Report Producer: iResearch
1. Facts that China's Internet must face
After 2020, and even in previous years, the total number of independent devices and the total effective use time of China's network basically remained in a fixed range, and the growth of the number of independent devices was very slow, with only a 1% increase in 44 months. This has brought difficult upgrading problems to China's Internet and the digital industry behind it, and all the important events that have occurred in China's Internet and digital industry in recent years are attempts to break the situation.
Second, technological progress solves old problems and brings new problems
According to the calculation of the 6G Technology Promotion Group, by 2040, that is, 10 years after the commercial application of 6G technology, the number of terminal connections will reach a staggering 121.6 billion. At present, the total population of the earth is 8 billion, which shows that according to the characteristics of mobile communication technology, odd generations to complete technological breakthroughs, and even intergenerational financial substantive applications, 6G continues the market goal of 5G service enterprises and industries. At the traffic level, there is also a blowout trend, with an average monthly traffic of 5,855 billion GB, which means that a single device consumes only 50G of traffic per month. Even if the individual user terminal has a full metaverse environment, virtual reality environment and other cross-generational applications, which have the basis to consume such a large amount of traffic, this amount of data also means that the individual user terminal has changed dramatically, and even has certain industrial attributes. Therefore, judging from the current situation, the trend of service enterprises in the 5G era can be greatly strengthened in the 6G era.
3. After the epidemic, the basic people's livelihood has picked up, and the strategic focus has returned to business
The epidemic has had a huge impact on China's economy, and the destruction of confidence in the future is the main response. Therefore, before and after the epidemic, services related to basic livelihood have risen, while services to meet the higher needs of users have slowly recovered. This has also intensified the future strategic deployment and implementation of the Internet superstructure and major manufacturers, making their work focus return to business development itself.
Fourth, in the post-epidemic era, the consumption mentality of users has quietly changed
After the baptism of the epidemic and the change of expectations for the future, the consumption concept of Chinese users has changed significantly. Users believe that one of the meanings of consumption is to maximize the quality of life, and about half of consumers also agree that consumption choices need to think independently, and on-demand purchases are not comparable. There are many benefits to a scientific and rational way of spending, with 71.9% of consumers believing that they have been able to maintain a healthy economy as a result. At the same time, the correlation between product functionality and the newness of the product and the brand value is decoupled, and the acceptance of digital second-hand goods by users has increased suddenly. All of these will have a profound impact on China's business ecology in the future.
Fifth, the trend of refinement after the peak of traffic
The Internet dividend is gradually fading, the competition for public domain traffic tends to be white-hot, and the value of advertising through search engines, social media, e-commerce platforms, etc. is constantly diluted. In order to seek better operation scenarios and reduce operating costs, enterprises have begun to change the traditional idea of traffic operation, and the concept of private domain operation came into being. This is also the first attempt by Chinese Internet companies to break the situation in the face of difficulties, and the core is to carry out refined operation and development around traffic, which belongs to the linear upgrade idea of 1 to 100. However, the emergence of private domain operation has led to changes in consumer relations and a series of changes in business philosophy, but under the guidance of the concept of "technology is the first productive force" in the future, it has begun to fission.
Sixth, China has improved the entrepreneurial environment for enterprises
Since 2013, when data are available, China has achieved remarkable results in simplifying the procedures for business establishment, and the number of procedures required to register a business is even less than that of the United States. At the level of enterprise establishment, it has also decreased from more than a month in the past to 8.6 days in 2019. From the perspective of entrepreneurship, China's administrative approval for the establishment of enterprises is being relaxed. And this is also the most basic and convenient field for the survival of enterprises, and it can be said that there has been some progress. However, there are still problems in the subsequent operation of the enterprise, the maintenance of creativity and the fault tolerance rate of capital. Many emerging industries that are in line with international benchmarks have many problems such as lagging creativity, lagging financing, and lagging markets, and the solution of these problems is the substantive action to loosen China's technology.
7. The undefeated principle of the world's largest market
China's internet emerged after 2000, when the total number of online users was only 40 million, in stark contrast to the 1 billion in June 2023. Therefore, from the perspective of that time, in the face of many areas that can be expanded and focused on by network technology, choosing an absolutely correct and absolutely risk-free approach is the most reasonable choice for Chinese Internet technology companies at the beginning of their establishment. Based on this, China has embarked on a large-scale network infrastructure construction and a strategic decision to use the established Internet business model to serve a large customer base. Therefore, China's network services are the best in the world, but time has passed, and when the user dividend has passed, this strategy of focusing on C-end user services is facing important adjustments.
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