Posted on 04 Dec 2006
China directory business is a big business.
Here I introducing a Web site that worked exactly the same as Craig’s List in the U.S., i.e. sosoko.com. This Web site got the eyes from the venture capitalists and according to China Venture News, it had secured nearly $15.3 million from D&H Capital and Asian Groove’s Hong Kong subsidiary Powerway. Sosoko’s business model in China is simple, it followed the steps of what make Craig’s List success in the U.S. Though I believed Sosoko.com do not have any intention on becoming a copycat of Craig’s List. However, it succeeding by captured almost 70 percent of Shanghai’s classified advertisement market and the growth prospects appear even greater in other cities.
My view is what took a Web site succeed in the U.S., if the Chinese Web sites copied their successful business models, I wonder they would not make it in China easily. The concept of “lag time” is viable in China. Though for some successful Web sites in the U.S. to enter China market and compete there will not be extremely difficult now, but surely Chinese Web sites should have major localization and cost advantages.
