iResearch Releases China's Internet Industry Report: China is Entering the Era of Technical Talent Dividends

Source:iResearch June 25,20182:10 PM
On June 15, 2018, iResearch Consulting Group released the English version of China’s Internet Industry Report. From the perspective of an independent third party, the report provides the big picture of the industry discussing the past, the present and the future of the industry. 

As a country with the largest number of internet users, China is already a leader of internet technology in the world and plays a key role in the development of global mobile internet market. China has been leading the world from innovation of core internet technologies to application scenarios of mobile internet technologies. Born with the internet industry in China and with a history of 16 years, iResearch Consulting is a leading consulting company in the field of new economy in China.
It is known that China’s Internet Industry Report covers the latest development of new marketing, pan entertainment, new retail, local lifestyle service O2O, online travel, online education, new finance, cloud computing, artificial intelligence (AI), etc., introducing the capital, revenue, technology and other aspects of China’s growing internet industry to the world.  

The following are pages selected from the report: 

With surging capital, the IT industry will be under pressure of 4 Tn Yuan in 2020 
IT revolution will create new development opportunities in the world and the arrival of era of mobile internet makes it possible for China to accommodate more internet and technology companies. In 2014, as China was entering the era of mass entrepreneurship and innovation, entrepreneurship and investment in the mobile internet and IT sectors promoted each other and the number of companies mushroomed. In 2017, the total scale of VE, PE and VC investment in China reached 430 billion Yuan and the total investment was 540 billion Yuan. Generally speaking, it took 2 or 3 years for a company to be listed, so it is expected that in 2020, the market will be under enlargement pressure of 4 trillion Yuan. 
Innovation for demographic dividends and prosper of internet economy 
According to data from iResearch, in 2017, the number of internet users and mobile internet users reached 772 million and 753 million respectively, and their growth rates decreased. At the macro level, after years of rapid growth, the demographic dividend is eventually exhausted in the process of internet popularization. As the internet users born in the 2000s and 2010s are growing up and more families are allowed to have a second child, the number of internet users will create more possibilities for the development of internet economy in China. 

Seeing that the demographic dividend is eventually exhausted, some internet companies in China have maintained high user stickiness and user growth through product innovation and user development and ranked high in the lists of user penetration rates in the global mobile internet market. 
Iteration of three waves and different performances of Internet industry segments  
According to iResearch, China's Internet industry has three waves. In the first wave, the portal websites and search platforms represent the power of the Internet. In the second wave, the e-commerce platforms and service platforms represent the power of the Internet. The development of enterprise service platforms is the third wave. The three waves are not substitutes for each other, instead, they promote the update and iteration of each other. The concept of traffic in traffic monetization will expand and the different internet industry segments will have different performances in this process.
New marketing area: Intelligence and native are the key words in the new stage of online marketing. iResearch data show that in 2017, China’s online advertising revenue reached around 400 billion yuan. The division between advertising and content are increasingly vague. The rapid iteration of AI will also quickly facilitate its application in the field of online marketing. Among different types of advertising, news feed advertising is a major growth point and it is invading the space for traditional display advertising. It is expected that native advertising represented by news feed advertising will have tremendous room for growth. iResearch believes that the core issue for digital marketing in China is to find new traffic growth points and increase the traffic monetization rate.

Online education: Return to the nature of business and video streaming has become the key. According to the data of iResearch, the number of Chinese online education users exceeded 100 million in 2017 and will keep growing. The institutions in the industry gradually realize that the core business logic of online education is “pay for education”.
Artificial Intelligence: The technology has gradually penetrated into various fields. iResearch data show that a prominent feature of Chinese Internet companies is their emphasis on the nature of business. Single service mode can no longer meet the needs of enterprises. Cloud services, big data, and artificial intelligence are inextricably linked to each other and represent "frontier technology" in the industry.

China will enter the era of technical talent dividends
From e-commerce and payment business to tools for users’ daily necessities, the business strategy of “free + value-added services” is the key to success in China’s business environment. The enterprises that monopolized customer traffic first have also formed an all-round monopoly of user big data. iResearch believes that in the future, many companies will make breakthrough by seeking technical traffic Blue Ocean. Meanwhile, according to iResearch’s interviews with experts and public materials, the ten black technologies in China will probably include Internet of things, human-computer Interaction, 3D print, cryonic freezing, transgene, etc.
About iResearch Consulting Group
iResearch Consulting is a professional third-party organization that help clients make business decisions. The company’s brand philosophy is “Empower Business Decisions” and it has 16 years of experience in research and consulting. Through professional services such as research and consulting, iResearch helps clients improve their profitability, competitiveness and understanding of the new economy industry. Based on the data and industry insights, the research business of iResearch Consulting has expanded to the fields of big data research, corporate consulting, investment research, new retail research, etc. Via research and consulting, iResearch Consulting helps companies to better understand the market and make intelligent decisions.

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