Chinese Domain Market Newsletter

In my 3rd grade, I was chosen to give a speech at the school's morning assembly. I practiced very hard. When the day came, I went up the podium and stepped forward to the mic. As soon as I opened my mouth, suddenly the faces of several hundred students disappeared and my mind became blank. "Ah, Ah, Ah" was all I could mutter and I was quickly dismissed. Since then I was called the "Ah, Ah, Ah" boy at school. Fortunately, it did not diminish my desire to speak in front of people. Here's the post.

June 30, 2016 (Thu)

Chinese .IDN too expensive to compete

Registration numbers of Chinese .IDN are really dismal. Take .公司 (company) and .网络 (network), the only two Chinese .IDN handled by all of the top 10 registrars in China. A month ago, the former had 50,193 registrations and the latter 31,882. Now? They have only grown by 221 and 110 registrations respectively.

One of the causes of this problem may be price. Chinese .IDN domain names often sell at very high prices when compared with .com, .cn, and other extensions. For example, you can register .com on eName for 100 CNY, .cn for 80 CNY, and .wang for only 9 CNY. But, look at the prices of Chinese .IDN domain names.网络
Aliyun220 CNY220 CNY

When the two mainstream extensions (.com and .cn) are much cheaper and affordable, and with great number of ccTLD and new gTLD domain names at very low prices, can Chinese .IDNs really compete? Or, does it matter to their registries?

It does. Domain investors promote domain names but high prices drive them away. If Chinese .IDN registries also act like many other new registries by holding back good domain names and leaving no money on the table, then there is no incentive for domain investors to buy expensive Chinese .IDN domain names, hold them for long term while trying to sell to end users or other investors.

Domain investors are like your distributors. A domain name sold for a profit creates buzz, and buzz creates momentum, and momentum brings success to a domain extension. High prices attract no domain investor.