"Due to the large number of responses from business users"

The company that invented the electronic business card, Shangzhixun, announced that on June 18th, it will significantly adjust the price of its main product, the electronic business card (TraCQ). After the price adjustment, the price per user will increase from the current 300 yuan/year to 500 yuan/year, an increase of nearly seventy percent. According to market laws, after the official release of a product, companies usually reduce prices to boost sales. Is Shangzhixun's counter-cyclical move due to a desire for quick profits, or does it have another purpose?

In an interview with Beijing Shangzhixun Software Co., Ltd.'s General Manager Sun Zhiqiang, he stated that raising the market price of the electronic business card is aimed at curbing the recent phenomenon of抢注 (cybersquatting) of electronic business cards in the market.

Founded in 2001, although Shangzhixun has a significant gap compared to well-known domestic and international enterprises in terms of scale, capital, and brand, it has its own unique approach in the creativity and promotion of new products. Shangzhixun recognized the drawback of traditional corporate websites being unable to interact and exchange information. In August 2003, they launched the electronic business card, which features unique web conversation technology compatible with text, SMS, video/audio conversation exchange functions, enabling static, unmanned websites to "come alive." This innovation clearly opened up a market space for the company. According to Sun Zhiqiang, from March to May, in just two months, the number of paying customers for the company's electronic business cards increased from 5,000 to 50,000, and the number of registered users also quickly rose to 200,000.

"After the market demand was opened up, some irregularities began to appear," said Sun Zhiqiang. "Since TraCQ electronic business cards are based on real-name registration and organizational behavior, but only one person can register the electronic business card for an enterprise before distributing it within the organization, this has led to some malicious抢注(cybersquatting) actions. Enterprises that have been抢注(faced with cybersquatting) encountered difficulties during the registration process and may trigger a series of legal issues. This was unexpected by us." Internet domain names, 3721's Chinese web names, Tencent's QQ numbers, etc., have also faced similar抢注(cybersquatting) issues.

"Due to the strong feedback from corporate users, Shangzhixun decided to raise the price of the electronic business card in order to protect the interests of a large number of corporate users," said Sun Zhiqiang, hoping to curb malicious抢注(cybersquatting) actions through this measure.

Commentators believe that the reasons for innovative companies to raise prices after receiving market recognition generally include increased product functionality, accelerating the recovery of initial R&D investments, and rising operating costs. Shangzhixun's price hike indicates that its carefully operated innovative product is welcoming a sales boom, but whether the price increase can truly alleviate the抢注(cybersquatting) phenomenon, and what specific results it can achieve, still requires market verification.

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