2008 China Internet change



2007 is destined to become the information industry of China's Internet industry and even the history of these important year. However, when we Review of the Internet in China in 2007, we more easily found in the "traditional and mature," the online game market, the 2007 can be viewed as an adjustment to a more year.

In all companies "to constantly adjust strategy," this year, as many companies only Alibaba brightest star, and social networking, video sharing, station group marketing, etc. companies and not be able to and North America market corresponds to a "blowout."

When the whole information industry is talking about "From Web 2.0 to Mobile 2.0, 2.0 to 3.0 from the Internet", the more companies have chosen to seek Nirvana in 2007, born again. Innovation and competitiveness has thus become an important key words.

If China should learn from the United States in the mode, then who can really be the next YouTube? Who will become the Facebook? Who can load from more than 10 billion yuan of China's Internet industry marketing platform?

In 2007, the farewell fanatical creator of the Internet in China who were called in pain in search for new ways of oligopoly. Similarly, in 2007, Ma and his Alibaba, the Internet has become a hero in the hearts of the benchmark.

The occasion of the beginning end of the year, "Computer World" newspaper, IDG China 2007 was held by "IT two sessions" in the computer world, the Internet will, and, like the previous two annual meeting, again in 2008 ahead of the upcoming possible induced , to participate in the Internet "Movement" We are delighted, but also to fighting for our Internet business loss.

Strategy papers: Review of "network" thing, practice makes stays on?

Although the context of China's Internet is very clear in 2007, but follow the context, we shocked to discover that, in 2007, too few Internet companies have been able to stick to their strategy. "Easy to" not only became a feature of the Internet in China in 2007, has become a Chinese Internet enterprise development last resort. Only a few companies stick with it, but they persevered in return, it is able to walk into the Hang Seng, or NASDAQ.

Farewell to the "tactics" impetuous

Internet Society of China at the annual meeting of the Secretary-General Huang Chengqing summary, very clear, very optimistic, but he also shows that in 2007, China's Internet market, strategic layout, and more, it can only be called "2007 layout. "

In 2007, based on Web2.0 technology, blog, podcast rapid development, but business models are still unclear. Mobile value-added services market is still growing, but the initiative has been completely outside the hands of Internet companies, while the conversion from traditional carriers directly to the control.

Chinese online video users and the network size growth rate has surpassed any other country; the same time, the industrial chain remains at the initial stage, the video industry and warlords since they lack the flagship provider, "prototype" features are still evident. Compared to 2006, only a few more users, P2P development of faster, how to form large-scale business opportunities, no clear representative.

Online advertising is a higher degree of acceptance and recognition, and development speed as many ads as a maximum category, but in the form and did not break, the market size of the "primary stage" continues.

In 2007, China has more network operators, Alibaba in the tens of millions of small and medium enterprises amid a cluster of glory towards the Hong Kong stock market. Companies have accepted the use of the Internet, the company's office, finance, mobile, customer, business, etc. to manage but to accept a wider range is merely reflected in the ideology, but in reality, there is too long way to go .

Ji Weidong, executive director of Morgan Stanley in the analysis of China's Internet media strategy, it is the characteristics of China's overall Internet point clear. There are too many changes need to be fully reflected until 2008. "Content is king, achieved in 2008", "brand building, in 2008 involved" and "new media industry, business improvement, will accelerate in 2008." So in 2007 years?

2007, the year is made for strategic development. The strategy of the year, is an active choice, is also an adjustment may not be.

As of December 30, 2007, the number of Chinese Internet China is very likely close to or more than 200 million. Such a large amount of support from the billions of Internet advertising marketing market (including online games). How to promote China's Internet market into a new high? How to strengthen the application of innovation and technological revolution out of the trap? Experts in various fields have their own interpretation, pointing also vary. Is noteworthy that in 2007 China's Internet elite has been recognized and popular Chinese Internet not only to combine entertainment and also a business combination, via the Internet for the Chinese community turned into a contribution of information is no longer a by-product of development of the Internet and move forward to become the engine of the Internet.

In 2007, the industry saw the most bright side, China's Internet has finally emerged out of a group "to create long-term business" mentality, the precipitation was less among the impetuous heart, and strategy, and thus bid farewell to the former "tactical" and become long-term development mentality of "the best results."



Strategic resources must closely

Internet companies for strategic resources, and even the attention of scarce resources, in 2007, the most obvious characteristic. Even the leadership of the Ministry as the competent department of information to promote Hong, deputy director of Beijing-1 indicated that: "only the Internet as entertainment, and life

Without the use of the Internet to the enterprise in fewer and fewer people. "Huang Chengqing also believes that the Internet has a profound impact on people's lives and learning, especially the Internet news and search engines, Internet function has been occupied 77% and 75%.

Behind these two official statements are Internet companies to focus their own resources, and for the integration of resources and strengthening, and in this basis, the strategic layout of the business model is to establish possible.

Strategic business model for the layout, Ji Weidong said, for most Internet companies, the business model in 2007 has reached the point must be modified. "Business model can not be born equal and must show the whole pyramid structure, the most low-end, exactly what the majority of Internet companies that were once national pride points as the 'product as the core' business model."

Product-centered business model, every 3 to 5 years to face the pain of the change of the product cycle, a large number of steps can not cross the Internet enterprises, then replaced in the fierce competition and rapid demise.

To platform as the core of the Internet business model, placing him only the middle class the Internet, only the most interactive platforms, change to the most rapidly, have both advantages and resources to start businesses, be possible to have an advantage in the market ; and these companies can not commit in the course of the implementation of any major mistakes, or will be promptly replaced. JI Wei Dong says that Ctrip is far ahead in the arts to Long, the root cause, thus bringing first-mover advantage in its large user base more and more extensive network, the resulting lower cost of a single order. This, more like a traditional business competitive strategy.

Only those early evolution of the state's business community, long time have more freedom, such as Tencent and Alibaba, and only such companies can long stand on top of the pyramid. The traditional gateway to some extent in 2007 also completed the migration to the community, such as Sina's celebrity blog, has more character with the community.

Scarcity of a business model to establish the key elements of the process, whether the company has become the Internet has a "bargaining chip price increase," the direct determinants. Sina Brand, Phoenix's culture, Focus Media's absolute share in the high-end, are the direct representatives of scarce resources. However, despite the improved business model success stories emerging in the Internet sector, does not mean that strategic irrevocable. Even, an Internet business strategy changes, can influence and even determine rules of the game, but this Internet business, it therefore can become a leader in its field and the flagship, for example, charges a grand paradigm shift to online games for free mode, it is the Through strategic development, scarce resources to find and seize the move. A direct result of this move is a grand success in 2007.



Pragmatic strategy by the appreciation

While in 2007, also known as the second round of the Internet bubble of the float of the year, went through the first round of the Internet bubble investors who apparently is no longer indiscriminately money "burning" of Sha Mao. Legends of the Internet is still emerging, but the mythical future outline,

Has not moved VC.

IDG Global Executive Vice President and President Hugo Shong Asia have the most direct expression to this: "Before we vote a Chinese Internet company, is more a look at the business in the United States did not, and now we look at the suitability of this business in China market, whether in the Internet market in China to establish an effective business model. "Perhaps this thinking, to avoid spreading of China's Internet bubble.

After 2007, focusing on executable strategy and practical results, most likely within a short time to avoid vigorous Internet companies, but also short ashes of gorgeous. VC investment in transition, will have a direct impact on Internet companies, especially innovative Internet companies choose the road.

As Hina Group Chairman Chen Hong said, "Perhaps after the Internet industry, the opportunity to appear less and less, more and more a huge surprise; public financing less and less with each other more and more mergers . "

Because of this, Alibaba Chairman Jack Ma's Alibaba success in summing up the words, but also seems to be the current Internet companies must face and asks: "Where It Comes? Want to do, what to do ? "

Face the pressure of survival, rather than growing demand, China's Internet companies must bid farewell in 2007 "Today just today, and tomorrow, which control the wind and rain" mentality, the business content based on a pragmatic - The content includes not only the embodiment of the Internet, but also includes business strategy and long-term evolution of these strategies routes.

"Road Map is not only written in the plan in writing the speech, but that each stage of the implementation of the results together, it is the Internet companies to do business and services, but also long endure, to be done; and Technology is not the core of the Internet business, I'm not saying technology is not important, I just want to show that there is something more important than the technology, need to see. "participate in" Computer World, 2007 Annual Meeting the Internet, "the group of technology companies Shuo CTO Wayen Hom question in reply to the scene, a way to explain the essence of the Internet business.





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Pyramid outside the "big" principle

Migrate to the top of the pyramid as far as possible, the optimal strategy is to ensure that Internet companies a decisive factor; in this addition, keep the size of the large Internet companies is the key to successful implementation of strategy.

Focus Media has been in the building TV ads have the advantage of its platform strategy and business strategy have become competitors to follow the target. However, Focus Media, occupies the top in after the merger of the Target Media, so they own the market share of 95%, by large, to ensure that their fields are no longer subjected to the same risk of any competition.

Ctrip and China Mobile, through the co-operation on the route extension has the absolute resources are top of the pyramid. But after that, through the free membership form, rapidly expanding customer base, lower individual cost, will have competitors far behind, and therefore has the absolute advantage. In 2006, its market share over the second network of arts dragon three times higher, while the individual customer spending is lower than 30% of eLong, but 40% higher revenue. The reason is very simple, very large scale customer volume, so in the hotel, air ticket discount on to have more initiative and the "price increase chip" - that is for the supplier of the "keep the prices down chips."



Innovation article: New media representatives to become an innovation?

In 1983, ARPA and the U.S. Department of Defense Communications Agency for the successful development of a heterogeneous network of TCP / IP protocol, the United States to the agreement of California at Berkeley as its B

SDUNIX part of the agreement has been made popular in the community, thus the birth of a true Internet ... ...

Yes, the Internet so far not a perfect plan of the results. However, the Internet itself, and is now carrying on its various applications, are both innovative product.

In a business environment practitioners have the Internet on how to create new opportunities, in 2008, which in turn is facing a new trend? The new wave of joy Which Which will this misery? "Innovation", as the lifeblood of strong Internet companies rapidly in China over such a homogenization of the environment over plagiarism, but also with what kind of a different kind of meaning?



New Media income "intense" growth

Although there are many number of investment projects, in 2007, suffered "Waterloo", but the total size of China's Internet application market growth rate, growth rate over the user. This contrast, of the end of 2007, the Internet industry, companies, non-

Suspect is good news. But at the same time, the market has become increasingly evident mass effect, which means that sub-field position later left the company the opportunity is not much.

If the adjustment of the strategy is to adapt to the opportunities and environment change, then innovation will undoubtedly become the strategic layout in 2007, the lifeline of traffic aggregation is no longer simply be pointing the benchmark outcome, simply by way of capital operation, survival gradually disappeared, replaced by "integrated, subdivision, accurate, interactive," and so on, these operations are hidden behind the compact tape in strategic innovation.

Media industry is now experiencing the "new media" during the big bang. Ji Weidong, analysts say, the "new media" is a winner-take-all market. Those high-end of the "new media" such as Focus Media, Tencent, Sina and so on, their income occupy the strong position of their respective segments. Ruan Jingwen, vice president of iResearch Consulting Group, said, "new media" in 2007, gives the impression that the "collective power" in the market which greatly influence the formation, and had already had the traditional gateway to an impact that will result in the original Some online media including the Internet companies began to restructure some of the positive concept of the portal began to attract more, such as Sina blog's business model.

The annual meeting of the Internet, "the challenges of new media portal?" Topic sub-forum, delegates of some new media features: such as search and e-commerce has been designated to the areas of new media, new applications were Web2.0, search and e-business integration, will become the new e-commerce model. China's current development status of new media, regardless of the size from the user's coverage area, or the link to the user, have laid the basis for a very good marketing. From the community side, the word of mouth marketing to the community as an important marketing tool into the front, after one or two years of development, which has some negative effects, the future of the community will be broken down, for different sub-populations, effective achieve precision marketing, brand advertising is the future of the community, a new growth point of interest, while you can see e-commerce and community-based population of value-added services, will become effective profit model community.

In addition, new media and traditional media differentiated problems of concern. Traditional media and new media than any other country differences are large, traditional media, both newspapers and television stations are state-oriented basic and new media, digital media or whether most of the Internet media are privately owned. In terms of the management is also more interesting, newspapers, media, TV stations who are liberal arts background to manage the new media people are born to control science. The user's age, age of users of traditional media and the general ordinary people like the traditional media more than 60% of users 30 years old, 70% of users in China is less than 30 years of age.

As for the growth of new media, you can comparison of the data analysis. 2002 to 2006, China Central Television advertising revenue remained in the industry about 11% of total revenue, while Focus Media in the years to keep the times the ad is basically the annual growth, Sina, Sohu's annual advertising growth remained 60%, much higher than traditional media. Rapid growth of new media has brought new challenges and pressures.

Not all new media

Despite the rapid rise of new media, especially the marketing success, in 2007, attracted much attention to eyes, but, in 2007, on behalf of Internet innovation, is not the only new media, new media or not. More and more new types of business, in 2007 a huge success. Especially those who truly based on the concept of Web 2.0 and on the basis of the business, has operations in the traditional Internet companies, the formation of a new ecological groups, and even the traditional portals began after the introduction of Web 2.0, try to make it their own one of the mainstream business.

For example, P2P video type site into the sprint stage, the value of the gradual emergence advertising, video search applications to a new level. Online video industry has formed a content-provider, network platform operators, technology providers, distribution channels, advertisers and users for the main components of the network video industry chain, although the chain still cross-competing, chain border fuzzy, etc., some video website has been to develop a new advertising model to make up for these deficiencies.

Meanwhile, electronic commerce has ushered in all-time high. Survey, in 2007 the Chinese e-commerce market will reach 1.5 trillion yuan, a growth rate of over 100% growth in the world ahead. China's Internet industry has a solid user base, according to the Ministry of Commerce predicted that within ten years there will be 70% of the volume of trade through electronic commerce and e-business ... ... This signals that the business will soon become the mainstream economic model. China's largest e-commerce site Alibaba B2B business listed, its market value equivalent to 20 Sohu and Baidu search engine ranking services exist because of its market value after the listing is also equivalent to 10 Sina. This has fully shown that the traditional gateway to growth, and growth of new sites, there have been multi-polar radiation situation.

As Wayen Hom said, the Internet enterprises, users and user needs must be all the product innovation as its foundation and lead. Sina is the traditional site for example, increase as the business challenges and adjustments necessary, Sina can not find opportunities to blog threw competitors or new site, so Sina their advantages, began to provide more in line with demand for celebrity hits blog, and eventually captured the market.



Competition articles: What is the core value in 2008?

Development of the Internet today, has been widely affected all aspects of national and social development. Internet and telecommunications networks in China, as the education network to keep pace with one of the three major networks, as have many of the parameters

And who, more extensive commercial activities and the larger innovation, becoming the fastest growing in the three major networks, the use of new technologies the fastest, most advanced network of commercial considerations, the various forces are playing an increasingly important role in the right strategic choices and continuous innovation have to be to promote the Internet industry and the Internet continue to enhance the core competitiveness of enterprises and source of power.

After many years of development, China's Internet companies through the creative stage, the execution stage, innovative business stage. IDG that Chinese Internet companies in 2007 will most likely across the stage of innovation business, focused on the enterprise itself and more comprehensive "competitiveness".



Competitiveness is not just business or product

Ji Weidong, the Internet firm characteristics and determine their own level in the pyramid view similar Shong On what kind of business investment in time, has clearly said: "Now is not the same as before, we will no longer be just operations of enterprises. "

Market success of Alibaba, when talking about their business, have begun to meet customer needs, close to customers and competitiveness as a major concern. Alibaba Vice President, B2B Pent Yijie executive director, said: "In fact, there was an idea that Alibaba has been the site not by Alibaba myself, but to allow customers to do." She further explained the characteristics of Alibaba is the largest, The information is not a place Alibaba own website, but all provided by the clients and members. "Early on, for example, in 1999, members do not know how to promote themselves on the Internet, they only send one word, 'we have Apple to sell', and now the sale of our information has reached several 10 million, much updated daily . "However, she said, the company was" not involved in the original information "principle has not changed because of the increase in information.

"The biggest change is the trading information from different transition to the second stage, the company was more and more members to provide information and quotes, meaning very good reference. To the third stage, we have discovered that more and more to go in front of network operators, they experienced the use of Alibaba's platform to provide other value-added services, even the online law firm, to help members of the organization, in our business community better. "Peng Yijie that Alibaba, which has completed the transition from the platform to the community.

However, no major changes in strategic premise, the strategy is in with the changes in the environment continue to evolve. "We use the platform to gather customer needs and help them achieve the first requirement." But even so, Peng Yijie Alibaba also has an absolute ability of the market place and reservations. She believes that to maintain competitiveness Alibaba best approach is to ensure customers receive better service. "The customer demand, the Internet today, the Internet can provide good value, and we hope that our platform has been more and more open." Peng Yijie, said: "Do not seek the same opportunity and ability, but the demand and opportunities the same capabilities. "while Ma is clear:" the prospects for the future of data is very good, but the industry needs more people to work, but also cost more. "

"In order to gain a competitive edge, not the product, the first way is to think from a user perspective, the Internet companies are doing product development, technology, functions and processes, so they focus on product development process, should not use technology as the core, which is We say that the difference between the market, we should understand and listen to customer needs, and then based on customer feedback and adjust. "Augmentum Wayen Hom, CTO of Technology says," The key is that performance is the need to protect the most important or to protect the user experience very important, the answer is obvious, which is competitive. "



Users are not competitive

Since 2003, China's Internet economy has maintained rapid growth, new users continue to appear, the user volume and size of the market also expanded, in such a fast growing market which you can clearly see a significant feature is that this market

Concentration of growing, but understand the user needs has become more difficult.

As a result, China's Internet market will respond to the following characteristics, a senior analyst with IDC's views Huang Yongtao described, is the "oligopoly, Web 2.0 user."

From the platform to search, to the polymerization, the Chinese Internet has long been a continuation of the profit-driven and demand-driven state. This situation is expected as the interaction between the user and the user, and user involvement with the Internet changes.

At present, China's leading Internet business models currently still in a situation based on advertising revenue, while advertising pages need to load the user clicks. Therefore, maintaining the user views, to become the No. 1 goal - how to increase page views, into an effective, direct the user clicks.

Driving the Internet economy of the four elements (communication, community, content, business), communication and community, was the initial purpose of the content and business is high after the application of user acceptance. For most Chinese Internet enterprises, how to allow users to accept themselves, to provide users with better channels of communication, the network of interpersonal community, is one of the keys in 2008.

Internet companies have a clear understanding of particular, especially those aimed at business users of Internet companies. For example, China's largest CDN (search engine speed) service provider ChinaCache four Qing Xu, Chief Operating Officer on the table, CDN business purpose is "at the right time, to the right content, using the correct means to push the right Location. "This is something for all Internet users for Internet businesses, are feasible reference.



Snapshot

Jack Ma, Shong impression

Hugo Shong (Hugo) in my memory always full of energy, even light lying eyes, see no exception this time, the meeting early in the morning excited to see me told me: "Ma I give you, please came, he did not lecture, we let him talk, be sure to give you a wonderful! "Then, it is so, so to arrange something, I quickly busy getting ready to go ...

Ma calls the driver said he is coming downstairs, Hugo took guests garland to welcome him to the elevator, where he looked a little joy, a little excited, a bit like wondering what mood hi mind like, nothing as vice president of IDG, the fantasy and impulse as a journalist. Ma came later, Hugo began to lecture in the lecture course, Hugo asked Ma why do we accept his invitation the next year, Ma Yunxin natural power, to answer this question. After the last straw on the small site a thankful heart, answered my mother's question about Ali, this set off a small annual climax.

Ma met before the meeting, although the star of the Internet circles, but the impression is very plain, I remember the meeting holding a card rushed to interview him, he always would say a few words, will not let you go in vain and Unlike some of biggest names in children, cattle may not look at you. This, too, saw problems on the screen, "Ma big brother, Ali, mother talk," "Ma, came to power to" buddy on irrepressible loyalty to say a few words, turned around and told me: "I can answer this question. "and his secretary arranged for him to deal with the trip is also very comfortable, both gentle Southern woman, but also the efficiency of current office lady, a number of variables in a very short time on the set.

Really hope a few more laps of China's Internet is full of passion such as Hugo, full of creative and willing to take action, boss, a few more such as Ma vigorous, full of gratitude, practical and efficient entrepreneurs.

Ma Jing-military salute to our

Jack Ma and Hugo Shong escorted to the elevator, waiting for the elevator at the same time, Ma suddenly said the word: thank you. Then stand at attention for us a very standard salute, then if the camera can shoot, sure to become a classic after the picture.

Ma's name, estimated to understand a little of the Internet as long as people know. His speech at the annual meeting of the Internet, made us nervous, he is a very common around us, maybe even a personal charm that right. Hugo Shong, he sent him a gift, said, "Xie Xiexiao dove, pigeon knows I am wearing a tie is to teach me, I used to Cookin, and almost beat red scarf, I do not know Xiao Dove taught right."