Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Business network giants face China 'guanxi' battle  Join our daily free Newsletter

MENAFN - AFP - 24/02/2013

No. of Ratings : 0
Digg This Article: http%3a%2f%2fwww.menafn.com%2fmenafn%2fqn_news_story_s.aspx%3fstoryid%3d1093612506%26title%3dBusiness-network-giants-face-China-guanxi-battle%26src%3dRSS Share This Article: http%3a%2f%2fwww.menafn.com%2fmenafn%2fqn_news_story_s.aspx%3fstoryid%3d1093612506%26title%3dBusiness-network-giants-face-China-guanxi-battle%26src%3dRSS Add to Delicious Seed this article Buzz this article Add to Reddit Add to furl Add to stumbleupon Add to Mixx!


 


(MENAFN - AFP) Professional social networking websites such as LinkedIn trying to tap into China's vast business world are finding a formidable domestic foe -- the ingrained system of personal connections known as "guanxi".Two leading sites, California-based LinkedIn and the French company Viadeo, are targeting networkers in the world's most populous country, but acknowledge the challenges they face.China has the world's biggest online population at 564 million web users, but the history of Western Internet giants looking to establish themselves in it is littered with failures and disappointed retreats.Google relocated its servers to Hong Kong over censorship and hacking and now has only a small share of China's search market, while Yahoo! has had a troubled relationship with partner Alibaba.Groupon's entry was turbulent from the start, and it closed several offices and laid off hundreds of staff just months after launch.Business network sites face a huge extra obstacle of their own: guanxi, China's system of personal relationships reinforced by mutual favours which plays a vital role in conducting business and navigating a messy government bureaucracy.Wei Wuhui, a professor at Jiaotong University in Shanghai, says that online alternatives will have a hard time supplanting its deeply embedded role."I don't think the Chinese middle class has the same needs in terms of professional networks as people in the West, because of the concept of guanxi," he said."In China people do not want to meet with people they don't know. The Chinese have a culture based on relationships among family members and close friends."Just one percent of LinkedIn's 200 million worldwide users come from China. It opened an office in Hong Kong in 2012 but has yet to offer a platform in Mandarin, despite already being available in Romanian, Malay and a dozen other languages."Entry into China is complicated and not something that we take lightly," said company spokesman Roger Pua. "We're focused on getting it right."France's Viadeo has made its way in by trying to adapt to the environment -- it acquired the leading Chinese equivalent, Tianji, and its own founder and chief executive Dan Serfaty has relocated to China.It has sought to promote the site as a way to maintain users' guanxi and the service now boasts 14 million users, with half a million more registering each month, he says."For a long time the Internet in China was about fun and gaming," he said. "We try to make the user experience more fun than on other platforms," citing emoticons and a salary game which lets users compare their pay to others'.With fake qualifications rife in China and distrust of the Web ingrained, Viadeo is also developing a system to check profiles, akin to Twitter's verified identities, which Serfaty says will be launched "very soon".Tianji user and Beijing-based software designer Li Lian believes this type of online service will play a valuable role as China's job market evolves."I find all kinds of companies on the site and the job descriptions they are offering, which I can apply to if I think I have a chance," he said."I can also put my personal details on Tianji to let potential employers know my skills, and that allows me to increase my chances of getting a better job."Serfaty believes professional social networks will gain increasing traction.Though acknowledging the primacy of guanxi, he argued that services like Tianji could play a complementary role."The boundary between private and professional life in China is not always very clear," he said. "You go to karaoke and get drunk with your clients."Guanxi is a strong link," he said. "But we say, thanks to the Internet you can maintain your strong connections and develop your weak ones."

 






  MENA News Headlines
May 25 2013Design experts discuss new trends at Index seminars ,Khaleej Times
(MENAFN - Khaleej Times) The Index International Design Exhibition and The Office Exhibition, which close today, have provided the regional interior design and architecture community with an ...

May 25 2013UAE adds power to mobile broadband ,Khaleej Times
(MENAFN - Khaleej Times) The UAE on Wednesday took a critical initiative to stay ahead in broadband connectivity race by unveiling its band plan for 700MHz and the launch of spectrum in the 800MHz ...

May 25 2013UAE- Where quality is a habit ,Khaleej Times
(MENAFN - Khaleej Times) Prime HealthCare Group received the Dubai Quality Appreciation (DQA) Award 2012 for the second time (2007 and 2012 cycle) owing to excellence in the areas of high service ...

May 25 2013FGB 3rd most powerful UAE firm: Forbes ,Khaleej Times
(MENAFN - Khaleej Times) First Gulf Bank, or FGB, has been recognised as the third most powerful company in the UAE and the sixth leading bank in Forbes' Top 500 in the Arab World list. The bank ...

May 25 2013Emirates NBD's new 'Bank on Wheels' hits the road ,Khaleej Times
(MENAFN - Khaleej Times) Emirates NBD added another innovative service to its list of achievements on Friday by operating its Bank on Wheels services, which will enable the lender to assess its ...

May 25 2013Emirates opens refurbished lounge at Paris airport ,Khaleej Times
(MENAFN - Khaleej Times) Emirates, has inaugurated its refurbished Paris Charles de Gaulle Lounge for First Class and Business Class passengers as well as Platinum and Gold members of Emirates ...

May 25 2013Kuwait- Zajil Telecom participates in ITW 2013 in Chicago ,Arab Times
(MENAFN - Arab Times) Zajil International Telecom has once again succeeded in placing Kuwait on the international telecommunications world by being a prime sponsor at the International Telecoms Week ...

May 25 2013Kuwait- Salesman abducted, bill cleared ,Arab Times
(MENAFN - Arab Times) Two Kuwaiti citizens were arrested recently for kidnapping an Egyptian expatriate, who works at a mobile store in Salmiya, after which they attacked him, forced him to call his ...

May 25 2013Kuwait- Foreign gang involved in flesh business rounded up ,Arab Times
(MENAFN - Arab Times) The Vice-Squad Department affiliated to the General Department for Criminal Investigation has arrested members of an 'international' gang said to be involved in flesh trade, ...

May 25 2013Kuwait: 30 persons arrested, citations issued, liquor seized in Ahmadi ,Arab Times
(MENAFN - Arab Times) Ahmadi securitymen recently launched impromptu security and traffic campaigns in Ahmadi Governorate under the supervision of Ahmadi Security Director Major General Ayed ...

more...


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help