China’s Internet economy steps towards more tech-driven innovation

China and the US have become the major forces when it comes to the global Internet economy, as the report co-released by the Boston Consulting Group (BCG), Alibaba, Baidu and Didi pointed out on September 13. China’s Internet economy will be changing from application-driven to technology-driven.

The report, known as the White Paper on China’s Internet Economy: Interpreting China’s Internet Characteristics, analyzed the features of China’s Internet economy from the dimensions of market, user, industry competition and others.

The report says at present, Chinese Internet companies focus more on application-driven innovation, while the combining of technology, application and business model is promoting a unique innovation that meets China’s market demands.

Mobile payment is popular in China.

The report points out that China’s Internet economy overall has shown three distinct characteristics: First, it has a large and unique market.

China’s 710 million Internet users is equivalent to the sum of India and the US, with e-GDP up to 6.9%. The size and number of Internet giant and unicorn are also among the highest in the world like the US.

The structures of China’s Internet market, however, have significant differences compared with the US. China has more e-commerce and Internet finance applications. Internet users are also younger – more like to use mobile phones to go on internet and more receptive to new things.

Second, China’s Internet economy develops fast and has great potentials of further increase. New apps and services spread faster than that in the US.

Third, China’s Internet economy has high vitality and fluctuation. Services and apps change fast and Internet industry is catching the entrepreneurship trend.

One of the report’s authors, BCG’s global partner and managing director Li Shu, said China’s overall economic bonus, including population, talents, capital, and infrastructure all contributed to the Internet economy’s development.

The report also pointed out that the key to China’s Internet economy's success lies in local customization, quick response to market and combination of online and offline services.

(ASIA PACIFIC DAILY)