2 posts categorized "Doing Business in China" Feed

Yahoo! can Laugh at Last as Alibaba's IPO in the U.S. is Getting Close

No market than China sees American Internet companies fail so terribly. Google was kicked out of China, part of it because it offended the Chinese government, part of it because it lost to its local competitor Baidu. eBay pulled out of the market voluntarily after realizing it was losing ground to Alibaba's Taobao. Yahoo!'s business barely took off in China after years of struggling and trying in China. Facebook or Twitter, even worse, never got a chance to try the market out. What's more, their domains are blocked in China. Yahoo! struck a deal with Alibaba in 2005 to form a joint venture, in which Yahoo! invested $1 billion cash and Yahoo! China assets, which was valued $700 million, for a 40% stake. The whole joint venture deal was valued at $4 billion. At Alibaba's coming IPO, analysts estimate it may be valuaed around $200 billion. Even though Yahoo! was forced to reduce its share at Alibaba to 23% in 2012, Yahoo! is still going to do extremely well. Sue Decker, former Yahoo! president, looked back at what Yahoo! had done right and wrong in China in her" An Insider's Account of the Yahoo-Alibaba Deal" in Harvard Business Review Blog... Read more →

From time to time, owners of small and mid-sized companies in the United States have approached me with the question: "We have excellent products/services/technology, can we make some money from China with them? By the way, though we can't afford to set up a China-team to handle all the work, challenges and potential headaches, we'd still love to explore the opportunity." I get it. What they mean is, they want to collect checks while leaving the hard work and stress to someone else. I am glad that these companies' owners have this idea. Why not? First of all, I want to reiterate that it is important to make a plan for China as soon as you believe you have something unique to offer. Committing to the sale and distribution of your products in China is an excellent starting point. It may not be as hard as you think. Minimally, you can add the Chinese language to your website and support Paypal or credit card payment. Chinese are searching for things to buy all over the world. At the same time, more and more Chinese students are attending U.S. colleges and universities, estimated 250K enrolled, not to mention those Chinese who... Read more →