Coreile

Chinese Domain Market Newsletter

It delights me to discover other talents of a person. Recently, I found out Eric Lyon of Namepros is also a graphics designer. So, I asked him to design my next business card. I must say I'm very happy with the result. The card contains only my personal domain name and its matching QR code. I have done away with info such as email and phone number. My name on .com is all that is needed, and the QR code is intended for my Chinese contacts. I like the professional-looking font used and the inclusion of a star-themed graphic, reminding me of China as well as the Lone Star state which has given me many fond memories. Here's the post.

February 15, 2017 (Wed)

Rosy long term growth of Chinese domain market


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

YearGDP Share
200514.2%
200815.2%
201120.3%
201426.1%
201527.5%

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)

RankCompanyCountry
1AppleUSA
2AlphabetUSA
3AmazonUSA
4FacebookUSA
5TencentChina
6AlibabaChina
7PricelineUSA
8UberUSA
9BaiduChina
10Ant FinancialChina
11Salesforce.comUSA
12XiaomiChina
13PaypalUSA
14NetflixUSA
15Yahoo!USA
16Jing DongChina
17eBayUSA
18AirbnbUSA
19Yahoo!JapanJapan
20Didi ChuxingChina

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