Airbnb is looking to expand in China over the next year. (See attached article).
ID: 397968 • Letter: A
Question
Airbnb is looking to expand in China over the next year. (See attached article). Though this market offers a lot of potential, Airbnb faces many challenges: dissimilarities in terms of culture, as well as political and legal systems. Additionally, Airbnb will face a formidable local competitor (Tujia). One misstep by Airbnb occurred when localizing the company name for the Chinese market. See "As Airbnb Just Learned, It's Really Hard to Localize Your Brand Name for China." (Click on the link below). Do you think that Airbnb can be successful in the Chinese Market? Why or why not? http://adage.com/article/cmo-strategy/hard-localize-brand-china-airbnb-learned/308405/Explanation / Answer
I believe that Airbnb could definitely succeed in Chin abut its success would hinge on a lot of important factors.The most important being having a local brand image which is consistent with the culture of China.
One of the factors which could contribute to the growth of the startup in China is the huge population of Chinese Millenials, a rapidly growing tourism market upon which it could ride for success. One of the other advantage that AIrBnb has over it Chinese rivals like Tijua is the fact that it is globally present in more than 190 countries and that expands it base manifold. This can be understood with an example People cominf from various parts of the world to China who would like to have an authentic travel experience and are avid travelers who definitely first try to look for listing on Airbnb first as they have experienced its service before and might not be aware of local services like Tijua and that brand recall is a something whose power cannot be undermined.
Apart from that more than 120million Chinese people visited other countries in the last year. If these people have a good experience with the brand in the local market. It might lead to a host of Chinese looking for these services overseas as well which is very important for the overall success of the company. Local and authentic stay experience has been in vogue for the past few years and AIrbnb should not miss this opportunity to provide its user base with the same in China.
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