Google is probably one of the most influential tech companies around. Since most people use its search engine when looking virtually anything on the net, brands pay homage to the tech giant via paid advertising for their products to show up in search results.
But as powerful as Google is, there is one market that it failed to conquer - China. True, the company offered its services in the country back in the 2000's but had to leave the country in 2010 after a complicated story involving sophisticated cyber attacks and increasing government censorship.
But what could be Google's chance of success should it decide to give China another try? According to the former head of Google China, the company's chances of a successful comeback are rather bleak.
"I think re-entry is always difficult," co-founder of US-Chinese VC firm Sinovation Ventures and former Google China head Kaifu Lee told TechCrunch. However, it's not a problem with Google specifically as entry into the Chinese market at the point will be unfavorable for any American firm. "The bigger issue really is can an American multinational succeed in China now that China has bifurcated into this parallel universe."
During his four-year stint with Google China, Lee had to butt head with their main competitor Baidu, a popular Chinese search engine. Lee had some success during his tenure and grew Google China's share from a dismal 9 percent to a more acceptable 24 percent while revenue ballooned to almost a billion dollars.
But things are different in the Chinese market these days. Consumers are not particularly looking for a new app or new search engine but innovative services or products that address a need. In addition, executives working for foreign firms just can't compete with the locals managing their Chinese competitors.
"People [in China] aren't looking for a new search engine or an app store, new companies are emerging addressing previously unknown customer needs [and] innovations are coming out," Lee expressed his views. "...the heads of multinationals are really just professional managers. If they were to compete against local entrepreneurs who are gladiators in this colosseum, I don't think the American companies will have a high chance of succeeding in this environment."
But there's always an exception to any rule. While most US firms may not make it, Apple will survive just fine. And the reason for that is that Apple manufactures hardware products and those products - iPhones, iPads or Apple Watch - has become fashion symbols that are recognized even by Chinese consumers.
Even Chinese firms are finding it difficult to survive in an environment where authorities are constantly policing online content being offered by tech firms. A local company, Toutiao, has its apps suspended due to this and had to issue a public apology. Even well-entrenched Chinese tech giants are not exempt; Tencent and Alibaba hire huge teams to scour their online offerings for any violations. For a Western company such as Google to try to make it in this harsh environment, the challenges it must overcome will inevitably be greater.
