China is in for an Internet boom but investors don’t get it: Baidu's Robin Li

Baidu Inc.’s Robin Li and his company have been at the top of their game in China in providing users with search services. But Li is not stopping there as he wants to deliver laundry, book services and provide more online services in the country. According to the executive, China is in for an Internet boom with services offering more lucrative potential than search.

Li is under heavy opposition as he bets billions of dollars over untested waters. Investors are questioning the future of the company as it eyes connecting people to other entrepreneurs, possibly sacrificing the profits of the company today for the promise of the future.

Making his position clear during Baidu's annual conference held last week, the executive barely discussed the company's search services but spent time talking about online to offline push, or 020 in geek terms.

“We are actually transforming the company from connecting people with information to connecting people with services,” Li told Bloomberg following the event. Li sees the Internet as potential venture but the rest of China has yet to notice it. The economic meltdown has taken up much of the market's attention. The meltdown wiped down nearly 40 percent of the market value of its stock markets but online retailing grew by as much as 39.1 percent, according to Want China Times.

The resilience of the retail market is largely due to the internet, which is likely to make up half of China's consumption. In Li's point of view, thing are very simple - whereas advertising is a sizeable market, the retail market and services offer bigger potential. The shift is already evident in Beijing as smartphone apps allow people to connect with service providers as quick as a tap on the screen.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.