Introduction
This week, we met with Mr. Xu from Boxue Yizhi, a well-established Chinese company providing solutions for libraries and education-sector institutions. Founded in 2008 and headquartered in Hangzhou, Boxue Yizhi has been serving China’s library industry for more than 15 years, with in-house product development and business coverage across over 20 provinces.
During the discussion, Mr. Xu shared candid insights into the real challenges foreign discovery tools face when entering the Chinese library market—from budget constraints to intense local competition and rising demand for flexible, customized solutions.
1. Tight Funding Environment in China’s Library Sector
One of the most critical points Mr. Xu emphasized is the tight funding environment currently affecting Chinese libraries.
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Library budgets are under pressure across higher education and public institutions
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Pricing sensitivity has increased significantly
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Libraries are prioritizing cost-effectiveness and measurable value
As a result, foreign discovery tools entering China face downward pressure on pricing, while expectations for localized, tailored services continue to rise.
2. A Highly Fragmented and Competitive Market
China’s library services market is far from consolidated.
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There are approximately 50 strong service providers nationwide
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Each player typically occupies a specific niche, such as:
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Chinese-language content
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International academic resources
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Learning platforms
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Multi-resource discovery or aggregation tools
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Competition is intense, and most providers specialize rather than offering one-size-fits-all platforms. This fragmentation gives libraries more choice—but also raises the bar for new entrants.
3. Why Modular Service Packages Matter
Given budget constraints and diverse institutional needs, Mr. Xu strongly recommended that foreign vendors move away from monolithic product offerings.
Modular service packages allow libraries to:
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Select only the features they truly need
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Control costs more effectively
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Scale services gradually over time
This approach aligns well with the purchasing behavior of Chinese libraries, which often prefer incremental investment rather than large upfront commitments.
4. Combining AI Tools with Paid Human Support
Another key recommendation was to combine AI-driven tools with paid human support.
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AI tools improve efficiency and discovery speed
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Human experts provide:
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Contextual understanding
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Localization support
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Higher accuracy for complex research needs
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This hybrid model enhances user experience and addresses the wide variation in user proficiency levels across institutions.
5. Customization and Flexible Pricing Are No Longer Optional
Customization is not a “nice to have” in China—it is essential.
Libraries differ greatly in:
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Budget size
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User demographics
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Academic focus and resource demand
Successful solutions must offer:
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Flexible pricing models
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Multiple service levels
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Configurable feature sets
This flexibility enables libraries to access essential resources without financial strain, while ensuring they can effectively serve diverse user groups.
Conclusion: Winning in China Requires Flexibility and Local Insight
As Mr. Xu’s insights clearly show, entering China’s library services market requires more than a strong product. Foreign discovery tool providers must adapt to:
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Budget-conscious decision-making
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A fragmented, niche-driven competitive landscape
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Strong demand for customization and modularity
Those who combine flexible pricing, modular services, AI capabilities, and localized human support will be far better positioned to build trust, loyalty, and long-term success in China.
