Coreile

Chinese Domain Market Newsletter

It's time to go into hibernation. Living in a house built in 1925 has costs. No matter how much insulation we have put in the ceiling and the floor, the house still feels cold. But, this house is also blessed with many architectural features, such as big wooden beams in the ceiling, playful lead light windows, and uniquely designed picture rails along the wall. There are so many features to enjoy that I can stay at home all day long and not feel bored. Here's the post.

June 4, 2016 (Sat)

A price war is going on in China


We just witnessed .xyz overtaking .info to become the 4th largest generic domain extension in the world, thanks to the 2.5m new registrations racked up within just two days when .xyz was selling at as low as $0.01 USD per domain name.

When I look at China, I see a race going on and it's all about registration numbers too. Major domain registrars in China are offering deep discount to domain names -- new extensions in particular.

For example, Aliyun allows you to register .xyz at 2 CNY ($0.3), .club at 6 ($0.9), and .top at 4 ($0.6). Xinnet gives you .site at 5 ($0.75). If you like .wang, you can get one at 18 ($2.7) from eName. Even .cn is cheap now, at 18 ($2.7) from 22.cn.

Look at the following price list (with my calculation added) reported by Admin5.com on June 3.

TLDNormalSpecial Discount
.top58 (CNY)5 (0.78 USD)91%
.ren398 (1.2)79%
.pw689 (1.35)87%
.gift1109 (1.35)92%
.help1109 (1.35)92%
.link499 (1.35)82%
.photo1609 (1.35)94%
.click429 (1.35)79%
.asia8816 (2.4)82%
.cc32018 (2.7)94%
.info9818 (2.7)82%
.mobi9818 (2.7)82%
.red7818 (2.7)77%
.vip6838 (5.7)44%
.vc5848 (7.2)17%

Many of the extensions are offered at very deep discount, the most stunning one being .cc, with a massive price reduction from 320 to 18 CNY.

Will such aggressive pricing impact the value of .cn and .com in China? I doubt it. Instead, I think they will continue to go up.

In the real world, building a lot of cheap houses does not affect the value of prime commercial real estate. It is the same in the domain market too.

The reason is that more and more Chinese companies are realizing the importance of domain name as the door to their corporate world in the digital space. They are actually willing to spend even a fortune to acquire a domain name that gives them credibility and prestige.

Lowering merely the price of a domain name does it make it more attractive to Chinese companies. It's relevance not price that counts. I don't see the majority of Chinese companies leaving .cn or .com for other extensions.

Lastly, I won't be surprised if some extensions overtake .cn and .com to claim the top spots in registration numbers. In terms of value, however, I don't see how .cn and .com will be impacted negatively.