Wednesday, 6 March 2019

Why Chinese applications find it hard to break into foreign markets?

I went back to China during the Chinese Year New, found it so cool and convenient to make payments by mobile applications, such as Alipay and WeChat. Moreover, people can use these Alipay for making investment, buying insurance including pensions, booking taxi, paying utility bills and many other things. It is just far more convenient than any application used in the West. Google can provide AI assistance which can help people to book restaurants and make payments, but still it is not as convenient as WeChat or Alipay in China. Why do these convenient Chinese applications find it hard to break into overseas markets?
Actually these tech companies are trying to break into overseas market and have some overseas customers. But many of these overseas customers are Chinese students and those who are doing businesses with Chinese. There are several challenges for these tech companies. First, they do not have such enormous connections or power in the markets as they do in China. In China, they are connected to Didi (Chinese Uber), various financial institutions and other subsidiaries or companies; in overseas markets, they do not create such wide webs to cover all types of services. Secondly, to many foreign users, they simply contain too many functions. Many foreign users are not used to having so many functions in one application, they may have some difficulties of finding correct functions among so many functions in one application, when they are more used to applications like Uber, which only delivers one core function. Thirdly, these tech companies are still mainly focusing on the Chinees market. In China, they have the power and more importantly the Chinese market is large enough for them to generate good amounts of profits. Fourthly, translation and different using habits can make foreign users find these Chinese applications unattractive. And Chinese users are looking for different functions from foreign users, and many these companies make Chinese users’ demand a priority.
Overall, the Chinese market has its uniqueness, companies which succeed in foreign markets may not succeed in the Chinese market, and companies which succeed in the Chinese market may not be able to succeed in overseas markets.

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