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Rosy long term growth of Chinese domain market

February 19, 2017 by Kassey Lee

China is a great domain market for those who like to study data and try to draw a big picture of where the country will be heading. There are reports constantly published to help you understand the internet in general and domain name in particular.

The latest one I just finished reading is 互联网发展趋势报告2017 (translation: Internet Trend Report 2017) released only a month ago by the China Academy of Information and Communications Technology (CAICT), a think tank for the Chinese government in the area of innovation and development of industry.

Reading the report from the domain name perspective, I came away feeling very encouraged about the future of this market, and my confidence is supported by the following two points.

1. Growing internet economy

Year GDP Share
2005 14.2%
2008 15.2%
2011 20.3%
2014 26.1%
2015 27.5%

This table shows the share of the internet economy as percentage of China’s GDP. Obviously, the internet economy has been growing significantly, and the growth will continue because of favorable fundamentals such as large population, savvy internet users, supportive government, booming startups and incubators, and aggressive VC funding. The larger the internet economy becomes, the more Chinese companies will get online, which translates to continued demand for domain names.

2. China is No. 2 on Top 20 Global Internet Companies list (market cap)

Rank Company Country
1 Apple USA
2 Alphabet USA
3 Amazon USA
4 Facebook USA
5 Tencent China
6 Alibaba China
7 Priceline USA
8 Uber USA
9 Baidu China
10 Ant Financial China
11 Salesforce.com USA
12 Xiaomi China
13 Paypal USA
14 Netflix USA
15 Yahoo! USA
16 Jing Dong China
17 eBay USA
18 Airbnb USA
19 Yahoo!Japan Japan
20 Didi Chuxing China

USA is the biggest (13), followed by China (6). It is clear there are only two major players in the internet arena. Considering the fundaments I mentioned in point 1, I speculate that more Chinese companies will get on to this list. This means premium .com domain names will continue to sell well in China because the largest Chinese companies all want to have the best (most expensive) domain names for their corporate websites. Also, China will remain a very important domain market for domain investors.

Therefore, I’m working hard to develop a strong network of executives from Chinese companies. I read everyday, and then pick the most interesting pieces to put into my daily educational series and share with Chinese executives on LinkedIn. I believe “give and it’ll be given to you.”

Note: You can download the Chinese report from: http://www.catr.cn/kxyj/qwfb/bps/201701/P020170110333987961362.pdf

This first appeared on Coreile.com

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Filed Under: Chinese Domain Names, Coreile

About Kassey Lee

Kassey Lee is the publisher of Grandseeds.com, a Chinese domain market newsletter containing daily blog, news, and Q&A.

Comments

  1. Steve says

    February 19, 2017 at 10:28 pm

    Thanks for keeping us up to date. I agree long term looks great for business’s in China online. I use google translate to help with articles as I dont speak Mandarin. I pirchased 互联网域名.com to list some names on geared to the Chinese market. Not sure if it translates out perfectly but it was available. Most inquiries come direct via whois so far. Keep it up!

    • Kassey Lee says

      February 20, 2017 at 10:09 am

      Thanks Steve. I suggest to have some Chinese friends and get help from them when dealing with Pinyin or Chinese IDN names. I do just the opposite, by getting help from native English speaking friends.

  2. AbdulBasit Makrani says

    February 19, 2017 at 10:36 pm

    Interesting… Seems more Chinese companies will be in that top 20 list than USA by 2020.
    Thanks for sharing Kassey 🙂

    • Kassey Lee says

      February 20, 2017 at 10:10 am

      I’m glad you like it. I agree with you.

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