Can Upstart Search Engine Displace Entrenched Leader?

As a search engine, it’s the new kid in this market. It’s technology is strong but it finds it hard to compete in a market where its competitor’s name has literally become a verb.

Which search engine is this? Microsoft Live? Yahoo? Ask.com? Actually, it’s Google and the market in question is China.

Launched in 2000, Baidu is the dominant search engine in China. While American and European users refer to searching as “Googling” something, Chinese users are likely to say they will “Baidu it”.

Pearl Research has just completed its study Google versus Baidu: Search Engine Preferences Among Chinese Youth. The report is part of their Phoenix Generation series which cover the 300 million-strong Chinese youth market. Each study combines one-on-one interviews with online surveys to assess consumer sentiment from the 16-30 year-old market.

According to this latest study, Google will continue to face challenges in competing with the well-entrenched Baidu. While Google may offer superior technology, Chinese youth are attracted to Baidu due to its strong brand recognition, entertainment-focused features, discussion forums and other youth-friendly capabilities. In addition, Chinese view Baidu as a Chinese search engine prompting one interviewee to ask:

Why would I use an American search engine to find out things in China?

Another differentiator for Baidu is its strong focus on entertainment-based content. According to the report, 60% of those surveyed use the Internet to download music or video. Baidu enables users to quickly locate mp3 files.

Yet it’s too soon to write Google off. According to the study, Google enjoys strong brand loyalty from those who use it. Many Google users in China come from those who have been dissatisfied with Baidu. According to one interviewee:

Baidu is a really bad search engine. I can’t seem to find many results when I search. I think Google offers much more search results, but the problem is not many people in China know that.

The Baidu brand continues to enjoy a dominant position in China, one that will not be easily overcome by Google. Yet, with its vast resources and strong technology, it’s too early to write off Google’s chances in this market.

The full report, Google versus Baidu: Search Engine Preferences Among Chinese Youth, is available for purchase.

Technorati Tags: (GOOG), Baidu, china, Google, Guge, Search-Engines

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Tuesday, January 29th, 2008 : Market Research : No Comments

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