Analysys CEO: Google taking Baidu's customers

During the search engine conference in Xiamen, Fujian Province, Analysys International CEO Yu Yang told the audience that Google's channel partners are snatching many Baidu's customers in the secondary and lower level markets.

Yu Yang indicated that Google benefited by the resaler model they have developed in China. He said that from analysis of Baidu's earning report, the cost of direct sales is increasing rapidly.

Yu Yang thinks Baidu should using both direct and channel partners. Direct sales only strategy could result in significant problems in the future.

Reported by Liu Yang from tech.sina

Baidu's so called direct sale is quite different from Google's direct sale model in the United States. Here customers can sign on to Adwords themselves. Baidu's direct sale uses it's own sales force.