58.com’s platform has been likened to that of Craigslist and has even been referred to in the western media as China’s Craiglist. What has not received coverage in the western media yet, are references to 58.com’s competitor in the China market, Ganji.
58.com and Ganji have much in common. Both companies were founded in 2005 and the similarities between Ganji and 58.com can be most immediately observed from screenshots of the two websites’ homepages. The layout of the platform and the product categories are very similar. In the screenshots below, the blue arrows have been drawn to help those who do not read Chinese see where the similarities are.
Ganji, on their website, claims an average of 2.35 million new listings per day in the period up to February 2013 (there is no indication of when the start of this period is). Ganji also goes on to claim that as of the end of 2012, its mobile client was number one for market share, with 58.com in second, and yet another competitor, called Baixing, in third (Baixing’s website is also quite similar).
It must be noted that the time period for measuring the average new listings used by Ganji is not the same as the one used by 58.com, making a direct comparison impossible. Also, the statements about market share are referring to different aspects; mobile with respect to Ganji, and cash receipts with respect to 58.com. Thus, investors will have to decide for themselves how much merit, if any at all, to put into these competing claims.
Also, an unanswered question is whether these companies will take market share from one another in a way that would threaten the other company’s existence and share value, or, coexist and grow like Pepsi and Coca-cola. These questions require further research. But for now, investors should at least be aware that outside of the 38.1% of market share that 58.com holds, in the 61.9% comprised by the rest of the markets players, there could be a very stubborn competitor in the shape of Ganji.
Disclaimer: The information on this website is for reference only and should in no way be taken as financial, legal, investment, or any other kind of advice. Links to other sites are provided for the convenience of readers and we do not claim responsibility for or endorse any of the content on sites that are linked to.