "localization" and "internationalization" to see whether they look more like a foreigner or a local person. Make sure of it and then march forward!

About CCID Consulting

CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas of the powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.

CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .

For more information, please contact: Grace Gao CCID Consulting Co., Ltd. Tel: +86-10-8855-9020 Email: gaojie@ccidconsulting.com

SOURCE CCID Consulting Co., Ltd.

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