LinkedIn Corp (NYSE:LNKD) has hired Derek Shen to become President of their Chinese business. Shen, LinkedIn Corp’s new chief in China, is based out of Beijing. He is the founder and former CEO of Nuomi which is a top group buying site in the country. It can be assumed that the LinkedIn website, which is already available in 20 languages, is looking forward to introducing itself in Chinese now. The company has also been seen making many investments in China recently.
LinkedIn has as many as 4 million registered users in China, keeping in mind the fact that only an English medium site is available there. The site has a recorded 259 million users in over 200 countries, with a maximum of 93 million users in the U.S. as of 2014, China ranks twelfth in terms of the number of users the website has all over the world, with the U.S. being the No. 1. It can be safely expected that the company would serve as a valuable site, having a significant presence in both the People’s Republic of China and many western markets.
A step ahead of rivals: With a present penetration of only 0.30% in China, LinkedIn is positioned just aptly to penetrate the Chinese market further. The company enjoys a head-start on competitors such as Facebook, Twitter, Google as the company’s services are not blocked in China. LinkedIn furthers the government’s mission of economic growth. It will also have the added advantage once it launches the site in the native language as it would then be niche in the sector, according to basicsmedia.com.
It is likely that the development will be made at a relatively slow pace. This is mainly because of China’s skeptical attitude towards most western Internet companies. While most western companies have a tough time penetrating the Chinese market.
LinkedIn opportunities and advantages of expanding business in China are unmistakably affirmative, but at the same time, it is likely that the developments will be made at a relatively slow pace. This is mainly because of China’s skeptical attitude towards most western Internet companies. While most western companies have a tough time penetrating the Chinese market, LinkedIn stands on former grounds. If aiming at a faster growth and increasing the company’s customer base, LinkedIn is more likely to lose its chances of success. It will be in the best interests of the company if it moves slowly and carefully, showing greater interest in the development of the country and bringing value to its users.