Facebook in the Chinese Market Before 2009
Facebook faced difficulty entering the Chinese market before 2009 due to the country’s various internet regulators and stance of barring U.S. consumer tech companies from gaining access. As the website’s user base was steadily growing, the company began developing plans to try to obtain a foothold in the market. Notably, they commenced efforts in January 2009 to try to break the ice.
Initial Strategies
The initial strategies adopted by Facebook to garner entry in the Chinese market were varied. Firstly, they had to be creative since the Chinese government was steadfast in denying their requests for access. One of the first attempts was a partnership with Liu Chunxue, who just a year prior had founded an education website called Xu judu in China. The original agreement sought to allow Facebook to display China-targeted ads on the Xu judu website by using some of Facebook’s code, while retaining most of the control of the platform with the Chinese investor. It was an ambitious idea given the political climate, but it surprisingly worked, at least for a few months.
The Fall of the Plan
The plan didn’t last for the long-term. Eventually, Liu Chunxue was forced to shut down Xu judu to avoid political pressure from the Chinese government and this left Facebook without an effective strategy to acquire entry. Moreover, due to the nature of the partnerships with the investor, it was unclear whether China’s internet regulators were ever aware of the website’s existence. Despite all the attempts made by Facebook, the Chinese market still stayed out of reach in subsequent years until 2018, where many U.S. companies have now found a way to do business in the market.
Conclusion
Facebook’s aggressive entry strategies into the Chinese market back in 2009 were futile, though their strategies should be commended in retrospect for their audacity. Chinese consumer tech regulation is a complex subject, but the growing number of U.S. companies successfully entering the market shows that it is possible to make inroads. Good luck to the rest of the companies that wish to follow in Facebook’s footsteps to explore this opportunity.
Introduction to Facebook’s Attempts At Entering China
Facebook’s ambitious goal of entering the Chinese market has been a long-term endeavor. As the largest country in the world and with a population of over 1.4 billion, China has shown immense resilience and interest in technology. In 2016, the tech giant made several attempts to venture into Chinese market but was largely unsuccessful. This paper looks into the strategies and efforts made by Facebook to enter China’s technology ecosystem prior to 2009.
Background To China’s Online Market
The Chinese online market has always been a difficult one to navigate. China has a complex system of legislation that regulates the online sector, making it harder for foreign companies to penetrate the market. In addition to this, the Chinese government has put in place a number of restrictions on social media websites, such as Facebook and Twitter, that limit their reach in the country.
The Chinese government seeks to maintain control of the internet content within its borders. This is to prevent people from accessing sites and information that it deems to be unsuitable. It is also designed to protect its citizens from accessing political information that it believes to be dangerous. All of these considerations must be taken into account when attempting to launch a successful product in China.
Football Sponsorships
In an attempt to appeal to the Chinese market, Facebook formed a partnership with Chinese football club Guangzhou Evergrande in June 2008. The collaboration was intended to give Facebook exposure to the local fan base. To achieve this, the tech giant sponsored the club’s home and away matches, as well as its promotional activities.
This strategy was met with mixed reviews. Some thought it was a great idea, while others argued it was a waste of time and money. It certainly gave Facebook exposure to the right people, but it wasn’t enough to overcome the government restrictions. It’s likely that the sponsorships didn’t have a huge effect on the Chinese internet market.
China Localization
In 2008, Facebook also undertook a localization strategy in order to better cater to the Chinese population. This involved translating key pieces of content into Simplified Chinese and offering Chinese users tailored incentives. This was designed to encourage users to switch over from domestic social media networks such as Weibo and Renren.
Facebook also launched Weimob, a localized Chinese-language site. Unfortunately, it failed to gain significant traction. Weibo and Renren remain the two most popular social media platforms in China, signaling the difficulty in unravelling the Chinese market.
Conclusion
Since 2008, Facebook has continued to pursue a presence in the Chinese market. However, the Chinese government seems adamant in not allowing the tech giant to penetrate the local market. Hence, it is not certain that the company will be able to crack the Chinese market anytime soon. Even with the persistent attempts of Facebook, it is evident that there are multiple ways of making an entry into the Chinese market and it may take more than just football sponsorships and localized Chinese websites to make it happen.
