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What is the prospect of Facebook in China?

Alex Christie

7 January 2008

Facebook has obtained great success from 2004 in America and quickly spread across Europe. Now Facebook put its expansion plan on China, what would happen in this so special market?

1. The conflict between gross and average. China has 162 million internet users until June 2007, but the percentage of total population is 12.3%, which is far less than global average 17.6%. So what would happen if you could not find anyone you know when you log onto Facebook? The boom of Facebook requires a powerful internet foundation which seems not possible in China.

2. The Facebook model has a lot of potential in university market. This is because the percentage of internet users is more than 90% and this specific group is very keen to try new things.

3. www.xiaonei.com is Facebook’s clone in domestic China. This website is like Facebook very much but has fewer applications. It was acquired by Oak Pacific Interactive recently and it aims to compete with Facebook. Will Facebook beat it?

4. Like Google to Facebook. The Chinese search engine giant, Baidu, starts to enter Web 2.0 area. In the following years, it will launch its own social network website.

It seems there are some difficulties and competitors exist in China. Will Facebook successes?



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