CBSi's Liu Xiaodong: Five Major Changes in China's Internet Industry, Impacting the Entrepreneurial Environment
Author: Tang Xiaoyu | Source: DoNews | May 29, 2010, 15:05:26
The survival rules of the internet have undergone significant changes. From creating one's own content, to researching Baidu and avoiding penalties while profiting from them, the industry is now becoming more standardized. The previously used tactics for running websites, such as "very pornographic and violent," can no longer be employed. The current industrial environment represents the most hopeful decade for China's internet future. One should watch the news broadcast, read the People's Daily, research and follow national policies, and consider how to obtain start-up funds through government support policies for internet enterprises, thus engaging in state-supported industries.
DoNews, May 29 (Reporter Tang Xiaoyu) On May 29th, at the 2010 Webmaster Annual Meeting, Senior Vice President of CBSi (China), Liu Xiaodong, stated that five major changes have occurred in China's internet industry since 2000, directly impacting the entrepreneurial and development trends of the sector.
Change One: The survival rules of the internet have changed. From creating one's own content, to researching Baidu, avoiding sanctions, and profiting from them, the industry is now becoming standardized. The previously used tactics for running websites, such as "very pornographic and violent," are no longer applicable. The current industrial environment represents the most hopeful decade for China's internet future. One should watch the news broadcast, read the People's Daily, research and follow national policies, and consider how to obtain start-up funds through government support policies for internet enterprises, thus engaging in state-supported industries.
Change Two: Changes within the industry. Ten years ago, the era of diverse voices among websites like Sina and Sohu has passed. Now, a minuscule fraction of websites controls 99% of users. There are two main paths forward: cooperation or focusing on specialized behaviors. More people are doing things like "city hotlines." The advantage lies in areas that large portals or groups cannot cover, or where user hotspots are not fully grasped. Through cooperation and focus, companies can establish unique value for themselves.
Change Three: The entrepreneurial environment has shifted from an internet platform based on laptops and computer terminals to professional services based on mobile internet platforms. The latest data shows that among U.S.-listed companies, ExxonMobil currently holds the top market capitalization position, with Apple replacing Microsoft as the second largest, proving the value of product positioning for mobile terminals. The success of microblogs also stems from this.
Change Four: Commercialization of the internet. We are increasingly thinking about how to maximize corporate value? How much value does providing e-commerce services on the platform have? How do internet companies conduct e-commerce transactions? Should they engage in specialized business cooperation with Taobao? Should they integrate some traditional enterprises downstream? For example, automobile websites and car review sites could integrate with domestic 4S stores. Financial websites could cooperate with Hong Kong brokers. Should they provide some specialized e-commerce support and services? These factors will determine the overall value of the website.
Change Five: Changes in the internet capital market. China's capital market has opened its doors to new asset internet companies.